According to the IMF's current projections, there is a 25% probability that the annual global growth rate will be less than 2% in 2023, a twice-larger risk than usual. The Fund has cautioned that the global economy could sharply decline if inflation remains a problem and interest rates stay high. More: - Since 1970, there have only been five years where the global economy has grown at such a slow rate.
- According to forecasts, the global economy will grow by 2.8% in 2023 and 3.0% in 2024, remaining at that rate until roughly 2028.
- The IMF has increased its forecast for U.S. economic growth in 2023 and 2024, estimating 1.6% and 1.1 % expansion, respectively, up from 1.4% and 1% in the January forecast.
- The recent U.S. banking crisis and the upheaval in the U.K. government bond market demonstrated significant vulnerabilities in banks and non-bank financial institutions.
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Ford will invest nearly $1.3B into its Oakville Assembly Plant in Ontario to transform it into a new electric vehicle center. The funding is part of Ford's strategy to have the ability to produce up to 2 million EVs by the end of 2026. More: - The auto manufacturer plans to start producing its next-generation EVs at the Oakville facility in the second quarter of 2023 after redesigning and renaming the Oakville Electric Vehicle Complex.
- "We are utilizing all components of the existing setup, from the grounds and edifices to the roads, to set up a new production era swiftly," said Dave Nowicki, director of EV manufacturing.
- The restructuring will involve combining three body shops into one and adding battery pack assembly. The under-construction Kentucky battery plant will supply cells for battery packs.
- This plant will be its first North American facility to transform fully from producing gas-powered vehicles into one that manufactures EVs.
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The investment firm Blackstone secured around $30.4B for its real estate fund called Blackstone Real Estate Partners X. Investors will pursue opportunistic transactions in industries such as rental housing, hospitality, and data centers through the world's largest property drawdown fund investment. More: - According to Pitchbook, Blackstone's most recent fund is its biggest since 2002.
- Kathleen McCarthy, global co-head of Blackstone Real Estate, stated, "We can use our capital and expertise to capitalize on the moment for our investors."
- Blackstone Real Estate Income Trust, which offers services to wealthy individuals, has recently experienced an increased demand for withdrawals.
- The firm has raised $50B in capital commitments for its drawdown fund focusing on Global, Asia, and Europe.
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GM's investment arm is investing $50M in EnergyX, a Texas-based company focused on improving the extraction and processing of lithium from salt flats. Additionally, GM will assist EnergyX in optimizing and implementing its technology, with the benefit of having priority access to lithium produced by any projects created by the startup. More: - Energy Exploration Technologies has developed technology to extract lithium from brine more than twice as efficiently as existing methods, having filed over 60 patents covering all aspects of these inventions.
- EnergyX's pilot plant in South America's "Lithium Triangle" has demonstrated its advanced technology to recover 90% or more of the lithium in brine, using less energy, water, and land.
- Jeff Morrison, VP of global purchasing and supply chain for GM, said, "We are dedicated to obtaining EV-essential minerals that are both environmentally friendly and cost-effective to remain at the forefront of the automotive industry."
- With this additional investment, EnergyX intends to construct five larger demonstration plants across North and South America.
Zoom Out:
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Carrier is in the process of creating a plan to either sell or separate its Fire & Security business segment. Of the $20.4B in total sales Carrier generated in 2022, the Fire & Security segment contributed $3.6B. More: - The early stage plan comes after investors and analysts called for the division to be separated, which they consider a drag on Carrier's valuation.
- Carrier formed in 2020 after United Technologies Corp. split into three separate companies, ending its reign as one of the last industrial conglomerates in the U.S.
- WSJ reports that several businesses, like GE, Kellogg, J&J, and Emerson Electric, have recently looked to eliminate divisions and streamline their business processes.
- Carrier stock traded today at $43.86, up roughly 3.5% but lower than the high of $60 in the summer of 2021.
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The WSJ reported that Exxon Mobil and Pioneer Natural Resources ($52B market capitalization) had preliminary conversations about a prospective acquisition. This deal might spark a surge of deal-making in the oil business as firms with healthy financial backgrounds and sizable cash reserves look to put their resources to use. More: - Shale companies are facing a mature business model requiring fiscal restraint and investor payouts, with dwindling drilling locations leading to a focus on acquisitions to extend their operational life.
- In the past decade, the U.S. shale sector has seen an average of 407 deals per year, with a total value of about $90B, driven by a thirst for growth through M&As, according to investment bank Mizuho Securities.
- A Truist Securities analyst reported that due to investors' strong bets on a rise in oil M&As, shale stocks increased despite Monday's roughly 1% drop in oil prices.
- According to FactSet, the 10 top publicly traded shale companies in the U.S. had profits of more than $70B in 2022.
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Quick Hits: - They're "realigning" the $19.4B joint surgery market…with robotics. Invest in Monogram ahead of their planned Nasdaq listing.*
- Arm, Softbank's chip designing unit, will list on the Nasdaq.
- Australia's Newmont Corp. has increased its bid to acquire Newcrest Mining to a record-breaking $19.5B in the largest-ever gold-mining M&A deal.
- Chipotle plans to open all-electric restaurants, following initiatives by McDonald's, Burger King, and salad chain Sweetgreen to reduce greenhouse gas emissions.
- The board of Sweden's largest pension fund, Alecta, has fired its chief executive due to losses of approximately $2B from failed investment bets at Silicon Valley Bank and Signature Bank.
- Put your data where your compute is — close to your users. Turso brings the SQLite database experience to the Edge. Get Started Free. *
*This is a sponsored listing.
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 |  | Shriram is a freelance writer at Inside.com. He is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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