Social Security Recipients to Receive 2.5 Percent Increase in 2025 Amid Easing Inflation

Social Security beneficiaries will see a 2.5 percent cost-of-living adjustment (COLA) in 2025, as announced on Thursday. This marks a significant drop from the previous year’s 8.7 percent increase, which came on the heels of record-high inflation triggered by the pandemic. The modest rise for 2025 reflects the easing of inflationary pressures, in line with expert predictions.

The Social Security Administration (SSA) explained that around 70 million people will benefit from the 2.5 percent increase, beginning in January. Additionally, over 7.5 million Supplemental Security Income (SSI) recipients will receive their payment increase starting December 31. Some individuals who receive both Social Security and SSI benefits will experience the adjustment across both payments.

The relatively modest increase follows a period of sky-high inflation that spurred an unusually large adjustment for 2024. Social Security Commissioner Martin O’Malley noted that the new increase is designed to help “tens of millions of people keep up with expenses even as inflation has started to cool.” This adjustment, while smaller than last year’s, is seen as a necessary step in maintaining purchasing power for beneficiaries.

Recent inflation data from the Department of Labor backs the decision for the smaller COLA adjustment. The Consumer Price Index (CPI), a key measure of inflation, showed only a 0.2 percent increase last month and a 2.4 percent annual rise. The particular gauge used to calculate COLA—the Consumer Price Index for Urban Wage Earners and Clerical Workers—also recorded a 2.2 percent increase over the past year. These relatively low inflation numbers stand in stark contrast to the elevated inflation levels seen during and after the pandemic, when supply chain disruptions, labor shortages, and skyrocketing demand pushed prices higher.

Jason Fichtner, chief economist for the Bipartisan Policy Center, provided his perspective on the adjustment, stating that the slowing inflation is “good for today’s beneficiaries.” However, he raised concerns about the future financial health of Social Security, warning that “the biggest threat to seniors’ financial security — the depletion of Social Security’s trust fund — is looming.” Fichtner added that if Congress fails to address the trust fund issue soon, Social Security beneficiaries could face an “automatic and immediate benefit cut of over 20 percent” within the next decade.

The Social Security trust fund is projected to face depletion by 2033, according to recent estimates. If lawmakers do not take action, there could be drastic cuts to benefits. Many experts have called for bipartisan reform to address the issue, but political gridlock has slowed efforts to modernize the system. Fichtner stressed the urgency of the situation, saying, “With a new Congress and administration, next year is the time to find the bipartisan will to act.”

The Federal Reserve’s recent decision to cut interest rates for the first time in years also reflects a changing economic landscape. The Fed has been committed to curbing inflation since it began rising sharply in 2021, implementing a series of interest rate hikes to cool down the economy. The cut in rates signals a shift in strategy, indicating that the Fed believes inflation is finally under control.

Newly released minutes from the Fed’s latest meeting of its interest rate-setting committee echoed this confidence. Bankers indicated that they were optimistic about the nation’s economic outlook, with inflation showing signs of stabilizing after the aggressive rate hikes. This shift towards easing monetary policy aligns with the slowing inflation figures and the more modest COLA adjustment for Social Security recipients.

Last year’s 8.7 percent COLA increase was the highest since 1981 and provided much-needed relief for millions of Americans as they faced rising costs for groceries, gas, healthcare, and housing. The high COLA was the result of decades-high inflation during the pandemic, driven by disruptions in global supply chains, labor shortages, and increased demand for goods and services.

However, the return to a lower COLA in 2025 is indicative of an economy that is beginning to stabilize. O’Malley’s remarks that the increase will help people “keep up with expenses” underscore the ongoing challenges for many seniors who rely heavily on Social Security for their livelihood. Even with inflation cooling, the cost of living remains high, especially for essential goods like food, utilities, and prescription medications. For many retirees, Social Security represents the primary source of income, and any adjustment to benefits can have a significant impact on their financial well-being.

Fichtner’s warning about the future of Social Security is not new. For years, experts have been sounding the alarm about the trust fund’s impending insolvency, largely due to demographic shifts and longer life expectancies. As the baby boomer generation continues to retire, the number of people receiving benefits is increasing faster than the number of workers paying into the system. This imbalance, if not addressed, could lead to severe cuts in benefits down the line.

Several solutions have been proposed to shore up the trust fund, including raising the retirement age, increasing payroll taxes, or reducing benefits for higher-income earners. However, these proposals are often met with political resistance, as changes to Social Security are a sensitive topic for both lawmakers and the public.

The 2025 COLA increase will likely provide temporary relief for beneficiaries, but the long-term solvency of the Social Security system remains uncertain. As inflation stabilizes, policymakers will need to focus on addressing the structural issues facing the trust fund, ensuring that future generations of retirees can continue to rely on the benefits they have been promised.

As Fichtner emphasized, “The longer Congress delays, the bigger the Trust Fund shortfall becomes.” Next year, with a new Congress and administration in place, there may be an opportunity to find common ground on Social Security reform. In the meantime, beneficiaries can expect their 2.5 percent COLA adjustment to provide some help in navigating the challenges of a still-elevated cost of living, even as inflation shows signs of easing.

Warren Buffett’s Modest Lifestyle Despite Immense Wealth

Warren Buffett, often hailed as the greatest investor of all time, is also among the wealthiest individuals on the planet. However, his lifestyle hardly reflects his enormous fortune. Buffett, known as the CEO of Berkshire Hathaway, has maintained a remarkably modest lifestyle, a testament to his personal philosophy and financial principles.

Buffett is well known for living far below his means, and there’s a significant reason behind it. Over the years, he has pledged to donate more than 99% of his wealth, either during his lifetime or upon his death. Now 94 years old, the legendary investor has shown through both his words and actions that his life’s purpose goes beyond material wealth.

For more than 65 years, Buffett has resided in the same house in Omaha, Nebraska. The home is a cornerstone of his modest lifestyle. He bought the house in 1958 for a modest sum of $31,500, according to CNBC reports. At the time, the property covered roughly 6,500 square feet, which, while spacious, pales in comparison to the lavish mansions typical of billionaires.

The house, originally built in 1921, has appreciated substantially in value over the decades, much like many of Buffett’s investments. According to an estimate from Zillow Group, the house is now valued at around $1.34 million. While this represents significant appreciation, it remains relatively modest considering Buffett’s current position as the world’s sixth-richest individual. Despite the house’s rising value, Buffett’s decision to stay in this modest dwelling reflects his financial mindset and personal values.

In a letter to his shareholders in 2010, Buffett highlighted the importance of his home, even calling it one of his best investments. He humorously ranked it just behind the pair of wedding rings he had purchased. “It’s the third-best investment I’ve ever made,” Buffett once remarked, encapsulating his belief that success isn’t measured by financial gain alone but by personal happiness and long-term value.

This mindset is consistent with Buffett’s overall life philosophy. He once explained to a group of students at the University of Georgia that success in life should not be measured by money or material possessions. Instead, he argued, true success should be measured by the love and meaningful relationships one accumulates throughout life. “Your success in life will be determined by how many people you want to have love you actually do love you,” he said. This sentiment reveals much about Buffett’s personal approach to wealth and success, and how he views the purpose of money in life.

For Buffett, his home represents far more than just a financial asset. It symbolizes comfort and contentment, values that define his approach to life. Located just five minutes away from Berkshire Hathaway’s headquarters, the house offers both convenience and simplicity. Buffett enjoys the fact that it meets all his needs without excess. He appreciates its simplicity and sees no need to upgrade to something more extravagant. “I’m warm in the winter, I’m cool in the summer … I couldn’t imagine having a better house,” Buffett told CNBC.

In a world where billionaires often flaunt their wealth through flashy homes, luxury cars, and other expensive purchases, Buffett’s lifestyle is an anomaly. It highlights the contrast between his immense wealth and his preference for living in a way that prioritizes comfort and happiness over material excess. The fact that one of the richest men in the world is content with such a modest home speaks volumes about his values.

Despite his immense financial success, Buffett has always emphasized that money alone does not lead to fulfillment. He has famously said that if a person isn’t happy without a million dollars, they won’t be happy with a million dollars either. Buffett’s personal life and financial decisions reflect this belief. He finds joy and contentment in the simple things and doesn’t feel the need to chase after luxuries or extravagances.

While Buffett’s investments have made him a household name, his personal philosophy is equally notable. His decision to give away the vast majority of his fortune rather than keep it for himself is a powerful statement about how he views wealth and its purpose. Buffett has already donated billions of dollars to charitable causes through initiatives like The Giving Pledge, which he co-founded with Bill and Melinda Gates. The pledge encourages the world’s wealthiest individuals to give away the majority of their fortunes to philanthropic causes, and Buffett’s commitment to it shows that his words are backed by action.

Buffett’s lifestyle also reflects his frugality, a trait that has become a cornerstone of his financial success. From driving a simple car to eating breakfast at McDonald’s, he hasn’t allowed his vast wealth to influence his day-to-day choices. This frugality isn’t just a personal quirk; it reflects his investment principles. By avoiding unnecessary expenses, Buffett has been able to focus on the long-term value of his investments, which has helped him build Berkshire Hathaway into one of the world’s most successful companies.

Ultimately, Warren Buffett’s life is a testament to the idea that wealth should serve a greater purpose than mere consumption. His decision to live modestly, give generously, and prioritize relationships over riches sets him apart from many of his billionaire peers. It also highlights a broader truth: money, while useful, isn’t the ultimate measure of a successful or meaningful life. For Buffett, the true value of wealth lies not in what it can buy but in the impact it can have on others.

Warren Buffett’s modest lifestyle, from his simple house to his humble approach to wealth, underscores his personal philosophy about money and success. He has shown the world that living below one’s means, even when one has the financial ability to live extravagantly, can be a more fulfilling and rewarding way of life. His commitment to giving away his fortune and prioritizing relationships over material goods sets him apart as a unique figure in the world of business and finance. And as he has demonstrated time and again, true wealth isn’t measured by the things you own but by the legacy you leave behind.

Fed’s Jumbo-Sized Rate Cut Marks Major Shift Amid Inflation Fight

The Federal Reserve on Wednesday introduced its first major rate reduction since the pandemic, signaling a pivotal moment for the U.S. economy. This marked a key milestone in the central bank’s prolonged effort to battle inflation, which has impacted Americans over the past two years with rising costs of living. The move also demonstrated the Fed’s concern for keeping the economy stable, particularly when it comes to the job market.

In what was an unusual moment for Wall Street, opinions were split on whether the Federal Reserve would opt for a standard quarter-point reduction or take a more aggressive approach with a half-point cut. Ultimately, the Fed chose the supersized half-point option, surprising many analysts who had expected a more conservative reduction.

Speaking at a press conference following the announcement, Federal Reserve Chair Jerome Powell was quick to clarify that this half-point reduction does not indicate a new trend for the central bank. He stressed that the decision was aimed at maintaining balance in the economy while keeping the labor market in a healthy state. Powell emphasized, “We don’t view this as the start of a pattern; our objective is to keep the economy and the job market stable.”

The Fed’s decision comes after months of pressure on the central bank to ease its stance on interest rates amid growing concerns over inflation. Many economists and financial experts have been debating the appropriate steps to bring inflation down while avoiding further strain on the job market and overall economic growth.

Inflation, which had been running at high levels since the recovery from the pandemic began, has led to a surge in prices for everyday goods and services. This has been a pressing issue for many Americans who have felt the sting of increased grocery bills, housing costs, and energy expenses. The Fed’s choice to implement a half-point cut is an indication of their commitment to addressing inflation more aggressively while still keeping an eye on economic stability.

The reaction from Wall Street to the Fed’s announcement was swift. Initially, the markets surged, with all three major stock indexes climbing in response to the news. Investors seemed optimistic that the rate cut would provide a boost to the economy, easing financial conditions and stimulating business activity. However, as the day went on, the optimism faded, and by the time the markets closed, all three indexes had dipped into the red. This volatility underscored the ongoing uncertainty surrounding the future of the U.S. economy and the effectiveness of the Federal Reserve’s policies.

Despite the short-term market reaction, many analysts believe that the rate cut could have a positive impact in the long run. By reducing borrowing costs, the Fed is hoping to encourage businesses to invest and consumers to spend, which could help fuel economic growth. Lower interest rates typically lead to more accessible credit for companies and households, spurring spending and investment that can drive the economy forward.

However, some critics argue that the Fed’s move may not be enough to tame inflation on its own. They point to other factors, such as supply chain disruptions, global energy prices, and geopolitical tensions, which continue to weigh heavily on the economy. These challenges, they argue, could limit the effectiveness of interest rate cuts and prolong the inflationary pressures that have been a headache for policymakers.

On the other hand, there are concerns that if the Federal Reserve cuts rates too aggressively, it could create new problems for the economy. Some experts worry that lower interest rates could encourage excessive borrowing, leading to asset bubbles and financial instability. This delicate balancing act is one that the Fed will have to navigate carefully in the coming months.

For now, the central bank is focusing on using its primary tool—interest rates—to steer the economy through this turbulent period. Powell reiterated that the Fed remains vigilant and ready to take further action if necessary. “We’re prepared to do what’s needed to support the economy,” he stated. “We’ll be assessing the data closely and will respond accordingly.”

The labor market, a key concern for the Fed, has shown resilience in recent months despite the economic challenges posed by inflation. Unemployment has remained relatively low, and job growth has continued, providing a bright spot in an otherwise uncertain economic landscape. The central bank’s decision to cut rates reflects its intention to support this positive trend while keeping inflation in check.

Some experts believe that the Fed may take additional steps in the coming months to further reduce rates if inflation does not ease as expected. The central bank’s willingness to implement a half-point cut, rather than the standard quarter-point, suggests that they are open to more aggressive measures if the situation calls for it.

Nevertheless, Powell was clear that Wednesday’s decision should not be seen as the start of a new pattern of large rate cuts. He emphasized that the Fed would continue to make decisions based on the latest economic data, aiming to strike the right balance between supporting growth and containing inflation. “We’re not setting a precedent here,” Powell said. “We’re responding to the specific conditions of the moment and will adjust our policies as needed.”

The decision to introduce a half-point rate cut is part of the Fed’s broader strategy to ensure the economy remains on solid footing as it navigates the complex challenges ahead. While the move has raised some eyebrows, it reflects the central bank’s determination to act decisively in the face of economic uncertainty.

As the dust settles on this major policy shift, all eyes will be on the Federal Reserve to see how they manage the delicate balance between curbing inflation and promoting economic growth. The next few months will be crucial in determining whether this rate cut achieves the desired effect or whether more action will be needed to steer the economy through these challenging times.

For Americans grappling with the higher cost of living, the Fed’s actions will be closely watched, as any further adjustments could have a direct impact on borrowing costs, savings, and overall financial stability. Whether this jumbo-sized rate cut will be enough to tame inflation remains to be seen, but it has certainly set the stage for a pivotal moment in the U.S. economy’s ongoing recovery.

Oracle Chairman Larry Ellison Surpasses Jeff Bezos as His Net Worth Reaches $206.1 Billion

Larry Ellison, the chairman of Oracle, has seen his wealth skyrocket, surpassing even Amazon founder Jeff Bezos. On Monday, Ellison’s real-time net worth reached a remarkable $206.1 billion, as reported by Forbes. Bezos, once the richest man in the world, is now just behind with a fortune of $203.1 billion. The surge in Ellison’s wealth aligns with Oracle’s impressive stock performance this year, especially due to the booming success of its cloud services business. Oracle shares saw a significant rise of nearly 5% during mid-day trading on Monday, capping off a strong year where the company’s stock has risen by about 63.4%.

Ellison’s wealth is tied closely to Oracle’s performance, as he holds just under 40% of the company’s outstanding stock, according to Forbes. This massive stake in Oracle has cemented his position as one of the world’s wealthiest individuals, with Ellison now ranked as the fifth-richest person globally, according to the Bloomberg Billionaires Index.

The recent surge in Oracle’s stock comes in the wake of its stellar performance in the first quarter of the fiscal year, where the company surpassed Wall Street’s expectations. After the company posted its quarterly earnings results, its shares jumped 13% the following day and closed at an all-time high of $157.10 on September 11. The company’s total quarterly revenue was up by 7% compared to the same period last year, and when adjusted for constant currency, revenues rose by 8%.

One of the key drivers of Oracle’s strong performance is its cloud services division, which has been pivotal in the company’s growth. Oracle reported that its cloud services revenue in U.S. dollars grew by 12% year-over-year, while in constant currency terms, it surged by 22%. This growth reflects the increasing demand for Oracle’s cloud services as companies continue to shift their operations to the cloud.

Safra Catz, Oracle’s chief executive officer, highlighted the importance of the cloud business in Oracle’s success, saying, “As Cloud Services became Oracle’s largest business, both our operating income and earnings per share growth accelerated.” This shift towards cloud services is not only driving revenue but also significantly boosting the company’s profitability.

Ellison has also been vocal about the company’s cloud expansion. He revealed that Oracle now has 162 cloud data centers globally, either in operation or under construction. This extensive network of data centers is a key component of Oracle’s cloud strategy. Ellison further emphasized the scale of these operations by highlighting Oracle’s largest data center, which has a capacity of 800 megawatts and is designed to house massive NVIDIA GPU clusters. These GPU clusters are critical for training large-scale artificial intelligence models, which are becoming increasingly important in today’s technology landscape.

At an Oracle investor event held last Thursday, Ellison shared an anecdote about the company’s efforts to secure more GPUs, which are essential for powering AI models. He mentioned that he and Elon Musk, the world’s richest person, were in discussions with Nvidia’s chief executive, Jensen Huang, urging him to supply more GPUs.

Ellison humorously recounted the conversation, saying, “Please take our money. No, no, take more of it. We need you to take more of our money. Please.” He added that their efforts to secure more GPUs were successful, remarking, “It went okay. It worked.”

The demand for GPUs, particularly those produced by Nvidia, has surged in recent years due to the rise of artificial intelligence and machine learning applications. These technologies require massive computational power, and GPUs are at the heart of this processing. Oracle’s investment in Nvidia’s technology underscores the company’s commitment to staying at the forefront of AI innovation and cloud computing.

Ellison’s close relationship with some of the tech industry’s biggest names, including Elon Musk, has only further solidified his influence in the world of technology. Both Ellison and Musk have been key players in advancing AI technologies, and their collaboration highlights the growing importance of AI in shaping the future of industries ranging from cloud computing to autonomous vehicles.

In addition to Oracle’s success, the broader tech industry has experienced a resurgence in 2023, with many companies benefiting from the increasing adoption of cloud computing, artificial intelligence, and other cutting-edge technologies. As a result, Oracle has positioned itself as a leader in the cloud space, competing with giants like Amazon Web Services and Microsoft Azure. The company’s aggressive expansion of its cloud infrastructure and its partnerships with AI innovators like Nvidia are part of its broader strategy to capture more market share in this highly competitive industry.

Oracle’s move into cloud services and AI has proven to be a game-changer, and the company’s leadership, particularly Ellison, has been instrumental in guiding this transition. With his personal wealth continuing to grow alongside Oracle’s stock performance, Ellison remains a key figure in the global technology landscape.

Oracle’s future looks bright as it continues to invest in the latest technologies and expand its cloud capabilities. The company’s success in the cloud market, combined with its focus on AI and data center expansion, positions it well for continued growth in the coming years.

Ellison’s rise in wealth reflects not only the success of Oracle but also the broader trend of tech billionaires who are seeing their fortunes grow as their companies lead the way in technological innovation. With Oracle’s stock continuing to climb and its cloud services playing an increasingly important role in the company’s revenue, it seems likely that Ellison’s wealth will only increase further in the near future.

As of now, Larry Ellison’s $206.1 billion fortune places him among the wealthiest individuals in the world, and with Oracle’s stock continuing to perform well, he could soon climb even higher in the rankings. Meanwhile, Jeff Bezos, who held the title of the world’s richest person for several years, remains a close contender with a net worth of $203.1 billion.

Oracle’s remarkable performance in the cloud business and AI sectors has been a key driver of Ellison’s recent wealth surge. As Oracle continues to expand its cloud infrastructure and capitalize on the growing demand for AI technology, Ellison’s net worth is expected to continue its upward trajectory. This success story underscores the growing influence of cloud services and AI in shaping the future of the tech industry.

Economic Confidence Rises Slightly in August, Despite Pessimism on Financial Outlook

Americans’ economic confidence saw a modest increase this month, although a majority still believes that the nation’s financial situation is deteriorating, according to a Gallup poll released on Friday.

The percentage of respondents who viewed the economy as “getting better” rose by 7 percentage points to 31 percent. Nevertheless, the prevailing sentiment among 63 percent of those surveyed was that the economy is worsening.

While some participants acknowledged improvements, their assessment of current economic conditions remained largely unchanged. The survey revealed that nearly half of Americans, 45 percent, rated the current economic conditions as “poor.” Around 31 percent considered them “only fair,” and close to a quarter, 24 percent, described them as “good” or “excellent.”

Gallup’s Economic Confidence Index, which measures Americans’ perspectives on economic conditions and their outlook for the economy, increased by 8 points, moving from minus 35 to minus 27 in August. This marked the index’s first improvement since March, Gallup reported.

Breaking down the economic confidence by political affiliation, Democrats showed an improved outlook, with their confidence rising from plus 16 to plus 21 this month. This period coincided with Vice President Kamala Harris taking over as the party’s presidential nominee from President Biden. In contrast, Republicans remained deeply pessimistic, with their economic confidence standing at a significantly negative minus 76.

Opinions on the job market were mixed. The poll found that approximately 45 percent of respondents believed it was a good time to find a worthwhile job, while 50 percent thought it was a bad time.

The poll, conducted from August 1 to 20, surveyed 1,015 adults and has a margin of error of plus or minus 4 percentage points.

India’s Economic Growth Slows to 15-Month Low in April-June 2024

India’s economic growth rate has decelerated to a 15-month low of 6.7% for the April-June quarter of the fiscal year 2024-25, primarily due to weaker performance in the agriculture and services sectors, according to government data released on August 30, 2024. This marks a significant drop from the 8.2% growth rate recorded in the same quarter of the previous fiscal year, 2022-23.

Despite this slowdown, India remains the fastest-growing major economy, outperforming China, which registered a growth rate of 4.7% during the same period. The last time India’s growth rate was this low was in the January-March quarter of 2023 when it was recorded at 6.2%.

The key infrastructure sectors also witnessed a slowdown, with growth falling to 6.1% in July 2024.

Aditi Nayar, Chief Economist and Head of Research & Outreach at ICRA, explained, “India’s GDP growth expectedly slowed down in Q1 FY2025 relative to Q4 FY2024 (to a five-quarter low of 6.7% from 7.8%), even as the GVA growth surprisingly accelerated between these quarters (to 6.8% from 6.3%). This divergent trend was led by the normalization of the growth in net indirect taxes, and the slowdown in the GDP growth is not a cause for alarm, in our view.”

The National Statistical Office (NSO) data revealed that the gross value added (GVA) in the agriculture sector declined sharply, with growth slowing to 2% in the April-June quarter of 2024-25, down from 3.7% in the same period of the previous fiscal year.

Similarly, the GVA in ‘financial, real estate and professional services’ also saw a reduction, with growth slowing to 7.1% in the April-June quarter, compared to 12.6% a year earlier.

Conversely, the manufacturing sector showed signs of acceleration, with GVA growth increasing to 7% in the first quarter of the current fiscal year, compared to 5% in the corresponding quarter of the previous year.

According to the NSO, “Real GDP or GDP at Constant Prices in Q1 of 2024-25 is estimated at ₹43.64 lakh crore against Rs 40.91 lakh crore in Q1 of 2023-24, showing a growth rate of 6.7%.” The statement further highlighted that nominal GDP, or GDP at current prices, for Q1 of 2024-25 is estimated at ₹77.31 lakh crore, compared to ₹70.50 lakh crore in Q1 of 2023-24, indicating a growth rate of 9.7%.

Sector-wise performance was mixed in the April-June quarter. The ‘mining and quarrying’ sector showed modest growth, with GVA rising to 7.2% compared to 7% in the same period last year. The sectors comprising electricity, gas, water supply, and other utility services recorded a significant increase, growing by 10.4%, up from 3.2% a year ago.

The construction industry also experienced robust growth, expanding by 10.5% in the first quarter, compared to an 8.6% increase in the same period of the previous fiscal year.

In contrast, the trade, hotels, transport, communication, and services related to broadcasting sectors experienced a notable slowdown, with growth decelerating to 5.7% in the April-June 2024 quarter, down from 9.7% in the corresponding period last year.

However, there was an improvement in public administration, defense, and other services, which grew by 9.5%, up from 8.3% a year ago.

The real GVA for Q1 of 2024-25 is estimated at ₹40.73 lakh crore, up from ₹38.12 lakh crore in Q1 of 2023-24, reflecting a growth rate of 6.8%, a decrease from the 8.3% growth rate recorded in the same period last year. Meanwhile, nominal GVA for Q1 of 2024-25 is estimated at ₹70.25 lakh crore, compared to ₹63.96 lakh crore in Q1 of 2023-24, showing a growth rate of 9.8%, up from 8.2% a year ago.

Despite the slowdown in the overall GDP growth, the growth in certain sectors, such as manufacturing, construction, and utilities, indicates resilience and potential areas of strength for the Indian economy. However, the weakened performance in key sectors like agriculture and services suggests challenges ahead, particularly if these trends persist.

Economists remain cautiously optimistic, noting that while the slowdown is a concern, it does not necessarily indicate a long-term trend. Factors such as monsoon performance, global economic conditions, and domestic policy measures will likely influence the economic outlook for the remainder of the fiscal year.

As the government continues to monitor economic indicators closely, there may be a need for targeted policy interventions to support growth in underperforming sectors and sustain momentum in the stronger segments of the economy. This balanced approach could help maintain India’s position as the fastest-growing major economy, despite the current challenges.

How Mark Zuckerberg Spends His $187 Billion Fortune on Cars, Real Estate, Charity, and More

Mark Zuckerberg, one of the wealthiest and most influential individuals in the world, boasts a staggering net worth of $187 billion, according to the Bloomberg Billionaires Index. The CEO of Meta, formerly known as Facebook, is among the elite group of centibillionaires. His vast wealth allows him to indulge in a variety of luxuries, from Italian sports cars to sprawling estates, and even a towering statue of his wife. Here’s a closer look at how Zuckerberg chooses to spend his billions.

Cars: A Mix of Modesty and Extravagance

Zuckerberg’s taste in vehicles is a blend of practicality and indulgence. Despite his immense fortune, he has been seen driving relatively modest cars. For instance, he owns an Acura TSX and a Honda Fit, both known for their affordability rather than luxury. However, his signature vehicle is a black Volkswagen Golf GTI, which he purchased even after amassing his fortune. This car, with a starting price slightly above $30,000, showcases Zuckerberg’s preference for understated yet reliable transportation.

But not all of his car choices are modest. Zuckerberg has also splurged on high-end vehicles, such as the Italian Pagani Huayra, a supercar that sells for over $1 million. In July 2022, he revealed on Instagram two newly refurbished vintage Ford Broncos, one in baby blue and the other in black, with the caption “his and hers,” though their price remains undisclosed.

Real Estate: A Billionaire’s Playground

Zuckerberg’s spending on real estate is where his wealth truly becomes apparent. In May 2011, he purchased a 5,000-square-foot home in Palo Alto for $7 million. Since then, he has significantly upgraded the property, including the addition of a custom-made artificially intelligent assistant. To ensure his privacy, he also bought four neighboring homes, spending an additional $43 million.

In addition to his Palo Alto estate, Zuckerberg owned a townhouse in San Francisco, which he and his wife, Priscilla Chan, bought for $10 million. However, in July 2022, they sold the property for $31 million in an off-market deal, marking the most expensive residential real estate transaction in San Francisco at that time.

One of Zuckerberg’s most significant real estate investments is in Hawaii. In 2014, he expanded his property portfolio by purchasing two properties on the island of Kaua’i: the 357-acre Kahu’aina Plantation and the 393-acre Pila’a Beach, spending a total of $100 million. These properties include a former sugarcane plantation and a pristine white-sand beach.

However, his Hawaiian acquisitions have not been without controversy. In 2016, Zuckerberg faced backlash from locals after constructing a 6-foot wall around his property, and in 2017, he filed lawsuits against Hawaiian families with legal claims to land parcels within his estate. Although he eventually dropped the lawsuits, he was accused of “neocolonialism” by the residents.

Undeterred, Zuckerberg continued to expand his Hawaiian estate. In March 2021, he spent $53 million on nearly 600 additional acres on Kaua’i, and in December of the same year, he acquired 110 more acres for $17 million. Reports suggest that he is constructing a 5,000-square-foot underground bunker on the property, featuring amenities like an escape hatch and a blast-resistant door.

When Zuckerberg isn’t acquiring land, he enjoys spending time on his Hawaiian estate, where he indulges in various hobbies. He has been photographed riding a $12,000 hydrofoil off the coast of Kaua’i, and he practices archery and spear throwing on his property. He is also passionate about mixed martial arts (MMA) and has built an octagon fighting cage in his backyard.

Zuckerberg’s real estate investments aren’t limited to Hawaii and Palo Alto. In 2018, he expanded his portfolio with the purchase of two lakefront properties on Lake Tahoe, costing a combined $59 million. One of the properties, known as the Brushwood Estate, covers 5,233 square feet and sits on six acres of land. The estate includes a guest house and a private dock. Between the two properties, Zuckerberg owns about 600 feet of private shoreline along Lake Tahoe’s west shore, further demonstrating his penchant for privacy.

Yachts and Fashion: Living Large

In addition to his impressive real estate holdings, Zuckerberg also owns a megayacht named Launchpad. The 118-meter yacht, built in the Netherlands, was spotted this summer, reflecting yet another of Zuckerberg’s lavish expenditures.

While Zuckerberg’s wardrobe was once known for its simplicity, with his trademark grey t-shirts, he has recently embraced a more stylish and expensive look. He has been seen wearing designer shirts, such as a $1,150 Balmain tee, and sporting gold chain necklaces, signaling a shift in his fashion preferences as he continues to reinvent his public image.

Philanthropy: Giving Back to Society

Beyond material possessions, Zuckerberg is committed to philanthropy. In 2015, he and his wife, Priscilla Chan, established the Chan Zuckerberg Initiative (CZI) to address some of society’s most pressing challenges, including eradicating disease, improving education, and supporting local communities. Since its inception, CZI has awarded over $6.91 billion in grants.

Zuckerberg is also a signatory of the Giving Pledge, a commitment made by the world’s wealthiest individuals to donate the majority of their wealth to charitable causes. He joined this initiative alongside Bill Gates, Warren Buffett, and over 200 other billionaires and millionaires. Zuckerberg has pledged to sell 99% of his Facebook shares during his lifetime, with the proceeds going toward philanthropy.

In September 2017, Zuckerberg announced plans to sell between 35 and 75 million shares over the following 18 months, raising an estimated $6 billion to $12 billion for the Chan Zuckerberg Initiative. The organization has already made significant contributions, including $4.2 million for a jobs program in Kaua’i and $1 million to combat COVID-19 in the region. Additionally, CZI has funded initiatives related to criminal justice reform and affordable housing.

A significant portion of CZI’s efforts focuses on medical research. Zuckerberg and Chan have committed billions to researching cures for the world’s diseases, with the ambitious goal of curing all major diseases by the end of the century. To support this endeavor, CZI launched Biohub, a nonprofit organization dedicated to research in areas such as genomics, infectious diseases, and implantable devices. In a 2018 interview with The New Yorker, Zuckerberg expressed his optimism, stating, “We’ll basically have been able to manage or cure all of the major things that people suffer from and die from today. Based on the data that we already see, it seems like there’s a reasonable shot.”

A Final Note: A Sculptural Tribute

In one of his most recent and personal purchases, Zuckerberg commissioned a 7-foot-tall turquoise statue of his wife, Priscilla Chan. He shared a photo of the sculpture on Instagram, playfully noting that he was “bringing back the Roman tradition of making sculptures of your wife.” This unique piece of art is yet another example of how Zuckerberg uses his vast fortune to express his personal tastes and interests.

Through his various investments and philanthropic endeavors, Mark Zuckerberg continues to shape his legacy as one of the most influential figures of the 21st century. His spending habits, while often extravagant, also reflect a commitment to giving back to society and tackling some of the world’s most significant challenges.

Allegations Against SEBI Chief Madhabi Puri Buch Raise Questions of Conflict of Interest

Madhabi Puri Buch, the head of India’s Securities and Exchange Board (SEBI), is facing scrutiny for allegedly breaching regulations during her seven-year tenure by continuing to earn revenue from a consultancy firm, according to public documents examined by Reuters.

Hindenburg Research has raised concerns about a potential conflict of interest involving Buch in her investigations into the Adani Group. The allegations, which surfaced in January of the previous year, led to a significant drop in the share prices of Adani Enterprises and other affiliated firms. Although these shares later recovered, the SEBI is currently investigating the matter.

In response to the allegations, Buch issued a statement on August 11, rejecting the claims as an attempt at “character assassination” and denying any conflict of interest. The U.S. short-seller Hindenburg Research has also highlighted two consultancy firms, Agora Partners based in Singapore and Agora Advisory in India, run by Buch and her husband.

Buch, who joined SEBI in 2017 and became its chairperson in March 2022, had a notable financial stake in Agora Advisory Pvt Ltd, which she owned 99% of. Public documents reviewed by Reuters show that Agora Advisory earned 37.1 million rupees ($442,025) during her tenure. This financial activity potentially conflicts with a 2008 SEBI policy that prohibits officials from holding an office of profit or receiving professional fees from other activities.

Buch asserted that the consultancy firms were disclosed to SEBI, and her husband utilized these firms for his consulting business following his retirement from Unilever in 2019. However, Buch and SEBI have not responded to inquiries seeking further comment.

Hindenburg’s latest report notes that Buch transferred all her shares in Agora Partners to her husband in March 2022, yet company records for the fiscal year ending March 2024 indicate that Buch still retains shares in the Indian consultancy firm.

The documents reviewed do not provide details about the business conducted by these consultancy firms, nor is there any evidence suggesting that the revenue generated was linked to the Adani Group. Subhash Chandra Garg, a former senior Indian government official and SEBI board member during Buch’s tenure, criticized Buch’s ongoing ownership of the firm as a “very serious” breach of conduct.

Garg stated, “There was no justification for her to continue to own the firm after she joined the board. She could not have been allowed even after making disclosures.” He added, “This makes her position completely untenable at the regulator.”

Buch has yet to clarify whether she received a waiver to maintain her shareholding in the Indian consulting firm, and a specific query on this issue has not been addressed. The controversy has spurred calls for Buch’s resignation, including from opposition leaders, while a spokesperson for the ruling Bharatiya Janata Party (BJP) labeled the allegations as baseless.

Garg and another SEBI board member revealed that no disclosures regarding Buch’s business interests were made to the board. According to the board member, “There was a requirement to make annual disclosures, but board members’ disclosures were not placed in front of the board for information or scrutiny.” This member, who preferred to remain anonymous, added, “To be sure, no members’ disclosures were discussed. If the disclosures were made only in front of Ajay Tyagi, the then chairperson, I am not privy to that.”

Inquiries to Ajay Tyagi about whether he had received disclosures were not answered.

The investigation into Buch’s consultancy activities continues amid ongoing debates about regulatory oversight and conflict of interest in India’s financial sector.

US Stock Market Rebounds Strongly After Recent Global Sell-Off

Barely a week after experiencing a significant global sell-off, US stocks have made a remarkable recovery. The turbulence was initially triggered by the Bank of Japan’s decision to raise interest rates for the second time this year in late July. This action led to the unwinding of the yen carry trade, a strategy where investors borrow yen at low interest rates to invest in higher-yielding assets elsewhere. The unraveling reached its peak last week when Japanese stocks faced their worst day in decades. In the US, a disappointing July jobs report stoked fears of an impending recession, causing a sharp decline in both stocks and bond yields.

However, a series of positive economic data released this week has helped the market regain some of its lost ground. The Dow Jones Industrial Average has risen above 40,000 once again. All three major US stock indexes recorded their best week of the year, with the Dow gaining 2.9%, the Nasdaq Composite surging by 5.3%, and the S&P 500 rising by 3.9%. Both the Nasdaq and the S&P 500 have not only recovered last week’s steep losses but are also showing gains for the month.

The Cboe Volatility Index (VIX), often referred to as Wall Street’s fear gauge, dropped to 15, a sharp decline from over 65 just a week ago. The index had experienced its most significant single-day point increase since March 2020 last Monday. Ed Clissold and Thanh Nguyen from Ned Davis Research noted in a Thursday report, “The bull market has not been derailed. While more aftershocks are possible, traders seem to be moving past the initial earthquake of the yen carry trade unwind.”

Despite the recent calm, investors remain cautious and are closely monitoring economic data as they anticipate the Federal Reserve’s next meeting in September. Geoffrey Strotman, senior vice president at Segal Marco Advisors, pointed out that the Fed will closely analyze the July Personal Consumption Expenditures price index, as well as labor and inflation data from August, before making its policy decision on September 18.

While many traders are anticipating an interest rate cut in September, some Federal Reserve officials have recently expressed a more cautious stance. Raphael Bostic, the President of the Atlanta Fed, remarked on Tuesday that while inflation has cooled in recent months, he wants to see more sustained progress in bringing prices down. “We need to make sure that the trend is real,” Bostic stated at a conference organized by the American College of Financial Services. “So, I’m willing to wait, but [a cut is] coming.”

Recent data does indicate that inflation is indeed cooling. According to the Bureau of Labor Statistics, consumer prices rose by 2.9% over the 12 months ending in July, dipping below 3% for the first time since March 2021. Additionally, the rate of wholesale price increases has also slowed.

Further good news came from the latest retail sales report, which showed that sales at US retailers increased by 1% in July compared to the previous month. This was a significant improvement from June’s downwardly revised decline and far exceeded economists’ expectations. This strong performance by the US consumer, a crucial pillar of the economy, suggests that consumer spending remains resilient.

This string of encouraging economic reports has strengthened the case for a rate cut in September, though it remains uncertain whether the Fed will opt for a quarter-point or a half-point reduction. According to the CME FedWatch Tool, traders have lowered their expectations for a half-point cut from 51% a week ago to 26%.

The Russell 2000 index, which tracks the performance of US small-cap stocks, climbed by 3% this week, reflecting traders’ bets that the Fed will reduce rates in September. Small-cap stocks often perform well following the Fed’s initial rate cut in an easing cycle.

Before the Fed’s September meeting, however, all eyes will be on Fed Chair Jerome Powell’s upcoming speech at the annual economic summit in Jackson Hole, Wyoming, next week. Powell has historically used this event to signal the Fed’s future policy direction. His remarks have sometimes led to significant market volatility. For instance, after last year’s speech, stocks fluctuated before ultimately closing slightly higher. In contrast, in 2022, stocks plummeted, with the Dow dropping more than 1,000 points after Powell warned of further economic pain due to higher interest rates.

In other market developments, US crude oil prices declined this week following the Organization of the Petroleum Exporting Countries’ (OPEC) decision to cut its global oil demand growth forecast for both 2024 and 2025. OPEC now anticipates demand will increase by 2.11 million barrels per day in 2024, down from the 2.25 million barrels per day it had projected last month, citing weakening economic expectations in China.

In corporate news, Starbucks shares surged by 26.3% this week after the company announced that CEO Laxman Narasimhan would be stepping down immediately. He is set to be succeeded next month by Brian Niccol, currently the CEO of Chipotle. Niccol is credited with revitalizing Chipotle following its 2018 E. coli outbreak crisis, which resulted in the hospitalization of 22 people.

Walmart also experienced a significant boost, with its shares rising by 8.1% this week. The retail giant reported that sales at US stores open for at least one year had jumped last quarter, and its operating income saw substantial growth.

As the US stock market continues its recovery, investors remain focused on the upcoming Federal Reserve meeting and other key economic indicators. While the market has shown resilience, uncertainty lingers, and traders are closely watching for any signals that could influence future market movements.

Mortgage Applications Surge as Rates Drop Amid Persistent Housing Affordability Crisis

The standard 30-year fixed-rate mortgage saw a slight increase this week, reaching 6.49%, according to Freddie Mac’s report on Thursday. While this rate is slightly higher than last week, it remains significantly below this year’s peak and last fall’s two-decade high, which has motivated many homeowners to refinance their mortgages.

Last week, mortgage applications rose by 17%, driven mainly by a remarkable 35% increase in refinancing applications, as reported by the Mortgage Bankers Association on Wednesday. Freddie Mac’s data shows that mortgage rates fell to their lowest level in over a year last week.

Looking ahead, borrowing costs are expected to decrease further this year if the Federal Reserve implements the interest rate cuts that economists and investors widely anticipate.

Despite the decline in mortgage rates, the housing market in the United States remains out of reach for many, especially for those with low incomes living in urban areas experiencing rapid home-price growth, such as San Diego and New York. Home prices have hit record highs multiple times this year, based on data from S&P Global and the National Association of Realtors.

“Housing has a lot of challenges ahead of it, not the least of which are high mortgage rates, high home prices and a lack of inventory,” Tom Porcelli, chief U.S. economist at PGIM Fixed Income, shared with CNN in an interview. He noted that the average mortgage payment is still double what it was four years ago.

A persistent shortage of available housing in many markets across the country continues to drive home prices up. Although there has been progress toward a more affordable market, with total housing inventory improving each month in 2024, as per NAR data, demand continues to outpace supply.

In some areas like Tampa, Denver, and Minneapolis, a rise in residential construction has helped ease housing costs. The pace of homebuilding in these areas depends on factors such as local zoning laws, land availability, and population growth trends. In Tampa, the combination of an influx of new residents and ample land availability has spurred home construction, leading to a significant slowdown in shelter-cost growth. This deceleration in housing costs has contributed to a substantial reduction in overall inflation in the metropolitan area, bringing it down to 2.4% for the year ending in May, a significant decrease from over 11% in 2022.

However, the persistently high cost of housing continues to be a challenge for the Federal Reserve’s ongoing efforts to combat inflation. Although inflation has decreased significantly from the 40-year highs observed in the summer of 2022, reaching an annual rate of 2.9% in July—marking the first time in more than three years that the Consumer Price Index (CPI) has been below 3%—the Fed’s target remains at 2% year over year. Shelter costs accounted for nearly 90% of the increase in consumer prices last month.

When excluding shelter costs, the CPI was up 1.7% for the 12 months ending in July, according to the Labor Department.

For Americans concerned about the country’s housing affordability crisis, there is some hope in the form of expected lower interest rates. As inflation has been brought under enough control and the job market has shown signs of weakening, economists believe the Federal Reserve may begin lowering borrowing costs as early as next month. The unemployment rate, currently at 4.3%, the highest since October 2021, could potentially climb higher in the coming months, adding to the argument for reducing rates.

However, the expected rate cuts are not anticipated to be substantial. The Fed is likely to lower its benchmark lending rate, which influences borrowing costs throughout the economy, by a quarter-point in September. Some traders speculate that the Fed might opt for a larger cut of half a point, though other economic indicators suggest the economy remains strong. Data released by the Commerce Department on Thursday indicated that consumer spending is still driving economic growth.

Federal Reserve officials have indicated that the enduring strength of the economy has allowed them to take a cautious approach, waiting for clear evidence that inflation is under control and on a path to the Fed’s 2% target. Additionally, recent comments from central bankers do not suggest any plans for aggressive action in the upcoming month.

Although the Federal Reserve does not directly set mortgage rates, its actions do influence them through movements in the benchmark 10-year U.S. Treasury yield. Bond yields typically decrease after weak economic data increases the likelihood of the Fed cutting rates, and they tend to rise when strong economic data suggests the Fed may keep rates higher for longer.

While mortgage rates are expected to decline further this year, it remains uncertain whether they will drop below 6%. Despite the anticipated decrease, rates are still higher than those seen in the decade leading up to 2022, the year when the Federal Reserve began aggressively raising interest rates to combat inflation.

Kamala Harris Faces Economic Messaging Challenge as Inflation Eases, but Recession Fears Loom

Federal Reserve officials and leading economists now agree that the U.S. has made significant progress in controlling inflation. The challenge now falls on Vice President Kamala Harris to convince voters that the economy will remain stable in the wake of this achievement.

The job market is beginning to show signs of slowing down. Major banks such as JPMorgan Chase and Goldman Sachs are revising their forecasts, increasingly predicting a U.S. recession. Additionally, a growing number of Americans are defaulting on credit card and auto loan payments, with delinquency rates—indicating the likelihood of missed debt payments—reaching their highest levels since the peak of the Covid-19 lockdowns.

These economic concerns are arising just as various indicators suggest that the Federal Reserve’s prolonged battle against inflation is nearing its end.

According to the Labor Department’s announcement on Wednesday, inflation has slowed to its lowest rate since early 2021. Prices increased at an annual rate of 2.9 percent, bringing inflation closer to the Fed’s target of 2 percent, and even the growth in “core” economic sectors has moderated.

This new data indicates that the primary concern has shifted from runaway inflation to the broader health of the economy. While controlling prices remains a priority, Federal Reserve policymakers are increasingly focusing on the impact of two years of high interest rates on consumers—particularly those with low or moderate incomes—along with businesses and the labor market.

“This gives [the Fed] permission to do whatever they need to for the employment side of the mandate,” said Jason Furman, a Harvard University professor and former chief economist for President Barack Obama, in a post on X following the release of the Consumer Price Index report. He added that if the August jobs report is as weak as July’s, the markets might expect the Fed to cut interest rates by as much as half a percentage point—twice the usual adjustment.

As these dynamics shift, Harris and other Democrats will need to recalibrate how they present their economic policies to voters. The White House and its supporters have spent months emphasizing how their policies have maintained the economy’s stability despite rising prices and high borrowing costs. Now, just as inflation reaches a point where the Fed might consider lowering interest rates, that economic stability is beginning to show signs of strain.

“I’m glad I’m not responsible for messaging about the economy,” remarked Jim Manley, a veteran Democratic strategist and former adviser to ex-Senate Majority Leader Harry Reid (D-Nev.). “You can’t just go out there and tell everyone everything is fine.”

“If you try to jam it, they’re going to balk,” he cautioned.

Instead, Harris is expected to refine her economic message in a speech in Raleigh, North Carolina, on Friday. She plans to outline how her administration intends to lower costs for middle-class families and tackle corporate price gouging.

This speech could bolster her surprising rise in the polls against former President Donald Trump on economic issues. While President Joe Biden has consistently received low marks from voters on economic policy, Harris has enjoyed more favorable ratings.

Trump is scheduled to hold a rally in Asheville, North Carolina, later the same day, where he plans to criticize Harris for the “economic hardships” that he claims are the result of the Biden administration’s policies, according to his campaign.

Trump’s strategy is to tap into the dissatisfaction among voters. A majority of Americans already believe the U.S. is in a recession—although technically it is not, or at least probably not. High prices continue to be a significant burden for many families, particularly in areas like housing. Even if consumer sentiment adjusts to disinflation, voter perceptions of the economy are not solely driven by price increases.

As inflation has slowed through the first half of this year, the percentage of registered voters identifying it as the top issue influencing their vote has decreased from 14 percent to 6 percent, according to surveys conducted by NYT/Siena. A larger portion of voters now express concern about the overall state of the economy—including the labor and stock markets—rather than just cost-of-living issues.

Despite this, the drop in inflation could make Harris’ economic messaging “simpler and cleaner,” noted Tobin Marcus, a former aide who now leads U.S. Policy and Politics at Wolfe Research.

He pointed out that most people will not face job losses or wage cuts, and “it’s already too late for [an economic] softening around the margins to be a political problem.” Instead, he said, “the benefit of lower rates is more immediate.”

Should the Fed decide to cut rates in September, the effects could quickly be seen in reduced credit card borrowing costs, lower rates on new mortgages, and other forms of financing. This could encourage businesses to expand after two years of holding back due to higher interest rates.

“Inflation has fallen below 3 percent and core inflation has fallen to the lowest level since April 2021,” President Biden stated on Wednesday. “We have more work to do to lower costs for hardworking Americans, but we are making real progress.”

U.S. Stock Market Ends Week Flat After Volatile Rollercoaster Ride

The leading U.S. stock market index, the S&P 500, ended the first week of August nearly unchanged, masking a week of significant volatility. The S&P 500 experienced both its highest and lowest points in the last 18 months, serving as a reminder of the unpredictable nature of the stock market. Despite a 0.5% gain on Friday, the index closed the week down by a mere 0.05%, slipping from 5,346.56 to 5,344.16.

The S&P 500 has now recorded its fourth week with less than a 0.1% movement in the past two years, but this calm exterior belied the major turbulence underneath. On Monday, the S&P 500 plunged by 3% due to global concerns over a potential stock market crash, partially triggered by worse-than-expected U.S. monthly unemployment data. The market’s “fear gauge” spiked to a level not seen since March 2020, reflecting investor anxiety. However, the index quickly rebounded as secondary employment data alleviated fears of an imminent recession.

“Investors have become quite reactive following a strong and steady period for the market,” observed Mark Hackett, Nationwide’s head of investment research, in an email commentary. This sentiment echoed across the other two leading American equity indexes. The Dow Jones Industrial Average and the Nasdaq Composite both recovered most of their losses from earlier in the week. The Dow ended the week down 0.2%, while the tech-focused Nasdaq booked a 0.6% loss for the week.

The week was marked by a swift shift in market narratives. As Raymond James’ Chief Investment Officer Larry Adam wrote to clients, “Market narratives can change quickly, but they are not always right.” This week’s events highlighted the speed at which market sentiment can shift and the difficulty of predicting its direction.

The volatility was initially sparked by last Friday’s jobs report, which triggered recession fears based on the Sahm indicator, a metric that tracks changes in the unemployment rate. Compounding these concerns were signals from the Bank of Japan, traditionally known for its conservative monetary policy, indicating it might raise interest rates to stabilize the yen. This combination of factors led to a flash crash in the markets, with investors fearing long-term consequences.

Globally, stock indexes remain depressed from their all-time highs reached earlier this year, even after a brief recovery. Europe’s Stoxx index is down 5% from its May peak, the S&P 500 is down 6% from its July apex, and Japan’s Nikkei has fallen 17% from its July high. This underlines the ongoing uncertainty and the potential for further declines in the stock market.

Despite the bounceback, the threat of a recession looms large. Goldman Sachs and JPMorgan Chase have both estimated the odds of a U.S. recession at 25% or higher over the next year. This outlook suggests that further stock losses could be on the horizon. However, it is also important to note that stock market declines are a normal part of the journey toward long-term gains.

Between 1928 and 2019, the S&P 500 experienced an average annual drawdown of 16%, according to Bespoke Investment Group. In comparison, this year’s drawdown, defined as an asset’s steepest decline from its all-time high, stands at just 8.5%. This is relatively moderate and does not set off major historical alarms.

“While sell-offs are never comfortable, this year has been fairly calm from a historical perspective,” remarked Larry Adam. His assessment highlights that while the recent market volatility has been unsettling, it is not unusual in the broader context of market history.

As the market continues to navigate these turbulent waters, investors are reminded of the inherent unpredictability of the stock market. The past week’s fluctuations serve as a potent reminder that market stability can be fleeting, and the road to long-term gains is often paved with short-term volatility.

Wall Street Giants Face Scrutiny Over Alleged Cash Sweep Account Mismanagement

Wells Fargo, Morgan Stanley, and Bank of America are among several Wall Street banks facing accusations of depriving customers of billions of dollars in interest payments. According to a recent report, the U.S. Securities and Exchange Commission (SEC) is investigating these financial institutions to determine whether they intentionally steered clients into “cash sweep” accounts that generated little or no interest.

Cash sweep accounts are typically used to transfer idle cash into investment vehicles designed to earn interest. However, all three banks are now embroiled in proposed class action lawsuits, which claim that they prioritized their own profits by placing clients’ funds in low-interest options without providing adequate disclosure.

These allegations have come to light through recent quarterly filings with the SEC. In these filings, Wells Fargo disclosed that it is currently engaged in “resolution talks” with the SEC over the issue. Meanwhile, Morgan Stanley reported that the SEC began its inquiries into the matter in April. Bank of America also confirmed that it is under scrutiny.

Despite the growing concerns, none of the three banks have provided public comments on the ongoing investigations.

The scope of the issue extends beyond these three banks, as other financial firms such as LPL Financial and Ameriprise are also involved in lawsuits related to cash sweep accounts. LPL Financial has stated that it intends to “vigorously” defend itself against these allegations, while Ameriprise has not made any public statements regarding the matter.

Stock Market Turmoil Erases $134 Billion from the Fortunes of the World’s Richest

The financial landscape experienced a significant shake-up as the world’s 500 wealthiest individuals saw a staggering $134 billion wiped from their collective fortunes in a single day, driven primarily by a sharp decline in Amazon’s stock price.

On Friday, the Nasdaq 100 Index, which is heavily weighted towards technology companies, fell by 2.4%. This drop significantly impacted the net worth of the world’s top 10 richest individuals, each of whom saw at least $1 billion disappear from their wealth—at least on paper. The index has now dropped more than 10% from its most recent peak, signaling a broader market correction.

Tech billionaires, who constitute a significant portion of the world’s richest, were particularly hard hit. According to Bloomberg’s estimates, these individuals lost a collective $68 billion in just one day. Among the hardest hit were Mark Zuckerberg, Sergey Brin, and Larry Page, each of whom saw more than $3 billion evaporate from their fortunes on Friday alone.

Elon Musk, the world’s richest person, saw his net worth plummet from $252 billion on July 31 to $235 billion by August 2, as reported by Bloomberg’s billionaire index. Musk’s wealth, largely tied to Tesla and SpaceX, has proven to be highly sensitive to fluctuations in stock market performance.

Oracle’s Larry Ellison had a brief moment of gain amidst the market turmoil, seeing his wealth increase by $3 billion on paper overnight. However, by the following day, all those gains had vanished, and he ended up losing an additional $3 billion.

The most significant loss among tech magnates occurred for Jeff Bezos, Amazon’s founder, whose wealth shrank by nearly $16 billion after Amazon’s shares fell nearly 9% in a single day on August 2. This drop marks the third-largest financial hit Bezos has experienced, following his 2019 divorce settlement, which cost him $36 billion. Bezos’s net worth now stands at approximately $191 billion.

Despite these recent losses, Bezos has been gradually reducing his Amazon holdings throughout the year. At 60 years old, he sold around $8.5 billion worth of shares over nine trading days in February. He recently announced plans to sell an additional 25 million shares, valued at around $5 billion.

The sharp decline in U.S. tech stocks can be attributed to several factors. Foremost among them is the uncertainty surrounding the future of artificial intelligence (AI), Federal Reserve rate cuts, and fears of a potential recession. Additionally, disappointing earnings reports from some of the sector’s biggest players have contributed to the downward trend, dragging the tech-heavy Nasdaq 100 Index into correction territory.

The downturn was sparked by Amazon’s announcement during an earnings call that it would prioritize heavy investments in AI over immediate profit. This decision led to investor concerns about whether the gains from AI might be overestimated, triggering the steepest decline in Amazon’s shares since April 2022, when they dropped by 14%.

Concurrently, Microsoft reported slower growth in its Azure cloud-computing division and indicated that it plans to continue substantial spending on data centers. These revelations further rattled investors who had hoped for stronger performance. Adding to the sector’s woes, Tesla failed to meet earnings expectations for the second quarter, and Alphabet’s YouTube advertising revenue fell short of forecasts.

Broader economic indicators have also played a role in the stock market’s volatility. A report from the Labor Department revealed that the U.S. economy added about 61,000 fewer jobs last month than anticipated. This shortfall in job creation, coupled with the unemployment rate climbing to 4.3%—its highest level since October 2021—has intensified fears of an impending recession.

These converging factors have created a challenging environment for investors, particularly those with significant holdings in technology stocks. The market’s reaction to these developments underscores the vulnerability of even the wealthiest individuals to rapid changes in the economic landscape.

As the situation continues to evolve, it remains to be seen how these billionaires will navigate the ongoing market volatility and what strategies they might employ to safeguard their fortunes in the face of such uncertainty.

Signs of Economic Slowdown Emerge Amid Post-Pandemic Expansion

Two years ago, nearly every reputable economist was predicting an imminent recession, a forecast that turned out to be incorrect. However, this doesn’t imply that economic risks have disappeared.

Overview:

Recent economic data has revealed a series of subtle yet concerning indicators suggesting cracks in the robust expansion seen after the pandemic. The July employment figures, released last Friday, are particularly alarming. The unemployment rate has now climbed almost a full percentage point from its recent low, reaching 4.3% in July compared to 3.4% in April 2023, and job growth has noticeably slowed down.

Analysis:

There is now a phenomenon akin to the “boy who cried wolf” in economic forecasting, where the incorrect recession predictions from two years ago have led to a sense of complacency about the potential for a significant downturn to occur soon.

The central question is whether the Federal Reserve’s likely interest rate cuts, expected at their mid-September policy meeting, will be sufficient to halt the emerging economic weakness before it deepens.

Current Situation:

It is important to note that the economy is not currently in a recession. In July, employers added 114,000 jobs, the Gross Domestic Product (GDP) grew at a 2.8% annual rate in the last quarter, and the unemployment rate, at 4.3%, remains lower than any month between June 2001 and May 2017.

However:

Historical patterns suggest that when the unemployment rate rises as it has this year (from 3.7% in January to 4.3% in July), it seldom stabilizes and more often indicates an impending recession.

In addition to the unemployment rate, other economic data and anecdotal evidence from major companies have signaled potential economic difficulties ahead in recent weeks.

Insights:

This situation is echoed in quotes from respondents to the Institute for Supply Management’s monthly survey of manufacturers, released on Thursday. The survey indicated a significant contraction in business activity.

“It seems that the economy is slowing down significantly,” noted a manufacturer in the machinery sector. A manufacturer in the mineral products sector observed, “Some markets that are usually unwavering are showing weakness.” Furthermore, a firm in the food, beverage, and tobacco products industry stated, “Sales are lighter, and customer orders are coming in under forecasts. It seems consumers are starting to pull back on spending.”

Conclusion:

At present, the U.S. economy remains on solid ground, but there are growing concerns for the future. Warning signals are increasingly evident, suggesting that while the immediate economic outlook may appear stable, challenges may lie ahead.

FTSE 100 Suffers Significant Drop Amid Global Market Concerns

The FTSE 100 experienced one of its worst trading sessions in recent months, dropping more than 120 points, or over 1.4%, amid global market turbulence. This decline follows troubling economic data from the United States, where disappointing jobs and factory output figures have raised concerns about the Federal Reserve’s decision to leave interest rates unchanged.

Chris Beauchamp, chief market analyst at IG, noted the abrupt shift in market sentiment: “In just two days, markets have gone from anticipating a Fed rate cut to worrying about a looming recession. Today’s significant payroll miss and the surge in US unemployment have triggered a fresh flight from risk assets, already unsettled by poor earnings reports and concerns about broader conflict in the Middle East. Investors now hope for a half-percentage-point rate cut in September but fear that even this may be too little, too late to prevent a US recession.”

The sell-off was particularly harsh on technology stocks, with Amazon losing nearly $200 billion in market capitalization after its revenue of $148 billion fell short of estimates. Amazon’s stock plunged 11.2%, part of a broader decline among the Magnificent Seven, excluding Apple, which managed to rise on strong results. Nvidia dropped 5%, and Microsoft fell 2.5%.

Meanwhile, in the UK, International Consolidated Airlines Group (IAG), the parent company of British Airways, saw its shares rise by more than 4% after reinstating its dividend. Panmure Liberum commented, “The resumption of dividends highlights the strength of cash generation and the balance sheet. Management’s outlook for the year remains positive, and we have modestly raised our already above-consensus forecasts.”

As the FTSE 100 tumbled, there were notable movements in commodities and currencies. Bitcoin fell by 0.65%, trading at $64,871, while Brent Crude dropped 3.15% to $77.02 per barrel. In contrast, gold edged up by 0.3%, reaching $2,453 per ounce.

The broader global market sentiment was bleak, with the FTSE 100 inching closer to a one-month low, down by 95 points or 1%. Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Asset Management, expressed surprise at the severity of the downturn: “I didn’t expect stocks to fall this much. This likely stems from concerns about a significant collapse in the US economy, which would be the most troubling scenario for Japanese stocks.”

José Torres, senior economist at Interactive Brokers, remarked, “The initial relief from Fed chief Powell hinting at a possible rate cut in September has turned sour, as investors are now worried that the central bank isn’t cutting rates soon enough.”

The FTSE 250 also suffered, dropping more than 2% after the release of US jobs data. Across the Atlantic, US markets opened sharply lower, with the Dow Jones falling 358 points, the Nasdaq down 405 points, and the S&P 500 losing 80 points. The US Bureau of Labor Statistics reported a disappointing addition of 114,000 jobs in July, well below the expected 175,000, and a rise in unemployment to 4.3%, the highest since October 2021. This news led to a surge in gold prices and a drop in US Treasury yields as investors sought safer assets.

Daniela Sabin Hathorn, an analyst at Capital.com, described the market reaction as a “meltdown,” driven by fears that the Federal Reserve’s decision to hold interest rates was a mistake, potentially pushing the US economy toward recession. She added, “It now seems almost certain that the Fed will cut rates in September, but the question is by how much.”

In corporate news, Royal Mail’s potential takeover by Czech billionaire Daniel Kretinsky faced a national security review under the UK’s National Security and Investment Act. This review could lead to the deal being blocked or subject to specific conditions if significant concerns are raised. The probe will also examine Kretinsky’s other business interests, including his gas pipeline operations in Russia.

As the FTSE 100 continued to slide, Melrose Industries and Ashtead Group were among the biggest losers, with drops of 7.7% and 6.3%, respectively. On the positive side, GSK’s shares rose 4.1% following expanded approval for its cancer drug Jemperli.

The US Treasury bond yields fell sharply, with the 10-year bond yield dropping to 3.79%, its lowest since December, and gold prices spiking to $2,486 per ounce before retreating slightly. The weaker-than-expected US jobs data fueled concerns about a potential recession, as reflected in the market’s flight to safer assets.

Former US National Economic Council deputy director Bharat Ramamurti attempted to calm fears, stating, “It’s not time to panic. There are still many underlying signs of strength in the economy, and unemployment remains low by historical standards.” However, he acknowledged that the Fed might have erred by not cutting rates earlier and suggested a more significant reduction might be necessary in September.

Global markets were impacted by the disappointing US jobs report, with Japan’s Nikkei 225 index dropping 2,216 points to close at 35,909, marking its second-worst trading session ever. Europe’s markets also fell, with the Stoxx 600 and Germany’s Dax down by 1.25% and 1%, respectively.

Wizz Air faced a tough week, with its shares falling another 5% after revealing a decline in passenger numbers and an increase in carbon emissions for July. The budget airline has been struggling with engine issues and disruptions caused by the Crowdstrike/Microsoft IT outage, leading to grounded flights and a suboptimal fleet mix.

Nintendo also reported a significant drop in profits, with shares falling more than 2% in Tokyo. The gaming giant saw a 55% decrease in profits for the three months to June, with sales falling across its game software and hardware divisions. Attention is now turning to the potential successor to the Switch console, with an announcement expected by April 2025.

Capita, a business outsourcing company, saw its shares tumble by 6.5% as it reported a need to cut costs and address contract losses despite posting a return to profit in its interim results. The company aims to save £160 million by June next year, but its revenue fell by 16% due to contract losses.

In China, the Shanghai Composite and blue-chip CSI 300 indexes both closed down by about 1%, while Hong Kong’s Hang Seng index fell 2.1%, as the country dealt with the fallout from the US market sell-off and ongoing geopolitical tensions.

Intel faced severe pressure after announcing over 15,000 job cuts as part of a cost-saving effort. The chipmaker’s stock dropped more than 20% in premarket trading following a wider-than-expected $1.6 billion loss in the second quarter.

Luxury stocks also faced pressure, with Italian footwear and leather goods company Salvatore Ferragamo reporting a 41% drop in operating profits. This led to declines in shares of Burberry, LVMH, and Hermes, which fell by more than 1%.

Aston Martin shares slipped by around 0.6% after the luxury carmaker raised £135 million through a debt issue to scale up sales. The company’s chief financial officer, Doug Lafferty, noted that the bond issue was well-received by lenders, providing additional liquidity for the company’s expansion plans.

As global markets continued to reel from the US economic data, the FTSE 100 managed to stabilize slightly, holding around 0.25% lower. However, the overall market sentiment remained cautious, with investors closely watching upcoming US jobs data for further indications of the economic outlook.

India Introduces UPI One World Wallet for International Travelers Amid Rising Tourist Engagement

India’s retail payments body, the National Payments Corporation of India (NPCI), has introduced a new initiative called the UPI One World wallet aimed at international travelers visiting India. This digital wallet is designed to enable travelers to make payments using the Unified Payments Interface (UPI) system, even if they do not have an Indian mobile number or bank account.

Launched during the G20 Summit in 2023, UPI One World is a prepaid wallet that facilitates digital payments in Indian Rupees (INR) across merchants in India. Traditionally, Indian residents use UPI by linking their phone numbers and bank accounts to create a virtual payment ID, which allows them to conduct bank-to-bank transactions instantly. Payments are made by scanning a merchant’s QR code with the UPI app and entering a personal identification number (PIN). However, UPI One World eliminates the need for an Indian mobile number or bank account, simplifying the process for international visitors.

According to NPCI, international travelers can access the UPI One World wallet through authorized partners at selected airports in Indian cities. The process requires travelers to present their passports and visas for documentation. They can then load the wallet in INR using their debit or credit cards or through foreign currency exchange at issuer counters.

The introduction of UPI One World is seen as a strategic move to increase international visitor spending in India. The latest Economic Survey for 2023-24 by the Indian government highlighted that the country earned INR 2.3 trillion ($27.5 billion) from tourism in 2023, reflecting a 66% increase over 2022. Despite this growth, a report from the World Travel and Tourism Council (WTTC) indicated that international visitor spending in India was still 14% below pre-pandemic levels. By enabling digital payments for international travelers, India aims to encourage higher spending from visitors, as they can avoid the forex markup on card transactions and manage their currency more efficiently. The UPI One World wallet also protects travelers from relying on unlicensed currency exchange outlets for INR purchases.

In related travel and tourism news, Visit Maldives is launching a three-city roadshow in India named ‘Welcome India’ starting on Tuesday. The roadshow will take place in Delhi, Mumbai, and Bangalore, aiming to boost Indian tourist visits to the Maldives. This initiative follows a significant decline of about 40% in Indian tourists to the Maldives between January and April 15 this year. The decline was partly due to the trending hashtag #BoycottMaldives on Indian social media, which emerged after a diplomatic dispute between India and the Maldives in early January. The fallout from this incident has continued, with data from the Maldives’ Ministry of Tourism revealing that only 69,500 Indians visited the Maldives up to July 23 this year, compared to 119,900 in the same period last year—a 42% decrease. As a result, India has fallen from the Maldives’ second-largest source market to sixth place, with its share of visitors dropping from 11.6% to 6.1%.

In the corporate sector, travel distribution company TBO.com has appointed Gerardo Del Río as its new president for international business. Del Río has been tasked with driving TBO’s global expansion. The company, which launched its IPO in May, had a strong debut on the stock market. In its IPO prospectus, TBO had indicated plans to use the raised funds for strategic acquisitions, particularly those that would expand its geographic footprint. Co-founder and joint managing director Gaurav Bhatnagar previously stated that TBO intends to deepen its presence in existing markets and expand geographically, especially in regions like Europe, Southeast Asia, and Latin America. TBO also operates in the Middle East, focusing on key markets such as the United Arab Emirates, Saudi Arabia, Kuwait, and Qatar.

IndiGo, India’s largest low-cost airline, has announced significant digital enhancements to its website and mobile application, as reported by Peden Doma Bhutia. These upgrades are part of a broader effort to improve the airline’s offerings, which also includes the introduction of in-flight entertainment accessible through the IndiGo app. This move comes shortly after IndiGo revealed its plans to introduce a business class configuration, reflecting the airline’s ambition to cater to a wider range of travelers. IndiGo CEO Pieter Elbers mentioned that the app-based in-flight entertainment model is currently being tested on the Delhi-Goa route. This development also aligns with IndiGo’s recent order for widebody aircraft in April, which hints at the airline’s plans to potentially offer long-haul international flights.

The interest in international travel to India has seen a notable rise, with Wego, a flight search and booking platform, reporting a 40.71% increase in international flight searches to India in the first half of 2024 compared to the same period last year. This surge has even surpassed the search numbers from the January-June period of 2019. The increased interest is primarily driven by Gulf countries, with Saudi Arabia leading the way, accounting for 42% of all international searches to India. Other key markets include the United Arab Emirates, Kuwait, Qatar, and Oman. Additionally, travelers from Bahrain, the United States, Canada, the United Kingdom, and Thailand have also shown significant interest in traveling to India.

In another development, full-service carrier Vistara has announced that it will offer 20 minutes of complimentary Wi-Fi on its international flights, making it the first Indian airline to provide this service. The complimentary Wi-Fi will be available on Vistara’s Boeing 787-9 Dreamliner and Airbus A321neo aircraft across all cabin classes. Vistara has also introduced various Wi-Fi plans that passengers can purchase either pre-flight or on board, with payment options available via international or Indian credit or debit cards.

Azerbaijan is also increasing its outreach efforts in India to market itself as a destination for business events and luxury travel. The Azerbaijan Tourism Board recently participated in a MICE and luxury travel event in Jaipur as part of its strategy to attract more Indian tourists. In 2023, over 117,000 Indian tourists visited Azerbaijan, accounting for 5.6% of the country’s visitor share. This figure has already been surpassed in the first half of 2024, with nearly 119,000 Indian tourists visiting Azerbaijan, marking a 250% increase compared to the same period last year.

US Dollar Dominance Undermines BRICS De-dollarization Efforts as Currencies Hit New Lows

In July 2024, the US dollar continued its reign over BRICS currencies, challenging the bloc’s de-dollarization agenda and exerting its dominance in the global forex market. Leading BRICS currencies, including the Chinese yuan and Indian rupee, alongside Asia’s heavyweight, the Japanese yen, have all faced downward pressure against the mighty dollar. This development highlights the ineffectiveness of the BRICS’ efforts to reduce reliance on the US dollar, as their currencies struggle to maintain value while the dollar gains strength.

The Indian rupee, a key BRICS currency, experienced a significant decline, reaching an all-time low of 83.73 against the US dollar as the markets closed on Friday. This sharp drop underscores the challenges faced by BRICS nations in their quest to counterbalance the dominance of the US dollar. Despite various strategies to promote de-dollarization within the BRICS bloc, the initiative has not produced the desired outcomes. Instead, the US dollar has only grown stronger, battering the currencies of these emerging economies.

China, which has been a leading voice in the BRICS de-dollarization movement, is witnessing its currency, the yuan, slide to a seven-month low against the dollar. This depreciation is a setback for China’s broader economic ambitions and its efforts to position the yuan as a global alternative to the US dollar. The weakening of the yuan signifies the broader struggles of the BRICS nations to gain traction in their de-dollarization drive.

Meanwhile, the Japanese yen, a major Asian currency, has plummeted to a 34-year low, reflecting the deepening influence of the US dollar in the region. The yen’s decline highlights the broader impact of the US dollar’s strength, which has not only affected BRICS nations but also other significant players in the global economy. As a result, the US dollar remains the primary currency in international trade and finance, with local currencies being relegated to secondary roles.

The rising US Treasury yields have been a significant factor in the dollar’s strengthening, allowing it to assert its position against other currencies in the global market. The DXY index, which measures the value of the US dollar against a basket of other currencies, has remained above the 104.30 mark, indicating the dollar’s continued resilience. This strength in the dollar is a clear indicator of its persistent influence, even as BRICS nations attempt to challenge its supremacy.

Despite the concerted efforts of BRICS countries to diminish the role of the US dollar in global trade and finance, the dollar’s resilience has been bolstered by investors who continue to buy into it during market dips. This buying behavior has solidified the dollar’s resistance levels, making it bounce back with greater vigor each time it faces downward pressure. The BRICS nations, despite their collective economic might, have yet to find an effective strategy to counter this trend.

“The markets got a little overextended and firmer yields have helped the dollar,” commented Shaun Osborne, Chief Foreign-Exchange Strategist at Scotiabank. Osborne’s analysis underscores the complex interplay between market dynamics and the US dollar’s sustained dominance. The current economic environment has provided the US dollar with opportunities to reinforce its status as the world’s leading currency, a position that remains unchallenged despite the BRICS’ efforts.

As the Biden administration approaches its conclusion, the future of the US dollar will be closely watched, with the next presidency potentially influencing its trajectory. However, for now, the US dollar continues to outperform its BRICS counterparts, casting doubt on the effectiveness of the de-dollarization agenda and the ability of BRICS nations to reduce their dependency on the dollar.

The ongoing dominance of the US dollar serves as a reminder of the challenges that emerging economies face in attempting to shift the global financial landscape. While the BRICS bloc has made significant strides in establishing alternative financial systems and promoting their local currencies, the global market’s reliance on the US dollar remains deeply entrenched. The current trends suggest that any significant shift away from the dollar will require more time and perhaps a more coordinated global effort beyond the BRICS nations.

The US dollar’s strength in July 2024 has highlighted the difficulties faced by the BRICS nations in their de-dollarization efforts. The Indian rupee’s historic low, the yuan’s seven-month decline, and the Japanese yen’s 34-year slump all point to the formidable challenge of reducing global reliance on the US dollar. Despite their best efforts, BRICS countries have not been able to make significant inroads into diminishing the dollar’s role in global finance, and the current market dynamics continue to favor the US currency. The resilience of the US dollar, supported by factors such as rising US Treasury yields and investor confidence, suggests that the journey towards de-dollarization will be a long and challenging one for the BRICS nations.

NPCI Launches UPI One World Wallet for International Travelers to India

The National Payments Corporation of India (NPCI), which oversees India’s payment and settlement systems, has introduced a new wallet specifically designed for international travelers visiting the country. This innovative service, named ‘UPI One World,’ leverages India’s premier instant payments system, the Unified Payments Interface (UPI), to facilitate seamless digital payments for visitors.

The UPI One World wallet is being made available to delegates attending the World Heritage Committee meeting in New Delhi from July 21-31, 2024, thereby enhancing their overall experience at the event. This initiative will allow international visitors and the frequently traveling Indian diaspora to enjoy India’s rich culture, diverse cuisine, and various attractions without the need to carry cash or deal with the complexities of foreign exchange.

The process to obtain the wallet is straightforward. Travelers can acquire it at airports, hotels, money exchange points, and other designated locations after completing a verification process that requires a passport and a valid visa. Once set up, users can make payments at merchant locations by scanning QR codes using the UPI One World app. Additionally, any unused balance can be transferred back to the original payment source, adhering to foreign exchange regulations. This service is a collaborative effort by NPCI, IDFC First Bank, and Transcorp International Limited, and is regulated by the Reserve Bank of India.

“We are thrilled to offer the UPI experience to international guests visiting India through UPI One World,” said an NPCI spokesperson. “This move aims to enhance the experience for visitors by equipping them with UPI, the most preferred payment choice among Indians.”

“By enabling foreign travelers to experience the real-time payments system developed by India, we are taking a significant stride towards creating a more interconnected global digital payments ecosystem,” the spokesperson added.

This initiative underscores India’s expanding role in the global digital payments sector. In June 2024 alone, UPI processed nearly 14 billion transactions worth approximately US$ 240 billion. In 2023, UPI accounted for about 80 percent of all digital payment transactions in India, solidifying its position as one of the largest real-time payment systems globally.

The introduction of the UPI One World wallet is a significant development for international visitors. It offers a hassle-free, efficient way to manage payments during their stay in India. By using the UPI system, visitors can avoid the inconvenience of carrying large amounts of cash or dealing with currency conversion issues. The ability to transfer any unused balance back to the original payment source also provides a level of financial security and convenience that is highly appealing.

The collaboration between NPCI, IDFC First Bank, and Transcorp International Limited, with oversight from the Reserve Bank of India, ensures that the service is reliable and trustworthy. This partnership brings together significant expertise in digital payments, banking, and financial services, guaranteeing that travelers will have a seamless and efficient payment experience.

The NPCI spokesperson emphasized the importance of this service in enhancing the visitor experience in India. “We believe that UPI One World will significantly improve the way international travelers interact with India’s digital payment ecosystem. It is our goal to make their stay as comfortable and convenient as possible.”

By extending the UPI system to international visitors, NPCI is also promoting the global adoption of its digital payment solutions. This move is part of a broader strategy to position India as a leader in the global digital payments landscape. The impressive transaction volumes handled by UPI highlight its efficiency and widespread acceptance, making it an ideal solution for international travelers.

The launch of the UPI One World wallet by NPCI represents a major advancement in the digital payments sector. It not only provides international visitors with a convenient and efficient payment solution but also showcases India’s prowess in developing cutting-edge payment technologies. As UPI continues to grow and evolve, it is set to play a crucial role in shaping the future of global digital payments.

A Journey Through U.S. Currency: From Continental Bills to the Elusive $100,000 Note

Tracing the evolution of a nation’s currency provides a unique window into its history. Currency’s journey is rarely straightforward, filled with complex technicalities that can challenge even the most devoted economist. Here, we explore some of the most fascinating moments in the history of U.S. currency, simplifying the tale for those without an economics degree.

The First National Bills Were Called “Continentals”

The Continental Congress issued the first national paper currency for what would become the United States of America in 1775. Named Continental currency, it aimed to fund the Revolutionary War. Initially strong, its value quickly depreciated due to inadequate revenue sources and government mismanagement. Britain’s counterfeiting of the 1777 and 1778 issues exacerbated the problem, forcing Congress to recall these printings. By 1779, as the currency’s value plummeted, Congress halted new printings of Continentals. Although the bills continued to circulate, they were worth only 1% of their face value by 1781.

New Coins Were Minted Under Alexander Hamilton

By the late 18th century, the United States required a currency overhaul. In 1791, Alexander Hamilton, the first treasury secretary, established the Bank of the United States to create a stable credit system. The following year, Congress passed the Coinage Act of 1792, establishing a national mint in Philadelphia to produce coins from copper, silver, and gold. These included the denominations we use today, along with a broader range of values. Copper coins included the half cent and cent; silver coins featured the half dime, dime, quarter, half dollar, and dollar; and gold coins included the quarter eagle ($2.50), half eagle ($5), and eagle ($10).

The U.S. Dollar Was Based on the Spanish Peso

The U.S. dollar originated as a coin based on the Spanish milled dollar, known as the peso, replicating its weight and silver value. The origin of the dollar sign remains unclear. One theory suggests it evolved from superimposing the “S” and “P” from the old shorthand for peso (“ps”), later simplified into the dollar sign. Another theory proposes that it derived from a superimposed “U” and “S,” potentially representing “units of silver.” However, no substantive evidence supports these theories. Despite its iconic status, the exact origin of the dollar sign remains a mystery.

George Washington Wasn’t on the First Dollar Bill

The first U.S. $1 note, part of the legal tender known as “greenbacks” for their color, was printed in 1862. This initial dollar bill did not feature George Washington but instead displayed the likeness of then-Treasury Secretary Salmon P. Chase. Chase, in charge of creating the currency, placed his own image on it. During a speech, he recounted, “I went to work and made ‘greenbacks’ and a good many of them. I had some handsome pictures put on them; and as I like to be among the people… and as the engravers thought me rather good looking, I told them they might put me on the end of the one-dollar bills.”

Greenbacks included anti-counterfeiting measures such as the U.S. Treasury seal, engraved signatures, and complex geometric patterns. These early measures are the roots of techniques still in use today, augmented by additional identifying factors. George Washington replaced Chase on the dollar bill permanently in 1869, with Section 116 of the annual Financial Services and General Government Appropriations Act preventing any redesign of the $1 note.

There Used To Be a $10,000 Bill

While the $100 bill is currently the largest denomination of American currency, much larger notes were once printed. Until their discontinuation in 1969, notes in $500, $1,000, $5,000, and $10,000 denominations existed, though they were not widely circulated. The $500 note featured John Marshall on the blue seal version and President William McKinley on the green seal version. The blue seal $1,000 depicted Alexander Hamilton, while its green seal counterpart featured Grover Cleveland. James Madison appeared on the $5,000 note. The $10,000 note, the highest value of American currency ever circulated, featured Salmon P. Chase on both versions.

Only one piece of U.S. currency surpasses the $10,000 note: the $100,000 gold certificate, which was never circulated. Printed for just three weeks between 1934 and 1935, this gold certificate was intended exclusively for transactions between Federal Reserve Banks. Woodrow Wilson was portrayed on the front of the note. Possession of the $100,000 gold certificate by a civilian is illegal, making it one of the strangest possible financial crimes.

The history of U.S. currency is a fascinating journey through economic challenges, innovation, and the occasional act of vanity. From the initial Continental currency to the high-value notes of the 20th century, each development reflects the evolving needs and values of the nation. As we continue to use the dollar today, these historical moments remind us of the intricate and often surprising path that has shaped the currency we now take for granted.

Social Security Payment Schedule and Benefits: July 2024 Updates and COLA Expectations

Millions of retirees under the Social Security system are slated to receive their monthly payments directly into their bank accounts by July 10th.

Social Security serves as a cornerstone of retirement planning for over 60 million Americans. However, due to the large number of recipients, payments are staggered across different dates depending on recipients’ birth dates.

According to the Social Security Administration, beneficiaries whose birthdays fall between the 1st and 10th of any month will receive their payments this Wednesday.

“In addition to today’s payments, two more rounds are scheduled for July,” said an official. Those born from the 11th to the 20th can expect payments on July 17, while those born from the 21st to the 31st will receive payments on July 24.

Exceptions to these dates include those who have been receiving benefits since May 1997 or who receive both retirement benefits and Supplemental Security Income (SSI). These groups received their payments on July 3 and July 1 respectively.

“If you receive benefits based on someone else’s work record, such as survivor or spousal benefits, your payment date is tied to the primary beneficiary’s birthday,” the official clarified.

The SSA advises waiting three working days before contacting them if your payment is delayed beyond the expected date, excluding weekends and public holidays.

The amount of retirement benefit you receive depends on several factors, including the age at which you start claiming benefits and your earnings during your highest-paid years of work.

For those who retired at 70, the maximum benefit of $4,873 is available in 2024, contingent upon their earnings during their peak working years. Those who opt to start claiming benefits at 62, the earliest possible age, can receive a maximum benefit of $2,710.

“In January, the average individual received $1,907,” the official stated. This amount is expected to increase in 2025 due to the Cost of Living Adjustment (COLA).

COLA adjusts benefits annually based on inflation, specifically tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers. The increase beneficiaries can expect in the coming year hinges on the index’s third-quarter figures for July, August, and September of this year.

Top 10 Highest-Paid U.S. CEOs of 2023: Elon Musk Leads with $1.4 Billion

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Annual pay packages for the CEOs of major corporations in America can reach over a billion dollars per year.

This graphic lists the best-paid CEOs in the U.S. in 2023, according to research from C-Suite Comp.

Methodology

This data covers leaders’ compensation at nearly 4,000 publicly traded U.S. companies. The dataset includes executives’ salaries, bonuses, perks, and stock options, among other factors. It also considers recent changes in the value of current and potential stock holdings.

Top CEOs by Compensation in 2023

Elon Musk at the Top

Tesla CEO Elon Musk was the best-paid CEO in the U.S. last year, earning about $1.4 billion. With a net worth of $205.4 billion in 2024, he also secured his position in our ranking of the wealthiest billionaires in the world in 2024.

CEO Company Industry Compensation
Elon Musk Tesla Automotive & Energy $1.4B
Alexander Karp Palantir Technologies Software & Data Analytics $1.1B
Hock Tan Broadcom Semiconductors $768M
Brian Armstrong Coinbase Global Cryptocurrency Exchange $681M
Safra Catz Oracle Software & Cloud Computing $304M
Brian Chesky Airbnb Online Marketplace $304M
Jon Winkelried TPG Private Equity $295M
Jeff Green Trade Desk Digital Advertising $292M
Adam Foroughi AppLovin Mobile Technology $271M
Nikesh Arora Palo Alto Networks Cybersecurity $266M

Elon Musk, the CEO of Tesla, topped the list of highest-paid CEOs in the U.S. in 2023, earning approximately $1.4 billion. His impressive earnings are supplemented by a net worth of $205.4 billion in 2024, solidifying his place among the world’s wealthiest individuals.

Following Musk is Alexander Karp, CEO of Palantir Technologies, who earned $1.1 billion. Palantir provides intelligence and defense tools to the U.S. Armed Forces and data integration and analysis services to corporate clients like Morgan Stanley and Airbus.

In third place is Hock Tan, the CEO of Broadcom Inc., a leading technology company specializing in semiconductor and infrastructure software solutions. Tan earned $768 million in 2023.

Brian Armstrong, CEO of Coinbase Global, ranks fourth with a total compensation of $681 million. Coinbase is a major cryptocurrency exchange that has seen significant growth and development in recent years.

Safra Catz, the only woman on the list, is the CEO of Oracle Corporation. With a total compensation of $304 million, Catz has been instrumental in Oracle’s growth since joining the company in 1999, particularly through a series of strategic acquisitions.

Brian Chesky, CEO of Airbnb, also earned $304 million in 2023. Chesky has led Airbnb through a period of rapid expansion, transforming the company into a global online marketplace for lodging and tourism experiences.

Jon Winkelried, CEO of TPG, a private equity firm, earned $295 million. Winkelried has played a crucial role in managing and growing TPG’s investment portfolio.

Jeff Green, CEO of Trade Desk, a digital advertising company, earned $292 million. Under Green’s leadership, Trade Desk has become a significant player in the digital advertising industry, providing innovative solutions for programmatic advertising.

Adam Foroughi, CEO of AppLovin, earned $271 million in 2023. AppLovin specializes in mobile technology and has developed a range of products and services to support mobile app developers.

Finally, Nikesh Arora, CEO of Palo Alto Networks, a cybersecurity company, earned $266 million. Arora has led Palo Alto Networks in its mission to protect organizations from cyber threats and enhance their cybersecurity measures.

The compensation packages of U.S. CEOs in 2023 highlight the substantial rewards for leading some of the world’s most influential companies. From Elon Musk’s billion-dollar earnings at Tesla to the significant compensation of leaders in technology, finance, and beyond, these figures underscore the high stakes and substantial rewards of executive leadership in today’s corporate landscape.

Citigroup Hit with $135.6 Million Fine for Failing to Resolve Longstanding Risk Issues, CEO Fraser Vows Continued Transformation

Citigroup was fined $135.6 million by government regulators on Wednesday for not making enough progress in addressing longstanding internal control and risk issues. This decision is a significant setback for Citigroup CEO Jane Fraser, who has been focused on making the bank more efficient and less complicated.

The Federal Reserve and the Office of the Comptroller of the Currency (OCC) imposed the fines, stating in separate releases that Citigroup had not fulfilled its obligations from a 2020 consent order related to its risk and control issues. While acknowledging some progress, the regulators emphasized that major problems still persist, necessitating further penalties from the OCC and Fed.

Acting Comptroller of the Currency Michael J. Hsu emphasized the need for Citigroup to complete its transformation and promptly address its longstanding deficiencies. “Citibank must see through its transformation and fully address in a timely manner its longstanding deficiencies,” Hsu stated.

This $135.6 million fine adds to the $400 million penalty Citigroup paid in 2020 when the original consent order was signed. As part of the new penalties, Citigroup will pay $61 million to the Federal Reserve and $75 million to the OCC.

Fraser acknowledged in a statement that the bank has not progressed as quickly as necessary but affirmed her commitment to making Citigroup less risky. “We’ve always said that progress wouldn’t be linear, and we have no doubt that we will be successful in getting our firm where it needs to be in terms of our transformation,” she said.

Following the 2008 financial crisis, Citigroup was seen as a prime example of a “too big to fail” institution. The near-collapse and subsequent government bailout forced Citigroup executives to downsize the bank’s extensive balance sheet, divest unnecessary businesses, and exit financial markets where it couldn’t maintain a dominant position.

In the 1990s and early 2000s, Citigroup expanded rapidly through acquisitions and mergers, aiming to become a financial conglomerate serving every customer need. However, many acquired businesses had software and internal controls incompatible with other parts of Citigroup. Despite being less complex than in 2008, Citigroup still faces significant regulatory concerns due to these internal communication issues.

Banking regulators rejected Citigroup’s “living will” in June, a document intended to outline how the bank could be wound down safely and orderly in case of failure.

Fraser has committed her tenure as CEO to improving Citigroup’s internal controls, a task requiring thousands of employees, billions of dollars, and several years of effort. Some of her initiatives have been successful, such as selling parts of Citigroup’s consumer banking business, notably the planned spin-off of Citi’s Banamex operations in Mexico.

Unlocking Happiness: Practical Strategies from Yale’s Science of Well-Being Course

Are you as happy as you should be? That question often keeps me up at night and fueled my interest in studying and writing about happiness. In my 20s, I realized that much of what we’re taught as kids doesn’t fully align with psychological wellbeing.

Sure, my parents and teachers said, “I want you to be happy.” But how often do they teach us how to be happy using credible science?

This curiosity led me to enroll in Yale’s 8-week happiness course, The Science of Well-Being, which is free and highly informative. Here are a few takeaways, how they connected with my life, and how they can impact yours.

The Basics

The course, taught by Yale Psychology professor Dr. Laurie Santos, focuses on flaws in our thinking and approach to happiness. A central concept is the GI Joe Fallacy, based on the kid’s TV show GI Joe, which ended with, “And now you know. And knowing is half the battle.”

According to Dr. Santos, “Merely knowing something isn’t enough to put it into practice. It’s not enough to change your behavior.” This insight resonates with my experience as a self-help writer. Many people consume self-help content as a pseudo act of self-improvement. It feels like progress to read about the importance of exercise or cold showers, but this knowledge is useless if not acted upon.

The same applies to writing courses I’ve taught. Many people enroll and participate but do little writing. While they may enjoy the process, it doesn’t help them achieve their goal of becoming writers. The same principle applies to happiness—understanding it requires action beyond mere knowledge.

The Misalignment of Expectations and Outcomes

When the professor polled the class on what they thought would make them happy, most answers—good grades, a good job, marriage, money—were wrong. Experiments showed that students given their dream internships were no happier months later than before.

Harvard Professor Dan Gilbert, in his book Stumbling Upon Happiness, found that people always thought a higher income would make them happy, yet each raise provided only temporary happiness. We constantly re-baseline our expectations, leading to a cycle of restlessness and acclimation, explaining many people’s lack of happiness.

Happiness Strategies

One effective strategy is savoring, which boosts wellbeing. Savoring involves reflecting on and appreciating past experiences. For my assignment, I took time daily to savor one experience. Often, these were small everyday activities.

One day, I savored showering after a hard workout, appreciating the feeling of being clean. Another day, I enjoyed a brief rainstorm while reading a book and reflected on how relaxing it was. By the third day, I noticed an improvement in my mood and overall disposition.

This practice can also be part of a daily gratitude journal, where you express thankfulness for small moments (mine takes only 60 seconds). Dr. Santos emphasizes feeling the gratitude as you think about it. You can also take photos of what you’re grateful for if that helps.

Invest in Temporal Things

Another key strategy from the course is investing in things that expire shortly after use, countering the instinct to acclimate to your environment.

Moreover, invest in experiences. Dr. Leaf Van Boven’s study found a negative correlation between spending on material objects and mental wellbeing. People overestimate the happiness these purchases bring. Conversely, spending on experiences positively correlates with mental wellbeing due to their potential for positive reinterpretation over time.

For example, my wife Laura and I take an annual trip with friends to Mexico. This provides satisfaction, a sense of reward, and an escape from routine. I can look back and appreciate the time spent with friends and new experiences. Conversely, while I enjoy buying a new car, it doesn’t significantly add to my happiness.

The Bronze Medal Problem

A striking fallacy relates to bronze medals. Researcher Dr. Victoria Medvec studied photos of Olympic medalists and found silver medalists had a more negative demeanor than bronze medalists, who were happier. This reflects our tendency to compare and dwell on “what could have been.”

As a swimmer, I got second place in the 50 free at my high school state championships, losing by .03 seconds. It bothered me for years. Yet, a year later, I got a bronze medal in the 100 free and was over the moon. These two outcomes are my best and worst athletic memories, illustrating our comparison problem.

A counterintuitive strategy to combat this is visualizing something important in your life not being there. This leads to greater satisfaction. For instance, I often forget that in that same high school meet, I beat the third place winner by only .05 seconds. I should have been grateful for the silver.

With your spouse, think about the chance encounter of meeting them and how easily it might not have happened. This exercise highlights the things we take for granted, reminding us that the people and luxuries around us were never guaranteed.

A Few Things Before You Go

The course was informative, emphasizing that we must check all the basic health boxes. Our bodies are complex chemical experiments. Without proper sleep, exercise, and nutrition, we throw these balances off.

In my experience, sleep impacts my happiness the most. A Norwegian study of college students found a clear link between quality sleep and life satisfaction.

I wish you all the happiness life can bring. Invest in these exercises, practice savoring, and appreciate mundane activities like showering or hearing kids laugh. Invest in experiences over material possessions; memories carry more value than shiny objects.

Recognize the GI Joe Fallacy—happiness takes work, not just knowledge. Make healthy comparisons and remember how easily the things and people you love could not be here. Don’t become the bitter silver medalist in life.

U.S. Housing Market Crisis Looms Large as Economic Drag Ahead of 2024 Election

To paraphrase the article while including the original quotes and maintaining the content integrity within approximately 1000 words:

The U.S. housing market, grappling with elevated interest rates and sluggish sales, is poised to exert significant drag on the economy leading up to the upcoming election.

Recent reports paint a grim picture of a housing sector that once held promise as a substantial contributor to the economy, constituting up to 18 percent of it. Existing home sales have declined, and pending sales have plummeted to unprecedented lows. May’s housing starts have hit their lowest point since June 2020, coinciding with the pandemic-induced economic slowdown. Amid the highest borrowing costs seen in over two decades, residential investment has sharply decreased.

Lawrence Yun, chief economist at the National Association of Realtors, highlighted the severity of the situation, noting, “Home sales activity is at a 30-year low — it’s essentially stuck at that level, so all of the economic activity associated with home sales is at a depressed level.”

Initially optimistic at the start of the year, market expectations were for the Federal Reserve to begin cutting interest rates as inflation subsided. However, this expectation has not materialized, keeping the Fed’s rates elevated and thereby increasing the costs of construction and financing for home purchases.

Simultaneously, soaring home prices due to a nationwide supply shortage have barred many prospective first-time buyers from entering the market. Surveys indicate that the escalating housing costs rank among the top concerns for young voters, with over 90 percent identifying affordability as a pivotal factor influencing their voting decisions this year. This issue is not confined to the U.S. alone; other affluent democracies such as the U.K., France, and Canada are also contending with housing affordability as a pressing political issue.

The Biden administration has faced challenges in addressing this crisis, with significant barriers to new housing development predominantly arising at the local and state levels.

Daryl Fairweather, chief economist at Redfin, emphasized the unprecedented nature of the current housing dilemma, stating, “It’s unprecedented, it’s never been such an issue. I think this is the first time housing could actually matter in the swing states — before it was mostly in the coastal areas.” Fairweather underscored President Biden’s acknowledgment of housing costs in his debate with former President Trump, highlighting its newfound prominence in national discourse.

Residential investment, which accounts for a substantial portion of the GDP, could diminish by up to 5 percent as a result of declining spending in this sector, further exacerbating economic slowdown amidst already tepid consumer spending.

Although housing inventory is showing slight signs of increase, it remains insufficient to meet demand, exacerbated by a prolonged supply shortage dating back several years. This shortage is compounded by homeowners opting to retain their 3 percent mortgages secured in 2020 rather than refinancing at current rates nearing 6.9 percent, creating what Fairweather termed as a “mortgage rate lock-in effect.”

Fairweather cautioned against expecting a quick resolution to the housing market’s challenges, suggesting, “I don’t think that the problems with the housing market are going to clear up in a matter of years. It could take a decade.”

Acknowledging that many of the barriers driving up housing costs are localized, the White House announced initiatives in June. The Department of Housing and Urban Development plans to allocate $85 million in grants to help local governments identify and eliminate obstacles to affordable housing production and preservation. Additionally, Treasury Secretary Janet Yellen announced a $100 million allocation over three years to support affordable housing production through the Community Development Financial Institutions Fund.

These measures represent the latest attempts by the Biden administration to tackle the affordability crisis exacerbated by housing shortages following years of below-average construction rates in the aftermath of the global financial crisis. As of April, home prices in the 20 largest U.S. metro areas reached record highs according to the Case-Shiller home price index, contributing to increased official inflation indexes and raising concerns among voters already grappling with the highest inflation rates in four decades.

Despite the record highs in home prices, there are signs that the pace of price growth is moderating, suggesting a more stable market compared to the unsustainable growth observed in 2022, according to Zillow senior economist Orphe Divounguy. Divounguy noted, “Today I think we’re in a much better place than we were in 2022, when prices were growing unsustainably. That overheated pace could result in a crash, which is why the Fed had to act when it did.”

Looking forward, Divounguy predicted that mortgage rates would remain elevated for some time, attributing part of the problem to the role of high interest rates in driving up housing costs, as highlighted by Robert Dietz, chief economist for the National Association of Homebuilders. Dietz remarked, “You’ve got a market that’s got a lot of potential for growth that is continuing to lag due to higher-for-longer interest rates.”

Dietz emphasized the importance of addressing the housing supply issue, predicting that housing would be a critical issue in the upcoming 2024 election. He stated, “If pollsters and candidates are out there talking to people, they’ll hear pretty quickly that increasing the attainable housing supply is a must-do.” However, he cautioned against expecting a simple, scalable solution, acknowledging, “There’s kind of a lot of challenges that have to be addressed in the housing market.”

The U.S. housing market’s current challenges, compounded by elevated interest rates and persistent supply shortages, threaten to weigh heavily on the economy ahead of the election. Despite recent efforts by the Biden administration to address affordability through targeted initiatives, the complex nature of local barriers and entrenched economic factors suggest that resolving these issues will require sustained effort and innovative solutions.

U.S. Economy Adds 206,000 Jobs in June, Showing Resilience Amid High Interest Rates

In June, American employers demonstrated the U.S. economy’s robust nature by adding 206,000 jobs, indicating its resilience against persistently high interest rates. While this number shows a slight decrease from May’s 218,000, it still represents solid job growth, underscoring the steady, consumer-driven nature of the American economy despite a gradual slowdown.

The Labor Department’s report released on Friday also revealed a slight uptick in the unemployment rate from 4% to 4.1%. Additionally, the department significantly revised its earlier estimates of job growth for April and May, reducing them by a total of 111,000 jobs.

The economic landscape is becoming a critical issue for voters as the presidential campaign heats up. Despite consistent hiring, low layoffs, and slowly cooling inflation, many Americans remain frustrated by the high cost of living and hold President Joe Biden responsible for these economic pressures.

Economists have repeatedly anticipated a slowdown in the job market due to the Federal Reserve’s high interest rates. Nevertheless, hiring has continued to surpass expectations. There are, however, indications of a broader economic deceleration in response to the Fed’s rate hikes. The U.S. gross domestic product (GDP), which measures the total output of goods and services, grew at a sluggish annual rate of 1.4% from January to March, marking the slowest quarterly growth in nearly two years.

Indian-American Businessman Rishi Shah Sentenced for $1 Billion Fraud Scheme

Rishi Shah, an Indian-American businessman and former billionaire co-founder of Outcome Health, has been sentenced to seven and a half years in prison by a US court for his involvement in a Rs 8,300 crore ($1 billion) fraud scheme. This high-profile case impacted investors such as Goldman Sachs Group Inc., Google parent Alphabet Inc., and Illinois Governor JB Pritzker’s venture capital firm. The verdict, delivered by US District Judge Thomas Durkin, concluded one of the largest corporate fraud cases in recent history.

Outcome Health, originally named Context Media Health, was founded in 2006 by Shah during his university days. The company’s innovative vision was to transform medical advertising by installing televisions in doctors’ offices to stream health ads targeted at patients. Shah partnered with co-founder Shradha Agrawal, and the company experienced exponential growth, aiming to bridge the communication gap between patients and healthcare providers through strategic ad placements.

By the mid-2010s, Outcome Health had become a significant player in the tech and healthcare investment sectors. The promise of integrating advanced technology into traditional healthcare marketing attracted high-profile investors. During its rapid ascent, Outcome secured substantial funding and clientele, establishing Shah as a prominent figure in Chicago’s corporate circles.

Lies and Deceit

However, behind the company’s glittering success lay a foundation of deceit. Prosecutors revealed that Shah, 38, along with Agrawal and chief financial officer Brad Purdy, orchestrated a massive fraud scheme against investors, clients, and lenders by misrepresenting the company’s operational and financial health. Central to the fraud was the sale of more advertising inventory than Outcome Health could deliver and the fabrication of data to conceal the shortfall.

The company misled pharmaceutical giant Novo Nordisk A/S and other clients about the size of its network and the reach of its ads. This misleading information, coupled with fraudulent data, created an illusion of exponential revenue growth, which enticed further investments and financial backing.

Shah’s extravagant lifestyle, funded by inflated ad sales and investor financing, was marked by lavish spending, including exotic trips on private jets and yachts and the purchase of a $10 million home. In 2016, Shah’s net worth was estimated at over $4 billion, a figure inflated by deceptive accounting practices.

The fraudulent activities were exposed in 2017 through a Wall Street Journal investigation. Subsequently, a group of investors, including Goldman Sachs, Alphabet, and Governor Pritzker’s firm, filed lawsuits against Outcome Health, accusing it of fraud in its $487.5 million fundraising earlier that year. This fundraiser had returned a $225 million dividend to Shah and Agrawal but left investors with a grossly overvalued stake in a company on the brink of collapse.

Legal Consequences

Shah was indicted on more than a dozen counts of fraud and money laundering and was convicted on these charges in April 2023. Agrawal and Purdy were also convicted. Prosecutors sought a 15-year sentence for Shah and 10-year sentences for his co-conspirators. However, District Judge Durkin’s final rulings varied: Agrawal received a three-year sentence in a halfway house, and Purdy was sentenced to two years and three months in prison. In addition to the criminal case, the US Securities and Exchange Commission has filed a civil action against Shah, Agrawal, Purdy, and former chief growth officer Ashik Desai. Desai and other Outcome employees had already pleaded guilty before the jury trial.

Public Apology

In poor health, Shah expressed remorse and accepted responsibility during his sentencing. He acknowledged his failure to manage the aggressive expansion of Outcome Health adequately and for fostering a corporate culture that led to deceptive practices. In a prepared statement, he admitted, “The culture I created permissioned people on my team to think it was okay to create false data in response to a client question.” He further stated, “I am ashamed and embarrassed by the misconduct that brought down the company.”

The Outcome Health scandal serves as a stark reminder of the consequences of corporate fraud and the importance of maintaining ethical business practices. Shah’s sentencing marks the end of a significant chapter in one of the most notable corporate fraud cases in recent memory, highlighting the importance of transparency and accountability in the business world.

Indian Americans: Small in Number, Big in Impact – Economic, Academic, and Policy Contributions Shape US and Beyond

Indians, while comprising a minor fraction of the US population, wield substantial economic influence. Despite representing only 1.5% of the population, Indian Americans contribute 5-6% of the total income taxes in the United States, equating to approximately $250-300 billion annually. This data comes from a recent report by Indiaspora and Boston Consulting Group (BCG), highlighting the impressive economic strides of the Indian diaspora, which numbers 5.1 million. Notably, about 70% of Indian Americans hold US citizenship.

Prominent figures such as Microsoft’s Satya Nadella, Google’s Sundar Pichai, and Vertex Pharma’s Reshma Kewalramani (the first female CEO of a major US biotech firm) exemplify the success of Indian Americans in the corporate world. They are among 16 Indian-origin CEOs leading Fortune 500 companies, collectively employing 2.7 million people and generating nearly $1 trillion in revenue.

Indians are not only at the forefront of major American corporations but also play a significant role in the startup ecosystem. They have co-founded 72 out of 648 US unicorns as of 2024, which employ over 55,000 people and have a combined valuation of $195 billion. The report states, “From leading the largest enterprises and founding new companies to employing millions of people across all states, the financial influence of the Indian diaspora shows the determination of individuals who overcame challenges to make meaningful contributions to their new home.”

The emphasis on academic achievement within the Indian community is notable as India strives to build a knowledge economy domestically. Approximately 78% of Indian Americans hold a bachelor’s degree or higher, significantly surpassing the US national average of 36%. Indian Americans also make up 2.6% of full-time faculty in American universities, holding about 22,000 faculty positions. Furthermore, they occupy crucial leadership roles such as deans, chancellors, and presidents in 70% of the top 50 US colleges.

Indian Americans significantly contribute to research, innovation, and academia in the US. Between 1975 and 2019, the share of US patents credited to Indian-origin innovators rose from 2% to 10%. In 2023, Indian-origin scientists were involved in 11% of all NIH grants and accounted for 13% of scientific publications. This showcases their growing influence in advancing scientific research and innovation.

The influence of the Indian diaspora extends beyond academia and into the realm of policy-making and government. As of 2023, approximately 150 Indian Americans held significant positions in the US federal administration, including Vice President Kamala Harris. With Ajay Banga’s appointment as the president of the World Bank, Indian Americans are also making significant impacts in global economic policies and development.

The achievements of Indians in the US also resonate back in India. The diaspora has contributed over $1.5 billion to philanthropy in the US while also supporting various causes in India. In 2018-19, donations from the US to India amounted to around $830 million, representing 35% of all donations to the country. This indicates a strong commitment to giving back to their homeland and addressing critical needs.

Despite these successes, the Indian American community faces challenges. As of 2020, around 6% of Indian Americans lived below the poverty line, and an estimated 14% were undocumented in 2021. These issues highlight the ongoing struggles within the community, despite its overall economic and academic successes.

Indian Americans, though a small portion of the US population, have made significant contributions to the country’s economy, academia, and policy-making. Their success is evident in the high-ranking positions they hold in major corporations and government, their substantial academic achievements, and their philanthropic efforts both in the US and India. However, challenges such as poverty and undocumented status remain areas that need addressing to ensure the continued growth and well-being of the Indian American community.

Unveiling the Evolution of Credit Cards: From Diners Club to Magnetic Stripes and Beyond

When credit cards were first introduced in 1950, Americans were already familiar with the concept of buying on credit through personal loans and store credit accounts. However, the introduction of the Diners Club card, the first modern charge card, revolutionized spending by allowing customers to use their cards at various restaurants and settle the balance at the end of the month. This marked the beginning of a cashless consumption era.

By the end of the 1950s, the majority of Americans had adopted the idea of buying now and paying later. In 1958, Bank of America in California launched the BankAmericard, the first general-purpose credit card that could be used anywhere it was accepted. Unlike the Diners Club card, the BankAmericard allowed customers to carry a balance into the next month, as long as they paid the interest. By 1966, the practice became widespread as more states licensed the BankAmericard, which was rebranded as Visa in 1970. Here are five intriguing facts about the history of credit cards.

Women Couldn’t Have Their Own Credit Cards Until 1974

In the mid-1970s, women faced significant challenges when applying for a credit card. Married women could only obtain cards under their husband’s name, and single women needed a male family member to co-sign. Even if a woman could make payments on her own, she might still be denied credit, severely limiting her financial independence. In a landmark decision in 1971, the Supreme Court ruled that giving men more financial power than women solely based on sex was unconstitutional, violating the Equal Protection Clause of the 14th Amendment. This decision paved the way for the Equal Credit Opportunity Act of 1974, which prohibited denying credit based on gender, religion, or race.

The Credit Card Was Invented After a Man Forgot His Wallet

In 1949, New York businessman Frank McNamara forgot his wallet during dinner and had to rely on his wife to pay the bill. Determined to avoid such embarrassment again, McNamara and his partner Ralph Schneider created a membership card allowing restaurant patrons to settle their bills monthly instead of carrying cash. This card, made of cardboard, charged participating restaurants a 5% to 7% processing fee. Within a year, the Diners Club card gained around 42,000 users across the United States, establishing the concept of credit cards.

The BankAmericard Lost Millions of Dollars at First

In September 1958, the Bank of America surprised Fresno, California, residents by mailing out 60,000 unsolicited BankAmericards. This launch, led by manager Joe Williams, was based on arbitrary decisions: credit limits ranged from $300 to $500, and “floor limits” for smaller purchases that didn’t require retailers to call the bank ranged from $25 to $100. Williams assumed most customers would repay their loans on time, but he was wrong. In its first year, after distributing an additional 20 million cards across California, the BankAmericard lost millions of dollars, leading to Williams’ resignation. This initiative also inadvertently gave rise to another issue: credit card fraud.

The First Magnetic Stripe Card Arrived in 1969

Magnetic storage, a technology developed in the 1930s for storing data using magnetized materials, was improved over the years for use in early computers. In 1960, IBM engineer Forrest Parry used this technology to embed magnetic tape onto ID cards for CIA officials, which contained agent information. IBM project manager Jerome Svigals refined this technique and applied it to credit cards. The magnetic stripe could store user information, banking data, and purchase history, making it easier to detect and prevent fraud. In 1970, “magstripe” cards were introduced to the public through a collaboration between American Express, American Airlines, and IBM.

American Express Was the First Rewards Card

American Express pioneered two features that are now standard in credit cards. The bank launched its first credit card in 1958 and, in 1959, became the first major company to issue plastic cards instead of cardboard. Decades later, in 1991, Amex introduced the first rewards program, Membership Miles, a frequent-flyer program. For every dollar spent, customers earned points toward travel and accommodations at select airlines and hotels. This program also offered incentives: while all American Express members could participate, only Gold and Platinum cardholders received additional perks.

Indian Funds in Swiss Banks Plummet by 70% in 2023, Hitting Four-Year Low

In 2023, Indian deposits in Swiss banks fell dramatically by 70%, reaching their lowest point in four years at 1.04 billion Swiss Francs (₹9,771 crore), according to data from the Swiss National Bank (SNB). This sharp decline follows a peak in 2021 and is mainly due to reduced investments in bonds, securities, and other financial instruments.

Key Drivers of the Decline

The significant reduction in funds held by Indian clients is primarily due to a substantial decrease in investments in bonds, securities, and other financial instruments. Additionally, funds held in customer deposit accounts and cash through other bank branches in India have also seen significant declines.

Breakdown of Funds

– Customer Deposits:CHF 310 million (down from CHF 394 million in 2022)

– Other Banks:CHF 427 million (down from CHF 1,110 million)

– Fiduciaries/Trusts:CHF 10 million (down from CHF 24 million)

– Other Amounts: CHF 302 million (down from CHF 1,896 million)

Historical Context

Indian deposits in Swiss banks have generally been on a downward trend since reaching a record high of nearly CHF 6.5 billion in 2006. Exceptions to this trend occurred in 2011, 2013, 2017, 2020, and 2021.

Black Money Debate

These figures do not account for the alleged ‘black money’ held by Indians in Switzerland, as they represent official numbers provided to the SNB. Additionally, the data excludes funds held by Indians under third-country entities.

International Comparisons

As of the end of 2023, India ranked 67th in terms of foreign clients’ funds in Swiss banks, down from 46th in 2022. The UK topped the list with CHF 254 billion, followed by the US (CHF 71 billion) and France (CHF 64 billion).

Bank for International Settlements Data

According to the Bank for International Settlements’ “locational banking statistics,” Indian deposits in Swiss banks saw a 25% decrease in 2023, amounting to USD 70.6 million (₹663 crore). This metric is considered more accurate by Swiss and Indian authorities.

Cooperation on Tax Evasion

Switzerland has been actively sharing information with India to combat tax evasion and financial fraud. Since 2018, an automatic exchange of tax-related information has been in place, providing detailed financial data to Indian tax authorities annually.

Global Context

Overall, the total amount of funds held by foreign clients in Swiss banks decreased to CHF 983 billion in 2023 from CHF 1.15 trillion in 2022. Indian assets accounted for CHF 1.46 million, marking a 63% decrease from the previous year and the lowest level in over two decades.

Swiss National Bank (SNB) Key Points

– Establishment:The Swiss National Bank (SNB) was established on June 16, 1907.

– Headquarters:The headquarters are located in Bern and Zurich, Switzerland.

– Current President:Thomas Jordan (as of 2023).

– Primary Role:The SNB serves as the central bank of Switzerland, responsible for monetary policy, issuing banknotes, and ensuring the stability of the Swiss financial system.

– Ownership: The SNB is a joint-stock company with shares traded on the stock market, but the majority of shares are held by Swiss cantons and cantonal banks.

Functions

– Formulating and implementing the country’s monetary policy.

– Managing currency reserves.

– Ensuring the stability of the financial system.

– Issuing Swiss Franc banknotes.

– Acting as a banker to the Swiss Confederation.

Legal Framework

The SNB operates under the Swiss National Bank Act, which defines its mandate and powers.

Financial Reporting

The SNB publishes annual reports detailing its financial position, monetary policy, and other activities.

The substantial decline in Indian funds in Swiss banks in 2023 is indicative of a broader trend of decreasing investments in bonds, securities, and other financial instruments. Despite a history of fluctuations, the recent figures highlight a significant downturn from the peak levels seen in previous years. The ongoing efforts between Switzerland and India to combat tax evasion and financial fraud underscore the importance of transparency and cooperation in international finance.

Billionaire Timothy Mellon Donates $50 Million to Trump Super-PAC, Setting Record for 2024 Election; Michael Bloomberg Contributes $19 Million to Biden Campaign

Timothy Mellon, a billionaire born into one of America’s wealthiest families, has contributed $50 million to the Trump campaign super-PAC, Make America Great Again Inc., as revealed in federal filings on Thursday. This donation is now recognized as the largest individual contribution disclosed in the 2024 election cycle.

Mellon, 81, formerly served as the chairman of Pan Am Systems Inc., a private manufacturing and transportation enterprise. This year, he intends to publish a memoir about his tenure as chairman, titled “panam.captain,” through Skyhorse Publishing.

The federal documents indicate that Mellon made his substantial donation on May 31, 2024, just a day after Trump was convicted of 34 felonies by a New York state court in a significant hush-money case. Additionally, Mellon has contributed at least $20 million to Robert F. Kennedy Jr.’s campaign, who is running as an independent candidate in the 2024 presidential race, according to the BBC.

TIME has contacted the Trump and Robert F. Kennedy Jr. campaigns for comments and further information.

Forbes reports that Mellon is the great-grandson of Thomas Mellon, an Irish immigrant who arrived in the U.S. in 1818. Thomas Mellon was a lawyer and judge who invested in various real estate and banking ventures. By his death, he had accumulated a substantial fortune, which his sons inherited. Today, the Mellon family is worth around $14.1 billion, ranking them as the 34th wealthiest family in America.

On the other side of the political spectrum, the Biden campaign has also attracted significant donations. The Washington Post revealed that billionaire Michael Bloomberg donated $19 million to the Future Forward (FF) PAC, a pro-Biden political action committee. Additionally, Bloomberg gave another $929,600 to the Biden Victory Fund.

Timothy Mellon’s substantial contribution to the Trump campaign comes at a pivotal moment, highlighting the ongoing financial battles in the 2024 election. Mellon’s donation, made a day after Trump’s legal conviction, underscores his commitment to Trump’s political future despite the former president’s legal troubles. Trump’s conviction in a landmark hush-money trial has not deterred Mellon from providing significant financial support. The timing of this donation could be seen as a statement of defiance and unwavering support for Trump’s agenda.

Mellon’s other major political contribution is to Robert F. Kennedy Jr.’s campaign, showcasing his willingness to support multiple candidates who align with his views. This $20 million donation to Kennedy’s campaign signifies Mellon’s broader influence on the 2024 presidential race, as he backs an independent candidate challenging the traditional two-party system.

Forbes’ profile of Mellon’s ancestry paints a picture of a family that has long been embedded in American wealth and influence. Thomas Mellon’s success in law and real estate laid the foundation for the Mellon family’s vast fortune, which continues to impact American society and politics today. With an estimated worth of $14.1 billion, the Mellon family remains a powerful force in the country’s economic landscape.

In parallel, the Biden campaign’s receipt of large donations underscores the high stakes of the upcoming election. Michael Bloomberg’s $19 million contribution to the Future Forward PAC and the additional funds to the Biden Victory Fund illustrate the financial muscle behind Biden’s campaign. Bloomberg’s significant support for Biden reflects his belief in the current president’s vision for America’s future. Bloomberg, a former mayor of New York City and a billionaire himself, has consistently supported Democratic causes and candidates, using his wealth to influence the political landscape.

The battle for campaign funds in the 2024 election highlights the broader contest between major political donors and their respective candidates. Timothy Mellon and Michael Bloomberg represent two sides of this financial arms race, each backing candidates they believe will best serve their interests and visions for the country.

Mellon’s memoir, “panam.captain,” expected to be published by Skyhorse Publishing, will provide insights into his experiences as chairman of Pan Am Systems Inc. This publication will likely offer a deeper understanding of Mellon’s business acumen and his perspectives on industry and transportation. His leadership at Pan Am Systems has been a significant part of his career, and this memoir could shed light on the principles that guide his business and political decisions.

Overall, the donations from Mellon and Bloomberg to their respective political causes reflect a broader trend of billionaires using their wealth to influence American politics. The substantial contributions from these individuals underscore the critical role of money in modern election campaigns. These donations not only support the candidates but also shape the political discourse and strategies leading up to the 2024 election.

As the election approaches, the financial backing from major donors like Mellon and Bloomberg will play a crucial role in determining the resources and reach of each campaign. Their support highlights the intersection of wealth and politics in the United States, where financial power can significantly impact electoral outcomes. The influence of these billionaires extends beyond their donations, as they bring attention to the candidates and issues they support, swaying public opinion and mobilizing voters.

Timothy Mellon’s $50 million donation to Trump’s campaign and Michael Bloomberg’s $19 million contribution to Biden’s campaign underscore the immense financial stakes in the 2024 presidential election. Mellon’s additional support for Robert F. Kennedy Jr. further emphasizes his strategic political investments. These significant contributions from wealthy individuals highlight the critical role of money in shaping the future of American politics. As the campaigns progress, the impact of these donations will become increasingly evident, demonstrating how financial power can drive political change in the United States.

Record Home Prices and High Mortgage Rates Challenge Buyers and Sellers in Tight Housing Market

A Challenging Era for Homebuyers

Home prices surged to an unprecedented high last month, with recent data highlighting the increasing difficulty of purchasing a home. Elevated mortgage rates have sidelined many potential buyers and sellers, contributing to a scarcity of available homes and driving up prices for those on the market.

Here are four key insights into the current housing market:

Low Activity in Buying and Selling

May, typically a peak season for real estate, saw a decline in existing home sales compared to April, with a 2.8% drop from the previous year, as reported by the National Association of Realtors. Elevated mortgage rates have made home purchases more costly, pushing potential buyers out of the market. Additionally, current homeowners are hesitant to sell due to their existing lower mortgage rates.

The limited number of homes being sold are fetching higher prices, with the median home price in May reaching a record $419,300. Affordable homes, including starter homes, are becoming increasingly scarce. Jessica Lautz, deputy chief economist for the Realtors association, noted, “At lower price points, people are being priced out of the home-buying market, and there’s just less inventory when we think about homes that are under $250,000.”

Slight Relief in Interest Rates

There is some positive news: interest rates have slightly decreased in recent weeks. Freddie Mac reported an average rate of 6.87% on a 30-year mortgage this week, down from 7.2% in early May. Mortgage rates might fall further if the Federal Reserve reduces borrowing costs later this year. However, current rates remain more than double what they were pre-pandemic, significantly increasing the monthly payments required for home purchases today.

Increasing ‘For Sale’ Signs

While the number of homes on the market remains low by historical standards, there is a slight increase. The Realtors association noted that there were 1.28 million homes for sale at the end of May, an 18.5% increase from a year ago. Despite higher interest rates, life events such as new jobs, births, or family changes are compelling some homeowners to sell. Lautz explained, “Perhaps they have a new job or a new baby or a family change. We’re seeing new inventory come into the market because of these traits.”

Decline in New Home Construction

Previously, the shortage of existing homes allowed new home builders to help fill the market gap. In April, nearly one-third of homes for sale were newly built, compared to 13% before the pandemic. However, new home construction has slowed, potentially exacerbating the shortage of homes for sale. Builders started 5.2% fewer single-family homes in May than in April, and building permits for future construction also fell by 2.9%.

A Tough Market for Buyers and Sellers

The current housing market presents significant challenges for both buyers and sellers. Elevated mortgage rates and a lack of affordable homes have pushed many potential buyers out of the market. The median price of a home sold in May hit a record $419,300, driven up by the scarcity of lower-priced homes. Lautz pointed out, “At lower price points, people are being priced out of the home-buying market, and there’s just less inventory when we think about homes that are under $250,000.”

Despite some relief with a slight drop in interest rates, the overall cost of homeownership remains high. The average rate on a 30-year mortgage dropped to 6.87%, offering some respite compared to early May’s 7.2%. Future reductions in borrowing costs by the Federal Reserve could further lower mortgage rates, but current rates are still significantly higher than pre-pandemic levels, doubling the monthly payments required for new homeowners.

Slight Increases in Home Listings

The number of existing homes on the market, while still low, is slowly increasing. The Realtors association reported 1.28 million homes for sale at the end of May, marking an 18.5% rise from the previous year. This increase is partly due to life events that necessitate moving, such as job changes or family expansions. Lautz mentioned, “Perhaps they have a new job or a new baby or a family change. We’re seeing new inventory come into the market because of these traits.”

Challenges in New Home Construction

While new homes previously helped to mitigate the shortage of existing homes, the pace of new home construction is now slowing. In April, new builds accounted for nearly one-third of homes for sale, compared to 13% before the pandemic. However, builders started 5.2% fewer single-family homes in May than in April, and building permits for future construction also decreased by 2.9%.

Conclusion

The current housing market is marked by high prices, limited inventory, and elevated mortgage rates, making it a challenging environment for both buyers and sellers. The median home price has reached a new high, and the lack of affordable homes continues to price many out of the market. While there has been a slight decline in interest rates, they remain significantly higher than pre-pandemic levels, resulting in higher monthly payments for new homeowners.

The slight increase in home listings offers some hope, driven by life events necessitating moves. However, the slowdown in new home construction may worsen the shortage of homes for sale. As the market navigates these challenges, potential buyers and sellers must adapt to the evolving landscape.

Lautz’s insights encapsulate the current market’s complexity: “At lower price points, people are being priced out of the home-buying market, and there’s just less inventory when we think about homes that are under $250,000.” Despite these challenges, the market continues to show signs of resilience, with some increase in listings and potential for further declines in interest rates.

Study Finds Inflation Expected to Outpace Salary Increases Across Most Industries by 2028

Inflation is projected to outpace the majority of salaries in the coming years, as per recent findings. The analysis, conducted by Moneywise and published earlier this month, examined data from the Bureau of Labor Statistics (BLS), the Federal Housing Agency (FIFA), and Redfin to assess the relationship between salaries and inflation over the past five years. According to the consumer price index (CPI), a widely used measure of inflation, the latest data shows no change from May and an annual increase of 3.3 percent.

The research revealed a stark reality: 97 percent of occupations failed to keep pace with inflation during this period. Adjusted for inflation, salaries experienced an average decrease of 8.2 percent. Moneywise pointed out that alongside rising inflation, home prices soared by an average of 56 percent over the same five-year span.

Examining 36 industries, the study predicted the median salaries for 2028 based on the average salary changes observed over the past five years. Notably, no industry showed an increase in real salary when adjusted for inflation. The sectors most adversely affected included sales, real estate, and engineering, all experiencing significant declines in annual salaries. Conversely, aviation, customer service, music, management, and hospitality industries saw comparatively smaller declines in their annual salaries.

A USA Today summary highlighted waiters and waitresses as the sole group to experience a salary increase (1.73 percent) when adjusted for inflation over the past five years. However, the outlook for several occupations appears bleak for the future. Elementary school teachers, accountants, administrative assistants, registered nurses, and general maintenance workers are anticipated to witness the most substantial declines in adjusted salaries by 2028.

Conversely, the outlook is relatively brighter for wait staff, food preparation workers, retail sales workers, cashiers, and customer sales representatives, according to USA Today’s report on occupations where adjusted salaries are expected to fare better.

Despite varied impacts across industries, the overarching trend is clear: inflation continues to outstrip salary increases for the vast majority of occupations, a trend likely to persist in the years ahead.

US Sanctions Force Moscow Exchange to Halt Dollar and Euro Trading, Shift Focus to Yuan

New US sanctions against Russia have resulted in the immediate halt of trading in dollars and euros on the Moscow Exchange (MOEX), the primary financial marketplace in the country.

On Wednesday, despite being a public holiday in Russia, both MOEX and the Russian central bank swiftly issued statements following the announcement of the new sanctions by Washington. These sanctions aim to curb the flow of money and goods supporting Moscow’s military actions in Ukraine.

The central bank stated, “Due to the introduction of restrictive measures by the United States against the Moscow Exchange Group, exchange trading and settlements of deliverable instruments in US dollars and euros are suspended.”

As a consequence, banks, companies, and investors will no longer be able to trade these currencies through the central exchange, which provides benefits such as enhanced liquidity and oversight. Instead, trades will now have to be conducted over the counter, where transactions occur directly between two parties. The central bank mentioned it would use data from these trades to establish official exchange rates.

Many Russians maintain savings in dollars or euros, considering past economic crises when the ruble’s value plummeted. The central bank assured citizens that their deposits were safe. “Companies and individuals can continue to buy and sell US dollars and euros through Russian banks. All funds in US dollars and euros in the accounts and deposits of citizens and companies remain safe,” it reassured.

An individual from a significant, non-sanctioned Russian commodities exporter commented to Reuters, “We don’t care, we have yuan. Getting dollars and euros in Russia is practically impossible.”

With Moscow seeking to enhance trade and political relationships with Beijing, the Chinese yuan has overtaken the dollar as the most traded currency on MOEX, making up 53.6% of all foreign currency transactions in May.

Typically, the dollar-ruble trading volume on MOEX is around 1 billion rubles ($11 million) daily, while euro-ruble trading volume is approximately 300 million rubles ($3 million) each day. In contrast, yuan-ruble trading volumes now frequently exceed 8 billion rubles ($90 million) daily.

Dollar rates have surged

Before the national holiday, the ruble closed at 89.10 to the dollar and 95.62 against the euro. Following the sanctions announcement, some banks rapidly increased their dollar rates.

Norvik Bank announced Wednesday that it was buying dollars for just 50 rubles but selling them for 200 rubles, although it later adjusted the rates to 88.20/97.80. Tsifra Bank was buying dollars at 89 rubles and selling them at 120.

The US Treasury declared it was “targeting the architecture of Russia’s financial system, which has been reoriented to facilitate investment into its defense industry and acquisition of goods needed to further its aggression against Ukraine.”

Russia’s central bank has been preparing for such sanctions for nearly two years. In July 2022, the bank stated it was modeling different sanctions scenarios with participants of the foreign exchange market and infrastructure organizations.

Russian broker T-Investments remarked on Telegram, “This is bad but expected news.”

Forbes Russia reported in 2022 that the central bank was considering a mechanism for managing the ruble-dollar exchange rate should exchange trading be stopped due to sanctions against MOEX and its National Clearing Centre, which was also affected by the new sanctions.

MOEX announced that share trading and money market trades settled in dollars and euros would also be suspended. The money market includes low-risk, short-term debt instruments like government bonds and commercial debt.

These recent developments underscore the significant impact of the latest US sanctions on Russia’s financial operations. The shift from central exchange trading to over-the-counter deals marks a substantial change in how financial transactions will be conducted in Russia. The central bank’s reassurance about the safety of deposits in dollars and euros aims to maintain public confidence, although the actual ability to trade these currencies has been drastically reduced.

The response from market participants, such as the adjustment of dollar rates by various banks, reflects the immediate economic adjustments being made in light of the new sanctions. The increased reliance on the yuan and the continued preparation by the Russian central bank highlight the ongoing strategic shift in Russia’s financial practices to mitigate the impact of Western sanctions.

As Russia deepens its financial and trade ties with China, the prominence of the yuan in the Russian financial market is likely to grow further. This realignment not only reflects the current geopolitical tensions but also suggests a long-term shift in the global financial landscape, with significant implications for international trade and currency markets.

The central bank’s proactive stance in simulating sanctions scenarios and developing contingency plans demonstrates a level of preparedness, although the full impact of these new sanctions will unfold over time. Market participants and the general public will closely watch the developments as Russia navigates through these challenging economic conditions.

Overall, the suspension of dollar and euro trading on the Moscow Exchange marks a pivotal moment in Russia’s financial sector, driven by geopolitical dynamics and strategic economic adjustments. The move to over-the-counter trading, the reliance on the yuan, and the central bank’s assurances are all part of a broader strategy to stabilize the Russian economy amidst increasing international pressure. The effectiveness of these measures and their impact on the Russian financial system and broader economy will be critical areas to monitor in the coming months.

Bitcoin Faces Volatility Amid Economic Uncertainty: Crypto Stocks Eye Recovery in 2024

Cryptocurrencies have faced a challenging period following a robust performance in 2023 and the first quarter of this year. Bitcoin (BTC), in particular, surged to an all-time high of $73,750 in March, marking a significant milestone. However, momentum has since waned, with Bitcoin struggling below $70,000 for most of May and continuing into June. On June 13, Bitcoin briefly dipped below $67,000 before rebounding slightly to trade at $67,100.

The decline in Bitcoin’s value can be attributed to several factors, notably the Bitcoin halving event in April. This event, occurring roughly every four years, cuts the block reward by 50%, intended to limit the total supply of Bitcoin to 21 million coins. Historically, such reductions have spurred demand for cryptocurrencies, typically resulting in price increases. Despite these expectations, Bitcoin failed to regain its earlier momentum post-halving. Concurrently, a slowdown in the Wall Street rally during April, driven by concerns over inflation and potential interest rate hikes, also impacted Bitcoin’s performance.

While inflation showed signs of easing in April and May, alleviating immediate fears of aggressive rate hikes, uncertainty surrounding the Federal Reserve’s future rate cut plans unsettled investors. Federal Reserve Chairman Jerome Powell indicated a more cautious approach following the FOMC meeting, suggesting only one rate cut this year, a significant revision from the earlier projection of three cuts discussed in March. Powell emphasized that although inflation had decreased substantially over the past year, it remained above the Fed’s target of 2%, implying a prolonged period of higher interest rates. Such conditions typically dampen enthusiasm for growth assets such as technology stocks, consumer discretionary stocks, and cryptocurrencies.

Despite the recent setbacks, experts remain optimistic about Bitcoin’s long-term potential. Year-to-date, Bitcoin has still managed to gain 45.5%, building on its impressive 207% surge in 2023.

Turning attention to investment opportunities in the cryptocurrency sector, several stocks are poised for potential growth in 2024. Four notable picks, each carrying a favorable Zacks Rank, have been highlighted:

NVIDIA Corporation (NVDA), a leader in visual computing technologies, has transitioned from PC graphics to advanced solutions supporting AI, high-performance computing, gaming, and virtual reality platforms. NVDA boasts an expected earnings growth rate of 106.2% for the current year, with a Zacks Rank #1.

Interactive Brokers Group, Inc. (IBKR), a global electronic broker, facilitates cryptocurrency trading alongside traditional commodities futures. IBKR anticipates a 14.6% earnings growth rate for the current year, with a Zacks Rank #2.

Robinhood Markets, Inc. (HOOD), known for its financial services platform in the U.S., offers a range of investment options including stocks, ETFs, options, precious metals, and cryptocurrencies like Bitcoin and Ethereum through its Robinhood Crypto platform. HOOD projects substantial earnings growth this year, with estimates revised upwards by 110.3% over the last 60 days, earning it a Zacks Rank #2.

Coinbase Global, Inc. (COIN) provides critical infrastructure and technology supporting the global cryptocurrency economy, offering services from consumer accounts to institutional trading liquidity and developer tools for crypto applications. COIN expects significant earnings growth, with estimates improving by 219.1% over the last 60 days, securing a Zacks Rank #1.

While recent months have seen cryptocurrencies face headwinds due to regulatory uncertainties, inflation concerns, and interest rate expectations, the underlying bullish sentiment towards Bitcoin and select crypto-related stocks underscores potential opportunities for investors looking ahead to 2024.

Asia’s Billionaire Boom: Meet the Top 10 Wealthiest Individuals of 2024

As the global economy undergoes significant transformation, Asia has risen to prominence as a major center for wealth creation. The region now hosts some of the world’s wealthiest individuals, whose substantial contributions have significantly bolstered their nations’ economic prosperity. The net worth of these affluent individuals surged notably in FY 2023–24.

Below is a compilation of the ten wealthiest individuals in Asia as of May 2024. This list includes three individuals from India, with the majority being from China.

  1. Mukesh Ambani:

Mukesh Ambani is the chairman and managing director of Reliance Industries Limited, India’s most valuable company by market value. Under Ambani’s leadership, Reliance has diversified into refining, petrochemicals, retail, and telecommunications. Forbes has consistently ranked him as India’s richest person for the past decade.

  1. Gautam Adani:

Gautam Adani is the founder and chairman of the Adani Group, a multinational conglomerate headquartered in Ahmedabad, Gujarat, India. He diversified his business interests into trading metals, textiles, and agro-products. In 1988, he established Adani Exports, now known as Adani Enterprises, focusing on agriculture and power commodities. Securing the Mundra Port contract in 1995 marked a significant milestone for Adani. His strategic acquisition of Holcim’s Indian assets in 2022 made him India’s second-largest cement producer.

  1. Zhong Shanshan:

Zhong Shanshan, the visionary behind Nongfu Spring, a leading bottled water company, is currently the third richest man in Asia and the wealthiest individual in China. Born in 1963, Zhong started in the beverage industry in the 1980s and founded Nongfu Spring in 1996. The company has since become one of China’s largest beverage companies, offering products like water, juice, and tea. He also significantly influences Beijing Wantai Biological Pharmacy, a key producer of COVID-19 diagnostic tests.

  1. Prajogo Pangestu:

Prajogo Pangestu is the wealthiest individual in Indonesia, known for his ventures in energy and petrochemicals. He began with a timber company, but his enterprise, PT Barito Pacific, has grown to be a leader in petrochemicals, plastic production, mining, and thermal energy in Indonesia. His wealth saw a notable rise in 2023 when two of his group’s companies, Petrindo Jaya Kreasi and Barito Renewables Energy, went public.

  1. Colin Zheng Huang:

Colin Zheng Huang is the founder and chairman of Pinduoduo, a Chinese e-commerce company. Born in 1973, Huang began his career in technology before founding Pinduoduo in 2015. The company has quickly become one of China’s largest e-commerce platforms, focusing on social commerce and group buying. Though Huang stepped down as chairman a few years ago, he retains approximately 28% of the company shares. He also founded the online gaming company Xinyoudi and another e-commerce platform, Ouku.com.

  1. Zhang Yiming:

Zhang Yiming is the founder and chairman of ByteDance, the Chinese tech giant best known for creating TikTok. Born in 1983, Zhang began in the technology sector and launched ByteDance in 2012. The company has grown into one of China’s largest tech companies, focusing on social media, e-commerce, and artificial intelligence, boasting a global user base exceeding 1 billion.

  1. Ma Huateng:

Ma Huateng, also known as Pony Ma, founded Tencent Holdings, a leading Chinese technology company. Starting his career in the tech industry, Ma established Tencent in 1998. The company has grown to be one of China’s largest, specializing in social media, e-commerce, and gaming. He oversees WeChat, a messaging app with 1.3 billion users, and has significant stakes in global gaming, including Epic Games. Ma’s influence extends to investments in companies like Tesla and Spotify. He recently announced plans for Tencent to develop new artificial intelligence technologies to benefit humanity.

  1. Savitri Jindal and Family:

Om Prakash Jindal and his wife Savitri Jindal founded Jindal Steel and Power, an Indian steel and power company. Following OP Jindal’s passing, the company diversified into power generation and real estate. Savitri Jindal, the richest woman in India, continues her husband’s legacy, supporting sectors such as education and healthcare.

  1. Tadashi Yanai and Family:

Tadashi Yanai is the founder and chairman of Fast Retailing, a prominent Japanese retail company. Born in 1949, Yanai began his career in retail and founded Fast Retailing in 1963. The company has grown to become one of Japan’s largest retail firms, specializing in fashion and lifestyle products. Yanai drives Fast Retailing, which includes brands like Theory, Helmut Lang, J Brand, and GU, with Uniqlo as its flagship brand. Uniqlo operates over 2,400 stores in 25 countries. In October 2023, Uniqlo opened its first store in Mumbai, India, aiming to establish itself in the competitive local and international market.

  1. Li Ka-Shing:

Li Ka-Shing, born in 1928, founded CK Hutchison Holdings and CK Asset Holdings, two conglomerates based in Hong Kong. His career began in the textile industry, leading to the establishment of CK Hutchison Holdings in 1950. The company has diversified into sectors such as real estate, energy, and telecommunications. Starting with $6,500 in savings and loans from relatives, he launched Cheung Kong Plastics at age 21. Through the Li Ka Shing Foundation, he has donated over $3.8 billion to various causes, primarily in Greater China. Recently, CK Hutchison Holdings and Vodafone Group agreed to merge their British telecommunications businesses, creating the UK’s largest mobile operator.

Bitcoin Reaches Second-Highest Weekly Close at $69,640 Amid Volatile Market Conditions

Bitcoin, the preeminent cryptocurrency by market capitalization, has achieved its second-highest weekly close ever recorded. The digital asset closed Sunday at $69,640 after navigating a turbulent week. On June 7, Bitcoin’s price reached $71,949, marking its highest level since May 21. However, it failed to break the $72,000 resistance level due to stronger-than-expected U.S. job gains reported in May. The robustness of the labor market may discourage the Federal Reserve from reducing interest rates soon. Cryptocurrencies, often considered risk assets, typically thrive under a more relaxed monetary policy.

Despite facing macroeconomic challenges, Bitcoin enthusiasts are optimistic about reclaiming the $70,000 threshold. As of now, the cryptocurrency is trading at $69,540 on the Bitstamp exchange. Significant inflows into spot-based Bitcoin exchange-traded funds (ETFs) last week seem to be a key bullish driver for the market.

However, Bitcoin remains range-bound for the time being. Galaxy Digital CEO Mike Novogratz noted that Bitcoin would need to surpass the $73,000 resistance level to enter a new trading range and potentially reach the $100,000 milestone. “It would have to surpass the $73,000 resistance level in order to be able to enter a new range and eventually surpass the $100,000 level,” Novogratz said.

Bitcoin recorded its highest weekly close of $71,285 in March after hitting its current all-time high of $73,794 on March 11. Following this peak, the cryptocurrency underwent a sharp correction. On May 1, it dropped to $56,500 due to the dual impact of declining ETF flows and stagflation concerns highlighted by influential figures like JPMorgan CEO Jamie Dimon. “Stagflation concerns fueled by such big names as JPMorgan CEO Jamie Dimon” contributed to the drop. Despite Bitcoin’s recovery, it has yet to establish a stable position above $70,000. According to U.Today, the distribution of Bitcoin by long-term holders to new ETF investors might be the primary reason why the bulls have not regained full control. “Long-term Bitcoin holders distributing their acquired coins to new ETF holders might be the key reason why the bulls are not in control just yet,” as reported by U.Today.

Bitcoin, the world’s foremost cryptocurrency by market capitalization, secured its second-highest weekly close on record, finishing Sunday at $69,640 after a notably volatile week. On June 7, Bitcoin’s price surged to $71,949, its highest point since May 21, yet it couldn’t breach the $72,000 resistance level due to stronger-than-anticipated U.S. job gains in May. The strength in the labor market could deter the Federal Reserve from lowering interest rates in the near future, as cryptocurrencies like Bitcoin often benefit from more lenient monetary policies.

In the face of these macroeconomic headwinds, Bitcoin proponents remain hopeful about the cryptocurrency reclaiming the $70,000 mark. Currently, Bitcoin trades at $69,540 on the Bitstamp exchange. Substantial inflows into spot-based Bitcoin exchange-traded funds last week appear to have significantly buoyed the market.

Nevertheless, Bitcoin continues to be range-bound. Galaxy Digital CEO Mike Novogratz stated that Bitcoin would need to overcome the $73,000 resistance level to enter a new trading range and eventually aim for the $100,000 mark. “It would have to surpass the $73,000 resistance level in order to be able to enter a new range and eventually surpass the $100,000 level,” said Novogratz.

In March, Bitcoin achieved its highest weekly close of $71,285 after reaching its all-time high of $73,794 on March 11. This was followed by a steep correction. On May 1, Bitcoin plummeted to $56,500 due to the combined effects of slowing ETF flows and stagflation fears raised by prominent figures like JPMorgan CEO Jamie Dimon. “Stagflation concerns fueled by such big names as JPMorgan CEO Jamie Dimon” contributed to the decline. Although Bitcoin has rebounded, it has not yet managed to secure a position above the $70,000 level. As per U.Today, long-term Bitcoin holders distributing their coins to new ETF investors might be a crucial factor in the bulls’ struggle for dominance. “Long-term Bitcoin holders distributing their acquired coins to new ETF holders might be the key reason why the bulls are not in control just yet,” U.Today reported.

Bitcoin, leading the cryptocurrency market by capitalization, reached its second-highest weekly close ever at $69,640 on Sunday after a week of volatility. On June 7, the cryptocurrency’s price peaked at $71,949, its highest since May 21, but failed to surpass the $72,000 resistance level due to stronger-than-expected U.S. job gains reported in May. The labor market’s strength might inhibit the Federal Reserve from reducing interest rates soon, which typically benefits risk assets like cryptocurrencies.

Despite macroeconomic challenges, Bitcoin bulls are optimistic about regaining the $70,000 level. The cryptocurrency is currently trading at $69,540 on the Bitstamp exchange. Significant inflows into spot-based Bitcoin ETFs last week appear to be a major bullish factor for the market.

For now, Bitcoin remains within a trading range. Galaxy Digital CEO Mike Novogratz mentioned that Bitcoin needs to break through the $73,000 resistance level to enter a new range and potentially surpass $100,000. “It would have to surpass the $73,000 resistance level in order to be able to enter a new range and eventually surpass the $100,000 level,” Novogratz stated.

In March, Bitcoin achieved its highest weekly close of $71,285 after hitting its all-time high of $73,794 on March 11, followed by a sharp correction. On May 1, Bitcoin dropped to $56,500 due to the combined impact of reduced ETF flows and stagflation concerns highlighted by figures like JPMorgan CEO Jamie Dimon. “Stagflation concerns fueled by such big names as JPMorgan CEO Jamie Dimon” played a role in this decline. Although Bitcoin has recovered, it has not yet established a solid footing above the $70,000 mark. U.Today reported that long-term Bitcoin holders distributing their coins to new ETF investors might be a key reason why the bulls have not taken full control. “Long-term Bitcoin holders distributing their acquired coins to new ETF holders might be the key reason why the bulls are not in control just yet,” as reported by U.Today.

Bitcoin, the top cryptocurrency by market cap, ended Sunday at $69,640, its second-highest weekly close to date, after a week of significant volatility. On June 7, Bitcoin’s price hit $71,949, its highest since May 21, but couldn’t break the $72,000 resistance level due to stronger-than-expected U.S. job gains in May. This robust labor market might prevent the Federal Reserve from lowering interest rates soon, a situation that usually favors cryptocurrencies, considered risk assets.

Despite these macroeconomic obstacles, Bitcoin supporters are optimistic about reclaiming the $70,000 level. Currently, Bitcoin is trading at $69,540 on the Bitstamp exchange. Massive inflows into spot-based Bitcoin ETFs last week seem to be a major bullish catalyst for the market.

However, Bitcoin remains range-bound for now. Galaxy Digital CEO Mike Novogratz stated that Bitcoin would need to break the $73,000 resistance level to enter a new range and eventually exceed $100,000. “It would have to surpass the $73,000 resistance level in order to be able to enter a new range and eventually surpass the $100,000 level,” Novogratz commented.

In March, Bitcoin logged its highest weekly close of $71,285 after reaching its all-time high of $73,794 on March 11. Following this peak, the cryptocurrency experienced a steep correction, plunging to $56,500 on May 1 due to slowing ETF flows and stagflation concerns highlighted by influential figures like JPMorgan CEO Jamie Dimon. “Stagflation concerns fueled by such big names as JPMorgan CEO Jamie Dimon” contributed to this decline. While Bitcoin has recovered since, it has not yet managed to establish itself above the $70,000 mark. According to U.Today, the distribution of Bitcoin by long-term holders to new ETF investors might be a key reason why the bulls are still not in full control. “Long-term Bitcoin holders distributing their acquired coins to new ETF holders might be the key reason why the bulls are not in control just yet,” as reported by U.Today.

Major US Banks Under Fire for Failing to Protect Customers from Fraud on Zelle: Senate Panel Report

JPMorgan Chase, Bank of America, and Wells Fargo are under scrutiny for not adequately safeguarding their customers from substantial fraud and scams, amounting to hundreds of millions of dollars each year, according to a US Senate panel. During a hearing by the Permanent Subcommittee on Investigations, Chairman and Democratic Senator Richard Blumenthal highlighted the extent of the issue, revealing that the customers of these banking giants filed claims to recover a staggering $456 million in 2022, all lost through scams and fraud on the payments network Zelle.

“The banks of America have a dirty little secret. It’s called Zelle,” Senator Blumenthal stated during the hearing. He criticized Zelle’s marketing, which promotes the service as “a fast and easy way to send and receive money.” However, as the Senator pointed out, the Committee’s findings suggest that Zelle often facilitates a “fast and easy way to lose money.”

Zelle, a network co-owned by seven major US banks including JPMorgan Chase, Bank of America, and Wells Fargo, is under fire for giving users a false sense of security while leaving them exposed to significant fraud risks. Blumenthal elaborated on this, saying, “Zelle transfers are nearly instant and irreversible, and by the time a consumer knows they’ve been scammed, usually it’s too late to do anything about it – at least according to Zelle and according to the banks that own, control, and in effect operate Zelle.”

The Senator emphasized the deceptive sense of trust that Zelle and its owning banks offer to consumers, stating, “Zelle and the banks that own it offer to customers the appearance of the trust they feel they deserve. But the risks there are real and present, and they simply are failing to protect consumers in the way that they deserve.”

The Subcommittee’s investigation revealed that out of the $456 million reported lost by customers due to scams on Zelle in 2022, only $341 million was refunded. This leaves a substantial amount unrecovered, highlighting the vulnerabilities and inefficiencies in the current protection mechanisms. Additionally, the panel found that 13% of users on Zelle and other peer-to-peer payment platforms reported sending money to someone, only to later discover it was a scam.

In response to the Senate panel’s concerns, Zelle’s parent company, Early Warning Services, LLC, issued a statement. “Providing a safe and reliable service to consumers is the top priority of Early Warning Services, LLC, the network operator of Zelle, and our 2,100 participating banks and credit unions. As a result of our continued efforts to build on Zelle’s strong foundation of security, less than one-tenth of one percent (.1%) of transactions are reported as fraud or scams, making Zelle one of the safest ways for consumers to pay people they know and trust. Zelle is also currently generally free for most consumers.”

Despite these assurances, the Senate panel’s findings suggest that the measures in place are not sufficient to protect consumers fully. The discrepancy between the amount lost and the amount repaid points to gaps in the system that need to be addressed. The hearing has brought to light the urgent need for more stringent security measures and better consumer protection protocols on peer-to-peer payment platforms like Zelle.

The Senate panel’s investigation sheds light on the pressing issue of financial security in digital transactions. As peer-to-peer payment platforms become increasingly popular, the responsibility to protect consumers from fraud falls heavily on the service providers and the banks that support them. The findings from this investigation underscore the need for more robust security measures and greater accountability from financial institutions involved in such payment networks.

The revelations have sparked a call for action, urging banks and payment networks to enhance their security frameworks and provide better protection for their customers. The issue of fraud on Zelle is not just a minor inconvenience; it represents a significant financial risk to consumers, many of whom rely on these platforms for everyday transactions. The Senate panel’s scrutiny aims to push for changes that will make digital financial transactions safer and more secure for all users.

The investigation by the Permanent Subcommittee on Investigations has highlighted a critical flaw in the current financial ecosystem, where major banks like JPMorgan Chase, Bank of America, and Wells Fargo are not doing enough to shield their customers from fraud on the Zelle network. The substantial losses reported and the relatively low repayment rates indicate that much more needs to be done to protect consumers. The Senate panel’s findings and the subsequent responses from the involved parties underscore the urgent need for enhanced security measures and better consumer protection to prevent such fraud in the future.

UNICEF Report: 181 Million Children Suffer from Severe Food Poverty Amid Global Crises

Many children worldwide are not getting enough to eat, but what does “not enough” look like? In East Africa, it means babies receive a mix of breast milk and maize porridge. In Yemen, it’s a paste made of flour and water. In conflict zones like Gaza, children might eat raw lemon and weeds.

A new UNICEF report examines what children in 137 low- and middle-income countries are being fed and its impact on their growth and development. The findings are alarming: one in four children under five experience “severe food poverty,” meaning they consume two or fewer food groups daily. “It amounts to 181 million children who are deprived of the diets they need to survive,” says Harriet Torlesse, a nutrition specialist at UNICEF and the lead author of the report. “If you think about these diets, they really don’t contain the range of vitamins and minerals and proteins that children need to grow and develop.”

Nutrition experts, in discussions with NPR, highlighted that the world is not progressing in combating malnutrition and hunger. The COVID-19 pandemic, the war in Ukraine, inflation, and localized conflicts have exacerbated food supply disruptions and increased food prices.

However, the report also notes some positive developments, showing that several low-income countries have made strides in providing better nutrition to children under five. Here are four key takeaways from the report:

  1. Not Just About Quantity, But Quality of Food

Richmond Aryeetey, a professor of nutrition at the University of Ghana, explains that the issue is twofold: “There are those who are not getting enough who would fall into the full poverty criteria. And then there are also those who potentially have the opportunity to get enough but are being fed unhealthy food.” Aggressive marketing of snacks and sugary beverages, particularly targeting children, plays a significant role in this. In low-income countries, regulating these industries is more challenging. Deanna Olney, Director of the Nutrition, Diets, and Health Unit at the International Food Policy Research Institute, adds, “One of the features of these snack foods is that they’re often really cheap and they fill you up. And so, people are inclined to buy them. But if they were more expensive because of taxes, you know, then maybe they’d be less inclined to choose those for their children.”

The prevalence of ultra-processed foods contributes to rising rates of overweight and obesity among children, an issue needing more attention.

  1. Conflict Zones and Acute Child Hunger

While conflict is not the primary driver of child hunger globally, it leads to some of the worst cases, notably in Sudan, Somalia, and Gaza. UNICEF’s data shows that since December, 9 out of 10 children in Gaza have faced severe food insecurity. Harriet Torlesse remarks, “Children in Gaza at this point in time are barely eating any nutritious foods at all. Before the war in Gaza, only 13% of children were living in severe food poverty.”

Technological advances have improved the measurement of food intake in conflict zones, and Gaza currently has the highest documented rate of severe malnutrition.

  1. Severe Food Poverty’s Impact on Child Development

Children living in severe food poverty are significantly more likely to suffer from wasting, where a child is too thin for their height, indicative of life-threatening malnutrition. Over 13 million children under five are affected by this extreme condition. Torlesse notes, “We know that these children don’t do well at school. They earn less income as adults, and they struggle to escape from income poverty. So not only do they suffer throughout the course of their life, their children, too, are likely to suffer from malnutrition.”

Malnutrition stunts not only physical growth but also brain development, limiting a child’s ability to fully contribute to their community and country later in life. Richmond Aryeetey highlights the economic impact with a study from 2016: “The estimate was that Ghana was losing close to about $6.4 million annually because of children who are not being fed adequately. That’s a lot of money being lost because we are not feeding our children well.”

  1. Effective Solutions and Success Stories

There is hope, as several low-income countries have successfully reduced severe child food poverty. Nepal and Burkina Faso have halved their rates, and Rwanda has achieved a one-third reduction. These countries share common strategies leading to success. “The first being they’ve all made a real, deliberate effort to improve the supply of local nutritious foods. Be it pulses or vegetables or poultry,” says Torlesse. Reducing dependency on imported food is crucial for minimizing hunger.

Other countries are combating ultra-processed foods. In Peru, legislation mandates that processed foods and beverages carry warning labels listing sugar, fat, and salt content, and a 25% tax on high-sugar drinks has been introduced.

Nepal’s nationwide cash grants to poor families have increased the purchase of nutritious foods like meat and pulses. Additionally, efforts within health systems have provided essential counseling and support, helping caregivers feed their children with locally available, nutritious foods.

Richmond Aryeetey underscores the need for a more comprehensive approach to tackling child hunger: “…we are sending people to the moon. We are doing all kinds of technologically advanced stuff, and yet we are not able to feed children. It’s really a shame.”

While severe food poverty remains a critical issue affecting millions of children globally, targeted efforts in improving local food supply and regulating unhealthy food options have shown promising results. A concerted global effort is needed to ensure that every child has access to the nutritious food they need to grow and thrive.

Nvidia Surpasses Apple in Market Cap, Becomes Second-Largest U.S. Company Amid AI Boom

Nvidia, the darling of Wall Street’s artificial intelligence enthusiasts, continues to ascend to unprecedented heights. The company’s market capitalization climbed to $3.019 trillion on Wednesday, slightly surpassing Apple’s market cap of $2.99 trillion. This milestone positions Nvidia as the second-largest publicly traded company in the United States, trailing only Microsoft’s market cap of $3.15 trillion.

Nvidia is now the third U.S. company, after Apple and Microsoft, to surpass the $3 trillion mark. On Wednesday, shares of the Santa Clara-based chipmaker increased by 5.2% to approximately $1,224.4 per share, while Apple shares concluded the session with a 0.8% rise, closing at $196.

These gains also contributed to the S&P 500 and the tech-heavy Nasdaq indexes reaching new record highs by the end of the day.

Nvidia (NVDA) has reaped the most significant benefits from the AI craze that has taken Wall Street by storm this year, with its stock up by 147% in 2024 following a 239% surge in 2023. In contrast, Apple shares have seen a modest 1.7% increase year-to-date.

Earlier this week, Jensen Huang, Nvidia’s CEO, announced that the company plans to launch its most advanced AI chip platform, named Rubin, in 2026. This platform will succeed the Blackwell, which provides chips for data centers and was announced only in March. At the time, Nvidia described Blackwell as the “world’s most powerful chip.”

Nvidia dominates the AI semiconductor market, holding approximately 70% of the market share. Some analysts believe that the company’s stock has even more room to grow. “As we look ahead, we think NVDA is on pace to become the most valuable company, given the plethora of ways it can monetize AI and our belief that it has the largest addressable market expansion opportunity across the Tech sector,” wrote Angelo Zino, a senior equity analyst at CFRA Research, in a note on Wednesday evening.

In a move to make its shares more accessible, Nvidia announced a 10-for-1 stock split last month. This split aims to make buying shares in the highly sought-after semiconductor company more feasible for individual investors. The post-split shares will begin trading at market open on June 10.

Apple’s iPhone Sales Soar to $1.95 Trillion Despite Q1 Decline

Despite a slight decline in the first quarter of 2024, Apple’s lifetime iPhone sales have reached staggering heights, with total revenues surpassing $1.95 trillion, according to a new report released on Wednesday.

In Q1 2024, Apple shipped 50.1 million iPhones, a decrease of five million units compared to the same period last year. Consequently, iPhone sales revenue dropped by nearly 10%, amounting to $45.9 billion, as per data from Stocklytics.com.

Five years after the launch of the first iPhone, Apple had generated $78.7 billion in iPhone sales. By fiscal year (FY) 2014, this figure had surged to $101.9 billion, continuing to climb steadily based on Statista and official company reports.

Over the course of two years, Apple accrued more than $405 billion from iPhone sales. Although revenue figures dipped slightly in Q2 FY 2024, iPhone sales have remained robust.

In H1 FY 2024 alone, Apple earned $115.6 billion from iPhone sales, pushing its cumulative revenue from iPhone sales to an impressive $1.95 trillion.

The report also highlighted that over 2.65 billion iPhones have been shipped since their initial launch in 2007. In 2014, Apple shipped 192.7 million iPhones. A decade later, this number had risen to 231.8 million.

China Sells $101.9 Billion in US Treasury Securities Amid Shift Away from Dollar

In a significant development, China has sold $101.9 billion in US Treasury securities over the past year, according to the latest figures. The US Treasury Department reports that China’s holdings have decreased from $869.3 billion in March of the previous year to $767.4 billion in March of this year.

China’s Shift from Dollar:

This news comes at a time when China is gradually moving away from the dollar in cross-border trade. Furthermore, the global economic alliance known as BRICS is considering the launch of a digital competitor to the US dollar. These developments indicate a potential shift in the global economic landscape and the role of the US dollar as the world’s reserve currency.

The Decline in China’s Holdings:

China’s holdings of US Treasury securities have been steadily declining from an all-time high of $1.31 trillion, which was recorded in November of 2013. This trend suggests a strategic shift in China’s investment and economic policies.

The Federal Reserve’s Perspective:

The Federal Reserve is closely monitoring these developments. At a recent conference on the global importance of the US dollar, Fed Governor Christopher Waller acknowledged the evolving role of the world’s reserve currency. He stated, “There has for some time been commentary predicting the dollar is destined for demise – potentially an imminent demise… The role of the US in the world economy is changing, and finance is always changing. The dollar remains by far the most widely used currency by a number of metrics.”

Waller also pointed out that America’s use of sanctions against foreign nations could impact the future dominance of the dollar. He noted, “If these sanctions and policies are long-lasting, the shifting cross-border payments landscape – including the rapid growth of digital currencies – could also pose challenges to the dominant role of the US dollar.”

In February, Waller had stated that despite the challenges, nations have “few practical alternatives to the dollar,” noting that “in times of global stress, the world runs to the dollar, not away from it.”

The sale of a significant amount of US Treasury securities by China and the contemplation of a digital competitor to the US dollar by BRICS are indicative of a changing global economic landscape. While the US dollar remains the most widely used currency, its role as the world’s reserve currency is evolving. As nations navigate these changes, the world will be closely watching the strategies they adopt and the impact these will have on global finance.

India’s Rising Inequality

India’s problem is that it is under-taxed. This has been said several times, including in the Economic Survey published by the government, and by a former finance minister on the floor of the parliament. What is referred to here is the low tax-to-GDP ratio and not the tax rates. The rates are quite high, with top individual marginal income tax rates touching 42 percent, and median Goods and Services Tax at 18 percent.

GST is an indirect tax paid by all, whether rich or poor, on their consumption. Since it does not depend on the income of the taxpayer, it is inherently regressive. Not surprisingly a much higher proportion of total GST collected comes from the lower half of the income distribution, highlighting its unfairness. We need both income and consumption taxes, but the rate of GST has to be much lower. And dependence on income tax has to increase, and it should be progressive and rates increasing by income slab.

Unfortunately, we give such a large exemption, that up to 7 lakhs (700,000 rupees) of annual income, the tax burden is zero. This is almost four times the per capita income of the country. It is equivalent to saying that in America nobody will pay income tax below an annual income of a quarter million dollars. Americans start paying income tax for income as low as 5000 dollars, only one-tenth of their per capita income.  India certainly needs to widen its income tax net. We have only 7 income taxpayers for every 100 voters as per the Economic Survey.

Rising inequality

Along with a low tax-to-GDP ratio, we have rising inequality. The latest report from the World Inequality Lab based on hundred years of data from 1922 till 2023 shows income and wealth inequality to be the highest ever. Fighting inequality is not the same as fighting poverty. The poverty ratio has been falling in India, but there are people still living dangerously close to the poverty line or just above it. One illness in the family can drive the entire family below the poverty line. Hence, we have food security schemes such as free food grain for 800 million Indians, i.e. nearly 65 percent, even though the poverty rate is below 15 percent.

One of the Sustainable Development Goals of the United Nations calls for a reduction in inequality. On that count, India must exert more by making the income tax net wider and ensuring a lower indirect tax burden of GST and other sundry taxes. Most importantly inequality of opportunity (not outcomes) can be reduced by providing much higher quality and quantity levels of primary education and healthcare.

But spending on social priorities has been going down as a fraction of government budgets.  This means we need more tax collection. What other heads are there? This is where the discussion of wealth tax comes in. Thomas Piketty claims that just by taxing the wealth of the richest two hundred people in the world, at a small rate, the world can generate hundreds of billion dollars for social spending. That same logic can be applied in India.

Wealth is difficult to assess, especially if kept in real estate. It is also notoriously difficult to discover since people have an incentive to hide it. There is tax evasion and dodging. The correlation between wealthy individuals and the highest-income taxpayers in India is not strong. How many of the Forbes billionaires are also the highest-income taxpayers?

So, is there a workable and reasonable way to tax wealth?  Countries like Spain, Norway, Switzerland and France have some form of wealth tax. Even the Netherlands has a tax called “Box-3” which is a tax on wealth, i.e. by taxation of savings and investment. Of course, all these are rich countries. And their financial systems are highly evolved, with evasion rather difficult.

Wealth concentration

India is a poor or medium-income country, so it is premature to talk about wealth tax. It has among the highest number of dollar billionaires in the world. A small annual tax of say 0.1 percent per annum would surely not deter these wealthy from wealth or employment creation or investing in India. If there is capital flight out of the country it is not because of wealth taxes.

Unlimited wealth concentration cannot be healthy for any democracy. The principle of political and social equality of our republic is in sharp contradiction to rising economic inequality. That is why we need to find ways to arrest worsening income and wealth inequality. No modern capitalist economy can be rid of inequality. But it is like industrial pollution. Modern life is impossible without some emissions. But there comes a time when as a society we say this is enough. Otherwise, worsening inequality leads to social instability, the rise of gated communities, the threat of rising crime and ultimately investor flight. What is that stage when inequality becomes intolerable and excessive is for us to decide collectively.

India’s macro savings are only half in instruments like stocks, bonds, insurance and bank deposits. The rest is in real estate or gold. Real estate valuations are revealed only when there is a transaction on which stamp duty is imposed. Such transactions are rare and hence stamp duty collection is low at the state level from real estate.

Thanks to digitization and better triangulation, we have good data on financial savings. Hence it is possible to levy a wealth tax on just that part, above a threshold of say 100 crore rupees. It could be as small as 0.1 percent. The purpose is not merely to raise fiscal resources. Many prominent rich people such as Narayan Murthy, Bill Gates, Warren Buffett, Nikhil Kamath, Sir Richard Branson have all said that they welcome higher taxes.

In the Financial Times, Ian Gregg, chairman of the British bakery chain Greggs, wrote an op-ed saying that the wealthy should be taxed more, and that trickle-down economics was not working.  Are these wealthy people saying tax us more just to sound politically right, or out of genuine compassion? Maybe a bit of both, and also to save society from a worsening scenario, where fury is unleashed on the obscenely wealthy.

In the UK it was estimated during Covid that a one-off small tax on the wealthy would generate a quarter trillion pounds for the government. Such is the scale of this potential fiscal gain.  A workable wealth tax can use best practices from some of the dozen countries that implement it and start with a small rate applicable to disclosed financial assets alone.  Taxing real estate can be kept as a domain of stamp duty for now, and taxing the ownership of gold is something for the future.

(The writer is a noted economist and commentator. Views are personal. By special arrangement with The Billion Press)

Read more at: https://www.southasiamonitor.org/perspective/indias-rising-inequality-government-should-work-toward-workable-wealth-tax

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