FED: World Expects a Pause

The Federal Reserve is expected to maintain interest rates at their current levels for the third consecutive meeting, countering the markets' anticipation of potential rate reductions as early as March.

The Federal Open Market Committee is likely to hold the rates between 5.25% and 5.5% at its upcoming two-day policy meeting concluding on Wednesday. This rate, the highest in 22 years, was first established in July. The decision on the rate and a related statement are scheduled for release at 2 p.m. in Washington, followed by a press conference with Chair Jerome Powell at 2:30 p.m.

Chair Powell has indicated that discussing when the central bank might begin lowering interest rates is premature. The policymakers are instead focusing on a period of observation to assess the effects of the elevated borrowing costs on the economic landscape.

Powell is expected to reaffirm his stance, as he previously articulated in his December 1st speech at Spelman College in Atlanta, that it is too soon to conjecture about the timing of a policy relaxation.

🎯 GRIT TAKE: Wall Street agrees on what Chair Powell will… upgrade to VIP to read the full GRIT take.

TESLA: Autopilot Recall

Tesla is initiating a recall of over 2 million vehicles sold in the United States, encompassing its entire range of models, to address a flaw in the system designed to monitor driver engagement while using Autopilot.

According to information released Wednesday by U.S. road safety authorities, Tesla plans to distribute a software update to rectify the issue.

This recall is the outcome of a two-year probe by the National Highway Traffic Safety Administration into various accidents, some fatal, that occurred while Tesla's semi-autonomous Autopilot feature was activated.

The investigation revealed that the Autopilot's driver monitoring mechanism might be insufficient, potentially leading to the system's misuse.

The recall affects Tesla's Model Y, S, 3, and X vehicles manufactured between October 5, 2012, and December 7 of this year.

COP28: Nations Finally Commit to Deal

In the wake of intense negotiations and robust protests, nearly 200 countries at the United Nations’ COP28 summit in Dubai have resolved to phase out fossil fuels. This significant agreement in the fight against climate change calls for "a transition from fossil fuels in energy systems in a manner that is fair, orderly, and just, with accelerated efforts in this pivotal decade to reach net-zero emissions by 2050, as aligned with scientific findings," as stated in the agreement.

Concurrently, those bullish on oil are facing challenges as market participants evaluate persistent, albeit softer, inflation and reduced demand from China.

Headlines You Need To Know: 🎙

• Mortgage refinance demands jump 19% after rates move lower

• Apple introduces new iPhone security mode

• China turns the table on Wall Street

• Pfizers share sinks on weak revenue

• Vanguard is closer than ever to ending Blackrock’s ETF regime

• MacKenzie Scott donates $6 million

• Why the CyberTruck is so hard to mass produce

• EY is laying off 10% of its US consultants

Beanie Babies Bonanza 🐤💰

You won’t believe which of your favorite childhood toys have created millionaires.

In the early 1990s, Ty Inc. launched Beanie Babies, a line of stuffed animals filled with plastic pellets, giving them a unique, flexible feel. Initially intended as children's toys, these cute, plush animals quickly captured the hearts of adults, too.

Collectors and investors alike began to speculate that Beanie Babies would increase in value over time, leading to a frenzy of buying and trading.

At the height of the Beanie Baby craze, certain rare models like 'Princess', the bear made in memory of Princess Diana, and 'Peanut,' the royal blue elephant, were sold for thousands of dollars. This speculative fever was fueled by the belief that these toys would become valuable collectibles akin to rare stamps or coins.

One notable story is that of Mary Beth Sobolewski, who reportedly made close to $1 million by selling Beanie Babies at the peak of their popularity. She capitalized on the craze by purchasing rare models at retail prices and selling them for exponentially higher prices.

By the late '90s, the market was oversaturated. The demand for Beanie Babies plummeted as quickly as it had risen, leading to a significant drop in prices. Many collectors found themselves with collections worth a mere fraction of what they had paid, turning their investment dreams into financial nightmares. Some people ended up losing hundreds of thousands of dollars. 

Chart of the Day

📊 This chart shows the top 10 hits from Netflix from Jan. to Jun. 2023.

The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

Sources:

_{1. Bloomberg (www.bloomberg.com)}

_{2. CNBC (www.cnbc.com)}

_{3. CNBC (www.cnbc.com)}