Trevor Milton founded buzzy EV company Nikola and positioned himself as the next Elon Musk—then his $34 billion house of cards came crashing down
NEW YORK (Reuters) -The U.S. fraud trial of Trevor Milton, the founder and former chief executive of Nikola Corp who prosecutors accuse of lying to investors about the electric- and hydrogen-powered truck maker, began on Monday in New York with jury selection. Prosecutors have said Milton sought to deceive investors about the company’s technology starting in November 2019. Milton, 40, has pleaded not guilty to two counts of securities fraud and two counts of wire fraud in federal court in Manhattan.
Star stock picker Cathie Wood of Ark Invest cautioned that the Federal Reserve is making a mistake with its widely-expected interest rate hikes to bring down high inflation and said she is more concerned about deflation. The benchmark S&P 500 fell more than 2% and Treasury yields surged Tuesday after data showed consumer prices did not ease as anticipated in August and price pressures appeared to broaden. Markets are now anticipating a 100% probability the Fed raises benchmark interest rates at least 75 basis points at its meeting that concludes Sept. 21.
Desperate times call for desperate measures, and this might be just such a time: Persistently high inflation might force the Federal Reserve to resort to the biggest increase in a key U.S. interest rate in more than 40 years.
NEW YORK (Reuters) -U.S. Treasury yields surged and a recession warning – the yield curve inversion – widened on Tuesday after monthly U.S consumer prices unexpectedly rose in August, signaling to the market that the Federal Reserve will crack down further on inflation. The yield on two-year Treasury notes, which typically reflects interest rate expectations, spiked to an almost 15-year high of 3.794%. The jump significantly widened the yield curve gap with the benchmark 10-year Treasury note.
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Traders have been ramping up their 100 basis point bets all day, since the U.S. Labor Department early Tuesday released a hotter-than-expected U.S. August Consumer Price Index report that looked destined to cement an aggressive stance by the Fed. The Federal Open Market Committee will release its policy decision at the close of its two-day meeting next week, on Sept. 20-21.
While the majority of Jeff Bezos’ $150 billion wealth comes from his stake in Amazon.com Inc., his venture capital company, Bezos Expeditions, is also a contributing factor. In fact, since his retirement as the CEO of the world’s largest e-commerce company, Bezos has been focusing on acquiring startups across different industries, as his hunt for the next big bet continues. From space to real estate, Bezos is seemingly dipping his toes in all types of water. Investments Over the Years Bezos prim
Net worth is a financial metric that can help you keep your individual picture of your finances in perspective. The average net worth by age, in this case, refers to the net worth of the households in the U.S. divided … Continue reading → The post Average Net Worth by Age appeared first on SmartAsset Blog.
(Bloomberg) — Economists weren’t the only ones caught off-guard by Tuesday’s hotter-than-expected inflation reading: A day earlier, investors were piling into the world’s biggest tech ETF at the fastest rate since February.Most Read from BloombergUS Inflation Tops Forecasts, Cementing Odds of Big Fed HikeThe World’s Hottest Housing Markets Are Facing a Painful ResetUgly Selloff Pushes Stocks Down Most Since 2020: Markets WrapUkrainian Successes Raise Russian Collapse to Realm of PossibilityHedg
Indian oil-to-metals conglomerate Vedanta and global manufacturing giant Foxconn have signed a memorandum of understanding with the Indian state of Gujarat to set up a $20 billion semiconductor and display unit in the coastal state that is home of Prime Minister Narendra Modi, officials said Tuesday. Foxconn will bring technical expertise to the venture whereas Vedanta, which has a background in mining, will finance the project, top officials said. The state of Gujarat will offer subsidies on capital expenditure and electricity to the project.
Trevor Milton, the founder and former CEO of electric truck maker Nikola, is standing trial on federal charges of wire and securities fraud starting Monday after allegedly misleading investors about the company’s technological and production capabilities. Nikola is among many electric vehicle startups that have struggled financially and operationally since going public via a special purpose acquisition merger (SPAC); Nikola merged with VectoIQ in June 2020 with a $29 billion valuation. Milton’s trial serves as a warning to risk-loving investors who would throw money at a company before it starts delivering products or bringing in revenue.
Congressional Democrats want to slam shut a tax loophole known as the “backdoor” Roth IRA. In one of several proposed changes that target the retirement accounts of wealthy Americans, Democrats on the House Ways and Means Committee want to prohibit people … Continue reading → The post Democrats Want to End This Lucrative Retirement Account Loophole appeared first on SmartAsset Blog.
U.S. consumer prices unexpectedly rose in August and underlying inflation accelerated amid rising costs for rents and healthcare, giving the Federal Reserve ammunition to deliver a third 75 basis points interest rate hike next Wednesday. The surprisingly firm inflation readings reported by the Labor Department on Tuesday were despite an easing in global supply chains, which had contributed to a surge in prices earlier in the year. With a resilient labor market supporting strong wage growth, inflation has probably not peaked, keeping the Fed on an aggressive monetary policy path for a while.