Globes, the Israeli business daily, mentioned at the end of 2023 that nine of the ten largest Israeli companies on Wall Street belong to the technology sector, only one belongs to the pharmaceutical sector. These ten companies at the end of 2023 were worth $130 billion.
The top three are SentinelOne world-class cybersecurity company, Elbit Systems, one of the leading defense firms in the Middle East and the world, and Teva the pharmaceutical colossus of generic drugs.
On the other hand, there is the investment management company BlackRock, which controls most of the shares of giants such as Microsoft, Amazon, Apple, Coca Cola, Twitter, PepsiCo, Ferrari, Bank of America, JP Morgan, Pfizer, McDonald's, Uber...
President Biden claimed to have "cured the economy" last week, days before global stocks plummeted Monday.
"Mr. President What do you want your legacy for Gen Z to be?" a reporter asked.
"That I cured the economy. And the environment. And a few other small things," Biden responded.
They cannot allow ordinary people to think that the economy is doing badly. So Biden inherits Harris the illusion that everything is just fine, that the U.S. economy is on the right track because then Kamala Harris represents the continuation of that right track called Bidenomics.
But there is another group of people who don't buy the la la land story.
JPMorgan sees a greater chance of a US recession this year
JPMorgan Chase analysts now see a greater chance that the U.S. economy will enter a recession by the end of the year.
In a Wednesday analyst note, JPMorgan economists led by Bruce Kasman raised the odds of an economic downturn this year to 35%, up from their previous 25% estimate, citing easing labor market pressures.
"U.S. wage inflation is now slowing in a manner not seen in other DM [developed market] economies," they wrote. "Easing labor market conditions increase confidence both that service price inflation will move lower and that the Fed's current policy stance is restrictive."
They still see a 45% chance of a recession in the second half of 2025.
JPMorgan analysts in a Wednesday note raised the odds that the U.S. economy slides into a recession this year to 35%, citing easing labor market pressures.
www.foxbusiness.com
One factor influencing the fear in the financial markets following the announcement of the unemployment figure was compliance with the Sahm Rule.
The rule stipulates that a recession is likely when the three-month moving average of the jobless rate is at least a half-percentage point higher than the 12-month low.
In July, the jobless rate unexpectedly jumped to 4.3%. Over the past three months, the unemployment rate has averaged 4.13%, which is 0.63 percentage points higher than the 3.5% rate recorded in July 2023.
So, according to the rule, this means recession, but well, JPMorgan says for after the election.
Claudia Sahm, a former Federal Reserve economist has suggested that the rise in unemployment is due to the increase in the number of available workers, including immigrants.
This is part of the reason why Trump has an anti-immigrant policy. So if the average American finds out that they can't get a job because there is a immigrant, possibly illegal, holding a job, with lower pay and benefits, they may not only vote for Trump but light the fuse (stir up feelings) against migrants like in Europe, which would be very bad for Kamala Harris' aspirations.
Across the country, many Americans are struggling with mounting credit card debt. The most recent data from the Federal Reserve reveals that credit card debt sits at $1.12 trillion—yes, that’s trillion with a “t”—in Q1 2024. The figure represents a meaningful increase compared to the country’s prepandemic credit card debt level of $927 billion.
It's no secret that the average American lives on credit. The coronavirus pandemic not only destroyed small businesses but also exacerbated credit card debt.
According to Forbes, Generation X (born between 1965 and 1981) are the most indebted generation.
According to the most recent Experian data from 2023, Generation X had the highest average credit card balance of $9,123. The generation with the lowest average credit card balance was Generation Z at $3,262.
The figure updated by the FED on Tuesday indicates that U.S. consumers collectively owe a record $1.14 trillion in credit card debt.
The high tally comes amid concerns of an economic downturn triggered by modestly rising unemployment, and as soaring costs in food, housing and auto rates continue to drain household budgets. Americans have increasingly been relying on credit cards to make ends meet, with 6 in 10 adults, or 60%, using credit cards to buy groceries in 2023, according to a May report by the Urban Institute. Americans continue to rack up credit card debt, hitting a record $1.14 trillion
Well, not only the biblical revelations told us about this situation, but also the Cs. Imagine you have enough money or a credit card, but there is not enough food or it is so expensive that money or credit cannot buy it.
(Joe) There's a lot of articles in the past two weeks about rumors of food shortages this winter due to various reasons. It's not just high food prices, but food shortages. Lots of reasons are given: the Covid thing, destruction of business, fuel shortages, etc. Is that something that's likely to...?
A: Weather destruction of food sources has been covered up by fake news.
Q: (L) So it's worse than they let on?
A: Yes
Q: (Joe) They're just holding back a flood, ya know? But it's gonna reach a breaking point.
(L) So, it's time for the Four Horsemen of the Apocalypse!
Now remember what JPMorgan published that there was a chance that the U.S. economy will enter a recession by the end of the year. The following could well happen this 2024
Q: (L) Enough. The other day I experienced one of those extended pre-sleep states, and it seemed that I was in a class and there was someone explaining things to me. What they were telling me was that during this Christmas season [the Christmas season of the dream], certain steps would be taken by those controlling the economy, and that after Christmas, in January and February, a whole lot of stuff was going to be put into motion to send the economy into a dive of major proportions. It was not clear that it was THIS year, but that it was right after a Christmas. Can you tell me where this information was coming from, and what was I experiencing?
A: This is a long and complicated subject, but we will do our best to explain it. What you were seeing was one possible future. The economy of our 3rd density world is entirely manufactured. The forces that control it are both 3rd density and 4th density. There are conflicting opinions in the 3rd density sector right now as to when, where, and how to institute an economic depression. This has been "in the works" for quite some "time" as you measure it. So far, the forces arguing against institution of a collapse have prevailed. How long this condition will be maintained is open to many outcomes. Also, please be aware that the state of the economy is entirely an illusion. In other words, the world economy performs solely based upon what the population is told to believe.
Q: (Pierre) When we asked months ago about the next big economic crisis, they said that it will start as usual with a manufactured crisis, but it will get out of hand. I was wondering if this pattern will be synchronous with the current sanitary situation? Fake pandemic, fake economic crisis, and then real pandemic and real economic crisis?
Starbucks, which for months has been facing a drop in activity in a context of rising prices and pressure from its shareholders, announced on Tuesday the immediate departure of its number one executive, Laxman Narasimhan.
Laxman will be replaced as of Sept. 9 by Chipotle fast-food restaurant chain president Brian Niccol. Following the announcement of the hiring, Starbucks' shares catapulted, but it sank Chipotle's. Specifically, shares of the famous coffee shop chain soared more than 20%, while those of the Mexican fast food chain fell around 10%.
"Brian brings a lot of experience and a recognized (economic) balance sheet when it comes to innovation and growth," said Mellody Hobson, chairman of the board of Starbucks.
The news went almost unnoticed due to the escalating violence encouraged by ultra-nationalist groups against immigration.
It is common that when a government is incapable of generating sources of employment through a correct economic policy, it resorts to the distraction provided by an external enemy or an "imminent" war.
The performance of fast food chains is also a reflection of the economy.
After the financial crisis of 2008, fast food chains represented a cheap way for the poor to buy food in the U.S. By 2024, poor people cannot afford to buy the food sold by chains such as McDonalds, Starbucks and Subway.
In Mexico, for example, the minimum wage for an unskilled worker is $249 pesos per day ($12.5 usd per day) while a KFC bucket of fried chicken with 8 pieces costs $339 pesos ($17 usd).
According to the Bic Mac Index the cost of a Big Mac in Mexico at the close of 2018 was $49 pesos, equivalent at that time to $2.53 dollars, versus the price of a Big Mac in the US of $4.71 dollars. Today the value of a Big Mac in Mexico is $89 pesos or US$5.24, compared to $5.69 dollars in the US. The current price in pesos of a Big Mac in Mexico is 82% higher than in December 2018, and the price differential in dollars against the Big Mac in the US went from 86 to 9 percent.
It is assumed that the problem is similar around the world, so fast food chains are finding it necessary to cut staff, reduce the amount of food offered to make it cheaper, or offer promotions and discount coupons, but low prices mean reduced profits, so shareholders and franchisees are unhappy.
Subway called franchisees to an August 15 meeting to address declining sales and outline strategies for regaining market share.
Roark Capital completed its acquisition of Subway in May.
Franchisees have raised concerns that aggressive discounting strategies have eroded profits without driving expected sales growth.
Subway convened an urgent meeting on August 15 with its North American franchisees amid growing concerns over declining sales and profitability, the New York Post reported. Company data from multiple regions indicates significant drops in same-store sales, with some areas seeing declines as steep as 10% compared to the previous year, the paper reported. These challenges come as Subway faces additional financial pressures, including interest payments on debt from its recent sale.
"There is no emergency virtual conference," a Subway spokesperson told the Post, disputing the nature of the meeting. "We consistently and proactively communicate with our franchisees to share business updates and plans."
Despite the company downplaying the urgency of the meeting, franchisees have voiced serious concerns, particularly around aggressive discounting that has eroded profits. According to the Post, a franchisee reported that recent promotional efforts, such as steep coupon offers, have not driven the expected increase in sales, with some stores barely breaking even.
Warren Buffett Sells More BofA Shares, Reaping $982 Million
(Bloomberg) -- Warren Buffett sold an additional $982 million of Bank of America Corp. stock as his conglomerate continues to shrink its investment in the second-largest US bank.
His Berkshire Hathaway Inc. has trimmed the stake by a total of almost 13% in a series of sales since mid-July, generating $5.4 billion in proceeds. Berkshire disclosed the latest disposals in a regulatory filing late Tuesday, detailing sales on Aug 23, 26 and 27.
Buffett has held silent about his reasoning while whittling the highly profitable bet — an investment that began when the stock was trading near $5 in 2011. The shares were up 31% this year before the selling spree. They have since slid about 10% to $39.67.
(Bloomberg) -- Warren Buffett sold an additional $982 million of Bank of America Corp. stock as his conglomerate continues to shrink its investment in the second-largest US bank.Most Read from BloombergNazi Bunker’s Leafy Makeover Turns Ugly Past Into Urban EyecatcherChicago Overcomes DNC...
Some analysts mention that 94-year-old Warren Buffett could be raising cash for his successors. if Berkshire's cash were tied up in investments Buffett made at the end of his life, it could limit what his successors may be able to do.
Others mention that Berkshire is preparing for the Corporate tax hike. The corporate tax rate that the government charges on a corporation's profits was lowered from 35% to 21% as part of the 2017 Tax Cuts and Jobs Act. Those tax cuts will "expire" next year and revert to their previous rates.
And a third scenario, whoever wins the US presidency, would be to protect against an eventual stock market crash when the war in the Middle East finally breaks out on a large scale.
Or all of the above can happen in a series of unfortunate events not necessarily in this order: Warren dies, corporate taxes are raised and WW3 reaches another more disastrous level whose financial missiles destroy the financial markets
Shares of Nvidia sank in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2025. Earnings per share came in at $0.68, which beat Interstingly, Nvidia has only missed expectations once since August 2020.
Shares of chip maker Nvidia ($NVDA) sank in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2025. Earnings per share c...
www.tipranks.com
Nvidia has gone from being a perfect stranger to the general public to becoming the most valuable company in the world.
It is very interesting the way the CEO of Nvidia thinks, apply this to your life, you are your own company, amate.
NVIDIA is partly responsible for the artificial intelligence boom, its value reached $30.4 billion, up 15% from the previous quarter and up 122% from a year ago according to reports.
NVIDIA's success is mainly due to the fact that global data centers are upgrading their processing systems with accelerated computing and generative artificial intelligence. (AGI)
AGI = Deep learning
One of the key technologies in the development of AGI is the use of generative neural networks. These networks use an approach called deep learning, which allows AI to learn from data automatically. This means that AI can analyze immense amounts of data and find patterns and relationships that would otherwise be difficult to detect. This is especially useful in the analysis of text, images and videos, as it allows the AI to create original material from this data. ¿Qué es la Inteligencia Artificial Generativa?
It might be a good time to put on your seat belts. US Federal Reserve cut its rates by -0.50%, ending rate increases and starting rate decreases. This rollercoaster down at the end of increases and beginning of decreases has marked the beginning of many crashes.
Sept 18, 2024 -50 4.75% to 5.00%
March 3, 2020 -50 1.0% to 1.25% [covid crash]
Aug. 1, 2019 -25 2.0% to 2.25% [this was start of rollercoaster down though only -0.25% cut]
It might be a good time to put on your seat belts. US Federal Reserve cut its rates by -0.50%, ending rate increases and starting rate decreases. This rollercoaster down at the end of increases and beginning of decreases has marked the beginning of many crashes.
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