1. Powell Confirms Fed Has Begun Rate Cuts
2. French AI Firm Loses Three Founders
3. Apple to Launch New Products on Sept. 10
4. PIMCO Bonds Downgraded to Lowest Rating
5. McKesson to Acquire Oncology Clinic Chain
6. Second-Largest Diamond Ever Unearthed
7. Japan Tax Agency to Auction Off Ferrari
1. Powell Confirms Fed Has Begun Rate Cuts
At the annual Jackson Hole conference today, Federal Reserve Chair Jerome Powell stated that it’s time for the Fed to adjust policy. The direction is clear, but the pace and magnitude will depend on future data.
Powell acknowledged progress in reducing inflation and said he’s confident it can return to 2% sustainably.
Swap traders continue to bet that the Fed will cut rates by a cumulative 102 basis points before year-end.
Following the speech, the odds of a 50 basis point rate cut in September rose to 24%.
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2. French AI Firm Loses Three Founders
A French AI startup called H lost three of its five co-founders before releasing a single product.
Founded earlier this year, the company aims to develop AI models capable of outperforming existing market leaders in multitasking. It attracted significant interest from billionaires and major VC firms during fundraising.
In May, Accel Partners led a $220 million Series A round. Other investors include Amazon, Samsung, former Google CEO Eric Schmidt, and LVMH CEO Bernard Arnault.
Three co-founders resigned just three months after funding due to internal management disagreements.
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3. Apple to Launch New Products on Sept. 10
Sources say Apple plans to hold its biggest product launch event of the year on September 10. The company will unveil new iPhones, Apple Watches, and AirPods.
The new iPhones are expected to go on sale September 20, following Apple’s usual schedule.
Recent quarters have seen declining hardware sales. Revenue from iPhone 16 will be included in the fiscal Q4 report, which Apple expects to show a 5% YoY increase.
Holiday season revenue is forecast to rise 7% to $128.4 billion, according to analysts.
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4. PIMCO Bonds Downgraded to Lowest Rating
Moody’s Ratings today downgraded $1.72 billion in mortgage-backed securities tied to PIMCO, citing tenant losses and looming loan defaults on seven buildings in NYC, San Francisco, New Jersey, and Boston.
A senior credit officer at Moody’s said the bonds are now rated at the lowest junk level, reflecting growing interest shortfalls and potential principal losses.
Trepp reports that U.S. office property values—especially in CBDs—have dropped 52% since 2022.
In July, the delinquency rate for U.S. office CMBS doubled to 8.09%.
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5. McKesson to Acquire Oncology Clinic Chain
Sources say pharmaceutical distributor McKesson is in talks to acquire a majority stake in private oncology group Florida Cancer Specialists, in a deal valued at around $3.5 billion.
McKesson recently competed with other bidders including Cencora and Cardinal Health.
In recent years, McKesson and its rivals have expanded into cancer care services to boost sales of specialty drugs.
McKesson shares are up 19% year-to-date; this would be its third-largest acquisition.
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6. Second-Largest Diamond Ever Unearthed
This week, Canadian miner Lucara Diamond discovered a 2,492-carat diamond in Botswana — the largest find since the 3,106-carat Cullinan diamond over a century ago.
Former De Beers executive Clifford Elphick called the discovery a once-in-a-century geological event and the most important diamond of the 21st century.
Lucara estimates the stone could be worth $40 million. Its shares rose about 40% today.
Lab-grown diamonds and weakening luxury demand have weighed on the diamond industry overall.
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7. Japan Tax Agency to Auction Off Ferrari
This week, Tokyo’s tax agency seized a Ferrari 488 valued at $390,000 and will hold a two-day online auction next month.
In addition to the luxury car, rare items like a bottle of Hibiki 30-year-old Suntory whiskey, upscale real estate, and golf courses will also be auctioned.
In 2012, the agency auctioned a 7.5-carat diamond for a starting price of ¥40 million; it ultimately sold for $7.6 million.
The most expens
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.