Summary Of the Markets Today:
- The Dow closed down 159 points or 0.39%,
- Nasdaq closed down 1.12%,
- S&P 500 closed down 0.60%,
- Gold $2,542 down $11.30,
- WTI crude oil settled at $75 down $0.77,
- 10-year U.S. Treasury 3.841 up 0.008 points,
- USD index $101.12 up $0.56,
- Bitcoin $58,907 down $293 or 0.49%,
*Stock data, cryptocurrency, and commodity prices at the market closing.
Today’s Highlights:
Tech stocks led the market lower on Wednesday as investors awaited Nvidia’s highly anticipated earnings report after the closing bell. Here are the key points:
- The major stock indexes all declined.
- Nvidia shares fell about 2% ahead of its Q2 earnings release at 5 pm eastern (the same time this newsletter is published). The chipmaker’s results are seen as a crucial test of AI spending and tech sector strength.
- Traders are expecting a potential 10% swing in Nvidia’s stock price following the report. Wall Street is forecasting massive year-over-year growth in Nvidia’s earnings and revenue.
- The Information Technology sector was the worst performer in the S&P 500, declining 1.4%.
- Other notable movers included SuperMicro Computer, which fell 19% on a delayed annual report filing, and retailers Abercrombie & Fitch and Foot Locker, which both dropped double digits.
- Nvidia’s earnings are being closely watched for insights on AI demand and chip production, with potential to move the broader market given the company’s $3.2 trillion valuation and 160% stock gain this year.
Click here to read our current Economic Forecast – September 2024 Economic Forecast: One Recession Flag Removed With Three Remaining
Today’s Economic Releases Compiled by Steven Hansen, Publisher:
No economic releases today.
Here is a summary of headlines we are reading today:
- Small Tax on Super-Rich Could Yield Billions for Caucasus, Central Asia
- Argentina Plans to More Than Double Lithium Revenues by 2027
- Why Brand Loyalty Takes a Backseat for American Car Buyers
- Oil Unmoved by Crude, Gasoline Draws
- Nvidia reports earnings after the bell
- S&P 500, Nasdaq close lower Wednesday, Nvidia tumbles before earnings: Live updates
- The Fed now will focus on the employment part of its mission — and for good reason
- Super Micro shares fall 19% on filing delay, Hindenburg Research report
- Google to relaunch tool for creating AI-generated images of people after pulling service due to inaccuracies
- Supreme Court refuses to revive Biden’s latest student loan debt relief plan
- Oil settles lower, with the end of the summer driving season likely to weaken demand
Click on the “Read More” below to access these, other headlines, and the associated news summaries moving the markets today.
The Market in Perspective
| Here are the headlines moving the markets. | |
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Permian Producers Struggle With Negative Gas PricesArticle via Aegis Hedging While oil and gas producers in the Permian Basin are undoubtedly concerned about gas prices, their response to economic forces, particularly in the gas market, has been limited. Oil remains the dominant revenue stream in the Permian, leading operators to prioritize oil operations that create an abundance of associated natural gas. Gas prices at the Waha Hub have suffered greatly in 2024 as gas production continually tests available outbound capacity. Permian producers often find themselves in a constant race to expand… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Permian-Producers-Struggle-With-Negative-Gas-Prices.html |
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Small Tax on Super-Rich Could Yield Billions for Caucasus, Central AsiaA recent study published by an advocacy group finds that imposing a modest tax on top earners can generate hundreds of millions of dollars in much needed revenue for countries in the Caucasus and Central Asia. The added revenue could go a long way in addressing social and economic challenges connected with global warming and climate change, the study adds. The working paper, titled Taxing extreme wealth: What countries around the world could gain from progressive wealth taxes, contends that a comparatively small tax paid by the top 0.5 percent… Read more at: https://oilprice.com/Energy/Energy-General/Small-Tax-on-Super-Rich-Could-Yield-Billions-for-Caucasus-Central-Asia.html |
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Argentina Plans to More Than Double Lithium Revenues by 2027Argentina plans to double its mining exports from $4 billion to $10 billion as soon as 2027 on the back of new lithium projects set to come online soon, combined with a renewed effort to expand copper output and exports, Reuters reported on Wednesday, citing the Argentine Ministry of Mining. Newly installed Mining Secretary Luis Lucero told Reuters on Wednesday that Argentina is preparing to become a key lithium and copper supplier for the world, with electric vehicle demand poised to put the country at the top of the mining beneficiaries… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Argentina-Plans-to-More-Than-Double-Lithium-Revenues-by-2027.html |
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Why Brand Loyalty Takes a Backseat for American Car BuyersIn a recent survey by Statista Consumer Insights, almost half of Americans said that they were likely or very likely to change their car make on the next possible occasion. Consumers appeared more loyal to their primary bank, smartphone brand, mobile carrier, home and car insurance as well as internet provider, with only around 30 percent saying they were likely to make a switch when it was next possible. At 27 percent, the internet provider was the least likely to be changed. You will find more infographics at Statista As part of the same survey,… Read more at: https://oilprice.com/Energy/Energy-General/Why-Brand-Loyalty-Takes-a-Backseat-for-American-Car-Buyers.html |
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Georgia’s Future at Stake: Zurabishvili Warns of ‘Existential’ ElectionGeorgian President Salome Zurabishvili has called the country’s upcoming parliamentary elections a “choice between Europe and Russia” for the South Caucasus nation. Zurabishvili’s statement came after she signed a decree announcing October 26, the last Saturday of October, as the day for the parliamentary polls, saying that voters will have to “choose between war and peace” in the election. “The day of the decision, the day of choice, the day of survival is coming,” Zurabishvili said, stressing that the election will be “existential” for the former… Read more at: https://oilprice.com/Geopolitics/International/Georgias-Future-at-Stake-Zurabishvili-Warns-of-Existential-Election.html |
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Is China Losing Its Dominant Position in the Global Steel Market?Via Metal Miner Amidst continuing reports of an economic downturn with little or no sign of improvement now comes a report that the Chinese Government has suspended the system allowing approval of new steel plants. It is a move that could have significant implications for the Chinese steel industry and global steel manufacturing as a whole. According to Bloomberg, China’s Ministry of Industry and Information Technology recently stated that it had decided to pause the current mechanism wherein new steel plant construction was allowed as long… Read more at: https://oilprice.com/Metals/Commodities/Is-China-Losing-Its-Dominant-Position-in-the-Global-Steel-Market.html |
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Qatar Reportedly Eyeing Stake in Germany’s Trapped Russian RefineryGas giant Qatar is reportedly in talks to purchase Russian Rosneft stake in German refinery PCK Schwedt, which has been under trusteeship by Berlin since Russia’s invasion of Ukraine in 2022, Bloomberg and Reuters reported on Wednesday. Schwedt is the fourth-largest refinery in Germany, it is 54% owned by the Russian state oil giant, and it gets its oil from the Druzhba oil pipeline from Russia. The Schwedt refinery supplies 90% of the fuel needs of Germany’s capital city Berlin. The trusteeship terms expire on September… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Qatar-Reportedly-Eyeing-Stake-in-Germanys-Trapped-Russian-Refinery.html |
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Tesla’s Price Cuts Spark Surge in Used Electric Vehicle SalesThe used EV market is finally starting to catch a bid, thanks to Tesla’s trendsetting in lowering prices during the last two years of major ongoing EV competition. The change in the market has been evident at CarMax Inc.’s superstore in Fremont, California, according to a new Bloomberg report. General manager Henry Melendez told Bloomberg about the results of the falling prices: “We’ve seen a really good amount of interest. They’ve always wanted to get into an electric vehicle, but it just wasn’t quite as affordable.”Bloomberg… Read more at: https://oilprice.com/Energy/Energy-General/Teslas-Price-Cuts-Spark-Surge-in-Used-Electric-Vehicle-Sales.html |
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Ukraine Strikes 2 More Oil Depots Deep Into Russian TerritoryThe Ukrainian military claimed on Wednesday to have downed a Russian fighter jet over eastern Ukraine as Russia stepped up retaliation in Ukraine’s occupied eastern region shortly after Kyiv set another Russian oil depot on fire in a strike deep into Russian territory. Early on Wednesday, a Ukrainian drone attack set a Russian oil depot on fire over 100 miles from the Ukrainian border in the Rostov region. No casualties have been reported, and at the time of writing, firefighters were still trying to extinguish the blaze, according… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Ukraine-Strikes-2-More-Oil-Depots-Deep-Into-Russian-Territory.html |
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Oil Unmoved by Crude, Gasoline DrawsCrude oil prices moved little after the U.S. Energy Information Administration reported inventories of the commodity had declined in the week to August 23. Oil inventories shed 800,000 barrels in the reporting period, compared with a draw of 4.6 million barrels for the previous week. A week before the EIA’s report was out, the American Petroleum Institute reported an estimated crude oil inventory draw of 3.4 million barrels for the week to August 23, largely in line with analyst expectations. In fuels, the EIA estimated mixed inventory changes.… Read more at: https://oilprice.com/Energy/Crude-Oil/Oil-Unmoved-by-Crude-Gasoline-Draws.html |
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Turkish Refinery Buying Russian Crude Set for 2-Month MaintenanceThe STAR refinery on Turkey’s Aegean coast, which is a major buyer of Russia’s Urals crude, is set to begin planned maintenance in early September for about two months, Reuters reported on Wednesday, citing sources familiar with the facility’s operations. The STAR refinery of Azerbaijan’s state oil and gas firm SOCAR was commissioned in 2018 in what was the first Azerbaijani-built oil refinery in Turkey. For an estimated $6.3 billion, the STAR refinery on Turkey’s Aegean coast was one of the biggest foreign investment… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Turkish-Refinery-Buying-Russian-Crude-Set-for-2-Month-Maintenance.html |
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Equinor Warns Windfall Tax May Discourage Its UK InvestmentsEquinor awaits clarity on the UK tax regime by the Labour government before strategizing and committing to investments in the UK North Sea, a senior executive at the Norwegian company told Reuters on Wednesday. The Labour Party has pledged to further raise the already high windfall tax on oil and gas profits in the North Sea and scrap tax relief for operators for part of the investments in oil and gas assets they have made. “We need to look at our appetite to invest further in the UK based on the fiscal regime … it could be that the economics… Read more at: https://oilprice.com/Energy/Energy-General/Equinor-Warns-Windfall-Tax-May-Discourage-Its-UK-Investments.html |
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Russia: European Consumers Will Suffer If Ukraine Refuses to Extend Gas TransitEuropean consumers will be hit hard and will have to pay more for natural gas if Ukraine does not extend the gas transit deal to allow Russian gas to pass through its territory en route to Europe, Kremlin spokesman Dmitry Peskov said on Wednesday. Ukraine has already said on several occasions that it would not extend the current gas transit deal which expires on December 31, 2024. The latest such statement came from Ukrainian President Volodymyr Zelenskyy earlier this week when Zelensky said “No one will extend the agreement with Russia.”… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Russia-European-Consumers-Will-Suffer-If-Ukraine-Refuses-to-Extend-Gas-Transit.html |
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China’s Oil Giant CNOOC Books Record-High Profit as Output JumpsChina’s state-held oil and gas giant CNOOC reported on Wednesday a record-high net profit for the first half of 2024, pushed up by an all-time high oil and gas production and rising oil prices. CNOOC, which specializes in offshore oil and gas developments in China and internationally, booked a net profit of $11.18 billion (79.7 billion Chinese yuan) from January to June. This represented a 25% jump compared to the same period of 2023 and “the best level of the same period in history,” the company said. CNOOC’s board also… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Chinas-Oil-Giant-CNOOC-Books-Record-High-Profit-as-Output-Jumps.html |
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Shutdowns at Libya’s Oilfields ContinueAnother oilfield in Libya stopped nearly all output on Wednesday as shutdowns at the country’s oil-producing facilities continue over a political standoff over the leadership of the OPEC producer’s central bank. On Wednesday, the Sarir oilfield halted almost all production of about 209,000 barrels per day (bpd), engineers told Reuters. According to the field engineers, this was the daily production rate at Sarir before the field began reducing output. Oil production at several Libyan oilfields was halted on Tuesday after the… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Shutdowns-at-Libyas-Oilfields-Continue.html |
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Nvidia reports earnings after the bellNvidia reports second fiscal-quarter earnings Wednesday after the bell. Read more at: https://www.cnbc.com/2024/08/28/nvidia-nvda-earnings-report-q2-2025.html |
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S&P 500, Nasdaq close lower Wednesday, Nvidia tumbles before earnings: Live updatesInvestors were waiting for Nvidia’s quarterly earnings announcement, due for release after Wednesday’s closing bell. Read more at: https://www.cnbc.com/2024/08/27/stock-market-today-live-updates.html |
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OpenAI in talks to raise funding that would value it at more than $100 billionOpenAI is in talks to raise a funding round that would value the artificial intelligence startup at more than $100 billion, CNBC has learned. Read more at: https://www.cnbc.com/2024/08/28/openai-in-talks-to-raise-funding-that-would-value-it-at-more-than-100-billion.html |
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The Fed now will focus on the employment part of its mission — and for good reasonOfficials have made it clear that they are turning their attention from a focus squarely on inflation. Read more at: https://www.cnbc.com/2024/08/28/the-fed-now-will-focus-on-the-employment-part-of-its-mission-and-for-good-reason.html |
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With everyone focusing on Nvidia, JPMorgan likes this other chip stock reporting earnings this weekJPMorgan reiterated its overweight rating on Marvell Technology ahead of the company’s earnings announcement Thursday after the bell. Read more at: https://www.cnbc.com/2024/08/28/with-everyone-focusing-on-nvidia-jpmorgan-likes-this-other-chip-stock-reporting-earnings-this-week.html |
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Super Micro shares fall 19% on filing delay, Hindenburg Research reportShares of Super Micro fell after the company announced it will not file its annual report for the fiscal year on time. Read more at: https://www.cnbc.com/2024/08/28/super-micro-shares-fall-23percent-on-filing-delay-hindenburg-research-report.html |
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Buffett’s Berkshire Hathaway hits $1 trillion market value, first U.S. company outside of tech to do soThe milestone came two days before Buffett’s 94th birthday. Read more at: https://www.cnbc.com/2024/08/28/buffetts-berkshire-hathaway-hits-1-trillion-market-value-first-us-company-outside-of-tech-to-do-so.html |
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AI demand could strain electrical grid in coming decadeUtilities and grid operators are warning that the reliability of the power system could suffer as demand from data data centers climbs. Read more at: https://www.cnbc.com/2024/08/28/utilities-face-looming-crunch-as-electricity-demand-from-ai-surges.html |
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Google to relaunch tool for creating AI-generated images of people after pulling service due to inaccuraciesGoogle’s Imagen 3 will allow Gemini users to create AI photos of people in the coming days. Read more at: https://www.cnbc.com/2024/08/28/google-gemini-will-again-support-ai-image-generation-of-people.html |
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Supreme Court refuses to revive Biden’s latest student loan debt relief planRepublican-led states challenged the plan aimed at reducing the burden on borrowers, including a provision that would reduce their monthly payments. Read more at: https://www.cnbc.com/2024/08/28/supreme-court-refuses-to-revive-bidens-latest-student-loan-debt-relief-plan.html |
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Why the value meal is making a comebackChains like McDonald’s, Burger King and Wendy’s are trying to bring customers back with deals. Read more at: https://www.cnbc.com/2024/08/28/why-the-mcdonalds-value-meal-is-making-a-comeback-.html |
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Trump budget would spike deficits by nearly 5 times Harris proposal, says Penn WhartonDonald Trump and Kamala Harris have both received criticism from economists on their policy proposals so far. Read more at: https://www.cnbc.com/2024/08/27/trump-harris-budget-deficit-economy-election.html |
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Trump Media stock falls below $20 per share, a first since company went publicTrump Media, the company majority-owned by ex-President Donald Trump, fell below $20 per share for the first time since it started publicly trading as DJT. Read more at: https://www.cnbc.com/2024/08/28/djt-trump-media-stock-falls-below-20-per-share-for-first-time.html |
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Unwind Of China’s Great Carry Trade Could Unleash $20 Billion In Monthly FX SalesBy Martin Lynge Rasmussen of Money: Inside and Out
Indeed, we have found that goods traders have been reluctant to convert their (mostly FX) net export proceeds into renminbi in recent months … Read more at: https://www.zerohedge.com/markets/unwind-chinas-great-carry-trade-could-unleash-20-billion-monthly-fx-sales |
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Elon Musk Offers Free Cellular Starlink For Emergencies Worldwide As Space Race With Legacy Mobile Carriers Heats UpSpaceX’s Starlink “Direct to cell” service, in partnership with mobile carrier T-Mobile, will be offered free worldwide for connecting to emergency services. “After thinking it through, SpaceX Starlink will provide emergency services access for mobile phones for people in distress for free,” SpaceX CEO Elon Musk wrote on X, adding, “This applies worldwide, subject to approval by country governments. Can’t have a situation where someone dies because they forgot or were unable to pay for it.”
Musk’s comments come as SpaceX has asked the Federal Communications Commission to let it begin commercial operations of its “direct to cell” technology, as AT&T and Verizon have demanded the FCC terminate the request on the premise Starlink satellites will generate an abundance of radio interference. Here’s how the direct to cell works: Read more at: https://www.zerohedge.com/technology/elon-musk-offers-free-cellular-starlink-emergencies-worldwide-space-race-legacy-mobile |
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Florida Can Enforce Ban On Puberty Blockers, Gender Surgeries For Children: Appeals CourtAuthored by Bill Pan via The Epoch Times, A federal appeals court has allowed Florida to enforce a ban on hormone replacement therapy for children while the legal challenge against the ban proceeds.
In the Aug. 26 decision, a three-judge panel of the 11th U.S. Circuit Court of Appeals sided with Florida, reversing a district judge’s order that put the ban on hold while the matter is appealed. The court also approved expedited proceedings in the appeal.
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Venezuelan Migrant Driving For Amazon Hits Mother And 4 Month Old Child, Flees The SceneToday in “the unending successes of migration” news, a Venezuelan migrant working for Amazon drove his truck into a Florida mother who was pushing her 4 month old child, and then fled the scene of the crime, according to a new report by the NY Post. The hit and run caused the mother “catastrophic” injuries and the child was thrown into the street, the report says. Home surveillance video showed the mother being “dragged onto the front of the car”. The mother, whose identity has not been revealed, was walking with her infant and the family dog in Ives Estates near Miami when they were allegedly hit by Sarahy Parra-Ovalles. Parra-Ovalles entered the U.S. on a tourist visa in 2019, which expired in 2021, according to Homeland Security sources. She was granted Temporary Protected Status that same year, allowing her to apply for a work permit. The driver briefly stopped to upright the stroller and place the baby back in its seat before fleeing the scene. Read more at: https://www.zerohedge.com/markets/venezuelan-migrant-driving-amazon-hits-mother-and-4-month-old-child-flees-scene |
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Thames Water says it needs 59% bill rise to surviveThe boss of Water UK says the UK’s system is old and that bill rises proposed should be higher. Read more at: https://www.bbc.com/news/articles/cx2lgl9kypno |
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Why is Thames Water in so much trouble?There are fears that the UK’s biggest water firm is close to collapse but how did it come to this? Read more at: https://www.bbc.co.uk/news/business-66051555 |
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Help with energy bills urged for struggling pensionersThe Citizens’ Advice warning comes as energy firms meet the government for talks on help with bills. Read more at: https://www.bbc.com/news/articles/clyg3nk8kjno |
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Market cap overhang a challenge for potential listing: PhonePeWalmart-backed fintech major PhonePe on Wednesday said the market cap overhang is a challenge for the potential listing of the company and can not go to the market based on the current numbers and market share. He also said the company plans to enter the European market in the next five years. Read more at: https://economictimes.indiatimes.com/markets/ipos/fpos/market-cap-overhang-a-challenge-for-potential-listing-phonepe/articleshow/112873463.cms |
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Rakesh Gangwal to sell $804 million worth IndiGo stake through block deal: ReportRakesh Gangwal, co-founder of InterGlobe Aviation, plans to sell up to $804 million in shares via a block deal, with a floor price of Rs 4,593 each, a 5.5% discount to the current market price. This move follows his previous stake reduction and Shobha Gangwal’s exit. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/rakesh-gangwal-to-sell-804-million-worth-indigo-stake-through-block-deal-report/articleshow/112870628.cms |
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Tencent likely to sell 2.1% stake in PB Fintech via block deal for Rs 1,610 crore: ReportThe floor price for the issue is set at Rs 1,660.2 per share, a 4.4% discount to Wednesday’s closing price. Tencent, which held a 4.6% stake in the Policybazaar parent company as of June 30, 2024, is reportedly selling its stake. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tencent-likely-to-sell-2-1-stake-in-pb-fintech-via-block-deal-for-rs-1610-crore-report/articleshow/112870605.cms |
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My $2 million inheritance is sitting in cash — and I have no idea where to startA sudden windfall can cause all sorts of problems if you aren’t ready for it. Read more at: https://www.marketwatch.com/story/my-2-million-inheritance-is-sitting-in-cash-and-i-have-no-idea-where-to-start-e24fcd22?mod=mw_rss_topstories |
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Supreme Court declines to revive Biden student debt relief plan. Here’s what borrowers should know.The court’s ruling is the latest in a legal battle over the SAVE plan. Read more at: https://www.marketwatch.com/story/supreme-court-declines-to-revive-biden-student-debt-relief-plan-heres-what-borrowers-should-know-7af5fbd5?mod=mw_rss_topstories |
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Oil settles lower, with the end of the summer driving season likely to weaken demandOil futures logged back-to-back session declines on Wednesday, with expectations that the end of the summer driving season will weaken demand. Read more at: https://www.marketwatch.com/story/oil-prices-edge-lower-as-traders-await-u-s-stockpiles-data-libya-supply-risks-still-linger-589a75b9?mod=mw_rss_topstories |
Dollar weakness = exporter FX sales?The size of China’s goods balance is widely remarked, but how this foreign exchange surplus is recycled receives less attention. Yet the conversion of this FX surplus could be crucial for the Chinese exchange rate, the CNY, in the coming months.
