🪔 What to expect this week

Good morning investors! This week, the focus will be on earnings as big names start rolling in.

Today we cover:

• What to expect this week

• Tesla fails to impress

• Rare insurance types

📊 Economy and News 

Things to Watch This Week

Here’s what you need to keep an eye on this week:

1. Q3 Earnings Reports

Earnings season has kicked off with strong results from major banks like JPMorgan and Wells Fargo, both surpassing estimates. This week big names like Bank of America, Citigroup, and Netflix will report.

2. U.S. Retail Sales Data and Fed Insights

On Thursday, retail sales data will provide insight into U.S. consumer strength, potentially influencing Federal Reserve rate cut expectations after strong labor market data. Investors will also hear from Fed officials, including Governor Waller and Presidents Kashkari and Daly, who may offer further guidance on the central bank’s outlook.

3. European Central Bank Rate Cut

The ECB is expected to deliver a quarter-point rate cut on Thursday, potentially accelerating its easing cycle as Eurozone growth slows. Deutsche Bank analysts predict this could lead to faster rate reductions, though uncertainty remains high.

4. China’s Q3 GDP and Economic Data

China's third-quarter GDP figures, due Friday, are expected to highlight challenges, though policymakers remain confident in meeting the 5% growth target. Investors are watching for fiscal stimulus measures that could boost markets. Additional data on trade, house prices, and retail sales will offer a broader view of the economy.

5. Oil Prices and Geopolitical Tensions

Oil prices remain volatile due to supply risks and geopolitical tensions. Despite settling lower on Friday, prices rose for the week as markets reacted to Iran's missile attack on Israel, raising fears of retaliatory strikes on oil facilities. Additionally, Florida's fuel demand is expected to drop as the state recovers from its second major hurricane, affecting the energy market.

Global hits:

• Several hundred “underperforming” 7-Eleven locations across North America are closing.

• Turkey should continue tight, monetary policy until inflation at target, IMF says.

• Fitch puts negative outlook on France's rating.

More about China: China's consumer inflation unexpectedly eased in September, while producer price deflation worsened, increasing pressure on Beijing to introduce more stimulus to revive weak demand and shaky economic activity. On Saturday, the country pledged to "significantly increase" debt to boost its struggling economy, though it left investors uncertain about the size of the stimulus package—a key factor in determining the sustainability of its recent stock market rally.

In a move to further stimulate the economy, four of China's largest state-owned banks announced cuts to existing mortgage rates starting October 25. This marks another step in the government's efforts to support growth in the world’s second-largest economy.

Meanwhile, China urged the European Union not to pursue separate negotiations on the price of China-made electric vehicles sold in the EU, warning that such actions could undermine bilateral tariff discussions.

Also, China’s passenger vehicle sales rose in September from a year earlier, snapping five months of decline with a boost from a government subsidy.

In unrelated news, Indonesia has asked Google and Apple to block the Chinese fast-fashion e-commerce platform Temu from their app stores, preventing downloads in the country.

📈 Stocks

S&P 500 5,815.03 (+0.61%)
DJIA 42,863.86 (+0.97%)
NASDAQ 18,342.94 (+0.33%)
BRENT CRUDE 79.04 (-0.45%)
* Prices as of Oct 13th, 12:20 AM UTC

Tesla's Bold Vision for a Driverless Future: Reality or Science Fiction?

Last week, Tesla CEO Elon Musk unveiled a bold vision of a future filled with self-driving cars, parks replacing parking lots, and robots integrated into daily life.

Musk’s Vision: A Futuristic, Robot-Powered World

Musk outlined a vision of a "fun, exciting future" with autonomous cars and robots integrated into everyday life. Inspired by "Blade Runner" but with a more optimistic twist, he promised Tesla's self-driving cars without steering wheels would soon dominate roads, transforming parking lots into parks and urban life.

Though Tesla's Full Self-Driving (FSD) technology, priced at $8,000, still requires human oversight, Musk predicted fully autonomous operation in states like California and Texas by next year.

Unveiling the Cybercab and Robovan: New Concepts, Familiar Delays

Musk introduced the "Cybercab," a driverless vehicle without a steering wheel or pedals, expected to enter production by 2026. He also unveiled the "Robovan," a larger vehicle for transporting up to 20 passengers or goods, though no timeline was given.

Both aim to compete with ride-hailing services like Uber, Lyft, and Google's Waymo.

Investor Skepticism: Tesla Shares Fall

Despite Musk's ambitious presentation, investors were skeptical, with Tesla shares dropping over -8% on Friday due to doubts about the company's ability to meet its proposed timelines.

While Musk claims Tesla's FSD is safer than human-driven cars, AMCI Testing found that drivers needed to take control of Teslas in FSD mode every 13 miles.

The Cybertruck, unveiled in 2019, took nearly four years to produce, and Tesla's electric semi-truck, revealed over six years ago, has yet to launch. This history of delays raises skepticism about the Cybercab's availability by Musk's 2026 target.

Shocking: Fisher-Price is recalling 2 million infant swings following five deaths .

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💵 Personal Finance

Least known insurance

When we talk about insurance we usually think of health insurance and life insurance. But, there are several other types to know about.

The purpose of each type of insurance is to protect you in case of a mishap. Remember that insurance does not reduce the risk of an accident, it only ensures you are financially taken care of in case things go wrong.

So, here are a few (less known) insurance types:

Umbrella insurance is a type of liability insurance that provides additional coverage beyond the limits of your other insurance policies, such as auto or homeowners insurance. It's designed to offer extra protection in case you face a large liability claim or lawsuit.

It provides protection in situations such as when you or your business causes bodily injury to others or property damage to others. It covers the legal costs to defend you in lawsuits related to these problems, including defamation, libel, slander and invasion of privacy.

This insurance, however, may not be suitable for everyone.

Renters insurance is only needed when you’re renting. It provides coverage to individuals who are renting or leasing a residential property. While the landlord typically has insurance to cover the structure of the building, renters insurance is designed to protect the personal belongings and liability of the tenant.

Travel insurance is only needed if you travel. Not always mandatory, this type of insurance provides protection against common travel issues, including sickness, missed baggage, and delayed flights.

Homeowners insurance provides financial protection to homeowners in the event of damage to their property or liability for injuries and damages suffered by others while on their property. It's a comprehensive insurance policy that typically includes several types of coverage, including dwelling coverage, personal liability coverage, and loss of use.

Disability insurance protects people if an accident or illness renders them incapable of working and receiving regular income. This insurance is designed to replace a portion of the insured person's income if they become disabled and are unable to perform the duties of their occupation.

Long-term care insurance covers nursing-home care or home-health care for seniors. We think it’s very important in today’s time since it is believed that about 70% of adults aged 65 years and older will require long-term care at some point.

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

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