Today, I'll be joining the big homie Liz Claman on Fox Business for "Countdown to the Closing Bell" at 3:30 p.m. EDT and the big homie Kai Rysdal on "Marketplace" at 5 p.m. EDT (I don't think it airs live in New York for some reason).
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A mairjuana plant in Edmonton, Alberta, Canada. Photo by Artur Widak/NurPhoto via Getty Images
Canadian cannabis company Canopy Growth, which is 38% owned by beer and spirits company Constellation Brands, bought the right to acquire Acreage Holdings only if recreational marijuana is legalized in the U.S, Axios Courtenay Brown reports.
Between the lines: The non-deal deal is structured to avoid obstacles that would come with Canopy’s outright acquisition of Acreage before legalization. A deal now would get Canopy’s shares de-listed from the Toronto and New York Stock Exchange, which both forbid listing companies with U.S. cannabis operations since it’s federally illegal. (Canada made marijuana fully legal nationwide in October.)
How it works: The deal is terminated if cannabis is not legalized (or if exchanges don't change their rules) within 7.5 years, or 90 months. If the deal falls through, no word on what happens to the $300 million upfront cash Canopy agreed to pay Acreage shareholders.
What’s in it for the companies:
The bottom line: This just built a path for companies to buy into a budding U.S. marijuana market without breaking any laws and without facing the wrath of stock exchanges. Analysts say the deal structure could set off a wave of similar transactions.
Provided the Fed doesn't raise interest rates again this year, as expected, they will be paying $46 billion in interest payments on bank's reserve balances. The reserve payments are a major part of the way the Fed sets U.S. overnight interest rates, and the payments have grown as the Fed has started to raise interest rates above zero.
Go deeper: The New York Fed's "Federal Funds and Interest on Reserves"
U.S. employment numbers continue to get better. Data released yesterday showed the number of Americans filing for unemployment benefits fell to its lowest in almost 50 years last week.
Why it matters: More important than the single print was the direction of the trend. The 4-week moving average of initial claims fell to 201,250 last week, the lowest reading since November 1969.
Uber on Thursday night confirmed that it has raised $1 billion for its autonomous driving unit at a post-money valuation of $7.25 billion, Axios' Kia Kokalitcheva reports.
Why it matters: Uber is preparing to go public next month, and this deal could soothe some investor concerns about the cash-burn on self-driving R&D.
Existing Uber shareholders SoftBank Vision Fund and Toyota were joined by Japanese auto parts maker DENSO.
Go deeper: Uber files for its long-awaited IPO
Argentine President Mauricio Macri came to office as a pragmatic businessman who was going to save Argentina's government and economy from socialism. As this year's presidential election approaches socialism isn't looking so bad.
The central bank has raised interest as high as 65% to cut down inflation, but has only choked off the country's growth, pushing it into recession. The central bank is now fixing the exchange-rate band, or instituting currency controls, while the government freezes prices on 60 food products until October.
What's next? Investors are beginning to fear the worst — that Macri will lose this year's election to former President Cristina Fernandex de Kircher, who defaulted on the country's sovereign debt in 2014, which was issued as partial compensation for the previous default in 2001.
Catch up quick: Argentina was an investor darling when Macri came to office in 2015, reaching a settlement with the creditors and levering the country up with new debt, including a 100-year bond investors said was issued largely out of hubris.
The bottom line: Fortune's Kenneth Rapoza writes that things are starting to look "terrible" for Macri.