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2023/01/30

❤️‍🩹 Trauma-support spike

Plus: EV price war | Monday, January 30, 2023
 
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Axios Closer
By Hope King and Nathan Bomey · Jan 30, 2023

We hope you had a good start to the week.

Today's newsletter is 653 words, a 2.5-minute read.

🔔 The dashboard: The S&P 500 closed down 1.3%.

  • Biggest gainer? Cincinnati Financial (+5.8%), the insurance company, released preliminary Q4 results and raised its dividend.
  • Biggest decliner? Tesla (-6.3%), as analysts continue to debate the likely impact of price cuts on its profit margin. (See below.)
 
 
1 big thing: Increasing trauma support
Illustration of holding hands with a grid background and circles

Illustration: Eniola Odetunde/Axios

 

Work might be the last thing on your mind this week as communities across the country confront a relentless string of tragedies, Hope writes.

  • Employers have increasingly been taking note.

State of play: Mental health professionals over the past few years have seen an increase in requests from companies for trauma support training.

  • The country has seen more than 39 mass shootings so far this year in fewer than 30 days. And last week provided yet another example of police brutality with the release of a video showing the fatal beating of 29-year-old Tyre Nichols.

What they're saying: "We're experiencing a lot of compounded trauma," says Nicole Weis, director of community training and empowerment at the Lyda Hill Institute for Human Resilience.

  • "We're also still reacting from the pandemic. We're reacting from global climate crises. We're reacting from the economy ... the war in Ukraine — there's all of these compounding stressors on us."

Between the lines: Trauma is defined by an experience — isolated or ongoing —that affects someone's sense of control and quality of health, according to Ruth Yeo-Peterman, a resilience programming trainer with the Center for Victims of Torture.

  • Secondary, or vicarious trauma, is a unique experience of taking on someone else's trauma through exposure to or information about it.
  • Injustices within workplaces and organizations can compound traumatic stress, she adds.

Meanwhile, companies becoming more aware of trauma's effects can build support systems to help people connect with one another, express themselves and feel a sense of release through action, such as advocacy work.

What to watch: "It's completely normal to feel distracted, to have trouble sleeping, to feel a little anxious" for a few days or weeks after an event has taken place, Weis says.

  • If it's been more than three or four weeks and things are still not feeling better or have gotten worse, you or your team may want to seek professional help, she adds.
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2. Charted: Earnings, earnings, earnings
Data: Yahoo! Finance; Chart: Axios Visuals

We're heading into the busiest week of earnings season, Hope writes.

  • We'll get Q4 results and comments about what to expect for the rest of this year coming from McDonald's, Caterpillar, UPS, ExxonMobil and others.

What we're watching closely: The health of the advertising market when Snap reports tomorrow.

  • Just how important AI is, as Meta reports Wednesday and Alphabet releases Thursday.
  • Then it's all about hunting for clues to consumer spending when Amazon, Apple and Starbucks numbers hit Thursday.
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3. What's happening

🏛️ Johnson & Johnson's talc bankruptcy is rejected by the Third Circuit Court. (Axios)

💰 Twitter made its first interest payment to seven banks on Elon Musk's buyout debt. (Bloomberg)

📱TikTok CEO Shou Zi Chew will testify in Congress on March 23. (Axios)

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4. EV price war is here
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Illustration: Shoshana Gordon/Axios

 

Tesla's global price cuts have helped sparked a price war for electric vehicles, Hope writes.

Driving the news: Ford this morning said it's lowering prices for its new Mustang Mach-E, while Vietnamese startup VinFast cut prices last week.

The big picture: Sticker shock is a top barrier to EV adoption.

  • Electric vehicle prices shot up 54% in July last year from the same month in 2021, compared to 10% for gas-powered cars.

What to watch: Continued cuts could squeeze automaker profits amid an uncertain demand environment.

  • Tesla's global dominance in per-vehicle profitability gives it an advantage over other automakers at the moment.
  • CEO Elon Musk told shareholders and analysts last week that the company was on track to potentially produce 2 million cars this year.

Go deeper.

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5. What they're saying
"The contest on Sunday shows that Black players can and do lead their teams to the pinnacle of success."
— George Cunningham, chair of the University of Florida's Department of Sport Management, on the long-running biases related to the NFL's quarterback position. Two Black quarterbacks will start in the Super Bowl this year for the first time in the event's 57-year history.
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Today's newsletter was edited by Pete Gannon and copy edited by Carlos Cunha.

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