San Francisco-based corporate communications firm Twilio will cut 11% of its workforce, saying the cuts are “reasonable and necessary.”
Here are the key events that happen on Monday it may affect trading.
NOT SO MAGIC KINGDOM: According to a recent study, the majority of “self-proclaimed Disney World enthusiasts” say Florida’s theme park has “lost its magic” due to skyrocketing costs.
In a study by gambling website Time2play, 1,927 “Disney world enthusiasts” were surveyed and 68.3% of them reported that the price increase makes them feel like the theme park has “lost its magic”. A whopping 92.6% reported that they felt the park’s high cost had made recreation “out of reach” for the average family.
According to research, a ticket to Disney World’s Magic Kingdom in 1971 cost $3.50. Adjusted for inflation, that would mean tickets would cost around $25.60 today. Instead, tickets to one Disney World park cost between $109 and $159 per day, according to research.
DISNEY EXPLORES A MEMBERSHIP PROGRAM LIKE AMAZON PRIME TO OFFER DISCOUNTS AND PRIVILEGES
Nearly 50% of respondents reported that they had postponed their trip due to price increases.
Overall, Disney World veterans can expect to pay 35.7% more on their next trip than their previous one.
A chart posted last year on social media by a researcher at British firm SJ Data Visualizations shows that Disney World prices have risen by at least 3,871% since 1971, with prices rising at a sharper pace in the early 1980s. compared to the first decade.
Families spoke out about prices earlier this year when travel resumed after coronavirus lockdowns, and they expressed shock at the price increase. One father of two estimated that he would be hooked on a $4,000 to $5,000 bill, even if one of his children was eligible for free admission.
“I understand inflation and all that. I understand the rise in prices,” Kentucky father Matt Day said in an interview with the Washington Post earlier this year about the high prices. “I’ve always been under the impression that Disney is a family-friendly destination, and that’s why I was surprised to see how expensive it really is – and how out of reach for most American families.”
“This is truly unprecedented,” Len Testa, president of theme park travel planning website Touring Plans, told the Washington Post earlier this year. “We haven’t seen this much anger over a price hike – we can’t remember the last time something like this caused Disney fans to get so angry.”
“ANTI-RACIST”, “ANTI-PRESSIONAL” INSTALLATIONS: Twilio CEO Jeff Lawson announced in a message to all employees that 11% of its employees would be laid off, stating that they made the layoffs through an “anti-racism” and “against oppression” lens.
San Francisco The CEO of the corporate communications company said in a message to employees that the layoffs are “reasonable and necessary.”
“I’m not going to sugarcoat things. Laying off is the last thing we want to do, but I think it is wise and necessary. Over the past couple of years, Twilio has grown at an astonishing rate. It was too fast and without enough focus on our company’s most important priorities. I take responsibility for these decisions, as well as the difficult decision to leave,” said Lawson.
In determining which roles would be affected by the layoffs, Lawson said company officials looked into which roles were most in line with its four priorities, but said the layoffs were held through an anti-racism lens.
TWILIO REDUCES 11% OF STAFF IN RESTRUCTURING
“As you all know, we are committed to being a company that stands up against racism and oppression,” Lawson wrote. “Layoffs like this can have a more visible impact on marginalized communities, which is why we have been particularly focused on ensuring that our layoffs – which are essential for businesses today – are delivered through the lens of combating racism and oppression.”
Those who have been laid off will receive a “minimum” of 12 weeks of pay and an additional week for each year they have been with the company. They will also receive the full value of the next vest of Twilio shares.
HORRIBLE ECONOMIC OUTLOOK: US stocks closed lower on Friday as investors faced corporate warnings that paint an increasingly bleak outlook for the health of the US economy.
Last week, major corporations, including Goldman Sachs Group Inc., prepared to cut jobs, fueling fears of a looming recession.
FedEx warned late Thursday that it was closing offices to make up for lower demand, and General Electric said supply chain problems were hurting profits. The news sent shares lower, with the Dow Jones Industrial Average falling 139.40 points, or 0.5%, to 30,822.42. The S&P 500 fell 28.02 points, or 0.7%, to 3873.33.
For the week, the Dow lost 4.1% and the S&P lost 4.8%.
The Nasdaq Composite fell 103.95 points, or 0.9%, to 11448.40. It fell 5.5% in a week, its worst performance since June. All three indexes are down four of the last five weeks.
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The big moves are surprising given how US stocks have been on the rise earlier this summer, off mid-June lows on earnings that weren’t as bad as feared and some strong hiring data.
However, investors who had hoped the mid-summer rebound would be the start of another bull market rally received a rude awakening when data on Tuesday confirmed that inflation remains consistently high.
Investors now expect the Fed to continue aggressively raising rates, which could eventually lead the economy into recession.
IS THE FED RAISE INEVITABLE?: Futures rates show that traders see a 76 percent chance that the Fed will raise interest rates by another 0.75 percentage point at its meeting next week, according to the CME Group.
Investors are also looking for another rate hike by the same amount in November.
The 2-year Treasury yield is particularly sensitive to investor expectations of a short-term Fed rate hike. On Friday, it closed at 3.859%, the second-highest level of the year. On Thursday, it settled at its highest level since 2007.
The benchmark 10-year Treasury yield also declined slightly to 3.447%. Yields and prices change in the opposite direction.
BILLIONAIRE RAY DALIO WARNING STOCK COULD DECREASE 20% IF INTEREST RATES RISE TO 4.5%
Prior to Tuesday’s inflation data, some financial managers were hopeful that central banks could start cutting rate hikes.
“It is clear that they are not going to turn around. This ship has sailed,” said Honey Redha, portfolio manager at PineBridge Investments.
Traders are also concerned that the Fed could continue to tighten even if the economy slows down.
IPO: Corebridge Financial Inc., the life insurance and asset management division of American International Group, has launched an initial public offering in what is the first major traditional US IPO in months.
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The offer was priced at lower levels of expectations and fell during its debut on the stock market, disappointing advisers who had hoped the deal could breathe life into a floundering IPO market.
Credit: www.foxbusiness.com /