Jackson Hole Economic Symposium
- More than 100 top economic leaders from around the world are attending the Kansas City Federal Reserve’s annual Jackson Hole symposium.
- Fed Chair Jerome Powell is expected to hint at how the US central bank will ease record-high interest rates.
- Economists anticipate the first of many rate cuts in September, especially after recent data showed the US added 30% fewer jobs than previously thought.
- Citigroup suggests a half-point cut might be possible if employment numbers weaken further, with a quarter-point reduction being more likely.
- Inflation has decreased from 9.1% to 2.9%, while consumer spending remains strong.
Home Sales
- Closed sales of previously owned homes increased by 1.3% in July, marking the first rise in five months.
- The Northeast saw the most significant gains, although sales were still down 2.5% compared to the same period last year.
- The boost in sales was helped by better mortgage rates, with the average rate on a 30-year mortgage falling to 6.6%, its lowest level in 15 months.
Canadian Railway Labor Stoppage
- A labor dispute in Canada has halted operations for Canadian National Railway and Canadian Pacific Kansas City.
- The stoppage could cost the Canadian economy up to $250 million a day and disrupt $730 million worth of goods daily.
- US imports from Canada could be significantly impacted, especially in agriculture and chemicals.
Banking in the EU
- The German government plans to make it easier for companies in the financial sector to fire high-earning employees.
- This move is aimed at attracting big American banks to set up European headquarters in Frankfurt, following the post-Brexit exit from London.
- France had similar plans, but the legislation has been stalled due to political and regulatory issues.
Peloton Turnaround
- Peloton reported its first year-over-year revenue growth since late 2021, with a 0.2% increase in the latest quarter.
- The company has focused on profitability, slashing costs and reducing marketing spending by 19%.
- Peloton’s stock price soared 35% following the report, although challenges remain, including an expected dip in subscribers.
Apple Compliance with EU Laws
- Apple will allow European iPhone users to delete preinstalled apps like Safari and the App Store.
- This change is in response to the EU’s Digital Markets Act, which aims to create fairer competition in the app store and other sectors.
Vehicle-to-Everything Technology
- The US Department of Transportation released a plan to implement Vehicle-to-Everything (V2X) technologies nationwide.
- V2X technology enables vehicles, wireless devices, and infrastructure to communicate, potentially reducing traffic injuries and fatalities.
Open-Source AI Definition
- The Open Source Initiative published the latest version of its definition of open-source AI after months of consultation with developers, academics, and other stakeholders.
- This move aims to clarify the terms of openness in generative AI models, a debate that has split the tech industry.
Productivity App Outages
- A survey by TRG Datacenters found that Monday.com, Gmail, and Microsoft Teams experienced the most service disruptions over the last year.
- Gmail disruptions affected 1.8 billion users worldwide, and Outlook logged the longest crashes, lasting an average of five hours each.
The UN nuclear watchdog called for an end to military activity near the Kursk Nuclear Power Plant after a drone was downed near the facility’s spent fuel storage. Russian President Putin claimed Ukrainian forces attempted to attack the plant. IAEA Director General Rafael Grossi plans to visit the site next week.
Left’s Opinion:
- Skepticism of Putin’s Claims: The left doubts the credibility of Putin’s claim about Ukraine targeting the Kursk nuclear plant, citing a lack of evidence.
- Concerns Over Nuclear Safety: There is alarm about the potential risks of reckless actions around nuclear facilities by both Russia and Ukraine.
- Support for Ukraine’s Defensive Actions: The left views Ukraine’s incursions into Russian territory as a legitimate part of its broader effort to end the war on favorable terms.
- Criticism of Russian Military Actions: The left condemns Russia’s control of Ukrainian nuclear sites, seeing it as a dangerous and provocative move.
Right’s Opinion:
- Support for Putin’s Claims: The right generally supports Putin’s allegations that Ukraine attempted to strike the Kursk nuclear plant, viewing it as a serious escalation.
- Nuclear Safety Concerns: They express strong concern over the potential risk of a nuclear incident due to Ukraine’s proximity to the plant, highlighting the plant’s vulnerability.
- Criticism of Ukraine’s Incursion: The right criticizes Ukraine’s cross-border attacks into Russia, viewing them as dangerous provocations that could destabilize the region further.
- Support for Russia’s Military Response: There is support for Russia’s efforts to repel Ukrainian forces from Kursk and secure the region, emphasizing the need to protect Russian territory.