🐂 Mystery solved

Markets

Stocks made a slight upward movement yesterday as investors approached the final stretch of August. Hawaiian Electric, which had experienced its lowest point since 1984 last week, experienced a significant increase yesterday. This surge followed the company's strong response to Maui County's lawsuit, where it was accused of initiating the destructive wildfires. The utility defended itself by stating that its fallen power lines indeed caused one fire, which firefighters successfully controlled. Additionally, they emphasized that they had shut off power hours prior to the start of a second fire that proved uncontrollable.

Job Market Cools but Is Far From Freezing

The robust demand for workers that was initiated by the pandemic is gradually tapering off. Despite ongoing economic concerns, employers are not eager to initiate layoffs.

According to the Labor Department's latest report on Tuesday, there were around 8.8 million unfilled job openings at the end of July on a seasonally adjusted basis. This marked a decline from 9.2 million in June and a significant drop from 11.4 million a year ago. Although this still represents a substantial number of job openings – about 1.5 for every unemployed person, compared to the 2019 average of 1.2 during a strong job market year – it serves as a new indicator that the labor market is indeed cooling down.

The number of individuals voluntarily leaving their jobs has also decreased. In July, the Labor Department recorded approximately 3.5 million resignations, compared to 3.8 million in June and four million a year earlier. This brought the "quits rate" – the proportion of resignations relative to total employment – to 2.3%. This was the lowest level since January 2021, matching the average for 2019. The decline in resignations is likely to be well-received by the Federal Reserve, as resignations can actually provide a more accurate insight into the tightness of the job market compared to job openings. People typically quit their current positions when they have secured better opportunities elsewhere, often accompanied by higher wages.

Real Estate

Who is building a new city in California?

Several of the world's wealthiest individuals are investing in the concept of a new ideal community in California.

According to The New York Times, a group of prominent figures in the tech industry have joined forces to purchase approximately $800 million worth of land in Solano County, California, which is situated just a few hours outside of the San Francisco Bay Area. Their objective is to construct an entirely new city.

Given the rapid pace at which real estate in the Silicon Valley region is being acquired, posing a challenge for expanding their workforce, tech moguls have become frustrated by the limited housing options. The proposed city is envisioned as an environmentally friendly, well-connected urban space with a focus on high population density and accessible public transportation – all in an effort to address this issue.

Unveiling the identity of the land's enigmatic buyers, The New York Times identified the following:

• Flannery Associates, founded by Jan Sramek, a former Goldman Sachs trader, is the entity making the land acquisitions.

• The roster of investors includes Michael Moritz, Chairman of Sequoia Capital; Reid Hoffman, co-founder of LinkedIn; venture capitalists Marc Andreessen and Chris Dixon from a16z; Patrick Collison and John Collison, co-founders of Stripe; and Laurene Powell Jobs, founder of Emerson Collective and widow of Steve Jobs.

This endeavor presents a unique opportunity to the aforementioned billionaires, akin to the significance of a person building a computer in their garage. It could potentially alleviate California's severe housing shortage, generate thousands of new jobs, increase tax revenue, and stimulate infrastructure investment.

However, California is renowned for its challenges in constructing new residential properties, and much of the acquired land by Flannery Associates is not currently zoned for housing.

Representative John Garamendi, who represents a district encompassing some of this land, mentioned to Bloomberg that for the development to have a chance, the residents of Solano County would likely need to approve a rezoning initiative—a prospect he deemed unlikely. Adding to the complexity, many of the residents were previously sued by Flannery in 2018 on allegations of conspiring to inflate land prices.

Politics

Trump trial set for the heart of primary campaign season

The judge presiding over the federal criminal lawsuit concerning former President Donald Trump's alleged actions to overturn the results of the 2020 election has chosen March 4, 2024, as the trial's commencement date. This date falls just before Super Tuesday, during which several states hold primary elections. The judge's decision disregarded Trump's attempt to delay the trial until 2026, as well as the prosecution's request to expedite it to January. Following the hearing, Trump expressed his intention to appeal and accused the judge of bias in a post on Truth Social.

In a separate legal proceeding related to the conspiracy case against Trump under Georgia state law, Mark Meadows, the former White House Chief of Staff, provided testimony with the aim of transferring the allegations against him from state court to federal court. The move appears to be part of Meadows' legal strategy.

Environment

Idalia is expected to hit Florida as a Category 3 hurricane.

Tennis takes center stage in the vibrant city of New York for its ultimate major tournament of the year. As Serena Williams and Roger Federer step back from the scene, the emerging rivalry between Carlos Alcaraz and Novak Djokovic has captured the sport's most captivating narrative. Additionally, American talent Coco Gauff is delivering an exceptional performance. We'll catch you in Queens for all the action.

Travel

Google flights upgraded its cheap airfare tracker

Get ready, because airport dads are going to have an even greater responsibility with Google Flights introducing new tools tailored for budget-conscious travelers.

Heads up: Google recently announced that the start of October is expected to be the optimal period for booking domestic flights for Thanksgiving or mid-December travel this year. When it comes to journeys from the US to Europe, prices are projected to climb, particularly when you're within 72 days of departure.

While the era of significant last-minute price drops might be on hold, Google Flights assures users that it can still assist in finding economical tickets by analyzing trend data. Here's what's in store:

1. Ideal booking timing: Google Flights previously categorized ticket prices as low, average, or high compared to historical averages. With its latest upgrade, certain listings will display a range of dates when flights are likely to be the most affordable.

2. Price tracking: You can choose to receive notifications about price reductions for specific dates or any time within the next three to six months.

3. Price assurance: Colorful badges accompanying select flights indicate that if the ticket price decreases after your purchase and you've used Google Pay, you'll receive reimbursement.

In the bigger picture: These enhancements are aimed at competing with other airfare services like Kayak and Hopper, which offer similar functionalities but charge extra for their versions of price guarantees.