Happy Wednesday all,
Usually, I’d have a ton of personal news for you all, but lately, my energy has just felt a bit off. Nothing is “wrong,” but I acknowledge that not every day is going to be the best day ever.
We’re still creating great videos here - and I’m even working on a new format that I think you will like on YouTube. Will keep you updated as that progresses.
In terms of education, is there anything you’d like more education on - for example, guides on buying a house, how to pay off debt breakdowns, or do you want more resources for keeping track of your personal financial life? Let me know by replying directly to this email.
Enjoy this week’s Hump Days - it’s a packed one!
- Humphrey, Rickie & Tim
👀 Eye-Catching Headlines
🇨🇦 Bank of Canada poised to hold rates at 5% but threaten more hikes (Bloomberg)
👔 Meta employees back in office 3x/wk as part of new mandate (CNBC)
😨 Investors head into fall with jitters after summer rally (WSJ)
🇨🇳 Xi to skip G20 summit in India, China to send Li instead (CNBC)
🤝 North Korea’s Kim Jong Un expected to meet Putin in Russia (WSJ)
🚛 Shopify stock pops after company strikes “Buy with Prime” deal with Amazon (CNBC)
🎧 Spotify’s $1B podcast bet turns into serial drama (WSJ)
⛑️ Blinken announces $1B Ukraine aid package during surprise visit (CNBC)
The Weekly Brief
Stagflation dangers stalk Europe as markets eye end to hikes (Bloomberg)
Investors are concerned over fears of stagflation looming in the not-too-distant future. Stagflation: the term used to label lackluster expansion and unrelenting inflation brings with it many problems (even in its mildest form). Traders have begun abandoning the Euro, and the data suggests that a 25 bps rate hike from the European Central Bank is on the table for September.
Hump Days Take
In the context of the current wave of inflation, this is especially concerning because raising interest rates is a key function of the central bank, which comes at the cost of hurting the economy. What we see in the chart above is that elevated rates are hurting GDP while not really taming inflation. There are also concerns that central banks are losing their appetite to keep raising borrowing costs.
Biden gets low marks on economy, concerns about age leading up to Trump rematch (CNBC)
A new poll showed on Monday that voters were unhappy with President Biden’s handling of the economy, and they believe that the 80-year-old presidential candidate is too old and not “mentally up for the job.” Voters also gave Biden negative approval ratings on his foreign policy in relation to Ukraine and China. However, 58% of voters viewed both Biden and Trump unfavorably, suggesting they were looking for change.
Hump Days Take
In reality, both sides have candidates who are far too old to be running the country at such a critical point in human history. According to the poll, voters were evenly split, with both Trump and Biden getting 46% support if the election were to happen today. As Biden ramps up for re-election, Republican front-runner Trump is followed not too closely by Ron DeSantis, right-wing entrepreneur Vivek Ramaswamy, and former United Nations Ambassador Nikki Haley.
Fed Governor agrees the central bank can ‘proceed carefully’ on interest rates (CNBC)
Fed Governor Waller said that the recent round of strong economic data will buy the central bank some time as it decides what to do next to control inflation. Markets have currently priced in the Fed skipping a rate hike at its September meeting. In terms of inflation, Waller acknowledged the two consecutive good reports, but he wants to “see whether this low inflation is a trend or if it was just an outlier or a fluke.”
Hump Days Take
After being burned in both 2021 and 2022, where inflation came down briefly before shooting up, this is an appropriate response to being burned twice. Fed officials are taking the positive data for what it is but are still skeptical about how long it will last. While markets expect the Fed to hold rates in September, there is currently a 43.5% chance of an increase at the end of October, indicating some uncertainty.
You’ll Find This Interesting
According to a teardown of Huawei’s newest phone, it appears as though China’s top chipmaker SMIC has built an advanced 7-nanometer processor to power its latest smartphone.
Since 2019, the U.S. has restricted Huawei’s access to chipmaking tools required to produce the most advanced phones. The latest report suggests that the Chinese government is on the path toward building its own chip ecosystem without the need for the U.S. or Taiwan.
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How about a video about the basic differences of the assortment of life insurances? Who needs it and why, and for how long, how much, and why term life is always the best choice over anything else...thanks!!!