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- Wednesday's Scoop: Stirring 🌤️
Wednesday's Scoop: Stirring 🌤️
Nvidia keeps flying & GM brakes on batteries
Scoops Team
August 28, 2024
Hey friend - welcome back to your scoops.
Notice: There will be no scoops during the weeks of Labor Day, the 9th and 16th, as I’ll be traveling for my honeymoon. If you need anything or have any questions about what’s happening in the world, don’t hesitate to email [email protected].
Here’s what you need to know today to inform your work, spending, and investments:
🌎 Big picture
Mortgage rates keep falling.
The Panama Canal is back in action after severe droughts.
European airlines are becoming sustainable fuel leaders.
How are you feeling about the economy? |
🌊Climate trends
Global Energy Emissions: 37.4B metric tons of CO2
An all-time high, up 1.1% from 2022. (IEA)
One of the world’s busiest waterways has restored traffic after severe droughts. The Panama Canal is easing restrictions that caused global shipping delays as water levels recover. The Panama Canal Authority has increased the canal's draft to its maximum of 50 feet and will allow up to 36 vessels per day to transit, up from the 24 daily transits at the drought's peak. This move comes as recent rains have boosted water levels, with further improvements expected by November. Although traffic through the canal is still below pre-drought levels, the authority expects a full recovery within five to six months. The canal, which handles about 3% of global maritime trade, is a crucial route for container shipments from Northeast Asia to the US East Coast.
European airlines are leading the charge in using lower-pollution jet fuel, outpacing their US counterparts. According to Bloomberg, in 2023, Air France-KLM led all passenger airlines, with 1.1% of its fuel coming from sustainable aviation fuel (SAF), far exceeding the 0.17% used by United Airlines, the US leader. DHL Group topped the global charts with over 3% of its fuel sourced from SAF, more than all US airlines combined. The European Union's mandate requiring airlines to use 2% SAF starting next year drives this shift, while US airlines rely on voluntary measures and incentives, leading to slower adoption. Europe continues to lead America in taking action toward reducing its environmental impact.
🤓 Inside Scoop: What are sustainable aviation fuels?
Airlines are working on making their flights more sustainable. The aviation industry is responsible for 2-3% of global greenhouse gas emissions.
Sustainable Aviation Fuels (SAFs) are made from sustainable waste products like feedstocks and agricultural residues. They can reduce fossil fuel pollution by over 80% compared to regular jet fuel. Integrating more alternative aviation fuels can help airlines mitigate their environmental impacts.
🏠Housing trends
30yr Mortgage Rate: 6.4%
That’s down from 7.3% a year ago. (MBA)
Median Home Price: $422,600
That’s up from $406K a year ago. (Existing Homes, NAR)
Mortgage rates keep falling. The Mortgage Bankers Association reported that the average 30-year fixed-rate mortgage fell last week to 6.44%, the lowest level since April 2023. This drop follows signals from Federal Reserve Chair Jerome Powell that policymakers may begin lowering baseline interest rates to make it a little easier to do business and avoid any further increase in the unemployment rate. While refinancing applications remain high as homeowners seek lower payments, purchase applications only increased slightly. Affordability is still a challenge. Lower mortgage costs have spurred some additional home buying, but housing prices are still near records.
📈Investment trends
The Market: ⬇️ -0.6%
S&P 500: 5,592.18
1Mo: +2% | 1Yr: +26% | 5Yr: +91%
The market wavered lower on Wednesday as investors grew nervous about the tech industry's resilience. High expectations about the potential for AI have inflated tech companies' valuations and driven much of this year's rally. Nvidia seems to be one of the few reaping the benefits, and its growth, while still surging, keeps surging a little more slowly.
🏭 Companies worth watching
👍👎 APPROVAL RATINGS
Vote and practice your board member voice. It accelerates your comprehension and comfort with these topics. (+2 pts)
 Abercrombie & Fitch | Fashion Warning Abercrombie & Fitch reported surging sales growth last quarter, driven by a strong performance from its Hollister brand and international markets. The retailer warned of tougher months ahead but hopes to find more growth in kids' clothing.
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 General Motors | Battery Slowdown General Motors will delay opening its new battery factory in Indiana, saying it won't start until 2027 as weaker consumer interest in electric vehicles forced the automaker to rethink its strategy. The carmaker aims to build 200,000 electric vehicles this year despite selling only 38,000 in the first half.
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 Stellantis | Concealed Pollution Stellantis is facing a class action lawsuit in the Netherlands, claiming its predecessor, Fiat Chrysler, harmed investors by concealing the use of illegal software that helped its vehicles cheat emissions tests. The automaker was formed in 2021 from the merger of Fiat Chrysler and France's Peugeot.
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 Kohl’s | Getting Lean Kohl's raised projected profit for the year after effectively cutting costs and cleaning up its inventories, even as overall sales declined. The struggling discount retailer plans to focus on promotional pricing and fresh styles to attract shoppers during the upcoming holiday season.
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💭Broader perspectives… (+ 2pts)
Do you feel like you’re spending more or less than you did at this time last year? |
 Nvidia | Still Booming The world's most dominant AI chipmaker is still reaping massive benefits of the AI transition, more than doubling its sales and profits from a year ago, though the growth is slowing. Nvidia's graphics and gaming chip businesses are also doing well, and it expects to launch its new AI processor chip this fall.
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🛠️ Recommended resources (+2 pts)
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Timeline: June 30 - August 31
To Enter: Sign up for a free Future debit card.
To Win $500: Complete the most sustainable actions out of all Scoop readers.
To Win $100: All Scoop readers make at least 500 cumulative green actions.
Click here to sign up.
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Our Future Card Review:
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What we like:
The FutureCard offers 5-6% cash back on sustainable purchases, from using public transit to shopping for environmentally responsible products.
Earn 1% cash back on all other purchases.
It’s a debit card, so no interest payments or credit checks are required.
Future provides a user-friendly app to track your card, balance, and purchases.
The companion app also offers points, special deals, and rewards for sustainable decisions such as purchasing solar power, shopping secondhand, or lowering gas usage.
The application process is smooth, simple, and easy.
The digital card is available to use immediately through a mobile wallet.
Balances held with Future earn interest and are FDIC insured up to $250K.
No monthly or annual fees.
No ATM fees or foreign transaction fees.
Drawbacks:
It’s only available for US residents.
It’s not a credit card, so it doesn’t build your credit history.
As with all debit cards, you have to transfer money to the card first to use it. It doesn’t auto-transfer from your connected bank.
The sustainable actions that earn big rewards aren’t things you do frequently, like switching to clean energy, buying an electric vehicle, or installing solar panels.
It’s easy to find which brands offer cash back for FutureCard members, but you can’t shop through the app or search for products.
You don’t see statistics about the environmental impacts of your daily spending yet.
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