🐂Messi makes history

Markets

After experiencing its third consecutive weekly decline, the S&P 500 has left investors unsettled, marking its most challenging period since February. Despite this ongoing uncertainty, there is little respite in sight. The upcoming week holds significance as it includes two pivotal events that could significantly impact the market. First, on Wednesday, market attention turns to Nvidia, a prominent player in the AI sector, as they report their earnings. Later in the week, all eyes will be on Friday's annual speech by Fed Chair Jerome Powell at the Fed conference in Jackson Hole, with the potential to drive significant market movements.

Banks Don’t Love Rich Mortgage Borrowers as Much as They Used To

Earlier this year, Sheila Smith was in the process of securing a mortgage of around $750,000 to acquire an investment property in Sedona, Arizona. A regional bank, initially offering a competitive starting interest rate of approximately 5%, had seemingly provided a favorable deal below the prevailing rates.

However, the situation took an unexpected turn when the bank suddenly withdrew the offer, leaving Smith with a dilemma. Faced with the prospect of paying more than anticipated, she made the decision to purchase a more affordable property using her own cash resources.

This turn of events, reported in The Wall Street Journal, highlights a broader trend wherein financial institutions are exercising caution in extending substantial home loans known as jumbo mortgages. Previously considered a safe strategy to attract affluent clients, recent developments including significant interest rate hikes by the Federal Reserve and a series of bank failures have cast a shadow over the banks' enthusiasm for these loans. Consequently, prosperous home buyers are finding that the privileged treatment and advantageous interest rates they were hoping for are no longer guaranteed. This shift has compelled some, like Sheila Smith, to reconsider their housing plans and opt for more conservative financial choices.

Space

See you in the dark side

Covered in craters, capable of plummeting below -300 degrees Fahrenheit, and shrouded in darkness for billions of years, the moon's south pole presents a paradoxical attraction—it's currently the hottest trend in our solar system.

In recent days, a race unfolded between Russia and India, both vying to claim the title of the first nation to successfully land a spacecraft on the lunar south pole. Despite the inhospitable environment, this region carries significant commercial and geopolitical potential for terrestrial powers seeking to expand their presence beyond Earth.

However, Russia's endeavor suffered a substantial setback. The Luna-25 spacecraft crashed during its attempt to touch down on the moon, leading Russia's despondent space agency to announce that the vehicle had "ceased to exist." This failure marks a significant blow for a country that achieved the inaugural moon landing in 1966 but had abstained from lunar missions for nearly five decades.

Stepping up next is India, with its Chandrayaan-3 spacecraft, poised for its landing attempt in the coming days. A successful landing would mark a groundbreaking achievement for India and bolster the credibility of its modest yet burgeoning space program. Notably, India's Department of Space operates on a budget of approximately $1.5 billion, a fraction of NASA's substantial funding of around $25 billion.

So, what's the allure of exploring the moon's dark side?

The answer lies in the presence of ice—a game-changing resource for two primary reasons:

1. Enabling Human Colonies: Water ice is indispensable for sustaining human settlements in space, aligning with NASA's Artemis missions, which aim to establish a human presence on the moon in the current decade.

2. Rocket Fuel Production: The conversion of water into rocket fuel positions the moon as an actual launchpad for expeditions to distant corners of the solar system, including destinations like Mars.

Leveraging the moon's native resources to maintain human habitats and streamline future space launches holds the key to unlocking the next era of space exploration. Consider the analogy of a mere $6 delivery charge for your Uber Eats order, and then extrapolate that to the considerable costs and time required to transport materials over a staggering distance of ~238,000 miles from Earth to the moon.

The concept of "in-situ resource utilization," which involves harnessing the moon's resources, has captured the interest of private sector players in the space industry. For instance, Jeff Bezos's Blue Origin secured a substantial $35 million contract from NASA to develop solar cells from lunar regolith—essentially the crushed rock material that blankets the moon's surface. This endeavor exemplifies the growing involvement of private enterprises in realizing the potential of space resources.

Environment

Hilary drenches western Mexico and California.

Breaking an 84-year record, Hilary, a tropical storm, struck the typically sun-drenched Southern California region. The storm made its landfall on the Baja California peninsula, then advanced northward, drenching the Southwestern United States. Unexpectedly, even arid desert zones east of major cities like Palm Springs, CA, received a deluge, surpassing their usual annual precipitation levels in just one day. The impact of the storm was far-reaching, leading to the cancellation or delay of numerous flights from Las Vegas, San Diego, and Phoenix. Furthermore, several prominent school districts decided to suspend classes for Monday due to the weather conditions.

Amidst this unusual meteorological occurrence, a new term emerged: "hurriquake." As Hilary unleashed heavy rainfall upon Southern California, a 5.1-magnitude earthquake shook the area, although initial reports indicated minimal damage.

In summary, Hilary's unprecedented path marked the first tropical storm to hit the region in 84 years, resulting in widespread effects including heavy rainfall in desert areas, disrupted air travel, and even the coining of a new term to describe the convergence of a hurricane and an earthquake.

Sports

Messi puts MLS on the map

In just over a month since his arrival at Inter Miami, Lionel Messi has not only met but exceeded the sky-high expectations set for him. His presence has not only elevated his team's performance but also brought considerable benefits to Major League Soccer and various brands riding on the wave of his superstar status.

During Saturday night's Leagues Cup tournament, Messi scored his tenth goal in seven games, leading Inter Miami—previously struggling—to victory in penalties. This latest triumph marked Messi's 44th trophy, securing his position as the most decorated soccer player in history.

The ripple effects of Messi's remarkable month have been nothing short of remarkable:

1. Apple: Since Messi's association with Inter Miami, subscriptions to MLS Season Pass on Apple TV+ have more than doubled, as noted by a tweet from one of the team owners. Apple CEO Tim Cook expressed his satisfaction with the partnership during a recent earnings call.

2. Jersey Sales: The iconic pink Inter Miami jersey donned by Messi became the top-selling jersey across all sports for Fanatics last month. Demand for Messi's jersey in Miami has surged significantly, with an Adidas spokesperson describing the demand as "truly unprecedented."

3. Ticket Prices: Comparable to the fervor Swifties bring to the Eras Tour, Messi's presence has packed stadiums nationwide, causing ticket prices to surge over 1,700% on resale platforms. A recent Philadelphia vs. Inter Miami match saw sparse ticket sales transform into standing-room-only tickets priced at $241 and field-level seats commanding a staggering $16,200.

4. Social Media: Inter Miami's Instagram account has witnessed an impressive growth, amassing over 14 million followers—surpassing any NFL, NHL, or MLB team.

5. Financial Impact: Among the beneficiaries of Messi's outstanding performance, Messi himself emerges as a key beneficiary. His distinctive contract arrangement with Inter Miami grants him a share of the revenue generated through his association with Adidas and Apple.

In summary, Messi's short stint at Inter Miami has not only boosted his team's fortunes and enhanced Major League Soccer's prominence but has also triggered significant gains for brands closely linked to his star power. The multifaceted impact of his arrival has transformed the landscape of soccer and commercial partnerships, further solidifying Messi's status as a global sporting icon.

Tech

How Frank Sinatra and Yo Gotti Are Influencing the Future of Music on YouTube

YouTube has enlisted the participation of notable figures, including the estate of Frank Sinatra and other artists represented by Universal Music Group (UMG), to influence the remuneration structure for artists when their creations are utilized by artificial intelligence (AI) tools.

Universal Music Group, in collaboration with Google's YouTube, has initiated a project involving artists like Rosanne Cash, Max Richter, and Yo Gotti. The objective is to explore the evolving landscape of music royalties and artistic expression as generative AI tools provide internet users with increased capability to manipulate creative content.

By establishing this partnership, Universal aims to guarantee equitable compensation for its artists in the face of advancing AI technology. This effort follows the music industry's previous challenges, such as adapting to the ascent of streaming and novel digital platforms.

Across diverse creative domains, including film, music, and book publishing, professionals are advocating for appropriate compensation from providers of AI-generated content, such as Google's parent company, Alphabet. This situation has led to intricate negotiations and sometimes strained discussions between representatives of creative professionals and tech corporations.