Dear valued client,
Markets lost slight ground this week as Apple launched its new iPhone 15 (with a new charging port – surprised, surprised), and U.S. inflation numbers were released. The CPI came in at 3.7%, higher than in July (3.2%) and June (3%). This uptick in prices dramatically increases the odds of one more rate hike before the end of the calendar year. We’ve seen how higher rates are squeezing corporate profits with Oracle’s stock down 13% after worse-than-expected earnings. The Federal Reserve’s next meeting to make such a decision is next week.
Two natural catastrophes dominated headlines this week. The first was a 6.8 magnitude earthquake in Morocco, followed by a 3.9 magnitude aftershock that killed more than 2100 people. The second was a flash flood ignited by Storm Daniel in the coastal Libyan city of Derna. Doctors Without Borders have estimated at least 11,000 dead with 10,000 people still missing. No doubt international aid and relief will be sent to these regions to help deal with the human and infrastructural toll.
One of the most notable legal heavyweight fights in recent history got underway this week as the U.S. government is taking on Google over anti-competitive behavior. The DOJ’s case is focusing on Google’s agreements with companies like Apple that make Google the default search engine on iPhones and other devices. Google claims that its agreements with other tech companies are not anti-competitive because a user is not blocked from selecting another default search engine (though it might take a few more clicks). The trial is expected to last over 10 weeks. Regardless of the outcome, the real winners are the lawyers involved – racking up those billable hours.
“The secret to success is not to try to avoid or get rid of or shrink from your problems; the secret is to grow yourself so that you are bigger than any problem.” – T. Harv Eker
Have a terrific weekend,
PW
