What a week. Wall Street finished lower for the fourth day straight after Fed Chairman Jerome Powell said it was “very premature” to begin thinking about pausing rate increases. He might be right too because everyone still seems to have plenty of money to spend on pumpkin spice lattes at Starbucks (which beat earnings estimates). If you don’t want to have to sell your house, then refer 5 friends and make coffees at home in the new mug we will send you.

The lowdown

• 💸 Bank of England raises interest rates by .75 percentage points to 3%.

• 🐣 More companies pause Twitter advertising as Musk considers alternative revenue streams and commences layoffs.

• 🙅‍♀️ PayPal and Starbucks beat earnings estimates but their share prices see no benefit.

Featured stories

Short Seller Jim Chanos’ bet against Carvana looks good

President and Founder of Kynikos Associates Jim Chanos is perhaps the world’s best known short seller. He shot to fame after the collapse of Enron, and has profited from successful and high-profile bets against Luckin, Wirecard ($) and Beyond Meat ($).

He has also been publicly short Tesla since the fall of 2015 when the stock was trading around $15 (accounting for the stock split). The stock closed at $215 yesterday. That hasn’t stopped him from continuing to tell everyone that will listen that the stock continues to be overvalued. He may still prove to be right but, when it comes to short selling, there is little difference between being wrong and being early.

The good news for Jim is that he seems to have found a winner (or loser, depending on your perspective) in the automotive industry. Jim is short Carvana ($) – the company that, among other things, sells cars out of very large vending machines. The “growth company” is no longer growing, with retail units sold in the quarter declining 8% to 102,570.

In a letter to shareholders, the company noted that interest payments for customers purchasing a used car had jumped some 22%, and so they are buying less of them. Call me old fashioned, but I prefer to buy my used cars from a shifty, middle-aged man in a cheap polyester suit rather than a vending machine.

The content we're consuming today

• WSJ: SEC Accountant Warns of Heightened Fraud Risk Amid Recession Fears, Market Selloff ($)

Off-balance sheet items

• The weather is getting colder (or hotter, depending on where you live). It could be time for a holiday. The FT Weekend podcast has some suggestions on planning a trip.

The bottom line