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Markets

The S&P 500 just experienced its most challenging week since the collapse of Silicon Valley Bank in March. The optimism driven by AI-related investments that boosted stocks is now fading, as there is growing awareness that elevated interest rates might persist for an extended period. Investors are closely monitoring C-SPAN this week in anticipation of the government's efforts to prevent a potentially harmful shutdown by this Saturday. Unfortunately, the outlook for a successful resolution doesn't appear promising.

Why America Has a Long-Term Labor Crisis

For nearly two years now, the U.S. economy has been defying odds by maintaining an unemployment rate below 4%. According to economists and business leaders, this isn't merely a result of temporary pandemic-related disruptions, when employers laid off millions and then struggled to rehire when demand surged. Instead, it represents a long-standing issue that has been brewing for decades, with recent manifestations seen in strikes by workers in the automotive and airline industries. These labor shortages are evolving into a persistent labor crisis that has the potential to drive both wages and employee turnover higher.

Workforce experts have been cautioning for an extended period that a combination of factors, including the retirement of baby boomers, declining birth rates, evolving immigration policies, and changing worker preferences, is leaving U.S. employers with an insufficient pool of workers to fill job vacancies. While there might be some softening in the labor market, none of these underlying factors are anticipated to undergo significant changes in the foreseeable future.

Entertainment

Hollywood Writers this morning

Great news for those who missed The Drew Barrymore Show: The union representing Hollywood writers has reached a tentative agreement with major studios, potentially putting an end to a strike that has halted TV and film production for nearly five months.

To make this deal official, it requires ratification by the approximately 11,500 members of the Writers Guild of America (WGA). However, it appears highly likely that the agreement will be approved, as WGA leadership claims to have secured significant concessions from the studios. The union's negotiating committee has described the deal as "exceptional" and noted that it offers "meaningful gains and protections for writers."

While the specific terms of the agreement have not been disclosed yet, they are expected to be revealed early this week, as reported by the Hollywood Reporter.

The origins of this strike date back to May when writers accused studios of embracing a new streaming-focused business model that left them struggling to earn a middle-class income. Additionally, writers sought protection against the increasing use of artificial intelligence to generate content, which they perceived as a significant threat to their profession.

In response, studios argued that they, too, were facing challenges due to industry-wide changes, such as the decline of their profitable cable TV channels. Disney CEO Bob Iger characterized the writers' demands as "not realistic" and as exacerbating the industry's existing challenges.

However, facing an estimated loss of $1.6 billion in global ticket sales for movies delayed by the strike, the studios ultimately agreed to most of the writers' demands, according to the New York Times.

While late-night and daytime talk shows like Drew Barrymore's show may soon return, scripted TV production will not resume immediately because a separate strike involving tens of thousands of actors and over 100,000 other Hollywood employees is still ongoing. Nevertheless, the positive development in the writers' negotiations could encourage actors and studios to return to the bargaining table.

Politics

Jimmy Carter has a busier schedule than we do.

The former president and his wife, Rosalynn, made a noteworthy appearance at the Plains Peanut Festival in their Georgia hometown. Peanuts carry immense significance for Carter, given his upbringing on a peanut farm. This appearance held special significance because the ex-president has been receiving hospice care since February, when his grandson initially anticipated that he would live for only about five more days. Remarkably, seven months have passed since then, and Carter is now just one week away from celebrating his 99th birthday. As such, he holds the distinction of being the longest-living American president.

Space

Nasa just DoorDashed space rocks

The next time you find yourself frustrated because your delivery is running 20 minutes late, consider the sheer joy at NASA as they finally receive a package from space, a request they made seven years ago.

Yesterday morning marked a significant milestone as scientists successfully retrieved approximately 8.8 ounces of rocks and soil from the asteroid Bennu. This achievement marked NASA's inaugural attempt at gathering a sample from an asteroid. The sample capsule's touchdown in the Utah desert, courtesy of the Osiris-Rex spacecraft, from a staggering distance of 63,000 miles, marked the conclusion of a 4-billion-mile journey that commenced back in 2016.

Here's an interesting tidbit: NASA selects this specific region in Utah for sample return missions because it boasts the largest restricted airspace in the United States, as reported by The Verge.

Now, why is this such a momentous occasion? The hope is that the asteroid sample holds crucial information about the origins of our solar system and can provide insights into the beginnings of life on Earth. According to a prevalent theory, asteroids that collided with Earth billions of years ago might have contained fundamental ingredients for the creation of life. This theory, however, has remained untested until now. Over the next two years, scientists will meticulously analyze the rocks and soil, with some initial findings expected to be released in October.

Looking ahead, as the heat of summer gives way to the autumn season, it seems we're transitioning from a "Hot Strike Summer" to an "Asteroid Autumn." Alongside the successful sample collection from Bennu, NASA has a couple of other asteroid missions hitting major milestones this year. Notably, next month, NASA will launch the Psyche spacecraft, embarking on a mission to explore an asteroid of the same name, a coincidence that can only be described as incredible.