Patrick Boyle On Finance

Send us a textA new Harvard Business School study analyzed the impact of giving AI tools, to white collar workers at Boston Consulting Group. In the study, management consultants who were told to use Chat GPT when carrying out a set of consulting tasks were far more productive than their colleagues who were not given access the tool. Not only did AI-assisted consultants carry out tasks 25 per cent...

Send us a textAs the global fight over manufacturing share and exports heats up, with surplus economies doubling down on exports, and deficit economies discussing protectionist strategies, the policies of the largest global economies are in clear conflict. Are trade wars likely, how do they work, and can the global economy regain balance? Michael Pettis Books:The Great Rebalancing: https://amzn.to...

Send us a textAdam Neumann has been trying to buy WeWork - the company he cofounded out of bankruptcy — allegedly with the help of the hedge fund manager Dan Loeb of Third Point. Neumann’s new real estate company "Flow" has sent a letter to WeWork requesting that they consider its takeover approach. Flow has already raised $350 million from the venture capital firm Andreessen Horowitz, disclosed i...

Send us a textA Delaware court this week voided Elon Musk’s $55.8 billion dollar pay deal with Tesla. The voiding of these stock options erases about a quarter of Musk’s current wealth. The judgement came in response to a shareholder lawsuit launched by Richard Tornetta who owned nine shares in the company. Judge Kathaleen McCormick found Tesla directors, who negotiated the pay package, were "perh...

Send us a textJesse Lauriston Livermore was a famed American stock trader known for his huge successes and devastating failures in the early 20th century. Starting as a "chalkboard boy" in a Boston brokerage, he became hugely wealthy as a trader first in "bucket shops" and then on the exchange in New York. Livermore made millions in the Panic of 1907, the roaring 20's and in the 1929 market crash....

Send us a textBig startups are shutting down. More than 3000 private venture backed startups failed in the last year. Of the startups raising money, 19% were funded at a lower valuation than in prior funding rounds. 38% of VCs disappeared from dealmaking last year and more than a quarter of a million workers at tech companies lost their jobs over the same period. US corporate bankruptcy filings cl...

Send us a textHow much do you need to earn per year to be in the top 1%? The answer to this question varies depending on if you are asking about the 1% in a given country or globally? In today's podcast we discuss how much you have to earn and how wealthy you have to be to be considered in the top one percent. We discuss the careers and lifestyles of the one percent. We look at inequality research...

Send us a textHow is China able to sell European drivers so many cheap cars? Customs data shows that Chinese EV shipments to the European Union have increased by 361% since 2021. All over the world, Chinese automakers are taking market share which is threatening European automakers. Patrick's Books:Statistics For The Trading Floor: https://amzn.to/3eerLA0Derivatives For The Trading Floor: https://...

Send us a textDozy Mmobuosi, the founder and CEO of Tingo Mobile has been accused by US Regulators of running a "staggering fraud."Tingo Mobile claimed to provide mobile phones to rural farmers in Nigeria and build a fintech super app. It quickly grew into a multibillion-dollar empire with a listing on New York’s Nasdaq stock exchange. Dr Dozy, the London-based tycoon attempted to buy the Premier...

Send us a textIn this week's podcast we look at the biggest financial news stories of the year, bank runs, The Elon Musk - Mark Zuckerberg fight, The Sam Bankman Fried Trial and much more. Patrick's Books:Statistics For The Trading Floor: https://amzn.to/3eerLA0Derivatives For The Trading Floor: https://amzn.to/3cjsyPFCorporate Finance: https://amzn.to/3fn3rvCPatreon Page: https://www.patreon.com/...

Send us a textHigher mortgage rates should be expected to depress the housing market, and the US has just seen one of the steepest rate increases in history. Would-be homebuyers are facing massive sticker shock, with measures of affordability worsening at the fastest pace on record. The US real estate market has frozen up with the volume of new sales slowing at a faster pace than even during the a...

Send us a textArgentina’s new president, Javier Milei describes himself as an anarcho- capitalist and says that he will take a chainsaw to the Argentine economy. He has campaigned that he will dollarize the economy and shut down the central bank. What does this mean, and could it work? Argentina mostly exports agricultural commodities but used to be one of the wealthiest nations in the world. Deca...

Send us a textElon Musk told advertisers who have halted spending on X due to his endorsement of an antisemitic post to “go f**k” themselves, in an unhinged interview with Andrew Ross Sorkin (who Elon calls Jonathan). Musk said that a recent exodus of big brands was “going to kill the company, and the whole world will know the advertisers killed the company”.Musk, who bought Twitter (which he has...

Send us a textFired CEO Sam Altman will return to run OpenAI - the company he co-founded, following days of speculation and turmoil at the leading generative artificial intelligence start-up. In a dramatic reversal, Altman, who was fired by OpenAI’s board of directors last week, will be reinstated under the supervision of a new board. Greg Brockman, the co-founder and president who quit the compan...

Send us a textWhen Mao Zedong died in 1976 his successors seized the opportunity to reassess the wisdom of Chinas rigid commitment to Marxist doctrine. With Deng Xiaoping in charge, China scoured the globe in search of economic expertise to put China on the path to domestic prosperity and ultimately global economic power. The World Bank describes China’s growth as “the fastest sustained expansion...

Send us a textRussia’s invasion of Ukraine was a wake-up call to all western governments. Alongside China’s rise, the threat of a nuclear-armed Iran and instability in Africa, the new era of global conflict has forced governments around the world to commit to more defense spending. Will voters around the world accept the high price of military deterrence? Patrick's Books:Statistics For The Trading...

Send us a textSign up for Compounded Daily at this link: https://www.compoundeddaily.com/Since founding Bridgewater nearly 50 years ago, Ray Dalio has become one of the world’s richest investors. He is widely credited with having predicted and profited from both the 1987 crash and the 2008 financial crisis. He is the founder of the world’s largest hedge fund and is one of the most successful busin...

Send us a textA jury has found Sam Bankman-Fried guilty of all seven criminal counts against him. The FTX founder faces a maximum sentence of 115 years in prison. In today's podcast we discuss the findings of the trial and speak with Tiffany Fong who has been there in person reporting from the courthouse in New York along with people like Michael Lewis. Tiffany Fong YouTube ChannelTiffany Fong Twi...

Send us a textA podcast about how "passive income" money-making scams seem to have taken over the internet, and the economic implications of such scams. Patrick's Books:Statistics For The Trading Floor: https://amzn.to/3eerLA0Derivatives For The Trading Floor: https://amzn.to/3cjsyPFCorporate Finance: https://amzn.to/3fn3rvCPatreon Page: https://www.patreon.com/PatrickBoyleOnFinanceBuy Me a Coffee...

Send us a textThe 10-year U.S. Treasury yield closed above 4.9% yesterday, its highest level since July 2007. The bond-market sell-off that's pushing yields higher is starting to eclipse some of the most extreme market meltdowns of past eras. Losses on Ten Year Treasury Bonds are close to 50% since March 2020, while the 30-year bond had plunged even more. Those losses are nearly in line with stock...

Send us a textOil rich countries have long used sovereign-wealth funds to store their windfall profits from periods of high prices for future years when hard times might arise. Ireland on Tuesday created its own sovereign wealth fund thanks to outsize tax revenues from international companies seeking to lower their tax bills. In the past eight years, the country of five million people has watched...

Send us a textWeWork announced this week that it would not make two sets of interest payments totaling about $95 million, a move meant to jump-start negotiations with its lenders at the same time it tries to cut costs with its landlords. The missed interest payments will spur speculation of a bankruptcy filing. But WeWork says it has the cash on hand, and the company has a 30-day grace period to m...

Send us a textA large number of western firms have continued to operate and invest in Russia since Putin’s invasion of Ukraine. These companies are estimated to have earned profits of around $20 billion dollars since the invasion. The problem for these companies is that the Kremlin has blocked them from accessing those profits in an effort to clamp down on companies from what they call “unfriendly...

Send us a textFTX has sued Joseph Bankman and Barbara Fried, the parents of Sam Bankman-Fried, claiming they enriched themselves by siphoning off millions of dollars in “fraudulently transferred and misappropriated funds” from the cryptocurrency exchange their son founded. In a court filing earlier this week, the FTX debtors said Joseph Bankman and Barbara Fried, both of whom are tenured professor...

Send us a textWhen a company, brand or product gets really big, it can be easy to imagine that company will remain in business forever. Yet businesses rise and fall over time, with millions and billions of dollars changing hands as executives try to stay current on what consumers want at any given time. Today let's look at some of the biggest business mistakes in history. Patrick's Books:Statistic...