🌎 World & Economics

Federal Reserve Meeting Expected to Lower Interest Rates Amid Cautious Consumer Spending

PYMNTS

The upcoming Federal Reserve meeting on September 17 is anticipated to result in a reduction of interest rates, aimed at making borrowing more advantageous for businesses; however, this is not expected to bring about an immediate increase in consumer spending, which tends to lag behind economic changes. Continued analysis indicates that consumer behavior reflects caution due to cooling inflation and a sluggish job market, leading many consumers to downgrade purchases rather than abandon them. Reports highlight a growing financial strain, with a notable percentage of consumers, particularly low-income individuals, struggling to meet expenses while financial stability declines across income levels. As a result, despite some potential for economic growth, forecasters suggest a prudence in consumer spending and business investment as the economy heads into the latter part of the year.

Bank of America Projects Commodities to Outperform Bonds Through 2030

Business Insider

Bank of America forecasts that commodities will outperform bonds through the end of the decade as inflation rises, driven by deglobalization and increased labor costs reversing two decades of low inflation trends. The strategists predict a structural shift back to an average annual inflation rate of around 5%, contrasting with the recent subdued levels of approximately 2%. Commodities such as oil and gold, historically seen as reliable hedges against inflation, are expected to generate annualized returns of 11%, surpassing the 6% return from the Bloomberg Aggregate bond index. Gold has notably performed well, surging 21% this year and 35% since inflation began to escalate in 2022, while oil prices have remained relatively stagnant at about $74 per barrel.

Tokyo Stock Exchange Expands Asia Startup Hub with New Partners

Asian Investing

Tokyo Stock Exchange, Inc. (TSE) has expanded its TSE Asia Startup Hub, initiated on March 25, by adding 21 venture capital firms and one bank, bringing the total to 52 partners and four observers. The new bank partner is Korea Development Bank, while the venture capital firms include notable names such as CAC CAPITAL, CyberAgent Capital, and SBI Investment. The initiative seeks to foster an ecosystem that supports the growth of promising Asian startups by facilitating business development and fundraising through IPOs. As part of this effort, TSE aims to attract more Asian companies for future support, with eligibility criteria focusing on factors like company valuation and IPO intentions, with announcements planned for the third quarter of 2024.

 📈 Stocks / Finance

Airbnb Stock Faces Significant Risk, Analysts Warn

Yahoo Finance

Airbnb has rapidly established itself as a dominant player in the hospitality sector, reaching $21 billion in gross booking value last quarter and amassing 5 million hosts. However, the company faces significant challenges, particularly from regulatory environments that vary across local, state, and federal levels, complicating its operational landscape. Despite these hurdles, including recent bans on short-term rentals in major cities like New York, Airbnb's extensive geographic diversity mitigates some regulatory risks. With steady sales growth and strong profitability, there is still a case for investors to consider Airbnb stock, but ongoing legislative actions remain a critical factor to monitor.

Crypto Executive Implements Call System for 80-Year-Old Withdrawal Requests

Coin Telegraph

Crypto exchanges must enhance their proactive measures to protect customers from scams, especially targeting vulnerable demographics like seniors. Independent Reserve's CEO, Adrian Przelozny, highlighted that individuals over 65 are at a higher risk due to their limited familiarity with technology. The exchange employs a compliance team that contacts customers exhibiting suspicious withdrawal patterns, often leading to important discussions that help victims recognize potential scams. Awareness of demographic trends indicates that younger individuals, particularly those aged 25-34, also represent a significant portion of scam victims in the UK, while lower-income areas face unique vulnerabilities, as individuals may be more inclined to pursue seemingly easy financial opportunities.