Good news arrived for investors as the company announced plans to re-align its operation so that the legacy portion of its business does not drag its ambitious EV growth. This is a path towards creating a mini dynamic start-up within the more prominent organisation.
Ford Blue will be known for its traditional internal combustion engine car business, while Ford Model e is the new name for their EV business. This means that the two firms will each have their profit and loss statement by 2023.
Investors cheered on the news as the stocks received firm support from the announcement. It is hoped that the separate P/L statement will help boost the re-rating of its valuation.
Pika World continues to favour the company and may look for further accumulation.
🎙Uncle Powell Talked💰
There’s another reason to cheer in the market, as Uncle Powell said on Wednesday that he is more inclined to go for a quarter-point rate increase compared to the more hawkish 0.5% by other of his members despite recent Russia’s invasion of Ukraine.
Regarding the worry of a recession caused by a hawkish Fed to tame inflation, he believed that the market is likely to achieve a “soft landing” and aim to reduce inflation without leading to a recession. Market participants relieved such a statement, and a risk-on mode can be seen.
His voice conveyed confidence that the US economy could weather rate increases as the labour market is highly robust and the economic outlook remains bright. Moreover, he re-affirm that it is still somewhat stimulative even when the rate increases since it is near zero.
It has been a relatively calm week thus far, and we hope all Pika World’s friends have a splendid day ahead!
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