Homebuyers Revolt, Boeing Legal Updates, and Nvidia’s Skyrocketing Value

Housing Market Turmoil, Boeing's Legal Outlook, and Nvidia’s Market Surge

Homebuyers Are Starting to Revolt Over Steep Prices Across US

The US housing market is struggling due to higher-for-longer rates, which are choking off demand. More sellers are cutting asking prices than any time since November 2022. The average rate on a 30-year mortgage has hovered near 7% since the middle of April. The pullback is causing listings to accumulate rather than getting matched with buyers, according to Realtor.com.

The Race to Map the World and Protect $110 Billion of Trade

The European Union Deforestation Regulation (EUDR) risks disrupting commodities exports to the European Union, raising prices for consumers, and threatening the livelihoods of farmers. Large companies handling seven key commodities and products derived from them will be required to prove that people in their supply chains didn't work land that was deforested. The task is magnified in the world of coffee, which is more reliant on millions of smallholder growers scattered across dozens of countries. The government in Jakarta has expressed concern over the EUDR.

Boeing executives unlikely to be charged over 737 MAX crashes, source says

Boeing executives are unlikely to be charged over fatal crashes in 2018 and 2019. The Justice Department found that Boeing violated a 2021 deferred prosecution agreement. The department is weighing several options, including whether to prosecute Boeing or extend the DPA by a year.

Tesla shareholder sues Musk for alleged $7.5 billion insider trading

A Tesla shareholder has filed a lawsuit accusing CEO Elon Musk of insider trading. The shareholder claims that Musk improperly benefited by about $3 billion in insider profits. The lawsuit accuses Tesla's directors of breaching their fiduciary duty by allowing Musk to sell the shares.

Google’s A.I. Search Leaves Publishers Scrambling

Google's new AI Overviews feature, which generates summaries of news articles at the top of search results, has alarmed media executives who fear it may reduce traffic to their sites. The feature potentially chokes off the original creators of the content and is a step towards generative A.I. replacing publications. Publishers want their sites listed in Google's search results to protect their content, but doing so means their links would show up without any description. The use of articles from news sites has also set off a legal fight over whether companies like OpenAI and Google violated copyright law by taking the content without permission. Google has said its search engine continues to send billions of visits to websites, providing value to publishers.

OPEC to Meet Amid Signs of Waning Influence on Oil Prices

OPEC Plus may agree to extend voluntary cuts of 2.2 million barrels a day by eight of the group's members, including Saudi Arabia and Russia. The cuts have become so complicated that they have become difficult even for close market watchers to follow. The weak market has prompted producers like Saudi Arabia to rein in supplies in an effort to maintain prices. The Saudi government and Saudi Aramco, which is largely owned by the government, said the company would sell as much as around $12 billion in shares.

Nvidia market cap jumps by $350bn amid ‘gamma squeeze’

Nvidia has gained $350bn in market value since reporting first-quarter earnings just over a week ago. The company was valued at $2.69tn by Friday's close, more than JPMorgan, Berkshire Hathaway, and Meta combined. Analysts say the rally bears the hallmarks of a so-called “gamma squeeze”. Nvidia boasts profit margins above 50 per cent and has become a symbol of the potential transformative effect on the global economy of generative artificial intelligence.

Downgrade to French credit rating stings Macron government

France has been downgraded by S&P Global due to concerns about government debt and lower-than-expected growth. The downgrade risks significant political fallout for President Emmanuel Macron, who is poised for a broad defeat in European elections. The government has been bracing for a downgrade since it revealed in January that its deficit was wider than expected. The situation has shown the limits of Macron's strategy since he was first elected in 2017.

The AI Revolution Is Already Losing Steam

The AI hype train is leaving the station, but significant disappointment may be on the horizon. The rate of improvement for AIs is slowing, and there appear to be fewer applications than originally imagined. These factors raise questions about whether AI could become commoditized, about its potential to produce revenue and especially profits.

Dr Pepper Ties Pepsi as America’s No. 2 Soda

Dr Pepper is now tied with Pepsi-Cola as the No. 2 carbonated soft drink brand in America, according to sales-volume data from Beverage Digest. Dr Pepper has been on more soda fountains than any other soft drink in the U.S. for the past 20 years, thanks to big marketing investments, novel flavors, and a quirk in its distribution. However, consumption of regular Pepsi has fallen as its drinkers switch to Pepsi Zero Sugar or migrate to other drinks. The cola wars began in the 1960s, when PepsiCo launched its Pepsi Generation campaign. Coca-Cola emerged as the most popular fountain drink, while Dr Pepper retained a stronghold in the Southern states.

Baby-boomers are loaded. Why are they so stingy?

Baby-boomers have amassed great wealth due to falling interest rates, declining housebuilding, and strong earnings. As they move into retirement, their spending choices will exert a huge influence on global economic growth, inflation, and interest rates. However, recent evidence has cast doubt on the notion that a spending splurge is on the way.

Young collectors are fuelling a boom in Basquiat-backed loans

There has been a boom in art-secured lending, with auction houses and boutique lenders increasing their lending by 119%. Last year, non-banks doled out as much as $8bn against art and collectibles, up from 15% in 2019. The boom has been produced by changes in both the economy and the art market.