Category: Finance

Just a day after President Joe Biden announced he would not seek re-election, the Democratic Party raised an impressive $100 million through its primary fundraising platform.

ActBlue, the political action committee and fundraising hub for Democratic organizations, reported this amount over the previous two days, based on a live tracker maintained by Ryan Murphy from The Marshall Project. Although this figure is not official, it provides insights into the fundraising performance ahead of the upcoming required disclosures.

On Sunday alone, supporters contributed $66.9 million to launch Vice President Kamala Harris’s presidential campaign, making it the most successful fundraising day for ActBlue in the 2024 election cycle. The previous high for donations occurred on September 30, 2020, during the first presidential debate between Biden and Trump.

Thanks to the surge of donations on Sunday, ActBlue surpassed $14 billion in total funds raised since its inception two decades ago. In comparison, WinRed, the Republican fundraising platform launched in late 2019, has collected around $4.3 billion during its operations.

A spokesperson for ActBlue noted on social media that many donors expressed this was their first contribution, remarking on the influx of new small-dollar contributors to the grassroots movement.

Future Forward, a super PAC aligned with Biden, secured $150 million in new commitments from major donors within 24 hours following Biden’s announcement and his endorsement of Harris. Swing Left, which has initiated a fund in support of the Democratic nominee, reported raising over $160,000 within the same timeframe.

Roger Altman, founder of Evercore, indicated that Harris’s campaign would be very well financed and pledged his support for her candidacy. Additionally, prominent Democratic donors like George and Alex Soros are also backing Harris.

Previously, Biden experienced substantial fundraising success following a notable debate defeat to Trump on June 27, raising approximately $28 million from that day through June 28. He also garnered $19.2 million in the days following Trump’s conviction on multiple felony counts. Trump’s campaign raised an astounding $69 million within 24 hours of his conviction. The influx of donations to Trump’s campaign even caused a temporary outage on his campaign website. An associated super PAC, Make America Great Again Inc., raised $70 million that month.

Between April and June, pro-Biden groups amassed $332.4 million, while pro-Trump groups collected $431.2 million, according to The Financial Times. By the end of June, Biden had $281 million available compared to Trump’s $336.2 million.

McDonald’s may generate some profit from its $5 meal deal, although it is expected to be fairly modest. According to restaurant analyst Mark Kalinowski, the fast-food giant’s profit margin on this combo is likely to range from 1% to 5%, translating to approximately $0.05 to $0.25 for each bundle sold.

Kalinowski noted that this promotion aims to attract inflation-weary consumers back into the restaurant, with the hope that they will purchase more than just the $5 deal while inside. However, the overall profitability of the combo is contingent on several factors, including the costs of ingredients, labor, and other expenses.

Arlene Spiegel, president of consulting firm Arlene Spiegel & Associates, commented that the $5 meal deal is “more promotional than profitable”. Even if the promotion attracts customers, franchisees may not see these profits directly. With around 95% of McDonald’s locations operated by franchisees, these owners set their own prices while also managing additional costs such as rent, insurance, permits, and taxes.

In May, Joe Erlinger, President of McDonald’s U.S., indicated that franchisees attempt to offset their overhead costs through promotional offers like the $5 deal. Nonetheless, Spiegel referred to this as a “loss leader” strategy aimed at enticing and re-engaging customers. When considering costs related to labor, packaging, condiments, delivery fees, and marketing, she stated that franchisees “essentially erase any profit on any one or all of the items in the deal.”

The recent decision by Wiz to withdraw from a proposed $23 billion acquisition by Google could have significant repercussions for the tech industry, particularly for Microsoft.

Wiz, an Israeli cybersecurity startup, opted not to proceed with the deal, as CEO Assaf Rappaport cited the desire to focus on building the company toward achieving $1 billion in annual revenue and preparing for an IPO. This decision came shortly after a major cybersecurity incident involving CrowdStrike, which caused a widespread outage in the industry.

Wedbush analyst Dan Ives suggested that the failure of this deal stemmed from investor concerns and ongoing antitrust challenges facing Google. The tech giant has been under increasing scrutiny from regulators and recently concluded a trial related to one of its two significant antitrust cases initiated by the Department of Justice.

Ives expressed that the cancellation of the Wiz deal will have ripple effects across the cybersecurity sector. He anticipates that Google will continue to aggressively expand its cybersecurity capabilities, and he believes Microsoft may also pursue opportunities to strengthen its offerings in this area over the next 12 to 18 months.

The recent issues surrounding Microsoft, particularly the outage caused by a problematic update to its cybersecurity software supplied by CrowdStrike, highlighted the need for the company to enhance its cybersecurity measures. As businesses and government operations faced disruptions during the outage, the incident raised questions about the robustness of existing systems.

Despite the recent challenges, Ives maintains that CrowdStrike remains a leading name in cybersecurity, and the dissolution of the Wiz acquisition may create further opportunities for Microsoft to improve its own cybersecurity platform.

Boeing has announced significant orders for its 787 Dreamliner and 777 double-aisle planes, securing contracts for up to 80 aircraft from Japan Airlines and Korean Air. The announcement was made on Monday, indicating that the company is responding to competition from Airbus, which had made inroads with these airlines following issues related to Boeing’s 737 Max.

Boeing’s head of sales operations, Brad McMullen, expressed appreciation for the enduring partnership with Japan Airlines, which has committed to 10 Dreamliners with the possibility of an additional 10. Korean Air has ordered 20 models of the 777-9 and 20 of the 787-10, also with an option for 10 more 787-10s.

This news comes as the Farnborough International Airshow, a significant industry event, kicks off. The context of these orders recalls a report from March where Airbus sold 11 A321neo jets to Japan Airlines, marking the airline’s first purchase of a single-aisle plane from a manufacturer other than Boeing. The A321neo directly competes with the 737 Max, which was dealing with a scandal and production slowdown at that time.

Additionally, reports from Bloomberg noted that Airbus had sold several wide-body jets to Korean Air, which has primarily flown Boeing aircraft. This development was viewed as a challenge to Boeing’s 777X, which has only recently approached regulatory approval.

Stephanie Pope, head of Boeing’s commercial airplanes division, welcomed Korean Air’s decision, highlighting the importance of Boeing planes to the airline over the past 50 years. She emphasized that the 777X and 787 Dreamliner will be vital in supporting Korean Air’s long-term sustainability and growth objectives.

Johnson & Johnson announced on Monday that it has filed an application with the U.S. Food and Drug Administration (FDA) to broaden the approved use of its ketamine-based medication, Spravato, allowing it to be used as a standalone treatment for individuals with treatment-resistant depression.

Spravato was initially approved by the FDA in 2019 for use alongside an oral antidepressant for patients whose symptoms did not improve following two or more antidepressants. According to Johnson & Johnson, nearly 30 percent of the estimated 280 million individuals worldwide who suffer from major depressive disorder experience treatment-resistant depression.

Bill Martin, head of neuroscience at Johnson & Johnson, stated in a press release that “many patients living with challenging-to-treat depression spend far too long cycling through multiple treatments that don’t effectively resolve their symptoms, which can cause a significant functional and emotional burden on patients and their loved ones.”

The application includes data from a late-stage clinical trial indicating that Spravato, when used as a standalone treatment, effectively alleviated patients’ symptoms as early as 24 hours post-treatment and sustained relief for at least four weeks.

Spravato is delivered via a nasal spray and must be administered under the supervision of a healthcare professional in a clinical environment. Unlike traditional antidepressants that target neurotransmitters such as serotonin and dopamine, Spravato enhances glutamate levels in the brain, which is the most abundant neurotransmitter and crucial for neuronal communication.

Sales of Spravato increased by 60% to $271 million in the second quarter of 2023, compared to the same period in the previous year. Johnson & Johnson reports that Spravato has been utilized by 100,000 patients across 77 countries.

When Jaclyn Sienna India established Sienna Charles, her upscale travel concierge service, in 2008, she was committed to creating a successful business, even before she had built a client base.

India recounted how initially, her husband doubted her venture as they received calls from potential clients expressing interest in common experiences, to which she would respond that her services were fully booked with high-net-worth individuals. At that time, however, she had no clients at all.

Fast forward sixteen years, and her strategy of perseverance has proven fruitful. India now caters to a host of high-profile clients, including prominent world leaders and celebrities, like Mariah Carey. Her clientele typically includes individuals with an annual income exceeding $100 million, which presents unique challenges since these clients already possess immense resources.

India emphasizes that her role stems from the emotional investment she makes in her work. Drawing from her five years of experience as a server, she understands the intricacies of customer satisfaction and believes that genuine care is what distinguishes her services.

Sienna Charles boasts a comprehensive list of over 2,000 industry connections in luxury accommodations, from yachts to upscale restaurants. This extensive network allows her to curate distinctive travel and dining experiences for her clients.

She describes her approach as intuitive, where clients convey their desires, and she interprets those visions into tangible experiences. India notes, however, that her focus extends beyond merely securing access to opulent venues; she aims to create meaningful experiences for her clients.

For instance, while she could gain access for clients to the renowned French Laundry in Napa Valley, she believes that alternative dining experiences, such as those at Single Thread Farms, provide greater value.

India often crafts unique events for her clients, such as organizing a candlelight dinner at Versailles or a brunch atop the Arc de Triomphe. Additionally, she integrates social encounters into dining experiences, having arranged breakfasts with the Hermes family and lunches with the Fendi family in Rome.

However, her attention to her clients’ needs can sometimes manifest in simpler requests; for example, during a trip to Ethiopia, she ensured former President George W. Bush had his preferred snacks, such as peanut butter and non-alcoholic beer, and arranged for a warm greeting by local children wearing Texas Rangers caps.

Ultimately, India conveys her deep care for people. She actively engages with taxi drivers and restaurant staff, searching for the most intriguing experiences for her clients, and insists that the offerings go beyond mere luxury, highlighting the importance of authentic experiences.

Spotify has reported a record profit for the second quarter, marking a significant turnaround from the previous year. The Swedish audio streaming giant announced an operating income of 266 million euros ($289 million) for the quarter, compared to a loss of 247 million euros ($268 million) during the same period last year. Additionally, the platform saw a 14% increase in monthly active users, reaching 626 million.

CEO Daniel Ek expressed optimism about the company’s progress, highlighting that Spotify continues to innovate and solidify its position not just as a product but also as a formidable business. He noted that the company’s achievements have surpassed their expectations, which is promising for future growth.

Following the release of this positive earnings report, Spotify’s stock jumped nearly 14% in pre-market trading on Tuesday.

In June, Spotify announced a price increase for its Premium subscription plans in the U.S. Starting this month, individual plan users will see their rates rise by $1 to $12, Duo plan users will pay $2 more for a total of $17, and Family plan subscribers will pay $3 more, bringing the total to $20. This marks the first price increase in 13 years, with an average rise of $1 implemented last July. Despite these hikes, the company added seven million net subscribers this quarter, exceeding its previous guidance by one million.

Spotify maintains its status as the leading audio streaming service globally, with analysis indicating that its users are the least likely to cancel their subscriptions compared to other audio and video streaming platforms. However, Spotify’s financial history has not always been rosy; the company experienced a significant decline in stock value in 2022 due to multiple quarters of operational losses. In early 2023, Spotify laid off 600 employees, and less than a year later, it cut an additional 1,500 jobs, representing about 17% of its workforce.

A recent study published in the Annals of Internal Medicine reveals a growing trend in the prescription of GLP-1 drugs to individuals without diabetes, contrasting with a decline in new prescriptions for those with diabetes. The authors of the study express concern that this shift could lead to potential shortages of these medications.

GLP-1 drugs are designed to mimic a hormone that regulates blood sugar levels and curbs appetite. Initially approved for the treatment of type 2 diabetes, the Food and Drug Administration (FDA) expanded approvals in 2021 to include Wegovy for weight loss.

Both Novo Nordisk and Eli Lilly, leading manufacturers of GLP-1 drugs—which include Zepbound, Mounjaro, Wegovy, and Ozempic—are facing challenges in meeting the escalating demand for their products.

Researchers at Cedars-Sinai Medical Center, alongside other institutions, analyzed the medical records of 45 million Americans who visited healthcare providers from 2011 to 2023. Their findings reveal that the percentage of new GLP-1 users with type 2 diabetes dropped from nearly 90% to over 70% between 2019 and 2023. Correspondingly, the share of new users without type 2 diabetes increased from 10% to 25%.

Yee Hui Yeo, a co-first author of the study, commented that the data indicates a significant public health shift, as more healthcare providers recognize the benefits of these medications in treating obesity. However, Yeo emphasized the necessity to ensure that diabetic patients still have access to these treatments amid the concerns over medication shortages.

The study utilized data from TriNetX, a healthcare software company, which may not represent the entire population accurately.

In recent years, GLP-1 drugs have gained popularity for their appetite-suppressing effects, reportedly aiding users in losing up to 26% of their body weight.

The surge in sales of these medications has propelled Eli Lilly and Novo Nordisk to become some of the most valuable pharmaceutical companies globally. However, high demand has created difficulties for certain patients in obtaining their prescriptions. To address this, both companies have invested significant resources to enhance production capabilities.

Morgan Stanley analysts forecast that the global market for GLP-1 drugs could reach $105 billion by 2030, with an anticipated uptake of these medications among approximately 31.5 million people in the U.S. by 2035, representing about 9% of the population.

Amazon’s efforts to monetize its Alexa-enabled devices seem to have backfired, with the company reportedly losing over $25 billion between 2017 and 2021 from its Echo, Kindle, and other devices, according to a report by the Wall Street Journal that references internal documents and anonymous sources. Although Amazon boasts hundreds of millions of customers using these devices, the primary use of the Alexa-enabled Echo speakers has been for basic functions like setting alarms, rather than shopping on Amazon.

A former senior employee expressed concerns, stating, “We worried we’ve hired 10,000 people and we’ve built a smart timer.”

In response to these challenges, CEO Andy Jassy is seeking solutions, including the introduction of a paid version of the voice assistant. However, some engineers involved in this project have expressed skepticism about its potential effectiveness.

An Amazon spokesperson defended the company’s strategy, stating, “Our Devices & Services organization has established numerous profitable businesses for Amazon and is well-positioned to continue doing so going forward.” They emphasized that the focus is on creating value from customer usage of services rather than solely from device sales.

Additionally, reports indicate that Amazon’s latest AI-powered Alexa, showcased in September, is not yet fully developed. Sources suggest that the company lacks sufficient data and access to the necessary technology to deploy the large language model (LLM) that would enhance the updated assistant. There are also claims that Amazon has shifted its priorities toward generative AI for its cloud computing sector, Amazon Web Services.

Amazon countered these assertions, arguing that former employees are misinformed about ongoing AI developments. They stated that the Amazon Artificial General Intelligence team has adequate access to both in-house chips and Nvidia GPUs, reaffirming their commitment to making Alexa the world’s leading personal assistant.

A recent report from the House Committee on Oversight and Accountability claims that pharmacy-benefit managers (PBMs) are directing patients towards more costly medications and restricting their choices of pharmacies. The findings, shared with the Wall Street Journal, emerged from a 32-month investigation conducted in anticipation of a hearing featuring executives from the nation’s largest PBMs.

PBMs serve as intermediaries for prescription drug plans for health insurers, negotiating prices with pharmaceutical companies and determining out-of-pocket expenses for patients. The three largest PBMs—Express Scripts, UnitedHealth Group’s OptumRx, and CVS Health’s Caremark—collectively manage about 80% of prescriptions in the U.S.

The committee’s report indicated that PBMs are promoting higher-priced brand-name drugs over lower-cost alternatives. Emails from Cigna staff highlighted efforts to discourage the use of more affordable options to Humira, a treatment for arthritis and autoimmune disorders priced at $90,000 annually, despite the availability of a biosimilar at half that cost.

Additionally, the investigation revealed that Express Scripts informed patients they would incur higher costs by using local pharmacies compared to obtaining a three-month supply from its affiliated mail-order service, thereby limiting patient pharmacy options.

Earlier this month, the U.S. Federal Trade Commission (FTC) released a similar report, stating that increasing consolidation in the PBM field has led to the six largest managers controlling nearly 95% of U.S. prescriptions. The FTC expressed concerns, noting that leading PBMs hold significant influence over drug accessibility and affordability for Americans. Their findings suggest that vertically integrated PBMs may favor their own businesses, leading to conflicts of interest that harm independent pharmacies and drive up medication costs.

FTC Chair Lina M. Khan remarked that these middlemen are reportedly “overcharging patients for cancer drugs,” generating additional revenues exceeding $1 billion.

Goldman Sachs believes that Kamala Harris’ economic policies will not significantly differ from President Biden’s if she becomes the Democratic presidential nominee. This comes as Biden has officially withdrawn from the race amid increased pressure to step down following a controversial debate against former President Donald Trump.

In a statement, Biden endorsed Vice President Harris, who expressed her intent to continue her candidacy. She has already secured endorsements from prominent figures, including California Governor Gavin Newsom, Pennsylvania Governor Josh Shapiro, and New Jersey Governor Phil Murphy. Despite the change in leadership, Goldman predicts little change in the Democrats’ fiscal and trade policies.

According to Goldman analysts, led by chief economist Jan Hatzius, the likelihood of Democrats winning the White House has increased slightly to below 40%. They have noted that the upcoming election will be crucial as the expiration of personal income tax provisions from the Tax Cut and Jobs Act occurs at the end of 2025. This transition will impact decisions on extending tax cuts or potentially introducing new taxes.

Goldman’s projections for fiscal policy under a Democratic victory include:
– A proposed tax rate of 39.6% for individuals earning $400,000 or more, up from the current rates of 35% and 37%.
– A suggested corporate tax rate of 28%, increased from 21%. However, Goldman doubts that Congress will agree to this and considers a 25% rate more likely, while Trump aims to reduce the rate to 20%.
– A proposed tax rate of 5% on incomes exceeding $400,000 for Social Security and Medicare, raised from 3.8%.

If Harris clinches the nomination, prediction markets indicate potential vice-presidential candidates could include governors Shapiro and Roy Cooper of North Carolina, Andy Beshear of Kentucky, or Senator Mark Kelly of Arizona.

Analysts from Wedbush, J.P. Morgan, and Bank of America suggest that Google’s advancements in artificial intelligence (AI) are likely to enhance its earnings for the second quarter. Alphabet, Google’s parent company, is scheduled to release its earnings report on Tuesday.

Both Bank of America and Wedbush have increased their revenue forecasts for Google. Analysts Justin Post and Nitin Bansal from Bank of America believe that the integration of the Gemini platform into Google Cloud, along with AI overviews in Google Search, will lead to a rise in sales. They noted in a recent research note their optimism regarding the growing AI applications across Google’s ecosystem and anticipate that the wider rollout of these AI overviews will stimulate further engagement in the core Search business. This optimism continues despite earlier setbacks with AI overviews that resulted in some humorous internet commentary due to errors in output. Consequently, they have revised their price target for Google’s stock from $200 to $206.

In April, Google reported a significant profit surge of 60% for the first quarter, largely attributed to its AI initiatives. This prompted a spike in its stock price, elevating its market capitalization to over $2 trillion, joining the ranks of Apple, Microsoft, and Nvidia.

Google’s robust performance in the first quarter followed the launch of various new AI products, particularly within its Gemini AI offerings, showcased at the Google I/O developer conference. Notably, Google unveiled a future universal AI assistant that could interact via a user’s smart glasses, boasting that its latest Gemini AI model is 20% faster than the latest ChatGPT.

While Wedbush’s Dan Ives expressed more cautious optimism regarding AI Overviews compared to Post and Bansal, he did indicate that it could eventually benefit Search monetization. He also highlighted that AI is already positively impacting Google Cloud, estimating a 27% increase in Cloud revenue compared to last year.

J.P. Morgan analyst Doug Anmuth supported the favorable outlook, naming Google among the firm’s top technology stocks, alongside Uber and Amazon, noting his team’s enthusiasm for advancements in generative AI leading up to Alphabet’s earnings report. However, Raymond James analyst Josh Beck cautioned that, despite the current positive outlook for Google’s AI narrative, the long-term impact on sales remains uncertain.

Just a day after President Joe Biden announced he would not seek re-election, Democrats managed to raise $100 million from donors via their primary fundraising platform. ActBlue, a political action committee serving Democratic organizations, reported this amount over a span of two days, according to a live tracking system managed by Ryan Murphy of The Marshall Project. Although these figures are unofficial and derived from ActBlue’s ongoing tracker of donations since 2004, they give insight into fundraising activities ahead of mandatory disclosure deadlines.

On Sunday alone, donors contributed $66.9 million to support Vice President Kamala Harris’s presidential campaign, marking the most successful fundraising day for ActBlue in the 2024 election cycle. The second-highest fundraising day in recent history occurred on September 30, 2020, during the first presidential debate between Biden and Trump, according to Murphy’s tracking.

The spike in donations propelled ActBlue to surpass $14 billion in total funds raised since its inception two decades ago. In contrast, its Republican counterpart, WinRed, which started in late 2019, has collected approximately $4.3 billion in donations, as reported by OpenSecrets.

ActBlue stated on X, previously known as Twitter, that “so many folks” reported making their first donations in the last 24 hours, highlighting the invigorating impact of new small-dollar donors joining their grassroots efforts.

Future Forward, a super PAC aligned with Biden, secured $150 million from major donors shortly after Biden’s announcement and his endorsement of Harris, according to Politico. Additionally, Swing Left, which initiated a fund to back the eventual Democratic nominee, reported raising over $160,000 within the same timeframe.

Roger Altman, founder of Evercore, expressed his belief on Monday that Harris’s campaign will be “very well financed” and confirmed his support for her candidacy. Prominent Democratic donors George and Alex Soros have also pledged their backing to Harris.

Historically, Biden’s fundraising peaks occurred immediately after a notable defeat to Trump during a televised debate on June 27, when Biden and his committees raised around $28 million between that date and June 28, as analyzed by the New York Times.

Following Trump’s conviction on 34 felony counts, Biden raised $19.2 million in the days that followed, while Trump and his affiliates garnered $69 million from May 30 to May 31, prompting a temporary crash of Trump’s campaign website. His affiliated super PAC, Make America Great Again Inc., raised $70 million that month.

Between April and June, groups supporting Biden collected $332.4 million, while those backing Trump raised $431.2 million, according to The Financial Times. By the end of June, Biden had $281 million in available funds compared to Trump’s $336.2 million.

Amid rising customer dissatisfaction and a decline in park attendance, Walt Disney World has been discreetly lowering ticket and hotel prices in recent months.

Starting in May, Disney introduced discounted three-day ticket packages that allow guests to visit Hollywood Studios, EPCOT, and Animal Kingdom for $89 per day. However, tickets for Magic Kingdom remain priced separately.

These reduced ticket prices, available until September 24, represent a notable drop from the previous high of $254 for a daily Park Hopper pass.

Additionally, Disney is working to make trips to its Florida resort more affordable by slashing rates for its budget hotel options. For instance, a night at Disney’s All-Star Movies, Music, and Sports Resort can be as low as $100, depending on the booking period. Such reductions can reach up to 27% off standard rates, based on a Bloomberg analysis.

This summer, the parks have also rolled out new dining packages that cut food costs by 20% to 30%. Families can opt for all-day meal passes priced at $30 for children and $95 for adults, which are valid for selected meals and snacks across the parks. Furthermore, Disney World is reportedly offering more quick meal options, less expensive children’s food, and greater flexibility with restaurant policies.

Experts note that the escalating costs of dining within the parks have contributed to the decline in guest satisfaction. Len Testa, president of TouringPlans.com, stated that customer satisfaction ratings have plummeted from 90% to 60% as Disney shifted from a la carte dining to fixed-price meals in many popular eateries.

While Testa acknowledged the positive impact of Disney’s cost-reduction efforts, he warned that this trend may not genuinely represent a commitment to affordability or enhancing guest satisfaction. He remarked, “Disney has long been willing to sacrifice a certain number of positive ratings for a certain amount of revenue.”

Jaclyn Sienna India launched her luxury travel concierge service, Sienna Charles, in 2008 with aspirations to succeed, despite initial struggles. At the time, she often received inquiries from potential clients, but lacked any actual business. She recalled how her husband doubted her as they received calls from people asking for assistance, to which she would respond they were fully booked, even though she had no clients.

Now, sixteen years later, her business has flourished, garnering clients such as former President George W. Bush and celebrity Mariah Carey. India caters to individuals with an annual income exceeding $100 million, providing personalized services that go beyond what her wealthy clients can access on their own.

India emphasizes that success in her industry is not just about connections but about genuine care and understanding. Drawing from her experience as a server, she believes in the importance of connecting with people on a personal level. Her extensive network in the hospitality sector, which includes over 2,000 contacts, allows her to arrange exceptional travel and dining experiences tailored to her clients’ desires.

While often associated with luxury, India focuses on creating meaningful experiences rather than just exclusive access. She mentioned that although she could arrange a reservation at a renowned restaurant, such as the French Laundry, she prefers to offer alternatives that provide a deeper connection or uniqueness.

Her tailored arrangements have included a candlelight dinner in Versailles and brunch on the Arc de Triomphe. Additionally, she facilitates exclusive encounters with influential figures, like breakfasts with the Hermes family or lunches with the Fendi family in Rome.

Sometimes, her clients request simpler comforts. For instance, when Bush visited Ethiopia, she ensured he had familiar foods like peanut butter and non-alcoholic beer, accompanied by local children wearing Texas Rangers caps.

India’s philosophy is rooted in care and authenticity, believing that her clients seek enriching experiences beyond mere luxury. She invests time in understanding the preferences of everyone she meets, whether it be cab drivers or restaurant staff, to curate unique and authentic experiences for her clientele.

Spotify has reported a new record profit for the second quarter, marking a significant turnaround since it raised its Premium plan prices for the first time last year. The Swedish audio streaming giant posted an operating income of 266 million euros ($289 million), compared to a loss of 247 million euros ($268 million) during the same period in the previous year. Monthly active users also saw growth of 14% year-over-year, reaching 626 million.

CEO Daniel Ek expressed enthusiasm about the company’s progress, stating, “It’s an exciting time at Spotify. We keep on innovating and showing that we aren’t just a great product, but increasingly also a great business. We are doing so on a timeline that has exceeded even our own expectations. This all bodes very well for the future.”

Following the positive earnings announcement, Spotify shares rose nearly 14% in pre-market trading on Tuesday.

In June, Spotify confirmed price increases for its Premium service in the U.S. Starting this month, individual plans will cost $1 more, bringing the total to $12, while Duo plans will increase by $2 to $17, and Family plans will see a $3 rise to $20. This change came after the company raised membership prices for the first time in 13 years last July, an increase of about $1 on average.

Despite the higher prices, Spotify successfully added seven million net subscribers in the quarter, exceeding its previous forecast by one million.

As the leading audio streaming service globally, Spotify boasts the highest retention rates among audio and video streaming platforms, according to a Bloomberg analysis. However, the company faced challenges in recent years, experiencing a loss of over two-thirds of its stock value in 2022 due to several quarters of operating losses. In January 2023, Spotify announced it would lay off 600 employees, followed by another round of job cuts involving 1,500 positions, approximately 17% of its workforce, less than a year later.

General Motors has announced an increase in several financial projections for 2024 following a strong performance in the second quarter that exceeded Wall Street expectations.

The Detroit-based automaker has raised its adjusted earnings forecast for the year to between $13 billion and $15 billion, up from a previous range of $12.5 billion to $14.5 billion. Additionally, GM has increased its targets for operating cash flow and earnings per share. However, expectations for net income attributable to shareholders have been slightly decreased by less than 1%, now projected to be between $10 billion and $11.4 billion.

In terms of revenue, GM reported $47.9 billion for the second quarter, marking a more than 7% increase compared to the previous year and surpassing the $45 billion anticipated by analysts, as per FactSet estimates. Earnings per share stood at $3.06, exceeding the expected $2.71, and reflecting a 60% increase from 2023. Net income climbed by 14% to $2.9 billion, up from $2.5 billion.

Following this news, GM’s stock saw a nearly 5% increase in pre-market trading on Tuesday and has risen over 37% this year. Additionally, GM announced a third-quarter cash dividend after market close on Monday, further boosting investor sentiment.

In a letter to shareholders, CEO Mary Barra highlighted the success of GM’s gas-powered trucks and SUVs and mentioned the company’s plans to introduce eight new or redesigned models across various segments in North America. She also assured shareholders that the company is ramping up production of the electric Chevrolet Equinox, emphasizing a commitment to disciplined volume growth despite earlier statements indicating that GM would not meet its goal of producing 1 million electric vehicles in North America by the end of 2025 due to a market slowdown. GM intends to remain flexible and adjust production to meet demand, although it did report an increase in EV sales last quarter.

Barra also revealed that Cruise, GM’s self-driving division that previously faced setbacks, will discontinue its Origin vehicle and instead focus on utilizing the next-generation Chevrolet Bolt to test vehicles in Texas and Arizona. This adjustment is expected to address regulatory concerns surrounding the unique design of the Origin, which lacks a steering wheel, and will help reduce production costs.

“Our vision to transform mobility using autonomous technology remains intact,” Barra stated. “Every mile traveled and every simulation brings us closer, as Cruise operates as an AI-first company.”

Additionally, GM is in the process of restructuring its joint venture with SAIC Motor in China, as it continues to experience financial losses, including a $104 million loss in the second quarter. Reports indicate that SAIC-GM has reduced production by 70%, delivering only 26,000 vehicles — a 50% decline from the previous year.

Apple is reevaluating its spending on original content for Apple TV+, acknowledging that it has invested heavily in shows and movies that many viewers may not be familiar with. The tech giant has reportedly spent around $20 billion on original programming, sparking discussions among executives about budget limitations.

Bloomberg has revealed that Eddy Cue, an Apple executive, is in discussions with studio heads Zack Van Amburg and Jamie Erlicht regarding strategies to reduce expenditures. The goal appears to be shifting away from the perception that Apple is the largest spender in the industry. For example, the company invested $250 million in the miniseries “Masters of Air,” which launched this year but failed to generate significant interest.

Additionally, Apple has allocated over $500 million for films directed by well-known filmmakers such as Martin Scorsese, Ridley Scott, and Matthew Vaughn. Despite this extensive investment, Apple TV+ holds only 0.2% of TV viewership in the United States, garnering fewer total views in a month than Netflix achieves in a single day. The service has also faced challenges in attracting new subscribers.

While Apple has appeared relatively unconcerned about these issues, given that streaming is not central to its overall business strategy, the company’s approach to massive spending may soon change. Indications of this shift include hesitation to renew shows for third seasons.

Notably, Apple TV+ is currently the only major streaming platform without an advertising tier, though this may soon change. The hiring of Joseph Cady, an advertising executive from NBCUniversal, earlier this year suggests that the company is considering new revenue strategies.

With interest rates at their highest in over two decades and inflation continuing to challenge consumers, major banks are getting ready to confront increased risks associated with their lending strategies.

In the second quarter, JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo all increased their credit loss provisions compared to the previous quarter. These provisions are funds set aside by financial institutions to account for potential losses from credit risks, such as delinquent or defaulting debts, including commercial real estate loans.

JPMorgan allocated $3.05 billion for credit losses during the second quarter; Bank of America set aside $1.5 billion; Citi’s credit loss allowance reached $21.8 billion by the end of the quarter, more than tripling its provisions from the quarter before; and Wells Fargo’s provisions amounted to $1.24 billion.

These increased provisions indicate that banks are preparing for an uncertain economic environment, where both secured and unsecured lending may lead to larger losses. A recent analysis of household debt by the New York Fed revealed that Americans collectively owe $17.7 trillion across consumer loans, student loans, and mortgages.

The issuance of credit cards is rising, along with delinquency rates, as consumers are depleting their pandemic-era savings and increasingly relying on credit. Credit card balances reached $1.02 trillion in the first quarter of this year, marking the second consecutive quarter where total cardholder balances exceeded the trillion-dollar threshold, according to TransUnion. Additionally, the commercial real estate sector remains in a vulnerable position.

Experts like Brian Mulberry, a client portfolio manager at Zacks Investment Management, point out that the current banking landscape reflects the lingering effects of COVID-19 and the stimulus provided to consumers.

However, any difficulties for banks may arise in the months ahead. Mark Narron, a senior director at Fitch Ratings, explained that the provisions reported in any quarter do not necessarily indicate the credit quality from the previous three months but rather banks’ expectations for the future.

As banks anticipate slowing economic growth, higher unemployment, and potential interest rate cuts later this year, they brace for more delinquencies and defaults as the year progresses.

Citi CFO Mark Mason highlighted that signs of concern are primarily evident among lower-income consumers, who have seen their savings diminish since the pandemic began. He noted that while the U.S. consumer overall remains resilient, there are significant discrepancies based on income levels and credit scores. Only the highest income quartile has seen savings increase since early 2019, with those holding a credit score above 740 driving spending growth and maintaining consistent payment rates. In contrast, lower credit score customers are experiencing notable declines in payment rates and are borrowing more due to high inflation and interest rates.

The Federal Reserve has maintained interest rates at a 23-year high of 5.25-5.5%, awaiting stabilization in inflation measures towards the central bank’s target of 2% before implementing the anticipated rate cuts.

Despite banks bracing for a rise in defaults in the latter part of the year, current default rates do not indicate an impending consumer crisis. Mulberry is particularly observing the differences between homeowners and renters from the pandemic era. Homeowners, having locked in low fixed rates, are less affected by rising rates compared to renters who do not enjoy similar financial protections.

With rent prices soaring more than 30% nationwide from 2019 to 2023 and grocery costs increasing by 25% during the same timeframe, renters facing rising costs without corresponding wage growth are likely to feel more financial pressure.

However, the latest earnings reports suggest that there is no new concerning trend in asset quality. Strong revenues, profits, and stable net interest income reflect a still robust banking sector. Mulberry noted that while there is a level of strength in the banking system that may have been unexpected, it is reassuring to observe the system’s continuing health amidst the challenges posed by high interest rates.

The stock market experienced notable movements on Monday afternoon, with the Nasdaq climbing 1.5% and gaining 277 points. This rally followed President Joe Biden’s announcement that he would not seek reelection and his endorsement of Vice President Kamala Harris. In this context, the Dow Jones Industrial Average and the S&P 500 also showed gains of 0.3% and 1.1%, respectively.

In the realm of political predictions, the betting platform Polymarket now favors Harris as the Democratic nominee, while PredictIt anticipates she could become the 47th president of the United States.

In corporate news, shares of Nvidia jumped 4% after reports emerged that the company is crafting a version of its new Blackwell AI chips tailored for the Chinese market. Nvidia is said to be partnering with local distributor Inspur to launch the chip, tentatively named the “B20,” which is expected to begin shipping in the second quarter of 2025.

Meanwhile, Tesla’s stock surged nearly 5% in anticipation of its earnings report, where CEO Elon Musk is expected to address the much-anticipated robotaxi launch. On social media, Musk revealed plans for humanoid robots to be used internally by Tesla next year, with hopes for wider production by 2026.

In contrast, CrowdStrike, the cybersecurity firm linked to a significant global tech outage last week, saw its stock drop over 13% on Monday afternoon, with shares trading around $263. The company reported that a large portion of the affected 8.5 million Windows devices are gradually coming back online.

Verizon faced a nearly 6% decline in its stock following the release of its latest quarterly earnings. The telecommunications giant fell short of revenue expectations, as a trend of customers retaining their old phones longer has negatively impacted upgrade rates for the industry. Verizon reported second-quarter revenue of $32.8 billion, slightly below the anticipated $33.06 billion, while its earnings per share remained in line with forecasts at $1.15.

Sam Altman, the CEO of OpenAI, has funded the largest basic income study in the United States to date through his nonprofit, OpenResearch. This initiative partnered with researchers to provide unconditional cash payments to individuals living below the poverty line for three years.

The study involved approximately 3,000 participants aged 21 to 40 from Texas and Illinois, all of whom earned less than $30,000 annually. One-third of the participants received $1,000 per month, while the remainder, serving as a control group, received $50.

Findings indicated that those who received the larger payments had greater flexibility in searching for jobs that matched their preferences. The authors of the study noted, “Cash can increase people’s agency to make employment decisions that align with their individual circumstances, goals, and values. Recipients were more likely to be searching for a job, but they were more selective.”

One participant remarked, “Because of the [cash transfer] and being able to build up my savings, I’m in a position for once to be picky,” stating, “I don’t have to take a lousy job just because I need income right now. I have the opportunity to hold out and try and find the right fit.”

Another recipient shared their experience of accepting a lower-paid position in a desired field, which ultimately led to a six-figure salary within two years. “If I didn’t have the cash transfers, there is no way I could have taken that pay cut,” they mentioned.

While the study showed no significant difference in employment rates between the larger payment recipients and the control group, it did reveal that the recipients increased their spending primarily on basic necessities such as food, housing, and transportation. Additionally, the payments assisted recipients in affording health-related expenses, including braces and alcoholism treatment. Although the payments initially alleviated stress, many of the associated health benefits diminished after two years.

Altman has advocated for universal basic income as artificial intelligence continues to transform the labor market and displace certain jobs.

Correction: An earlier version of this article incorrectly identified the organization conducting the study as OpenAI; it was Sam Altman’s nonprofit, OpenResearch.