š The Final Stretch of 2023
Happy Sunday,
There are 98 days left in the year! Crazy how time has flown. This is a great time to set some intentions and goals for the end of Q3 and start of Q4.
Personally? Iād like to get in better shape - so Iām thinking of adding more cardio into my workout routine and possibly training for āsomethingā, although training for something like a half marathon still scares me.
What are some of your goals? Let us know by commenting here or replying. We have an informative Sunday newsletter for you all today - enjoy.
Best,
ā Humphrey, Tim & Rickie
Market Report
Fed leaves interest rates steady, signals one more hike ahead (Axios)
The Federal Reserve opted to maintain current interest rates, which are set between 5.25% and 5.5%.
Most officials anticipate an additional rate hike this year, marking an end to the central bank's 18-month campaign to curb inflation.
Fed Chair Jerome Powell highlighted the unexpected strength of the economy and the resilience of the labor market. Projections indicate strong growth in 2023 and a lower unemployment rate than previously anticipated.
Watch our recap video at the end of this newsletter to get caught up!
Top Fed official sees "cautious optimism" in economic impact of AI (Axios)
Fed governor Lisa Cook recently discussed the macroeconomic implications of generative AI at an NBER conference.
The impact hinges on whether AI becomes a "general purpose technology" that boosts productivity across industries. While generative AI can make communication more efficient, aiding many tasks like drafting emails or researching, it still requires human oversight.
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FTX founderās parents sued, accused of stealing millions from crypto exchange (CoinTelegraph)
Debtors of the now-bankrupt cryptocurrency exchange FTX have filed a lawsuit against the parents of FTX founder Sam Bankman-Fried, accusing them of misappropriating millions from the exchange.
The plaintiffs allege that SBFās parents, both Stanford Law School professors, had significant influence in the exchange's operations and financially benefited from its operations, including extracting unearned rewards and siphoning off FTX funds for personal expenses.
UAW expands strike against GM and Stellantis (CNBC)
The United Auto Workers (UAW) union is intensifying its strikes against General Motors (GM) and Stellantis by targeting 38 parts and distribution locations across 20 states, but will not extend strikes at Ford due to progress in negotiations.
The strike, focusing on parts distribution rather than vehicle production, is expected to disrupt dealer repairs.
The UAW's demands include 40% hourly pay hikes, a reduced workweek, and the reintroduction of traditional pensions.
US Jobless Claims Fall to 201,000, Lowest Level Since January (Bloomberg)
US unemployment benefit applications fell to their lowest since January, with initial jobless claims dropping by 20,000 to 201,000 for the week ending Sept. 16, per Labor Department data. This is close to the lowest level in over 50 years.
Although hiring has slowed, firms are refraining from layoffs, pointing to a resilient labor market.
Cisco to acquire Splunk in $28B mega deal (TechCrunch)
Cisco announced its acquisition of Splunk for $28 billion this week, marking one of its most significant acquisitions ever. Splunk will enhance Cisco's security offerings by aiding in threat understanding and log data analysis for system troubleshooting.
Despite Splunk's stock hovering at lower prices for much of the year, Cisco's offer of $157 per share suggests that there was potential competition for the acquisition. This acquisition is notably the largest enterprise software deal this year.
Forecast Ahead
Big Number: 3.63%
Credit card companies are experiencing the fastest pace of losses in nearly three decades, excluding the 2008 financial crisis, with losses currently at 3.63% and anticipated to rise to 4.93%, Goldman Sachs reports.
This surge in losses comes as Americans' credit card debt exceeds $1 trillion.