The Soft Landing

European shares started the week on a positive note, trading higher thanks to the possibility of higher interest rates from the U.S. Federal Reserve. Whilst this can be taken negatively, as higher interest rates will inevitably reduce economic activity, investors are still optimistic of a soft landing given the healthy state of the economy. Investors are also keeping an eye on upcoming economic data coming out later this week.

Last week, it was all about the Jackson Hole. The highlight of the event was obviously Fed Chair Jerome Powell and the Feds expectations on the rates. He talked about how inflation is still too high and that the Fed is ready to keep raising interest rates to bring prices down. Powell did mention that the Fed could be flexible, but they still have more work to do to fight inflation. He said, "Although inflation has gone down a bit, which is good news, it's still too high”

In other news:

Zillow now offers 1% down payment for home purchases: In an effort to attract buyers, Zillow has introduced a new program where they will allow as little as 1% down payment. Of course, terms and conditions will apply and this concept has initially been trialed in Arizona. However, doesn’t this feel familiar? What could go wrong with practically no down payments?

Mortgage rates have hit their highest level in over 20 years! According to Freddie Mac's latest Primary Mortgage Market Survey, the average rate for the benchmark 30-year fixed note skyrocketed to 7.09% this week. That's the first time it has reached such heights since way back in 2002. It's the first time it has topped 7% since last November, after rising from 6.96% the week before. With interest rates staying high for a while and the cost of living on the rise, it looks like asset values might have to soften. Are we starting to see the housing market teeter?

OpenAI has just made a huge announcement! They've launched ChatGPT Enterprise, and it's their most exciting news since ChatGPT's debut. What's so special about it, you ask? Well, ChatGPT Enterprise gives you access to GPT-4 with absolutely no usage caps. Not only that, but it performs up to two times faster than previous versions. ChatGPT Enterprise is different from the version you're familiar with. It allows clients to input their own company data to train and customize ChatGPT specifically for their industries and use cases. They're planning to introduce another tier of usage called ChatGPT Business for smaller teams.

International House of Biscuits? IHOP rolls out a biscuit menu nationwide for the first time as the chain fights slowing sales. The FED hasn’t pivoted (yet) but IHOP has.

Robinhood Revealed to Be Third-Largest Bitcoin Holder With $3B in BTC: Robinhood recently made a super interesting move. They transferred a whopping 118,300 bitcoin to their wallet. This wallet has been making quite a buzz lately. People have been talking and wondering who the mysterious owner of all this bitcoin could be.

BitBoy removes host Ben Armstrong amid meme coin controversy: Ben Armstrong, the influential figure behind BitBoy Crypto, has reportedly left the company, leaving the crypto community in speculation.The official BitBoy X account has not released any formal statement as of press time. It currently has a promotional post for the crypto betting platform stake.com as its pinned post.

Finally, I hope these first few newsletters have been useful. I promise they will only get better! I also intend to make some changes soon to increase the overall look and feel.

Till the next one.