Warren Buffett is building up his cash position

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🔥 Inflation Rises Slightly In July [WSJ]

Inflation pressures eased as the CPI rose by only 0.2% in July, potentially influencing the Fed to hold off on interest rate hikes in its upcoming September meeting.

📊 Berkshire Hathaway Near-Record Cash Pile [NYT]

Berkshire Hathaway announced record quarterly operating profit and, despite challenges in sectors like the BNSF railroad, saw a 7% increase in operating profit from the previous year. The company's market actions included a $1.4B stock repurchase and net selling of around $8B in stocks, boosting its cash position to $147.4B (up from $130.6B three months prior).

🏦 Moody’s Drops Credit Rating For 10 U.S. Banks [BB]

Moody's lowered ratings for several US banks due to concerns over rising funding costs, potential regulatory capital weaknesses, and risks related to commercial real estate. This led to a decline in bank stocks, with investors wary of the industry's stability amidst rising interest rates and eroding bank assets.

💳 Credit Card Debt Surpasses $1T [WP]

Americans' credit card debt reached $1.03T in Q2, a 4.6% increase from the previous quarter. Despite the rise, many Americans have managed their credit card payments well, but the resumption of student loan payments may pose challenges. Data also reveals that high-income households also carry significant debt, often for discretionary expenses.

🪙 PayPal Launches Its Own Stablecoin [R]

PayPal has introduced a U.S. dollar stablecoin named PayPal USD, marking the first major fintech firm to integrate digital currencies into its payment system. PayPal's move signifies growing confidence for the potential of stablecoins in mainstream consumer payments.

💃 Cathie Wood Buys Robinhood While Google Sells [B]

Alphabet significantly reduced its stake in Robinhood by nearly 90%, while Cathie Wood continues to purchase shares for her ARK funds. Robinhood's stock has faced challenges, with a recent decline following a drop in trading activity, despite the company's first quarterly profit.

♠️ ESPN Enters Sports Betting With Penn [NYT]

ESPN has entered a 10-year partnership with Penn Entertainment to launch an online sports betting brand, ESPN Bet, with Penn paying ESPN $1.5B for branding and promotional rights. As part of the deal, Penn is selling Barstool Sports back to its founder, David Portnoy, and ESPN Bet will replace the Barstool Sportsbook branding.

🚚 UPS Drivers To Earn $170,000 [CNBC]

UPS has reached a five-year contract with the Teamsters Union where drivers will average $170,000 in pay and benefits. The agreement, covering 340,000 workers, raises part-time wages to at least $21/hour and ends mandatory overtime for drivers on their days off.

Review of the Week

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