Daily Brief - 25 Jan 2024

The ECB is keeping its deposit rate at 4% for the third time in a row

The ECB is keeping its deposit rate at 4% for now, marking the third time they've decided not to change it. The bank's president, Christine Lagarde, along with other officials, are suggesting that they might start reducing the rate from June. However, there's a bit of a debate about when to start, as some expect it to begin as early as April. Economic data and inflation rates are being watched closely to decide the right time for these changes. Despite this, the bank faces criticism internally, with some staff members expressing dissatisfaction with Lagarde's leadership.

Tesla's growth slows leaving investors uncertain despite future plans

Tesla's shares took a hit after they reported lower-than-expected earnings and a slower growth rate. Despite their efforts to boost sales by cutting prices in 2023, growth fell short of their usual targets. Elon Musk, Tesla's CEO, has high hopes for a new, more affordable car set to start production next year, which he believes will revitalize growth. In the meantime, Tesla faces tough competition from Chinese EV makers, and Musk is seeking to strengthen his control over the company. However, the company's current profitability is under pressure due to price cuts and other expenses. Musk also warns of the growing competition from Chinese car manufacturers.

FAA stops Boeing’s 737 max production boost

Boeing faces a challenge as the US Federal Aviation Administration (FAA) has halted any increases in the production of their 737 Max aircraft. This decision comes at a time when Boeing was hoping to boost output to meet high demand. The FAA's action follows an incident involving a 737 Max 9 and is aimed at ensuring safety before allowing more planes to be made. This is a setback for Boeing, which had plans to ramp up production and reduce debt. Boeing's CEO, Dave Calhoun, will address investors soon, but for now, the company's shares have dipped in response to the news. Meanwhile, airlines like Alaska Airlines and United Airlines are preparing to resume flights with their inspected Max 9 planes.