Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money

71% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Tesla shares dip after cutting Shanghai plant production target

In today’s top stories, Tesla’s Shanghai plant cuts its output target to 1,200 vehicles. In other news, JetBlue pursues a hostile takeover of Spirit, Ford sells more than Rivian stock, hedge funds scale back positions and Goldman cites risks of a recession.

Tesla delays Shanghai output

Tesla [TSLA] has temporarily put the brakes on restoring production at its Shanghai factory to levels before the city’s current Covid-19 lockdown. As reported previously by Reuters, it plans to roll off 1,200 cars a day from its production line this week, despite the EV maker originally targeting a daily output of 2,600 for this week. next week. It does plan to increase this back up to 2,600 from 23 May. The city plans to end its lockdown on 1 June.

Goldman sees recession risk

The risk of recession in the US is “very, very high,” Goldman Sachs senior chairman Lloyd Blankfein told CBS News. The bank cut its 2022 growth outlook for the US economy from 2.6% to 2.4% last week, warning that the Federal Reserve will be forced to hike interest rates further. Despite this, on Monday the bank identified 20 ‘safety stocks’ likely to weather a bear market, including Best Buy [BBY], Electronic Arts [EA] and Vertex Pharmaceuticals [VRTX].

JetBlue’s Spirit hostile takeover bid

Low-cost carrier Spirit [SAVE] has been pursuing a merger with Frontier [ULCC], but JetBlue [JLBU] has launched a hostile takeover bid. Just days after Spirit rejected a $33-per share offer from JetBlue on antitrust grounds, the latter has released a letter urging Spirit shareholders to “protect their interests” and vote against the Frontier transaction. “JetBlue is fully prepared to negotiate in good faith,” a statement read.

Hedge funds scale back

The heavy selloff in technology stocks and other hot areas of the market has led to a cooldown among hedge funds. According to client reports seen by the Financial Times, funds that trade with Morgan Stanley and JP Morgan Chase have reduced their positions in the last week. Peter Giacchi leads Citadel Securities’ floor trading team at the NYSE and told the publication: “There are clearly people taking risk off.”

Ford offloads more Rivian stock

There’s more bad news for electric truck maker Rivian [RIVN]. A regulatory filing on 13 May showed Ford [F] had dumped another 7 million shares after selling 8 million the previous week following the expiry of Rivian’s IPO lock-up. “We think it’s prudent at this point to monetise a small portion of the investment,” a Ford spokesperson told Barron’s. It still holds around 87 million shares, representing a 9.7% stake.

Earnings preview: Vodafone

Vodafone [VOD.L] has been coming under pressure from Europe’s largest activist fund, Cevian Capital, which wants the mobile group to restructure its portfolio and streamline its businesses. Meanwhile, Middle Eastern telecoms outfit e& announced on 15 May that it had taken a 10% stake in its UK rival. Shareholders will be hoping the presence of new investors will help to turn the troubled company’s fortunes around post-earnings today.

Earnings preview: Greggs

Bakery chain Greggs [GRG.L] has announced sales rose 27% in the 19 weeks to 14 May, But the nation’s favourite pasties and sausage rolls haven’t been immune to inflation – their prices rose by between 5p and 10p earlier this year. “We will continue to work to mitigate the impact of cost pressures while protecting Greggs’ reputation for exceptional value,” the company said in a statement. Its annual general meeting takes place later today.

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

Continue reading for FREE

Latest articles