Morning Download 

Personal finance + economics + markets

Good morning investors! Today is going to be a very busy newsletter due to a lot happening these days.

🚚 Fun fact: After a historically low rate of change between 2020 and 2021, the U.S. resident population increased by 0.4% in 2022.

Today we cover:

• Job cuts everywhere

• The stock market suffers

• Where Americans are moving

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📊 Economy and News 

Jobs cuts everywhere

Some big companies are getting rid of workers:

• Ford lays off 700 workers who were building an electric version of the F-150. This decision, however, is not linked to the ongoing UAW strike. According to the company, this is a temporary move as it has plans to reduce shifts at its Rouge Electric Vehicle Center in Dearborn, Michigan. Moreover, it is known that the company has been facing supply chain issues.

• Rolls Royce has plans to fire 2,500 workers. The company is looking at revamping its 'burning platform' business and reduce costs. The company has made similar attempts in the past. It reduced its work force by about 9,000 jobs during the pandemic due to reduced demand. Furthermore, it was in the news in 2018 for cutting 4,600 workers. Apparently, not everyone is feeling rich these days!

• LinkedIn is laying off 668 workers across its engineering, finance, talent, and product teams as it works to restructure the business. This isn't the first time the company is laying off workers this year. It fired 716 employees in May and stopped its jobs app in China. The company, however, has been doing well financially. It surpassed $15 billion in revenue for the first time during this fiscal year.

This comes at a time when companies are preparing to announce earnings. Layoffs typically improve profitability, but the impact will not be reflected this quarter. However, we have seen in the past that laying off workers can boost stocks, especially if investors feel a company is paying too much (example, Facebook).

Also check: CVS, Walgreens and Rite Aid are closing thousands of stores for 3 reasons: increased competition, lower reimbursement rates for prescriptions and theft.

Global hits:

• Australia to introduce new aged and veteran pensions income threshold boost.

• Row over paying Yuan for Russian crude delays Indian oil deals.

• 🎉 Wages overtake inflation for the first time in nearly two years in the UK. A good sign!

📈 Stocks

S&P 500 4,373 (-0.1%)
DJIA 33,997 (+0.04%)
NASDAQ 13,533 (-0.25%)
VIX 17.88 (+3.89%)
* Prices as of October 17th, 22:30 PM UTC

Nvidia receives a big blow

Nvidia [NVDA -4.73%] fell as low as $424.80 yesterday before recovering and closing at $429.14.

But why? Because of the Biden administration’s decision to halt shipments to China of more advanced AI chips, designed by Nvidia and other companies.

Nvidia responded with a strong statement telling investors it "does not expect a near-term meaningful impact on our financial results."

But not just Nvidia: This news is not only bad for Nvidia but other companies as well. Apple is suffering due to falling iPhone sales in the country thanks to growing political tensions. This might be the reason why the Apple boss made a surprise visit to China.

Sales are down 4.5% in China compared to iPhone 14 sales in the first two weeks after its launch.

🔐 Crypto

Bitcoin $28,515 (0.0%)
Ethereum $1564, (-1.8%)
Total market cap $1.13 (-0.6%)
* Prices as of October 17th, 22:30 PM UTC

Bitcoin is up again

Bitcoin is trading above $28,500 amid generally positive sentiment about its future and a fundamental crypto law signed by California Governor Gavin Newsom.

Set to take effect in July 2025, the bill requires California's Department of Financial Protection (DFPI) and Innovation to create a regulatory framework for crypto. The framework includes a licensing regime and gives the department enforcement and rulemaking authority over the sector.

Users will now not be allowed to withdraw USD from Binance.US

Shocking users, Binance.US has removed the option to withdraw dollars directly from the platform. Users now must convert USD to digital assets or stablecoins in order to withdraw funds from the platform. This major change comes after the company suspended USD deposits in June due to the SEC's "extremely aggressive and intimidating tactics".

Also check: FTX plans to return 90% of customer funds, but there's a catch.

💵 Personal Finance

Rich Americans are moving to these 10 states

Americans are either leaving the US or leaving states that are too expensive. If you don't want to move to countries like Indonesia, Portugal, or Thailand and want to continue to live in the US then consider these popular states:

• Florida where net migration stands at 27,567.

• Texas where net migration stands at 9,008.

• North Carolina where net migration stands at 5,446.

• Arizona where net migration stands at 4,563.

• South Carolina where net migration stands at 4,510.

These states may not be the most affordable options in the U.S., but they’re popular among households earning $200,000 or more per year. They are known for being tax friendly (Texas and Florida, for example, have no state income tax).

Why are Americans moving? This video does a good job of explaining the causes:

Also, do you know where most American expats live? Most have chosen nearby destinations like Mexico and Canada. A huge number of Americans are also settled in the UK.

The U.S. government doesn’t formally track the number of Americans who leave the U.S. but the most recent estimate puts the figure at about nine million. This is more than double when compared to the figures reported in 1999 – 4.1 million. In fact, the rate is higher than the population growth rate, which means the US population may shrink in the future.

Here’s where they’re moving outside of the country:

• 40% opt for the Western hemisphere — Canada, Central and South America.

• 26% move to Europe. Portugal has proven to be a popular destination due to low prices but some still prefer more known countries like Spain and Italy.

• 14% head to East Asia and the Pacific — think Australia and New Zealand as well as China and Japan.

• 14% head to the Middle East.

• 3% travel to Central or South Asia mainly due to how cheap these countries are.

• 3% choose Africa.

💰 Be a Better Investor

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.