Forbes Daily: Market Beating Moves Come as Recession Fears Ease

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in peace,

Panic gripped the market earlier this month amid fears of a possible recession. But if you ask Goldman economists now, concerns about the health of US consumers they are “extremely exaggerated.”

Over the weekend, a group of economists at the bank cut the chance of the US entering a full-blown recession next year from 25% to 20%. After the unemployment rate rose to 4.3% in early August, which triggered a market selloff, they had risen from 15% to 25%.

Since then, concerns have been quelled by better-than-expected spending and fewer weekly jobless claims. Goldman economist Jan Hatzius says: “When recessions occur, they usually come quickly.”

GO AHEAD

AI chip favorite Nvidia led the stock market on Monday, as did the S&P 500 and Nasdaq. beat their longest winning streak from last year. Indices continued to recover from their losses earlier this month, with the Dow Jones Industrial A average up 6% from its August 5 low, the S&P up 8% and the Nasdaq rising to more than 10%.

The SEC sued billionaire investor Carl Icahn and his company, Icahn Enterprises, after he allegedly failed to produce stock pledges he used it as collateral to get billions worth of loans. Icahn, man Forbes The estimates are worth about $5.2 billion, and Icahn Enterprises has agreed to pay $500,000 and $1.5 million, respectively, to settle the SEC’s charges, the agency said.

BUSINESS + FINANCE

When Sima Sistani takes over as CEO of WeightWatchers in 2022, they The weight loss brand was addressing the problem at hand. Declining memberships, the pandemic-induced shift to digital offerings, massive debt and the biggest challenge of them all: the rise of GLP-1 weight loss drugs. Sistani has led the company through a series of seismic changes, including acquiring a telecommunications company that specializes in weight-loss drugs and expanding beyond decades to focus solely on ethics.

WEALTH + EVIL

Bernard Arnault, the billionaire chairman and CEO of luxury goods company LVMH, overtook Meta founder Mark Zuckerberg on Monday to become the third richest person in the world. the amount is about $ 188.5 billion like in the afternoon. Shares of LVMH, the conglomerate that includes brands such as Louis Vuitton and Tiffany & Co., are seeing multi-day activity.

FINANCE + POLITICS

Former President Donald Trump said on Monday that he will offer a Cabinet position or an advisory role to Tesla CEO Elon Musk, as the world’s richest man becomes a key political ally for the former president. In an interview with Reuters, Trump added that he does not see tax credits and incentives as generally positivebut that he did not “make final decisions on” the $7,500 electric vehicle tax credit—which he tried to repeal while in office.

PLUS: The US intelligence community said on Monday it was confident Iran was responsible for the recently reported hacking of the Trump campaign and warned that Iran was trying to “shape the outcome ” of the November election.

Former Rep. George Santos (RN.Y.) pleaded guilty Monday to fraud and identity theft after becoming the sixth person in history to be expelled from the US House in December. Santos agreed to pay the restitution of about $373,750, according to CBS News, and admitted to making false statements to the FEC, fraudulently using IDs and credit cards for his own benefit.

THE WORLD

President Joe Biden acknowledged pro-Palestinian protesters in his speech at the Democratic National Convention on Monday, saying they “Get a point, a lot of innocent people are being killed, on both sides.” Earlier during Biden’s speech, some protesters were quickly removed from the area after displaying a banner that read “Stop Arming Israel,” Politico reported.

METHODS + EXPLANATORY STATEMENT

Former President Donald Trump doubled down on his plan to raise tariffs on imports over the weekend, but many experts agree. such taxes increase prices for consumers. A group of economists at Goldman Sachs predicted that consumer prices would rise by 0.1% for every percentage point increase in the effective interest rate and raise prices for year old. Goldman added that domestic prices are likely to rise because US manufacturers will “raise prices” with the opportunity.

The IRS has issued guidance based on a new rule that allows employers to make matching contributions to retirement plans depending on the employee’s student loan payments. The assumption is that those paying off student loans may not be able to save for retirement. But under the new law, employers can treat student loan payments as if they were retirement contributions for the employer’s match.

DATE DATE COVER

Biggest US Defense Dealer Has Ties to Russia’s Closed Oligarchs

SUBJECT Venture capital firm 8VC, which has invested in major US government contracts such as Palantir and Anduril, employed two children of sanctioned Russian oligarchs, Forbes he learned, raising questions about the proximity of foreign rivals to the growing security technology industry in Silicon Valley.

In 2022, the firm hired Denis Aven, the son of Petr Aven—a billionaire who is now worth more than $4.4 billion. Forbes estimates, which at the time was ordered by the European Union and later sanctioned by the US Treasury in 2023 for its role in operating one of Russia’s largest commercial banks.

Also in the investment group is Jack Moshkovich, who joined in 2018, and is the son of Russian billionaire oligarch Vadim Moshkovich. After Russia invaded Ukraine in 2022, the elder Moshkovich was sanctioned by the EU, the UK, Switzerland, Canada and Australia because of his ties to the Kremlin and Russian President Vladimir Putin (Vadim Moshkovich is not has not been sanctioned in the United States).

In response to a request for comment for this story, 8VC CEO and co-founder Joe Lonsdale posted a 950-word interview to X, saying 8VC has a “firm mandate and legal framework.” and it always makes sure that it respects and follows the law. We have not accepted any money from their fathers or their fathers’ friends, and we do not. need

WHY IT’S IMPORTANT There is no indication that any of the fathers who have been punished have a financial relationship with the venture capital firm. But their sons’ jobs at 8VC are coming as the US government to further scrutinize foreign relations to the technology industry. Last month, the National Counterintelligence and Security Agency issued a warning warning the Silicon Valley startup about foreign adversaries using investment firms to obtain sensitive information and threaten national security. .

AGAIN How the Ukraine War Made Billionaires Rich

ILLUSTRATIONS + ILLUSTRATIONS

As the new NFL season approaches, football fans across the US may be in need of a game day budget. Those planning to attend a game themselves in 2024 should expect to spend hundreds of dollars a day at the stadium:

$227.66: The average cost of a day’s game at Levi’s Stadium, home of the San Francisco 49ers and the most expensive stadium this season, according to an analysis from online casino NJBet

$123.84: The cheapest stadium experience—which includes the standard cost of a general admission ticket, parking, a hot dog and a beer—comes at the Arizona Cardinals’ State Farm Stadium.

1960: The Green Bay Packers have sold out season tickets every year since 1960, and an average game day at Lambeau Field will set you back $194.15.

STRATEGY + SUCCESS

Even if you’re not looking for a new role just yet, it’s a good idea to stay prepared, because You will not be able to perfectly time the work. Start by thinking about your next ideal job: Get to know employers who are hiring for the role you want, or if you want to break into a new field, consider attending a conference or study. And continue to improve your CV and LinkedIn, and start strengthening your professional network now.

VIDEO

QUESTION

An outbreak of the Oropouche virus, an unknown and deadly disease, is spreading in South America, according to scientists after the first human death from the virus was reported in Brazil. What is another name for the virus?

A. Sloth fever

B. Jaguar virus

C. Death of river dolphins

D. Howler cough

Check your answer.

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Thanks for reading! This edition of Forbes Daily is edited by Sarah Whitmire and Chris Dobstaff.