Dollar Strengthens Against Euro Ahead of Powell's Speech

Good morning 👋

Here's the latest news I'm tracking today.

🌎 World & Economics

Dollar Strengthens Against Euro Ahead of Powell's Speech

The dollar showed signs of recovery from a 13-month low against the euro, attributed to assessments that its recent weakness had been overdone. Concerns about the U.S. economy and anticipation of interest rate cuts from the Federal Reserve had previously pressured the currency, with traders estimating a 73% probability of a 25 basis point cut and 27% for a 50 basis point reduction in September. As Federal Reserve Chair Jerome Powell prepares to speak at an upcoming symposium, attention remains on his potential hints regarding future rate cuts, although new jobs and inflation data are expected post-speech. Global economic conditions appear to suggest a more balanced landscape, with central banks in the U.S., Europe, and the U.K. likely to follow similar easing paths.

Governments Slow to Adopt Silicon Valley Practices, Study Finds

A study from the Oxford Internet Institute and the London School of Economics examines the gradual adoption of Silicon Valley practices by governments, particularly in the U.S., U.K., and Australia. The research highlights barriers to modernization, including reliance on traditional tech firms and outdated IT systems, which have hindered public sector progress for decades. It emphasizes the need for the new UK Labor government to develop expertise in AI while managing relationships with both traditional tech providers and emerging platforms. The study suggests that prudent governance and accountability in technology adoption are vital for improving public services and leveraging the benefits of new digital tools.

📈 Stocks / Finance

Investment Guide: Best Index Fund for $1,000 Budget

Investing in the stock market has shown significant long-term returns, averaging around 8.4% annually from 1802 to 2021, with the S&P 500's long-term performance estimated at approximately 10%. For individuals looking to invest, a low-fee index fund, such as the Vanguard S&P 500 ETF with an expense ratio of just 0.03%, is recommended due to its low costs, historical outperformance against managed funds, and instant diversification across top companies like Apple and Microsoft. Historical performance indicates that investments in such index funds can lead to substantial growth, with potential accumulations reaching millions over several decades depending on annual contributions and growth rates. This investment strategy aligns with insights from experts and renowned investors, highlighting its effectiveness for building wealth over time.

Ad Tech M&A Activity Revives Amid Economic Recovery and Industry Shifts

M&A activity in the ad tech sector has experienced a resurgence with several notable acquisitions, including Outbrain and Teads, following a significant decline in 2023 caused by economic instability and cost-cutting measures among firms. Terry Kawaja highlights that public ad tech companies increased their EBITDA margins, enhancing their attractiveness as acquisition targets as capital flow improved in 2024. Despite Google delaying the deprecation of third-party cookies, industry experts suggest that enhanced cookie-less solutions and the growth of connected TV (CTV) and AI technologies will continue to influence M&A activity. Additionally, some tech giants are divesting from ad tech, indicating a shift in focus that could pave the way for new acquisition opportunities, particularly if regulatory pressures lead to the breakdown of major players like Google.

🪙Crypto

CryptoPunks Achieves $1.29 Million in NFT Sales

On Wednesday, CryptoPunks topped the daily NFT sales chart with US$1.29 million, marking three consecutive days of strong performance amidst discussions about a potential decline in the value of these iconic NFTs. Notably, investor Deepak Thapliyal sold Punk #5822, previously valued at US$24 million, for an estimated loss around 5,000 Ether (approximately US$12.8 million), although the exact sale amount remains undisclosed. The CryptoPunks collection recorded 15 transactions involving 11 different buyers, resulting in an average sale price of US$86,582, while its all-time sales volume rose to US$2.87 billion, securing the third position in the market. Bored Ape Yacht Club and other notable collections followed, with Bored Ape Yacht Club generating US$861,724, illustrating the competitive landscape of the NFT market.