π¨π³π π»ββοΈ Is China Banning Apple Products?
Happy Sunday!
If you are an NFL Football fan, today should be a fun day for you as the season officially kicks off. Many of you may not know this, but I do know an above-average amount about sports. My favorite sports to watch are Golf, Football, and Basketball. I donβt spend a ton of time watching, but I do always watch highlights and find a lot of motivation from different top-tier athletes. Kobe Bryant motivation is one of my favorite TikTok pages to binge-watch π.
This week, weβre really looking forward to the Apple Event on Tuesday - and weβre also looking ahead to the Federal Reserve meeting on the 19th and 20th of this month.
I hope you enjoy your Sunday,
β Humphrey, Tim, Rickie
Market Report
According to the Federal Reserve, U.S. household wealth reached a record high of $154.28 trillion in the second quarter. The surge in wealth was driven by rising home values and a strong stock market. Despite the Federal Reserve's aggressive actions against inflation, the economy has remained robust, with consumer demand remaining high.
Analysts are becoming increasingly optimistic about the U.S. economic outlook, with Goldman Sachs reducing its recession probability from 20% to 15% in the next year. However, there are some potential areas of concern. Cash holdings have decreased for a record fifth consecutive quarter, and national debt levels continue to climb higher.
The U.S. federal deficit is expected to reach $2 trillion for the fiscal year, double the previous year's figure, largely due to inflation.
Increased costs for Social Security and Medicare due to inflation adjustments came to $244 billion, while the Federal Reserve's rate hikes led to an additional $146 billion in interest payments. In addition, the Fed's shift to paying interest on bank reserves due to higher rates negating its profits from its substantial bond portfolio. Other contributors to a higher deficit include a $284 billion decline in tax payments, primarily from lower capital gains last year and FDIC expenses of $52 billion due to the banking crisis earlier this year.
China Bans the iPhone??
The Chinese government recently instructed all gov. officials to stop using Apple's iPhones and other foreign-branded devices for work purposes as part of Beijing's ongoing campaign to reduce reliance on foreign technology and boost cybersecurity.
This move could significantly impact foreign brands like Apple, which heavily relies on China for almost 19% of its total revenue. Although Apple has largely been unaffected in the tech battle between the U.S. and China, its continued cooperation with China's stringent digital laws and the importance of China as a manufacturing hub for Apple makes the situation risky.
For many years, Beijing has been limiting the use of iPhones in certain government agencies, but the recent order widens this restriction. The U.S. has also taken similar actions on Chinese companies, imposing bans on the use of Huawei Technologies and the app TikTok due to data leaks and national security concerns. Additionally, Beijing is motivating state-owned enterprises to substitute foreign technology, such as computers and software, with domestic alternatives they consider more secure.
Despite the potential negative impacts on its revenue, Apple remains a significant entity in China, offering millions of jobs through its suppliers and contract manufacturers. As geopolitical tensions escalate and nations focus on ensuring national security, tech giants like Apple will eventually find themselves caught in the crossfire.
Employees More Unhappy Than During Covidβ¦
A report from HR cloud platform BambooHR found that employee satisfaction has plummeted more rapidly since 2020 than in previous years. Drawing from data across 57,000 employees from 1,600 companies, the study indicates that dissatisfaction has surged, particularly within the healthcare sector, which saw a 32% drop in positive sentiment between June 2020 and June 2023.
While construction workers reported increased happiness due to rising wages and better job prospects, many other sectors expressed growing unease due to negative macro themes such as inflation, layoffs, shifting work models, and the lingering impacts of COVID-19.
Moreover, employees across different work setups - remote, in-person, or hybrid - feel increasingly disconnected from their workplace's "mission and purpose."
A survey from Gallup found that workers are drifting away from emotional extremes of satisfaction or dissatisfaction and instead are settling into a state of indifference or resignation.
Big Number: 1.4 billion visits
ChatGPT continues to rank among the largest websites in the world, drawing 1.4 billion worldwide visits in August compared with 1.2 billion for Microsoftβs Bing search engine, for example.
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