Inflation Rate Drops to 2.9% in July, Lowest Since 2021

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🌎 World & Economics

Company Fined €550,000 After Firing Employee Over Ultimatum from Elon Musk

Elon Musk's X has been ordered to pay over €550,000 ($602,640) to a former Irish employee, Gary Rooney, in an unfair dismissal case, marking the largest compensation awarded by Ireland’s Workplace Relations Commission. Rooney, dismissed in December 2022 after nearly a decade with the company, argued that he was unfairly treated following an email from Musk, which required employees to commit to new working terms or accept a buyout within a day. The Commission ruled that not clicking “yes” did not equate to voluntary resignation, rejecting X’s defense. The ruling highlights ongoing concerns around employee treatment at the company, particularly after Musk's acquisition led to a series of lawsuits regarding severance benefits and workplace conditions. The global staff reduction following the takeover has also significantly impacted the Dublin office, which previously employed about 500 workers.

Inflation Rate Drops to 2.9% in July, Lowest Since 2021

In July, inflation rose by 0.2%, primarily driven by a 0.4% increase in shelter costs, leading to a 12-month inflation rate of 2.9%. The core consumer price index, which excludes food and energy, also increased by 0.2% monthly and 3.2% annually, representing the lowest annual rates since early 2021. While food prices saw a slight increase of 0.2%, specific items like eggs surged by 5.5%. The Federal Reserve is considering potential interest rate cuts, anticipated during their meeting on September 17-18, with market predictions favoring a quarter-point reduction. Despite improving inflation metrics, Fed officials remain cautious about the timing and extent of rate changes.

📈 Stocks / Finance

Trump's Media Firm Shares Hit Near Record Low After X Return

Shares of Trump Media & Technology Group, primarily known for the Truth Social app, have fallen significantly due to disappointing quarterly results and Donald Trump's declining poll numbers amidst the upcoming presidential election. The company's stock is trading near a record low, having lost more than half its value since becoming public in March, with a current market valuation of $4.73 billion, down from over $9 billion earlier this year. Trump's return to the social media platform X for a high-profile interview with Elon Musk has also raised concerns among investors about the viability of Truth Social as a competitive app. Recent reports indicate a significant 30% decline in revenue year-over-year and increased expenditures on new ventures like Truth+, further complicating the company's financial outlook. Analysts suggest that Trump's electoral success or failure could heavily influence future stock performance, with indications that the stock's best days may be behind it.

Stifel Strategist Warns Against Rapid Return to Stock Market Amid Slowing Economy

Stocks have shown some recovery following last week's sell-off; however, caution is advised, according to Stifel's chief strategist Barry Bannister. He projects a 10% market correction that would bring the S&P 500 to 5,000 by October, suggesting that even at that level, stocks would still be overpriced. Bannister expresses skepticism about the Fed's ability to achieve its 2% inflation target, expecting a closer alignment to 3% by the fourth quarter due to persistent housing inflation. Furthermore, he highlights underwhelming GDP and consumption data expected in the latter half of the year, indicating potential economic distress. Bannister warns investors about the market's volatility, likening it to a manic depressive cycle, and emphasizes the importance of a cautious approach moving forward.

🪙Crypto

Tether Balance Soars to Record High Amid $1B USDT Printing

Tether's USDT balances on crypto exchanges reached an unprecedented $20.339 billion on August 13, reflecting a substantial readiness among investors to allocate these stablecoins into cryptocurrency ahead of the Federal Reserve's September rate decision. This surge followed the minting of $1 billion in USDT by Tether's treasury, which was classified as an "inventory replenish" rather than a release into circulation. As of August 14, nearly $941.72 million in USDT were marked as "authorized but not issued," with approximately $60 million already deployed into the market, indicating strong demand. Additionally, trading firm Cumberland's transfer of $141.50 million USDT to various exchanges suggests growing institutional activity, particularly in anticipation of potential market volatility stemming from the Fed's policy decisions. Analysts note that a rate cut could bolster market sentiment, potentially leading to further investments in cryptocurrencies.