Market News 7/12

Markets

Stocks rebounded from a three-day downturn, driven by positive developments in the corporate sector. Examples include Salesforce's price increases and Zillow receiving an analyst upgrade. However, in our focus on individual stocks, it is worth acknowledging Coinbase's remarkable surge of almost 73% since the SEC filed a securities violation lawsuit against the company in early June.

Environment

Man made world

Scientists categorize the Earth's geological history into stages, including epochs, periods, and eras, which represent significant shifts in the natural world. For the past 11,700 years, we have been in the Holocene epoch. However, a group of scientists known as the Anthropocene Working Group argues that a new epoch, called the Anthropocene, began in the mid-20th century.

The Anthropocene is unique because it is defined by the impact of human activities rather than natural processes. It reflects the harmful influence that Homo sapiens have had on the Earth. Recently, the Anthropocene Working Group selected Crawford Lake in Ontario, Canada, as a "golden spike," a physical location that symbolizes the proposed Anthropocene epoch. This site was chosen because it exhibits clear and significant evidence of human impact on the global geological record, such as increased levels of radioactive plutonium and pollution from fossil fuels in the lake's sediment.

However, the classification of the Anthropocene as a new epoch is still a subject of debate among scientists. Opponents argue that the period of human influence, although substantial, is relatively short compared to the timescales of other epochs, which can span millions of years. On the other hand, proponents believe that formally recognizing the Anthropocene could inspire a shift in attitude towards addressing climate change by acknowledging the significant changes humans have made to the planet in a relatively short period.

In the coming years, the International Commission on Stratigraphy and the International Union of Geological Sciences, two influential scientific bodies, will decide whether to officially recognize the Anthropocene as an epoch. However, the decision is expected to be contentious, as it has already caused divisions within the scientific community, leading to the resignation of some members of the Anthropocene Working Group due to differing opinions.

Finance

Bank of America slapped with $250 million in fines for “junk fees

The Consumer Financial Protection Bureau (CFPB) has imposed penalties on the second-largest bank in the US for a range of consumer-related misconducts. These include unauthorized opening of credit card accounts, charging double overdraft fees, and wrongfully withholding credit card rewards. The fines are a part of CFPB's ongoing efforts to combat unfair fees, such as overdraft charges, which have contributed significantly to Bank of America's revenue between 2018 and 2022, amounting to hundreds of millions of dollars. In a similar case last year, Wells Fargo settled with the CFPB for $3.7 billion regarding similar issues related to unjust fees.

Sports

PGA Tour officials said a merger with LIV was the only option

During a Senate hearing held recently, Jimmy Dunne, a board member of the PGA Tour, testified that the league was compelled to form a partnership with Saudi-backed LIV Golf due to the vast financial resources available to the Saudis, stating that they "have an unlimited horizon and an unlimited amount of money" which the PGA Tour couldn't match. Senator Ron Johnson, a Republican, expressed sympathy for the PGA Tour, highlighting that LIV Golf possesses financial resources 500 times greater than those of the PGA Tour. However, Democratic Senator Richard Blumenthal criticized the PGA Tour for compromising its values in pursuit of monetary gain. Additionally, Senator Blumenthal mentioned that the Department of Justice (DOJ) is investigating the PGA-LIV deal on antitrust grounds.