It took a while, but
he has a family car, with four doors and four seats. The iconic Italian sports car maker, famous for its black “foal” logo, recently unveiled the Purosangue—Italian for thoroughbred—a crossover-sized model (think SUV) equipped with a V-12 engine capable of producing 800 horsepower.
Purosangue will launch kids from zero to 60 miles per hour in about three seconds. But it’s not just speed. The car’s aluminum frame includes hollow, thin-wall aluminum castings to minimize weight and maximize handling. It’s still a Ferrari.
The Purosangue has 17 cubic feet of trunk (“trunk capacity,” as the company calls it), which is not usually considered by Ferrari buyers. By comparison, a BMW X1 crossover has a trunk capacity of about 26 cubic feet. The Purosangue also comes with massaging front seats (kids go in the back) and an optional electrochromic glass roof that can change its tint. Each of the four seats can be adjusted independently.
It sounds perfect for a family road trip, with one catch: A Purosangue starts at $390,000. Ferrari sold about 11,000 cars in 2021, generating sales of more than $5 billion, at about $450,000 per vehicle. Ferrari is in the luxury goods industry, which is why its shares trade at 33 times estimated 2023 earnings—closer to
LVMH Moet Hennessy Louis Vuitton
LVMH trades for about 21 times estimated 2023 earnings. BMW, for five times. Ferrari shares rose 0.6% for the week. The
Dow Jones Industrial Average
fell 4.8% and 4.1%, respectively.
We rang and rolled
US indexes rose as investors awaited Tuesday’s consumer price index data. But stocks, oil and
eased after the release — August inflation at 8.3%, up 0.1% from July. The result was the worst day for stocks since June 2020. Lower producer prices, a pick-up in retail trade in August and no rail strike helped, but mortgage rates topped 6% and
The profit warning sent shares lower again. For the week, the Dow industrials fell 4.13% to 30,822.42. the S&P 500 fell 4.77% to 3873.33. and
plunged 5.48% to 11,448.40 points.
Inflation: Still hot
August’s CPI showed that inflation was still rising, but the pace was slowing — maybe. Once again, the data missed the forecasts of economists, who believed that falling gasoline prices would have a larger effect. The core CPI, which strips out volatile food and energy costs, rose at a 6.3% pace, up from 5.9% in July. The CPI reinforced the belief that the US Federal Reserve will raise interest rates by 0.75 percentage points at its meeting next week.
Ukraine plays attack
A Ukrainian blitzkrieg east of Kharkiv destroyed Russian troops and captured the major railway centers of Izyum and Balakliya. Moscow said its troops were “regrouping,” though they left behind ammunition, heavy weaponry and just about everything else. Russia responded with cruise missile attacks on Ukrainian power plants and a dam. Russia’s Vladimir Putin met with China’s Xi Jinping in Uzbekistan. Germany took control of three Rosneft oil refineries.
Railroad strike averted
U.S. freight railroads have reached a tentative deal with two major railroad unions, avoiding a nationwide strike that would have cost billions of dollars a day. Ten of the 12 railroad unions had reached an agreement, but the Brotherhood of Locomotive Engineers and Trainers and the International Union of Sheet Metal, Aviation, Railroad and Transportation Workers had not. The White House cheered the settlement.
Crypto’s Ethereum blockchain has completed a major software upgrade known as Merge, reducing energy costs by up to 99% and turning its token, Ether, into more of a means of return, which could attract the attention of regulators. Ether then fell almost 9%.
Annals of Deal Making
Dan Loeb of Third Point dismissed a claim that
to sell 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. Shareholders voted in favor of the takeover by Elon Musk, who in a third letter asked to get out of the deal…
said it would acquire cloud-based software design developer Figma for about $20 billion in cash and stock. The stock fell.
Write to Al Root at firstname.lastname@example.org