1. U.S. Core CPI Inflation Accelerates
2. Soaring Coffee Prices Attract Thieves
3. McDonald’s Introduces Cash-Compatible Self-Order Kiosks
4. OpenAI Plans $65 Billion Fundraising Round
5. U.S. Mortgage Rates Drop to 18-Month Low
6. Nvidia Faces Strained Customer Relations
7. Bitcoin Mining Difficulty Surges
1. U.S. Core CPI Inflation Accelerates
According to data released today by the U.S. Bureau of Labor Statistics, core CPI rose 0.3% month-over-month in August — the largest increase in four months — and 3.2% year-over-year.
Economists say core CPI better reflects the underlying trend of inflation, as it excludes food and energy price volatility.
The new figures are unlikely to change the Fed’s decision to cut rates next week, but the probability of a cut greater than 25 basis points has diminished.
Shelter costs remained the largest contributor to the CPI increase.
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2. Soaring Coffee Prices Attract Thieves
Over the past year, coffee bean shortages have driven prices sharply higher, with Ugandan farmers increasingly targeted by thieves. Some farmers have added guard dogs or wake up in the middle of the night to patrol their fields.
Other high-value crops like cocoa in Africa and olives and ham in Spain have also attracted theft, while Vietnamese coffee prices have surged due to rising demand and drought conditions.
Since the beginning of the year, the cost of Ugandan coffee has surged 65% to $1.89 per kilogram.
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3. McDonald’s Introduces Cash-Compatible Self-Order Kiosks
Sources say McDonald’s is preparing to roll out self-order kiosks that can accept and dispense change, enabling fully cashier-free transactions even for cash-paying customers.
Most McDonald’s locations already have self-order kiosks, but customers using cash still need to interact with a counter employee. Even after the rollout, traditional counters will remain available.
McDonald’s says the goal is to improve efficiency and accuracy, and franchisees will have the option to upgrade or not.
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4. OpenAI Plans $65 Billion Fundraising Round
Sources say OpenAI is preparing a new fundraising round at a valuation of $150 billion — up significantly from $86 billion earlier this year.
The company is also negotiating a $5 billion revolving credit facility with major banks.
The round will reportedly be led by Thrive Capital, with participation from Microsoft — OpenAI’s largest shareholder — and interest from Apple and Nvidia.
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5. U.S. Mortgage Rates Drop to 18-Month Low
According to the Mortgage Bankers Association, the 30-year fixed mortgage rate fell 14 basis points last week to 6.29% — the lowest since February 2023 — and has now declined for six straight weeks.
Purchase application volume rose 1.8%, reaching a two-month high. Refinance applications also increased 0.9%, the second-highest since May 2022.
The 15-year mortgage rate fell 27 basis points to 5.71%, also the lowest since February of last year.
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6. Nvidia Faces Strained Customer Relations
Nvidia CEO Jensen Huang said today that the severe shortage of its Blackwell chips is creating tension with customers, as everyone wants priority access to limited supply.
Huang noted that clients have grown increasingly impatient, but the company understands the pressure and is working to meet demand.
Nvidia outsources its hardware production and is continuing to scale its own manufacturing capacity.
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7. Bitcoin Mining Difficulty Surges
According to crypto tracking platform CoinWarz, Bitcoin mining difficulty rose 3.5% on Wednesday due to heightened competition among miners.
Experts warn that if competition continues to intensify, many miners will struggle to cover costs, let alone earn profits.
Bitcoin mining stocks are under pressure, with Marathon Digital and Riot Platforms down 31% and 54%, respectively, this year.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.