☑️ Move over Netflix and chill, it’s time to Facebook and f*ck. Facebook launched its not-all-that-anticipated dating feature on Thursday after announcing the service no one asked for in May 2018. Facebook certainly isn’t looking to print internet money via its latest venture … at least directly. It’s got ads for that. Like many of its features (we see you, Farmville), the ‘book is looking to keep users on the platform for longer thus serving more ads. But the news did directly impact at least one company. Shares of Match, the owner Tinder and Match.com, fell nearly 5% on news that a company with close to 2.5B monthly active users entered the chat.
☑️ WeWork, the co-working company valued at more than $47B earlier this year, is lowering its IPO expectations. The firm plans to debut with a valuation of between $20B and $30B. Why? Well, because they’re worried about a lack of interest in the public offering. Adam Neumann’s personal ATM is now targeting a share sale of around $3.5B, and Neumann reportedly met with SoftBank’s Masayoshi Son last week to ask for another capital infusion, in hopes that the firm could delay its IPO until 2020. I’m sure Mr. Neumann’s shady business practices have nothing to do with the lack of demand.
☑️ US stocks jumped on news that the US and China will meet in October to continue trade talks. All three indices hit their highest closing values since July when those pesky tariffs rained on everyone’s parade. It’s likely that a finalized deal won’t get done in October, but it’s a step in the right direction. So you’re saying there’s a chance?
☑️ Ray Dalio, the founder of the world’s largest hedge fund, has something to say about the economy … because, of course, he does. Dalio believes that there’s a 25% chance the US enters a recession this year and into 2020. If only everyone had read Principles. He also believes that if the central banks of the US, EU, and Japan wait to act, they’ll have less power to reverse course. So what would you do then, Ray? Funny you should ask. Dalio recommends that the Fed slowly cut interest rates, but not give a timeline for the cut.
☑️ It could be worse, you could be Robert Gibbins. Gibbins’ hedge fund, Autonomy Capital, lost more than $1B in July after gambling on investments in Argentina. Overall, that equates to about 23% of the fund’s holdings. Last year, Gibbins made some moves in Argentina hinging on the country turning around its economy and not defaulting on its debt. Oops. Since then, Mauricio Macri, Argentina’s business-focused president, lost a primary election in August and may lose his re-election bid. If that happens, Macri’s plan to fix the markets would be all but lost, and all hell would break loose.