September 5-15 KC
Palantir Joins the S&P 500
Data analytics powerhouse Palantir Technologies is set to join the S&P 500 on September 23, along with Dell Technologies and Erie indemnity. They will replace American Airlines, Etsy, and Bio-Rad Laboratories as part of the quarterly rebalancing of the index. Founded by Peter Thiel, Palantir has seen its stock surge over 114% this year, largely thanks to the AI boom. This move led to a 13% surge in share price on September 9. However, questions remain about the company’s reliance on government contracts and its path to consistent profitability. Will Palantir’s S&P 500 debut silence its critics or amplify the scrutiny?
Biden Takes Aim at Fast Fashion
The Biden administration proposed new rules to close a trade “loophole” exploited by Chinese e-commerce giants like Shein and Temu. The de minimis rule, which allows tax exemptions on low-cost imports under $800, has seen package volumes explode from 140 million to over a billion annually. The proposed changes would force these retailers to pay tariffs for the first time, potentially leveling the playing field for American-made products. While Shein and Temu seem unfazed, US e-commerce stocks like Etsy and Wayfair jumped over 5% on the news. Will this move reshape the fast fashion landscape?
Google’s Ad Tech on Trial
Google’s facing its second antitrust showdown in less than a year over its dominance in digital advertising. The DOJ alleges Google’s trifecta of ad software products unfairly dominate their respective markets, allowing the tech giant to keep $0.36 from every dollar spent on ad deals it brokers. Google claims the case is based on an outdated view of the internet, but the potential consequences are huge – regulators want Google to divest its popular Ad Manager services. With billions in revenue at stake, could this trial reshape the online advertising landscape?
Draghi’s €800 Billion EU Boost
Europe must invest up to €884 billion annually or face declining living standards, warns former European Central Bank (ECB) President Mario Draghi. His turnaround plan for the EU recommends collective borrowing to increase investment by 5% of combined GDPs – a spending boom almost double the post-WWII Marshall Plan. Draghi’s prescription includes pouring cash into green tech, digital breakthroughs, and shared military defense. However, with Germany already opposing shared borrowing, can the EU overcome political hurdles to enact this ambitious strategy?
Europe’s China Situation
Former ECB chief Mario Draghi is sounding the alarm on Europe’s “China problem.” In a landmark report, Draghi warns that increased reliance on China for decarbonization goals poses a “threat” to EU clean-tech and automotive industries. Dutch commissioner-designate Wopke Hoekstra echoed these concerns, stating, “China is challenging us in such a fundamental way that it would be naïve to deny that Europe has a China problem.” With the EU struggling to compete against heavily subsidized Chinese electric cars, Draghi calls for a “comprehensive approach” to car production.
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