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In the context of Fed's rate reductions, financial markets encounter a potentially unprecedented series of losses
Good morning,
When Our Website ranked the Richest Black Individuals in 2009, only one person was a billionaire: Oprah Winfrey, valued at approximately $2.7 billion.
However, net worth isn't the only measure of impact and influence in the community and world at large. Today, Our Website launched its inaugural OurBLK 50, featuring some of the wealthiest Black individuals, as well as entrepreneurs, activists, and innovators.
Many of the 2009 list members, like Oprah and Michael Jordan, remain on the list. But this year's list also includes leaders like Ken Chenault, the chairman of global VC firm General Catalyst and former CEO of American Express, and Thasunda Brown Duckett, CEO of New York-based retirement services giant TIAA, one of only two Black female CEOs at a Fortune 500 company.
Let's dive into the headlines,
FIRST UP
The Federal Reserve reduced interest rates for the third consecutive time on Wednesday, as expected. However, the Fed hinted at fewer rate cuts in the future compared to previous forecasts. The median Fed staff forecasts indicate that interest rates will end 2025 at 3.75%-4%, suggesting that Americans may have to accept higher rates for the foreseeable future.
MORE: The Fed's more aggressive stance led to a market selloff, with the Dow Jones Industrial Average experiencing its longest losing streak since 1974. The S&P 500 and Nasdaq stock indexes also dropped by 3% and 3.6%, respectively.
Tesla's stock has skyrocketed following CEO Elon Musk's financial support for President-elect Donald Trump's election. However, Tesla's auto business has faltered, leading the company to offer discounts to boost sales. Despite growth in China, a decline in orders in the U.S. and Europe in 2023 may result in Tesla experiencing its first-ever drop in global sales.
BUSINESS + FINANCE
Amazon's unionized workers across seven U.S. warehouses went on strike on Thursday after failed negotiations for better working conditions and wages. The International Brotherhood of Teamsters, representing about 10,000 Amazon workers, gave the company a deadline to discuss these issues. Despite the strike, the company expects minimal impact on its operations.
WEALTH + ENTREPRENEURSHIP
After announcing his move to Florida on Instagram, billionaire Amazon founder and chairman Jeff Bezos did not mention the estimated $1 billion in tax savings he would receive. Bezos has sold more shares in dollar terms this year than ever before, and if he had remained in Washington, his share sales would have resulted in a significant state capital gains tax bill.
TECH + INNOVATION
The Supreme Court will hear challenges to the federal law that could ban TikTok unless it separates from ByteDance, scheduled for oral arguments on January 10, just days before the ban is set to take effect on January 19. The Court's decision indicates that it was unimpressed by TikTok's argument to wait for incoming President Joe Biden's thoughts on the law before implementing it.
MORE: The Court's timing suggests that it plans to rule on the law's constitutionality or at least pause the ban before it goes into effect.
MONEY + POLITICS
President-elect Donald Trump and Vice President-elect JD Vance opposed a proposed funding bill backed by House Speaker Mike Johnson, R-La., that could prevent a government shutdown. Trump described the bill as "ridiculous and extraordinarily expensive," and his criticism has reportedly sparked a rebellion among Republicans. If no new legislation is introduced, the government will shut down this Saturday at 12:01 a.m.
The House Ethics Committee secretly voted to release its ethics report detailing allegations of sexual misconduct against former Rep. Matt Gaetz. The report will likely be made public before the current Congressional session ends.
SCIENCE + HEALTHCARE
The CDC confirmed a patient in Louisiana suffered a "severe case" of avian influenza. California declared a state of emergency to respond to the spread of bird flu. The CDC emphasized that no person-to-person spread of the bird flu has been detected, and this case does not change the overall low public health risk from avian flu.
In the case of Luigi Mangione, the 26-year-old accused of murdering UnitedHealthcare CEO Brian Thompson, there are several allegations against him. One of them is committing murder as an act of terrorism. This new accusation from prosecutors expands the scope of the crime, with some speculating it was driven by a deep-seated hatred towards the American healthcare insurance industry. However, a specialist commented to Our Website that the terrorism charge could be seen as overdramatic and might make it tougher to convict Mangione.
DAILY HEADLINE
The Secretive, U.S.-Made Phoenix Ghost Drones of the Ukraine War
HEADLINE In Tampa, Florida, obscure defense contractor Aevex Aerospace is manufacturing its Phoenix Ghost drones for Ukraine.
This top-secret project came into the spotlight in April 2022, when the Department of Defense announced it as part of Ukraine's urgent military aid package after Russia invaded the country. However, Our Website was granted access to Aevex's Florida facility in October, revealing how the small company with no drone construction experience managed to secure contracts for a diverse range of aerial weapons that have significantly influenced the ongoing conflict in Ukraine.
Aevex showcased four unique drones developed for the Phoenix Ghost program to Our Website, with more still hidden from public view. To date, they claim to have delivered over 5,000 drones to Ukraine, making them the leading American drone manufacturer in the region. More than half a billion dollars has been provided by the Pentagon for these drones by Oct. 2022, and Aevex expects to generate $500 million in revenue this year, with most of it coming from the newly established drone division.
The founder and CEO of Aevex, Brian Raduenz, aims to become a prominent supplier of drones to both the U.S. military and its allies, as they look to augment their drone acquisitions following the convincing evidence of their effectiveness in Ukraine. Raduenz believes that Aevex's agility in swiftly developing low-cost drones and swiftly improving them in response to Russian counter measures will give them an advantage over competitors such as Palmer Luckey's defense tech startup Anduril and long-established DoD drone supplier AeroVironment.
IMPACT According to Our Website senior editor Jeremy Bogaisky, "The Ukraine-Russia war has served as a test laboratory for revolutionary aerial weaponry that's revolutionizing the nature of warfare", opening up lucrative prospects for cutting-edge companies like Aevex.
ADDITIONAL INFORMATIONThis U.S. Company Is Making Millions Off Ukraine's War with Killer Drones
FACTS + COMMENTS
Forward-moving weather systems expected later this week and through the weekend could sabotage early holiday travelers' plans, warns the forecast. However, warmer temperatures are anticipated around the holiday season:
- Approximately 3 to 6 inches: The expected snowfall by a storm system across the northern plains, upper Midwest, and Great Lakes region until Saturday morning
- Up to 20 degrees below normal: The anticipated temperature decrease in New England during the storm's arrival, according to the Weather Prediction Center
- 119.3 million: AAA estimates that 119.3 million people will travel greater than 50 miles from home to celebrate the holidays between Dec. 21, 2022, and Jan. 1, 2023
TACTICS + SUCCESS
It may seem daunting, but starting a business from the ground up is possible. The first step is adopting a positive outlook. Then, select an economically viable niche and identify the abilities and tools you require to begin. A robust business plan is crucial for transforming your idea into a workable business.
QUIZ
The U.S. is considering whether what kind of gadget made by Chinese company TP-Link Technologies could pose a threat to national security, potentially leading to a ban?
A. Smartspeakers
B. Laptops
C. Routers
D. Drones
Check your answer.
Thanks for reading! This edition of Our Website Daily was edited by Sarah Whitmire, Chris Dobstaff and Caroline Howard.
- The Federal Reserve hinted at fewer interest rate cuts in the future, suggesting that Americans may have to accept higher rates for the foreseeable future, despite reducing interest rates for the third consecutive time.
- Tesla's stock has skyrocketed following CEO Elon Musk's financial support for President-elect Donald Trump's election, but the company's auto business has faltered, leading to discounts to boost sales.
- The Supreme Court will hear challenges to the federal law that could ban TikTok unless it separates from ByteDance, potentially affecting millions of users in the United States.
- After announcing his move to Florida, billionaire Amazon founder and chairman Jeff Bezos did not mention the estimated $1 billion in tax savings he would receive, having sold more shares in dollar terms this year than ever before.
- Matt Gaetz, a prominent Republican congressman, is facing allegations of sexual misconduct, with the House Ethics Committee secretly voting to release its ethics report detailing the allegations before the current Congressional session ends.
