Google Wins Appeal Against $1.7 Billion EU Fine 👏

Good morning. It's Thursday, Sept. 19, and we're covering, The Federal Reserve Has Cut Interest Rates By Half A Percentage Point, Google Wins Appeal Against $1.7 Billion EU Fine Over Ad Practices, Historic Rainfall Causes Severe Flooding Across Four Continents, and much more. First time reading? Sign up to get this newsletter: Sign up here.

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MARKETS

Cryptocurrency Prices by Market Cap

• The global cryptocurrency market cap today is $2.15 Trillion, a 3.14% increase in the last 24 hours.

• The total crypto market volume over the last 24 hours is $94.48B, which makes a 22.26% increase.

• The total volume in Defi is currently $4.6B, 4.87% of the total crypto market 24-hours.

• The volume of all stablecoins is now $86.45B, which is 91.50% of the total market 24-hour volume.

• Bitcoin’s dominance is currently 57.14%, a decrease of 0.14% over the day.

Bitcoin Reaches Three-Week High Following Fed Rate Cut

Bitcoin surged to a three-week peak, climbing as much as 3.9% to $62,129, as US equity futures and global stocks also advanced in response to the Federal Reserve's recent interest rate cut. The Fed reduced borrowing costs by 50 basis points, marking its first cut in over four years. (Read Deeper)

BUSINESS & FINANCE

The Federal Reserve Has Cut Interest Rates By Half A Percentage Point

The Federal Reserve cut interest rates by half a percentage point, lowering the benchmark rate to a range of 4.75% to 5.0%. This marks the first rate reduction since 2020, signaling an end to the aggressive inflation-fighting policy of recent years. The Fed also indicated plans for two more rate cuts in 2024 and four more in 2025. While most officials supported the decision, Fed Governor Michelle Bowman dissented, favoring a smaller 25 basis point cut.

Takeaway: Chair Jerome Powell emphasized the Fed is not behind in policy adjustments and remains focused on achieving its 2% inflation target. The labor market has slowed but remains stable, and the economy is expected to grow by 2% annually for the next two years. Inflation is projected to end at 2.6% this year and fall to 2.2% in 2025. Powell highlighted that the battle against inflation is not yet over. ( Read Deeper)

Google's Offer To Sell Part Of AdX Tech Business

Google offered to sell part of its ad tech business, specifically the advertising marketplace AdX, in an attempt to settle an EU antitrust investigation. However, European publishers rejected the proposal, arguing it was insufficient because they wanted Google to divest more than just AdX to resolve conflicts of interest stemming from its dominance across the entire ad tech supply chain. The European Commission had charged Google with favoring its ad services, marking the fourth antitrust case against the tech giant.

Takeaway: This marked the first time Google had offered to sell an asset in an antitrust case. Publishers and regulators remain concerned about the company’s control over various parts of the digital advertising ecosystem. While the Commission may not immediately force Google to divest assets, it is expected to issue orders to stop anti-competitive practices in the coming months. Google's ad tech business is central to its revenue, with $237.85 billion of its 2023 income (77%) coming from advertising across platforms like YouTube, Google Play, and Ad Manager. (Read Deeper)

TECHNOLOGY & SCIENCE

Google Wins Appeal Against $1.7 Billion EU Fine Over Ad Practices

Google successfully appealed a $1.7 billion fine imposed by the European Union (EU) in 2019 for anti-competitive advertising practices. The EU's General Court ruled that while Google did block rival advertisers, the European Commission failed to fully consider the length of time these practices were in place. The fine was originally imposed for exclusivity clauses in Google’s contracts from 2006 to 2016, but Google had made changes before the commission's decision.

Takeaway: This decision is one of several antitrust cases against Google in Europe. Earlier this month, the EU's highest court upheld a separate $2.7 billion fine related to Google's preferential treatment of its shopping services over competitors. The EU Commission may appeal the ruling, while Google welcomed the annulment. This is part of multiple antitrust cases against Google in Europe. (Read Deeper)

YouTube Announces AI Features For Shorts Creators

YouTube has introduced new AI tools for creators on its Shorts platform, powered by Google's DeepMind video-generation model. The features, called Veo, allow creators to generate AI-based video backgrounds and six-second video clips using text prompts. These tools aim to streamline content creation by making it faster and more efficient. The AI-generated backgrounds will be available later in 2024, with the six-second clips coming in 2025.

Takeaway: Additional AI features in YouTube Studio will help creators generate titles, thumbnails, and video ideas. While many creators are excited about the new tools, some, like YouTube comedian Thomas Simons, have expressed concerns about AI-generated content potentially violating intellectual property or flooding the platform. To address this, YouTube will watermark and label AI-created content. (Read Deeper)

AROUND DE WORLD & POLITICS

Historic Rainfall Causes Severe Flooding Across Four Continents

This week, unprecedented rainfall triggered severe flooding in central Europe, Africa, Shanghai, and the US Carolinas, highlighting the profound impact of climate change on global weather patterns. Experts attribute these extreme weather events to global warming, which has increased the atmosphere's capacity to hold moisture, leading to more intense and widespread precipitation.

Takeaway: In Europe, Storm Boris brought record-breaking rains to several countries, resulting in at least 20 deaths and severe flooding. In Africa, unprecedented monsoon rains displaced 2.9 million people and worsened food shortages. Shanghai experienced the strongest typhoon in over 70 years, leading to transportation disruptions and fatalities. In the US Carolinas, a historic rainstorm resulted in up to 18 inches of rainfall, causing major flooding. (Read Deeper)

Chaos Erupts In Lebanon As Electronic Devices Targeted In Attacks

Lebanon has been rocked by a series of attacks involving electronic devices. The violence began with coordinated pager explosions on Tuesday, killing 12 people and injuring about 2,800. The attacks, which followed a message believed to be from Hezbollah, caused severe injuries, including loss of sight and limbs. The situation worsened with a new wave of explosions targeting walkie-talkies, resulting in at least 20 more deaths and 450 injuries.

Takeaway: The attacks have heightened fears that all electronic equipment is now vulnerable, with Hezbollah supporters stopping journalists from using devices. The explosions have led to speculation that Hezbollah's communication network might have been compromised by Israel. The escalating conflict between Hezbollah and Israel, which began nearly a year ago, is further straining Lebanon, already struggling with an economic crisis. (Read Deeper)

ENTERTAINMENT & SPORTS

MrBeast Faces Class Action Lawsuit Over Alleged Sexual Harassment And Unsafe Work Conditions On ‘Beast Games’

YouTube star MrBeast, known for his high-stakes challenges and philanthropy, is now embroiled in a class action lawsuit filed by five former contestants of his upcoming reality competition series, Beast Games. The lawsuit, lodged on Monday, accuses MrB2024, the production company believed to be owned by Jimmy Donaldson (aka MrBeast), and Amazon of exploiting labor, violating employment laws, and fostering a hostile work environment. (Read Deeper)

AI Helps Liverpool Secure Champions League Comeback Against AC Milan

Liverpool's 3-1 victory over AC Milan in the Champions League on Tuesday highlighted a significant shift in their approach to set pieces, thanks in part to advanced AI technology. The Reds, under the guidance of new set-piece coach Arne Slot, have integrated AI-driven strategies to enhance their performance in crucial moments. This season marks Liverpool's return to the Champions League after a year in the Europa League and the departure of Jurgen Klopp. (Read Deeper)

PODCAST(WHAT WE ARE LISTENING TO)

• Clay Finck shares the most important lessons he’s learned from Morgan Housel. Morgan Housel is a partner at The Collaborative Fund. He’s the New York Times Bestselling author of The Psychology of Money and Same As Ever. (Listen)

EXTRA BREVITI

• Nintendo Sues "Pokémon with Guns" Game Developer Over Patent Infringement (Read More)

• Fal.ai, a platform specializing in AI-generated media, has raised $23 million in funding from investors including Andreessen Horowitz (a16z). (Read More)

• Harris Aims to Leverage Polish American Support in Election Battle Against Trump ( Read More )