Editor’s Note: Unfortunately Scott’s video dropped in and out during this episode due to issues with our recording platform. Fortunately the audio was retained, so we will present those missing portions with a graphic instead of video footage.
This week on Prof G Markets, Scott shares his thoughts on Elon Musk’s demands for a 25% stake in Tesla. He also takes a look at the latest bank earnings and breaks down why 2023 was the most profitable year ever for JP Morgan Chase, while Citigroup swung to a loss in the fourth quarter. He also discusses best practices for firing or letting people go.
Timestamps:
00:00 – This week’s number
00:25 – Today’s episode
01:50 – Market Vitals/Headlines
12:43 – Elon’s Tesla Stake
16:55 – The Most Profitable Year in Banking History
26:04 – Firing People
34:08 – Week Ahead
34:21 – Prediction
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In the world of finance, 2021 has been a year of record-breaking profits for many banks. According to a report released by Prof G Markets, this year has been the most profitable year in banking history. The report states that banks worldwide have seen a substantial increase in their profits, driven largely by the strong performance of financial markets and the surge in demand for lending and other financial services.
One of the contributing factors to this unprecedented profitability is the global economic recovery from the COVID-19 pandemic. As economies began to reopen and consumer spending rebounded, banks have witnessed a surge in demand for loans, mortgages, and other financial products. Additionally, the strong performance of financial markets has led to increased trading activity, generating significant fee income for banks.
Another key factor driving the profitability of banks this year is the low-interest rate environment. With interest rates at historic lows, banks have been able to borrow at cheaper rates and lend at higher rates, resulting in increased net interest margins and higher profits.
In addition to the record-breaking profits in the banking sector, another major financial news story this year has been Elon Musk’s massive stake in Tesla. The CEO and founder of Tesla and SpaceX has seen his net worth skyrocket, largely due to his stake in Tesla. According to reports, Musk’s stake in the electric carmaker has made him one of the richest individuals in the world, with his net worth surpassing $200 billion.
However, as the financial industry experiences unprecedented profitability and individuals like Musk accumulate vast amounts of wealth, there has also been increased scrutiny on corporate responsibility and the treatment of employees. In recent months, a number of high-profile companies, including some in the banking sector, have faced public backlash for their treatment of employees and their decision to fire or lay off workers despite record profits.
In response to this, there has been growing pressure on companies to prioritize their employees and ensure fair treatment, particularly in the midst of record profits. Many are calling for greater corporate accountability and a reevaluation of the relationship between profits and the well-being of employees.
In conclusion, 2021 has been a remarkable year for the banking sector, with record-breaking profits and unprecedented levels of wealth generation. However, as the financial industry continues to thrive, there is a growing call for greater corporate responsibility and a reexamination of the treatment of employees in the face of such prosperity. It remains to be seen how companies and financial institutions will respond to these calls for change and whether they will prioritize the well-being of their employees as they continue to reap unprecedented profits.
Tip for firing: if they’re a minority in a blue state they will sue and win no matter how bad they are. So if you’re a salaried manager don’t bother.
The intro jokes are just so terrible. Highly offensive and stupid. Hard to recommend this show to anyone even tho I like the show of these jokes. Totally pointless.
We need American
Can you please get a if if this accent?
We just want to see Scott not this London intern
Scott not only jumped the shark he looked for any orifice it had to jump in. Completely turned off by constant narrative of his specialness. FOFF
There was a small company, called Fairchild symbol FA, that voted in a dual class voting system. The controlling family traded giving away the dividend on their shares for more voting power. Of course soon after the family took control they eliminated the dividend. It took a shareholder vote. That occurred about 25 years ago.
on that egomaniac stake note: BYD (already) happening, BMW and others will kill Tesla. Elon created a culture of broken promises where most people outside the US neither trust the brand, nor the product any more. Ever tried a v4 Supercharger in Europe for example? Had a Tesla in fleet, trying to repair it? They are both sh**, not working, basic design flaws! Others accelerated with great hard- and software and leapfrogged Tesla. Elon is becoming a Trumpist parody of his former self …
Apple implements unethical marketing practices. They guilt trip you into buying their devices.
Again knowing you are worth anything more than a stupid job that doesn’t fulfill your soul. Life isn’t about job… heard too many stories in companies , things like top making lots of money but you are being sacrificed from politics. There is no good quality in the product… yet we can fire people who speak up to foresee the problem. I feel US companies are in decline. They are making money because being monopoly also having politicians backing their ass. Tax break for those big companies who fired people left and right. It’s very sad to see that normal people have to suffer. The company I worked for used questionable way to avoid tax by putting everyone in part time first. Then they started to lay off people after a month. I just want to say it’s easy to talk about topics like this being logical. but it’s hard to dig deeper by looking at bigger picture. To understand what normal people have to go through
Your discussion on Apple phones was insightful… But it would have been useful to show the past trend as my understanding is that Samsung are being squeezed by the Chinese phone manufacturers, rather than losing market share to Apple consumers… Apple hold a monopoly on their platform. Samsung don't. I believe that is the underlying reason for the market share trend – not the messianic branding success alluded to in this podcast. I'd welcome your thoughts on this.
Please talk about the video game industry in some shape or form 🙂 would love to hear yall’s take
Thanks
Don’t worry guys, I’m a woman and I love all the jokes. Keep being yourselves, it’s refreshing.
It's not that luxury defies economics, luxury often becomes a Veblen good.
Not sure why there are comments about anal sex and masterbation on a financial and tech podcast. .
Elon Musk currently owns about 13% of Tesla outright (~412M shares). Additionally, he currently holds about 304 million exercisable stock options from his 2018 compensation package for $23.34 per share. Exercising all of those stock options would result in Elon owning ~22% of Tesla (at $TSLA's current outstanding share count of ~3.19B). Net of taxes, it'd probably be closer to 18-20%. + he's not the man you can trick into a new compensation plan with 'crazy' targets to give him what he wants after he experienced the Sam Altman/OpenAI drama. He can easily fund and grow his AI and robotics segments outside of Tesla…..
I took this dfTikTok firing straight to the Intro to Management class I teach. It will be interesting to see what a group of college students think of the situation. Thanks for giving me fodder to teach with.