—— U.S. GDP shrinks in Q2; CFA Level 3 pass rate rises; Federal Reserve raises interest rates by 75 basis points; Mastercard payment volume surges 58%; Microsoft founder’s properties are sold; Instagram promotes racial diversity; JetBlue wins Spirit acquisition war.
1. U.S. GDP shrinks again in Q2
According to preliminary data released today by the U.S. Department of Commerce, U.S. GDP in the second quarter, converted to an annualized rate, shrank again by 0.9%, continuing the 1.6% decline in the first quarter.
Personal consumption, the largest component of U.S. GDP, rose 1% in the second quarter, slower than the first quarter.
Sal Guatieri, chief economist at BMO Capital Markets, said that with inflation at its highest in more than 40 years, borrowing costs getting more expensive and economic conditions tightening, the U.S. economy’s train is on the way. slow down.
The second-quarter GDP data was not optimistic, and the task of the Federal Reserve and President Biden to fight inflation has become more difficult.
Recession fears grow among Americans after the latest data comes out
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2. CFA Level 3 pass rate rises
今年5月，特许金融分析师（Chartered Financial Analyst/CFA）最终级别考试的通过率达到了49%，高于去年11月的43%，并且逐渐接近10年平均的52%通过率。
CFA协会的总裁克里斯·维斯（Chris Wiese）表示，他们很高兴考试通过率正在稳步攀升，遗憾没通过考试的考生很可能受到了疫情以及其他外界因素的影响。
今年5月，超过12,000名考生参加了CFA第3级的考试，全球考点高达520个。以往，CFA的考试都在卷子上进行，疫情出现后变成了电脑答题形式。
The content of the CFA exam is complex and complex, and the average review time for each level exceeds 300 hours
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3. Fed raises rates by 75 basis points
During the weekly meeting this week, Fed officials raised the benchmark interest rate by 75 basis points for the second time. Chairman Jerome Powell said next month’s rate hike is likely to be 75 basis points, adding that the U.S. economy is not in a recession.
At present, the Federal Funds Rate has been raised to around 2.25% to 2.5%. The cumulative increase in the past two months is 1.5%. , the fastest rate hike in the past 40 years.
The Fed’s next meeting will be held on September 20-21, when inflation and labor market data will affect the extent of the Fed’s rate hike.
However, based on the current market price of interest rate futures contracts, most investors believe that the next rate hike by the Fed is likely to be 50 basis points.
The Fed hopes to gradually raise interest rates and ease market demand on the basis of not pulling the economy, which is very challenging
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4. MasterCard payment volume surged by 58%
This week, Mastercard Inc., a well-known credit card company, said that in the second quarter, the volume of credit card payments in the company’s U.S. region reached $1.65 trillion, beating analysts’ expectations. Mastercard’s net profit rose 10 percent year-on-year to $2.3 billion.
In addition, the company’s global deal volume rose 58% year over year as Americans resumed international travel. In response, the company will raise its full-year revenue forecast.
Mastercard CEO Michael Miebach said that the company’s revenue and growth in the second quarter were strong, and the volume of cross-border payments also increased significantly. While the second-quarter data failed to highlight the impact of inflation on consumer spending, the company will keep an eye on relevant indicators.
Shares of Mastercard Inc. are down 2.9 percent year-to-date but rose 1.7 percent to $349.25 in a single day following the release of the second-quarter results.
Inflation is high, and many consumers are forced to use credit cards to pay bills and living necessities
Source: Bloomberg – Credit Card Spending Soars as US Consumers Battle Rising Inflation, Mastercard Says
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5. Microsoft founder’s properties are sold
Vulcan Inc., the home office of late Microsoft co-founder Paul Allen, recently sold six homes and two vacant lots in Seattle’s Mercer Island area, according to filings released this week.
The total value of the properties is $67 million, documents show. Three of the six mansions span more than 10,000 square feet. It is reported that the buyer is a Washington state limited liability company.
A few weeks ago, Vulcan also sold two New York City penthouses for $101 million.
In 2018, Paul died of cancer at the age of 65. The luxury homes he bought during his lifetime were all over the United States. To date, Vulcan has sold $350 million in real estate.
Google CEO bought Paul’s Los Angeles mansion for $65 million in January
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6. Instagram promotes racial diversity
Social platform Instagram plans to launch an anonymous survey to document users’ ethnic backgrounds. Researchers at partner institutions will conduct research based on this user data and app usage habits and experiences.
For years, users have complained that Instagram and other social media platforms are not doing enough to stamp out racism and prejudice. And after this investigation, Instagram may be able to effectively put an end to this.
Instagram wants to collect more user data to improve user experience and promote racial diversity
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7. JetBlue wins Spirit takeover battle
New York-based JetBlue Airways said it will acquire Spirit for $33.50 per share in an all-cash deal valued at $3.8 billion.
JetBlue has also finally ended its protracted battle with Frontier Group Holdings.
JetBlue executives believe the acquisition of Spirit will help the company compete with major airlines such as Delta, United and Southwest. JetBlue could also gain access to more Airbus planes and pilots for its rapid growth.
If the deal is approved by regulators, Frontier Airlines will become the largest low-cost carrier in the United States.
JetBlue to buy all of Spirit Airlines for $3.8 billion after months of the bidding war
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The content of this article comes from various financial news media such as The Wall Street Journal, Financial Times, and Bloomberg.