Waiting on the Fed and Treasury
The Federal Reserve (Fed) has not made any changes to interest rates since July, and it is anticipated that they will maintain this stance today. However, Wall Street is anxiously waiting to see if there will be any adjustments to the central bank’s strategy on rates, including a possible increase as early as next month. Investors will also have their attention on the Treasury Department, which will be providing an update on its borrowing plans for the coming months. This announcement comes at a time of tension in the bond market, with yields on 10-year Treasury notes reaching a 16-year high last month. The Treasury’s plan to issue a significant amount of debt into an already saturated market raises concerns about increased volatility in both stocks and bonds. The outcome of these events will shed light on the future of interest rates and market stability.
Vice President Kamala Harris proposes new A.I. rules
Ahead of her participation in a summit on regulating artificial intelligence, Vice President Kamala Harris has announced initiatives aimed at establishing guidelines for the deployment and military use of A.I. by federal agencies. Chinese scientists have also called for an international regulatory body to address the risks associated with A.I.
WeWork reportedly plans to file for bankruptcy
WeWork, the troubled co-working company, is rumored to be considering filing for Chapter 11 bankruptcy protection after missing a bond interest payment. This development represents a significant decline for WeWork, whose fortunes have deteriorated over the past few years.
A jury clears Tesla in a lawsuit over its driver-assistance software
Tesla’s Autopilot system has been found not at fault in a 2019 California crash. This verdict may set a precedent for other cases involving Tesla’s software.
A major British hedge fund closes in the wake of sexual misconduct accusations
Odey Asset Management has announced its closure following allegations of sexual misconduct against its founder, Crispin Odey. Some of the firm’s executives and funds will be transitioning to other companies.
The Bankman-Fried trial heads to a climax
Closing statements in Sam Bankman-Fried’s crypto fraud trial are set to begin today. Bankman-Fried, the head of FTX, is accused of orchestrating a multi-billion dollar fraud. If convicted, he could face a lengthy prison sentence.
An “earthquake” hits the U.S. home sale market
A court ruling against the National Association of Realtors and large brokerages could disrupt the real estate industry. Homeowners accused these entities of artificially inflating commissions, resulting in higher home prices. The jury awarded the plaintiffs nearly $1.8 billion in damages, which could potentially be trebled to over $5 billion.
Using economic leverage in the Israel-Hamas war
The Atlantic Council suggests that providing economic aid to countries like Egypt, Jordan, and Lebanon could incentivize them to help de-escalate the Israel-Hamas conflict. For example, Egypt is eager to access a stalled $5 billion IMF program, and Jordan…