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US inflation fall to 3-year low prompting rate cut for September

US inflation fall to 3-year low prompting rate cut for September

China doesn't get respite after low performance

Techonomy Barista
August 15, 2024

We’re the Techonomy Barista! And, we’re serving up fresh shots of tech & trends, one sip at a time.

China’s Terracotta Warriors on the Great Wall.

Today’s top news:

State of the economy
An explanation of this week’s economic meetings
US annual inflation falls to 3-year low, clearing the way for a rate cut
China’s factory output missed July expectations among mixed results
Apple is developing a new product with a robotic arm to boost revenue
Inside the National Public data breach affecting 3 billion people

1. State of the economy.

Wall Street still holding steady ahead of big updates later in the week. 💵

First, some good news. Yesterday’s inflation rate meeting went well - yay! And has a top US economy official positive about a rate cut in September. More on that later in today’s newsletter.

We have two more meetings today and tomorrow, so read below what these meetings mean.

Markets - Top 5 Economies

Economic Calendar

2. An explanation of why this week’s US economic calendar is important 🧭

14 August: The Inflation Rate and Core Inflation Rate meetings are set for later this week. They’re both measures used to track changes in the price of goods and services over time, but they focus on different aspects of the economy:

The inflation rate is like the all-you-can-eat buffet of price changes—it covers everything on the menu, from groceries to gas. But because food and energy prices are as unpredictable as a TikTok trend, the overall inflation rate can get a bit wild. 🛒 🥐
On the other hand, the core inflation rate says, “Nah, I’m not dealing with food and energy prices,” and focuses on the steadier stuff. By cutting out those volatile items, core inflation gives you a smoother, more reliable picture of what’s really going on with prices in the economy.
So, when the Fed’s figuring out if they need to mess with interest rates, they’re probably paying more attention to core inflation. But for you, the overall inflation rate is what’s going to hit your wallet when you’re at the grocery store or filling up the tank. ⛽️

15 August: Monthly Retail Sales meeting

Retail sales are like the pulse of the economy. When people are out there swiping their cards and filling up shopping carts, it’s a sign they’re feeling confident about their wallets and the future.
High retail sales usually mean businesses are making money, which can lead to more hiring, more spending, and a nice little cycle of economic growth. But if retail sales start to dip, it could be a red flag that people are tightening their belts, which can slow down the economy. 🛍️

16 August: Building Permits meeting

Building permits, on the other hand, are like the economy’s crystal ball. They give you a sneak peek at what’s coming down the pipeline in terms of construction, which is a big driver of economic activity.
When more building permits are issued, it means developers are planning to put up new homes, offices, and shopping centers—projects that create jobs, boost demand for materials, and generally keep the economy humming. Fewer permits? That might mean less construction, fewer jobs, and a slowdown in economic growth. 🏗️ 🏢

3. US interest rate cut looking certain with CPI falling to 2.9%.

Source: AP

In July, grocery prices barely budged up just 0.1%. They’re only 1.1% higher than last year, which is practically a turtle’s pace compared to the sprint we’ve seen in recent years.
Two years ago, inflation zoomed to a 9.1% high, the likes of which we hadn’t seen in four decades.
In July, if you ignore the usual suspects—food and energy costs—core prices tiptoed up just 0.2% from June, following a tiny 0.1% rise the month before. Compared to last year, core inflation cooled off from 3.3% to 3.2%, a level we haven’t seen since April 2021.

4. China’s factory output missed July expectations.

China’s factory output grew 5.1% in July to miss its target of 5.2% and down from 5.3% in June.
Except for retail sales above expectations at 2.7%, the Chinese have kept their wallets tight with house prices dropping to a 9-year low.
Analysts warn that China’s broader outlook is challenging for policymakers and that it may have entered a prolonged economic malaise similar to Japan in the 1990s.

5. Apple is developing a table-top robot to boost revenue.

Apple earns ~ 50% of its revenue from iPhones and have been wanting to diversify their offering, especially with the shut down of their self-driving car.
The public could have the product as early as 2026 or 2027 at $1,000.
The product relies on actuators to tilt the display up and down and make it spin 360 degrees.
The project, codenamed J595, was approved by Apple’s executive team in 2022 but has only started development recently.

6. Inside the National Public Data Breach Affecting 3 billion People.

courtesy: Troy hunt

Looks like NPD had one wild ride into the world of data breaches. Here’s the scoop:

National Public Data (NPD), a relatively obscure data aggregator, got hit with a major breach that exposed nearly 3 billion rows of personal data. We’re talking names, addresses, and—because nothing says fun like identity theft—Social Security Numbers (SSNs). The culprit? A group charmingly known as “USDoD,” who decided to list the whole thing on the dark web for a cool $3.5 million💰️.
But here’s the kicker: While the numbers look scary, it’s believed that closer to 899 million unique individuals were impacted. A lot of those SSNs were just copy-pasted multiple times like some dark-web version of Groundhog Day. Some of the data sets came with emails, some didn’t—basically, the hackers threw a potluck of personal information at the internet 💻🔓.
The data’s inconsistent, and nobody’s really sure if what’s out there is the real deal. “Have I Been Pwned” even labeled it as an “unverified breach,” leaving users unsure whether their details are floating around for sale or if this is just some half-baked hacker scheme. Stay safe out there!