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Stocks down amid lingering recession worries – Calls for Elon Musk to step down as CEO of both Tesla and Twitter – Senate banking chair considering banning crypto – Binance books are a black box
Stock futures moved downward slightly on Monday amid lingering fears of a recession.
The Dow Jones Industrial Average fell 6 points, or 0.02%, while the S&P 500 dropped 0.14%, and the Nasdaq Composite shed 0.49%, CNBC reported.
Recession fears ramped up after the central bank increased its forecast for future hikes above previous expectations, with the Fed saying it now expects to hike rates to 5.1%.
Oil rose on Monday after falling by more than $2 a barrel in the previous session, fueled by optimism over the reopening of the Chinese economy, Reuters reported.
The benchmark 10-year U.S. Treasury note ticked up slightly on Monday at 0.101 for a yield of 3.583%, while the 2-year rose 0.054 to a yield of 4.23% and then moved up to a 0.0374 yield of 4.645%, and the 6-month inched up 0.002 for a yield of 4.687%, CNBC reported.
Three days ago, KoGuan Leo, an Indonesian billionaire and the third-largest individual shareholder of Tesla (who holds $3.4 billion worth of shares), called for musk to step down, the Observer reported.
“Elon abandoned Tesla and Tesla has no working CEO,” said KoGuan Leo. “Tesla needs and deserves to have working full-time CEO.”
“Tesla is 19 years old, ranked 4th with 2.4 percent allocation in S&P,” Leo added in another tweet. “Elon was the proud father, Tesla has grown up. An executioner, Tim Cook-like is needed, not Elon.”
Elon Musk himself posted a poll on Twitter on Sunday, asking users: “Should I step down as head of Twitter?” Musk added: “I will abide by the results of this poll.”
As of early Monday, the results showed 57.5% saying “YES,” while 42.5% voted “NO,” the BBC reported.
On Sunday, Senator Sherrod Brown (D-Ohio), the chairman of the Senate Banking, Housing, and Urban Affairs Committee, said that “all the different agencies” federal agencies need to address the cryptocurrency market and “maybe” enact a ban in the wake of the collapse of cryptocurrency market FTX last month, the Hill reported.
“Maybe banning it [cryptocurrency],” Brown said, “although banning it is very difficult because it will go offshore and who knows how that will work.”
Binance’s founder Changpeng Zhao promised his company would “lead by example” in embracing transparency. However, a Reuters analysis of Binance’s corporate filings shows that the core of the business remains mostly hidden from public view, Yahoo Finance reported.
Among the basic disclosures Binance has declined to reveal, according to the report, are: Where Binance.com is based, as well as basic financial information such as revenue, profit, and cash reserves. In addition, the company has its own crypto coin but doesn’t reveal what role it plays on its balance sheet.
Binance is not required to publish detailed financial statements because it is not a public company.
