It took a while, though
He has a family car, with four doors and four seats. The iconic Italian sports car maker, famous for its black “prancing horse” logo, has revealed the Purosangue-Italian for the thoroughbred – a crossover model (think SUV), equipped with a V-12 engine capable of 800 horsepower production.
The Purosangue will rocket the kids from zero to 60 miles per hour in about three seconds. But it’s not just about speed. The car’s aluminum frame includes hollow, thin-walled aluminum castings to minimize weight and maximize handling. It’s still a Ferrari.
The Purosangue has a 17-cubic-foot trunk (“boot capacity,” as the company calls it), which Ferrari buyers don’t usually pay attention to. In comparison, the BMW X1 crossover has a trunk capacity of about 26 cubic feet. The Purosangue also comes with massaging front seats (the kids go in the back) and an optional electrochromic glass roof that can be tinted. Each of the four seats can be adjusted independently.
Sounds great for a family road trip, with one catch: Purosangue starts at $390,000. Ferrari sold about 11,000 cars in 2021, generating more than $5 billion in sales, at about $450,000 per vehicle. Ferrari is in the luxury goods business, which is why its stock trades for 33 times estimated 2023 earnings – closer to
LVMH Moet Hennessy Louis Vuitton
LVMH trades at around 21 times estimated 2023 earnings; BMW, for five times. Ferrari stock was up 0.6% for the week. The IS
Dow Jones industrial average
fell 4.8% and 4.1%, respectively.
Rattled and Rolled
US indices rose as investors awaited consumer price index data on Tuesday. But stocks, oil, and
fell after the release – August inflation at 8.3%, up 0.1% compared to July. The result was the worst day for stocks since June 2020. Lower producer prices, a rise in August retail, and no rail strike didn’t help, but mortgage rates topped 6% and a
profit warning sent shares down again. On the week, the Dow industrials fell 4.13% to 30,822.42; the S&P 500 was down 4.77% to 3873.33; and the
plunged 5.48% to 11,448.40.
Inflation: Still Hot
The August CPI suggested that inflation was still rising, but that the rate was slowing—perhaps. Once again, the data overturned the prognostications of economists, who thought that falling gasoline prices would have a greater effect. Core CPI, which removes volatile food and energy costs, rose at a rate of 6.3%, above July’s 5.9%. The CPI reinforced the belief that the Federal Reserve will raise rates by 0.75 percentage points at its meeting next week.
Ukraine plays Offense
Ukraine’s lightning offensive east of Kharkiv routed Russian troops and seized the major railway centers of Izyum and Balakliya. Moscow said its troops were “regrouping,” though they had left behind ammunition, heavy weaponry, and almost everything else. Russia responded with cruise missile strikes on Ukrainian power plants and a dam. Vladimir Putin of Russia met with Xi Jinping of China in Uzbekistan. Germany took control of three Rosneft oil refineries.
Prevented Railway Strike
US freight railroads have reached a tentative settlement with two major railroad unions, avoiding a nationwide strike that would have cost billions of dollars a day. Ten of 12 railway unions had reached an agreement, but the Brotherhood of Engineers and Trainmen and the International Association of Metalworkers, Air, Railway and Transport did not. The White House praised the arrangement.
Crypto’s Ethereum blockchain has completed a major software upgrade known as the Merger, reducing energy costs by as much as 99% and making its token, Ether, an instrument with greater yield, potentially attracting regulatory attention. Ether then fell by almost 9%.
Annals of Market Making
Third Point’s Dan Loeb backed up that claim
selling its sports network ESPN, after Disney CEO Bob Chapek said he had a plan to restore its “growth trajectory”…
Whistleblower Peiter Zatko, its former security chief, testified before the Senate Judiciary Committee that the social media company failed to protect customer data. The shareholders voted to approve the takeover by Elon Musk, who in a third letter demanded to leave the agreement…
said it would acquire cloud-based design software developer Figma for about $20 billion in cash and stock. The stock fell.
Write to Al Root at firstname.lastname@example.org