Finimize - 👩‍💻 How ChatGPT will change investing

Disney tried to fend off an activist investor | US prices dropped last month |
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Today's big stories

  1. A veteran activist investor set his sights on Disney's boardroom
  2. Here’s what ChatGPT could mean for investors – Read Now
  3. US inflation data fell right in line with expectations

Cat And Mouse

Cat And Mouse

What’s Going On Here?

Veteran activist investor Nelson Peltz has his eyes on Disney’s tail – or uh, boardroom, according to news out on Wednesday.

What Does This Mean?

Nelson Peltz’s investment firm Trian has a $900 million stake in Disney already, and it’s now pushing for a seat on the board to “restore the magic” that's been lost in recent years. See, after overspending on streaming services and some questionable mega-mergers, the firm’s stock price is currently languishing near eight-year lows. But Disney’s already pinned its turnaround hopes on recently reinstated leader Bob Iger, and it’s not on the lookout for a second Prince Charming. So if Peltz wants to nab a seat in Disney’s boardroom, he may have to win over shareholders’ votes in a so-called proxy fight instead.

Why Should I Care?

For markets: Prepare for a catfight.
Nelson Peltz and Trian Partners have acted as the corporate world’s fairy godmothers in the past, boosting fortunes for the likes of Procter & Gamble, Tiffany & Co., and Comcast. And just last summer, Peltz managed to shove his way onto Unilever’s board and work his magic on its share price too. So sure, Disney and its new chief are rapidly unveiling some radical plans of their own, including cost cuts and boardroom shakeups. But if that’s not enough to convince lovelorn shareholders, Peltz’s glimmering track record might just do the trick.

Zooming in: Bob’s big task.
Streaming platforms were once an affordable alternative to rip-off cable bills, but nowadays a handful of subscriptions can set you back more than OG TV used to. That’s one of the problems faced by Disney and its ilk: with customers cutting down on spending, making knock-out shows is the only way to ensure your subscription’s not on the chopping block. Problem is, crowd-attracting blockbusters can be pricey to produce, and Disney’s already in the dock for its excessive spending.

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Analyst Take

Why You Should Pay Close Attention To ChatGPT

Why You Should Pay Close Attention To ChatGPT
Photo of Stéphane Renevier

Stéphane Renevier, Analyst

ChatGPT has generated a ton of buzz since it came on the scene just a month ago. 

With a sophisticated artificial intelligence (AI) chatbot that’s miles ahead of what came before it, the startup has everyone speculating about what it might mean for all kinds of industries – and for tech giants like Microsoft and Google

So, that’s today’s Insight: a 360-degree look at ChatGPT, the AI tool everyone’s talking about.

Read or listen to the Insight here

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Cool As A Cucumber

Cool As A Cucumber

What’s Going On Here?

US prices chilled out in December, according to inflation data released on Thursday.

What Does This Mean?

Economic forecasters aren’t always on the money, but this time their crystal balls were as clear as, well, crystal. After all, an inflation rate of 6.5% in December – or 5.7% excluding food and energy – was right in line with predictions (tweet this), which meant markets didn’t really stir when the news dropped. And that shoulder shrug was understandable: stocks have had a strong start to 2023 already, so investors were more or less betting that inflation would be, relatively speaking, pretty tepid.

Why Should I Care?

For markets: Data’s a lag.
December was the sixth straight month that inflation slowed, and the market’s not expecting that winning streak to end anytime soon. It might be right: the prices of both housing and clothing rose in December, sure – but take a look at the here and now, and you’ll notice housing costs dropping, and a glut of unwanted clothing piled on retailers’ shelves. So with signs that the prices of those inflation-fueling items could be switching directions, January’s data might also make for refreshing news.

The bigger picture: La la la, I’m not listening.
It doesn’t seem to matter that the stock market thinks inflation’s on a downward march: the Federal Reserve (the Fed) has already mapped out its hiking path, and seems unwilling to re-route come hell or high water. That puts the central bank at logger-heads with investors – and somebody’s going to have to blink first. The stock market thinks it’ll be the Fed, which has plenty of pivoting experience. But it could be wrong, and the Fed’s tenacity might spell the end of perky stock prices.

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💬 Quote of the day

“Procrastination is the art of keeping up with yesterday.”

– Don Marquis (an American humorist, journalist, and author)
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