🐂 JPMorgan pays its dues

Markets

Stocks made a slight recovery, putting an end to a four-day decline. Concerns regarding interest rates and the potential for a government shutdown were balanced by a renewed sense of optimism in the field of artificial intelligence. AMC, the stock that became a symbol of internet memes, saw an almost 7% increase in its value following the Writers Guild of America's tentative agreement with Hollywood studios, which reassured investors that there would indeed be new movies available to screen in theaters next year.

U.S. Home Prices Increased in July

In July, home prices continued to climb due to a persistent shortage of available homes, causing frustration among prospective buyers.

The S&P CoreLogic Case-Shiller National Home Price Index, which assesses home prices across the entire country, recorded a 1% increase in July compared to the same month in the previous year, following a period of stability in the preceding month.

Looking at a month-to-month basis and adjusting for seasonal variations, the index exhibited a 0.6% increase in July.

The uptick in mortgage rates has made buying a home less affordable, bringing it close to historically low levels of affordability and dampening demand. However, higher rates have also deterred potential home sellers who would have to relinquish their existing low mortgage rates and secure a new home loan at a higher rate. This scarcity of homes available for sale has remained unusually low, bolstering home prices.

According to data from the National Association of Realtors, the median sale price for existing homes in August rose by 3.9% compared to the same month in the previous year, reaching $407,100.

It's important to note that the Case-Shiller index, which relies on repeat-sales data, reports with a two-month delay and reflects a three-month moving average. Typically, homes enter into contracts a month or two before they are officially sold, so the July data is based on purchasing decisions made earlier in the year.

Finance

JPMorgan Paying $75 Million to Settle Suit Over Jeffrey Epstein Ties

JPMorgan Chase, symbolized by a downward-pointing red triangle and trading at a 0.75% decrease, has announced that it has reached a settlement with the U.S. Virgin Islands to pay $75 million. This settlement resolves a lawsuit in which the bank was accused of assisting Jeffrey Epstein in his sex trafficking activities. The resolution puts an end to a legal dispute that had brought to light the close connections between the disgraced financier and the bank, as well as the U.S. Virgin Islands.

This agreement was reached just one month before the scheduled trial in Manhattan. Despite nearly a year of legal battles, the case had already cast a shadow on the reputation of both the bank and certain government officials. Importantly, the bank did not admit any wrongdoing as part of the settlement.

Artificial Intelligence

Ai just learned how to speak

Forming a romantic connection with an AI assistant hasn't been a straightforward task. Conversations often reach a limit when the topics are restricted to weather updates and setting timers. However, this is about to change as OpenAI has unveiled an update to ChatGPT. This update allows ChatGPT to respond to questions with spoken words, resulting in more intricate two-way conversations, a significant departure from the limited small talk provided by Alexa and Siri.

What sets chatty ChatGPT apart from existing voice assistants?

ChatGPT relies on a large language model, an algorithm trained on extensive data, enabling it to engage in flowing, seemingly limitless discussions with its human users. In contrast, digital assistants like Alexa and Siri are programmed with responses for a narrow range of queries. While Amazon and Apple are working to incorporate large language models into their products, OpenAI has taken the lead.

Another advantage that ChatGPT holds over its competitors is that its voices (comprising five in total) sound considerably more human-like than existing digital assistants, which are unmistakably robotic.

When can users start taking advantage of this feature? The voice capability will be rolled out to ChatGPT Plus subscribers ($20 per month) within the next two weeks and will become accessible to everyone else shortly thereafter, as stated by OpenAI.

In addition to the voice update, OpenAI has also equipped ChatGPT with the ability to respond to images presented to it. For instance, you could potentially snap a picture of your math homework and have ChatGPT solve it for you, even though such a use case may not be of great significance to our readers.

In other noteworthy AI developments:

• A competitor to ChatGPT, Anthropic, has secured significant backing from Amazon, with the e-commerce giant investing up to $4 billion. This investment is part of the ongoing AI competition between tech giants like Microsoft and Google.

• Spotify has announced that it will employ technology from OpenAI to translate podcasts into various languages using the host's voice, such as having Bill Simmons express his thoughts on the Patriots in German. Initially, this feature will be limited to select podcasters, episodes, and languages, but Spotify plans to expand its accessibility in the future.

Environment

Lego dismantles plant to make pieces from recycled bottles

Discovering a Lego piece with your bare foot is undoubtedly painful, but the realization that creating these blocks sustainably is challenging can be equally distressing.

Recently, the renowned Danish toymaker revealed that it has had to abandon its initiative to produce its iconic bricks from recycled plastic bottles due to the increased energy consumption it would entail.

Two years ago, when Lego initially introduced the idea of transforming bottles into bricks, it estimated that material from a one-liter bottle could yield approximately 10 bricks. However, transitioning to recycled materials would necessitate significant, carbon-intensive alterations to the company's existing brick production process, which relies on oil-based plastics. Moreover, the prototype blocks produced from this approach did not meet the company's quality standards.

Lego has been striving to create bricks from various environmentally friendly materials, including corn and wheat, but with limited success. The challenge lies in ensuring that these pieces are both easy to assemble and disassemble while also being durable enough to withstand the play of numerous enthusiastic builders over generations.

Interestingly, without disclosing this to the young enthusiasts in our lives, Lego has successfully utilized sugar cane to craft bioplastics for softer elements such as trees and bushes.

Lego remains resolute and determined not to give up its quest to experiment with different materials, maintaining its commitment to produce sustainable bricks by the year 2032.

Fashion

Models clop down Paris runways

It's time to bid farewell to your sleek, black pumps and embrace the return of the ugliest shoes you can find. Paris Fashion Week commenced yesterday, and one of the most talked-about items gracing the runway is Italian designer Marni's "big foot 2.0" - a tennis shoe that appears to come equipped with its own air compressor.

This pneumatic pair is part of the "clowncore" fashion trend that has gained popularity over the past few years. Think of MSCHF's oversized red boots, which were sported by celebrities like Doja Cat and Lil Nas X. Many ensembles showcased at the earlier Paris haute couture fashion shows this year also drew inspiration from clowns and harlequins.

Ugly shoes have consistently been in vogue. These excessively padded and unconventional designs represent the latest evolution in a series of polarizing footwear choices that generate substantial profits. For instance, Crocs reported a record-breaking $1 billion in quarterly revenue in July, Birkenstock is preparing to go public the following month with an estimated valuation of $8 billion, and Deckers Outdoor Corp has built a $13.3 billion empire around brands like Uggs, Tevas, and Hokas.