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Markets

Stock markets experienced a decline yesterday, with investors displaying nervousness due to increasing oil prices and eagerly awaiting the release of August's crucial inflation data. Among the S&P 500 components, Oracle stood out as the poorest performer, plummeting by over 13% following an earnings report that fell short on revenue and provided uninspiring guidance, despite prior expectations that it would maintain its momentum in the field of artificial intelligence.

U.S. Inflation Accelerated in August as Gasoline Prices Jumped

In August, inflation in the United States picked up, primarily driven by a surge in gasoline prices. However, the underlying inflationary pressures appear to be moderate enough to keep the Federal Reserve on course to maintain current interest rates next week.

The Labor Department's report on Wednesday revealed that the Consumer Price Index, which measures the prices of goods and services across the U.S. economy, increased by 0.6% in August compared to the previous month. This growth rate was faster than in July, largely due to the sharp rise in gasoline prices.

When excluding the volatile categories of food and energy, core inflation increased by 0.3%, representing a more significant uptick compared to the previous two months. This increase in core prices was attributed to higher expenses in areas such as rent, vehicle insurance, and medical care, according to the Labor Department.

On an annual basis, overall prices in August were 3.7% higher than the same month the previous year, compared to a 3.2% increase in July. Annual core inflation, on the other hand, saw a slight decrease, dropping from 4.7% in the previous month to 4.3% in August.

Tech

Apple finally embraces USB-C with iPhone 15

Our condolences to those who recently acquired an iPhone 14, as it is no longer the latest Apple phone in town. If you're eyeing the next-generation iPhone 15, 15 Plus, 15 Pro, or 15 Pro Max unveiled by the tech giant yesterday, be prepared for a change in charging cables. These shiny new iPhones and updated AirPods now use a USB-C port, a standard connection used in MacBooks and most other smartphones.

This shift aligns Apple with the EU common charger directive, which requires most consumer electronics to be USB-C compatible starting in 2024. The aim is to spare customers the inconvenience (and electronic waste) of buying a new charger every time they switch between different device brands.

As is customary with every iPhone release, the tech community is divided over whether these changes represent significant innovation or just surface-level rebranding. If you're considering investing at least $799 in the new iPhone, here's what you should be aware of:

1. The iPhone 15 models are not only faster than their predecessors but also lack the mute switch on the side.

2. These latest models come with upgraded cameras and improved Portrait mode for better bathroom mirror selfies. The high-end iPhone 15 Pro models are encased in titanium and offer 3D video capabilities, set to be available later this year. The 15 Pro Max boasts a powerful 5x zoom for incredibly detailed close-ups.

3. Apple's product lineup also introduced new Apple Watches that allow users to end calls or start timers by tapping two fingers together.

In the bigger picture, Apple has managed to expand its global market share compared to smartphone rivals like Samsung and Huawei, despite its premium pricing. Nearly nine out of ten US teenagers use iPhones, in part because of the perception that green text message bubbles are less cool.

However, it's not all smooth sailing for Apple. China's efforts to restrict iPhone usage among government employees and the emergence of Huawei's new 5G-speed smartphone have raised concerns among Apple investors.

Economy

Poverty rates are jumping as child tax rates ended

While stimulus checks have faded into the past, the repercussions of discontinuing other pandemic-related programs are now becoming apparent. In 2022, poverty levels in the United States returned to pre-pandemic levels, with childhood poverty, in particular, more than doubling compared to 2021, as outlined in a recent report by the Census Bureau.

The overall supplemental poverty rate, which factors in government assistance and geographic variables, surged from 7.8% in 2021 to 12.4% in 2022. This represents the first increase since 2010.

Childhood poverty rates followed a similar trajectory, rising from an all-time low of 5.2% in 2021 to 12.4% in the past year. This increase translates to over 5 million more children falling into poverty.

What led to this? Politicians, economists, and even the Census Bureau primarily attribute the spike to the expiration of pandemic-era expanded child tax credits at the end of 2021. President Biden has advocated for the reinstatement of these credits, and Democrats in Congress attempted to extend them on two occasions, but they faced opposition from conservative members of the party and Republicans.

In summary, the expiration of these programs, coupled with record-high inflation, essentially nullified the progress made in reducing poverty in the United States over the past few years.

Health

Decongestants are not decongesting, FDA says

It appears that your trusted cold medicine may be about as effective as receiving a "Hope you feel better!" text from a friend. An FDA panel recently concluded that phenylephrine, the primary ingredient in some well-known oral cold medications such as Sudafed, Benadryl, and Mucinex, doesn't deliver the expected results. Recent studies found that individuals who took this drug didn't experience clearer sinuses compared to those who took a placebo. This finding confirms the longstanding doubts expressed by some pharmacists regarding the efficacy of oral phenylephrine.

So, what's the next step? The FDA will need to decide whether to follow the panel's recommendation (although it typically does, it's not obligated to do so) and potentially remove the over-the-counter status of drugs containing phenylephrine. If this happens, pharmaceutical companies would have to reformulate their products containing phenylephrine, and these items would be removed from store shelves.

Such a ban would have significant implications for drug manufacturers. In 2021, medications containing phenylephrine generated nearly $2 billion in sales, according to the FDA. Pharmacists have suggested that pseudoephedrine could be a viable alternative, but it's not available over the counter due to regulatory restrictions.

There is still some hope for relief, though. While oral phenylephrine may not effectively clear congestion, the nasal spray version is believed to retain its effectiveness.

Environment

More than 5,000 people feared dead in Libya floods

After torrential rains associated with Cyclone Daniel, thousands of people remain unaccounted for as two dams ruptured, leading to devastating floods in the coastal city of Derna and its surroundings. The response to this disaster is complicated by Libya's divided government structure. The affected region in eastern Libya is under the control of a militia leader backed by the Kremlin, and it lacks recognition from the United Nations. Analysts are referring to this situation as Libya's equivalent of the "Katrina moment."

Sports

Aaron Rodgers’s Season Is Over. What About His Career?

Aaron Rodgers' tenure as a New York Jet was abruptly halted just minutes into his career due to a devastating injury: a torn Achilles tendon. This injury has prematurely ended his season, and he never got the chance to complete a pass for his new team.

The big question now is what lies ahead for the rest of his career. At 39 years old, Rodgers was already pushing the boundaries of age in the physically demanding world of professional football, aiming to replicate Tom Brady's remarkable longevity. However, he now faces an arduous journey to recovery from an injury that has prematurely concluded the careers of many athletes, some of whom had shorter careers than Rodgers.

Sports medicine specialists emphasize that the rehabilitation process after surgery for an Achilles tear can span nearly a year, and it may take an additional year for athletes to regain full strength, or at least come close to it. These medical experts also caution that not every professional athlete who suffers such an injury manages to make a successful return to the field.

Despite these challenges, there is optimism among these experts that if Rodgers chooses to continue his career as a 40-year-old in 2024, his Achilles injury should not be an insurmountable obstacle.