Banxico Lowers Rate by Half a Point, Opens Door to Smaller Cuts
Banxico, as the bank is known, lowered its key lending rate to 8% on Thursday, as expected by 27 of 29 economists surveyed by Bloomberg. The two dissenters had forecast a 25-basis-point reduction. The split decision, with one board member voting for a pause, marks the bank's eighth consecutive move to lower borrowing costs in Mexico.
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Yahoo
16 minutes ago
- Yahoo
From Krispy Kreme to GoPro, has meme-stock trading frenzy returned?
Shares in struggling retailers and ageing consumer brands surged, as amateur traders cast aside Wall Street's skepticism and mobilized online. It's like 2021 all over again. But the latest meme-stock rally could be even bigger than its predecessor four years ago, when investors piled into recognizable but unloved stocks, such as the video games retailer GameStop and the movie theatre chain AMC, according to the founder of the Reddit forum that helped whip up the frenzy. Retailer Kohl's, camera firm GoPro, fast-food chain Wendy's and doughnut chain Krispy Kreme each staged rapid rallies this week, driven by abrupt surges in trading volume reminiscent of the the meme-stock craze of 2021, when social media memes boosted a collection of struggling stocks, triggering extraordinary and volatile leaps in value. Actress Sydney Sweeney helped bring clothing retailer American Eagle Outfitters into the mania after it was announced the Euphoria and White Lotus star would front the brand's latest marketing campaign. The company's shares surged about 10% in trading on Thursday. Meme stocks are 'about to leap-frog in size and scope and scale, so that retail traders are going to redefine what matters', according to Jaime Rogozinski, founder of the wallstreetbets Reddit forum behind many of the volatile rallies. 'The world of finance is clearly changing, with blockchain technologies encroaching, and AI agents that trade on their own,' he said. 'And the collective of retail traders is adapting along with it.' Rogozinski founded wallstreetbets in 2012, but said Reddit ousted him as a moderator in 2020. His bid to sue the social media company for trademark infringement was dismissed by the US court of appeals for the ninth circuit last month. The forum's users home in on stocks and share their own research. 'It's a decentralization of power of who can be financial analyst,' said Noor Al, a moderator on wallstreetbets. 'Great ideas can now come from anyone, anywhere. 'We're seeing the power of retail push stocks, sometimes to the tune of billions of dollars, through the power of ideas, the power of community and the power of the people,' he added. The meme-stock craze of 2021, which produced stars such as Roaring Kitty, was a product of the Covid era, when many amateur traders were stuck at home and flush with pandemic stimulus cash. Whether this latest frenzy produces similar winners is not yet clear. Kohl's finished the week up 32%, GoPro was up 66% and Krispy Kreme was up 41%. The rallies show some investors are willing to take on more risk, as stocks scale record highs and the market, dominated by big tech, becomes harder to beat. Often, meme-stock bets are unbound from economic fundamentals, as investors move to support a brand for romantic or ideological reasons. Donald Trump's Trump Media & Technology Group, home to Truth Social, is valued at more than $5bn on quarterly revenue of about $1m. The wallstreetbets ethos 'has always to some extent been about flaunting and exploiting the ironies, relevance or irrelevance' of the stock market, said Rogozinski, who pointed to Wendy's, the hamburger chain, as a good example. 'Wendy's has always been a meme that goes back a decade. It brings a smile to my face, because on Reddit there's always been this thing where they say: 'Sir, this is a Wendy's.' 'It's an inside joke, and I don't even get where it started. It's just a meme,' he added. The stock's fleeting rise – it rallied 10% in two days, but finished the week broadly flat – shows some retail investors do not necessarily care about the typical factors that drive the market, such as tariffs and war in the Middle East. 'It's this ability for us to almost make fun of the financial system.' Long-term institutional players will always get the last laugh, Rogozinski conceded, because prices will return to normal valuations. 'But in the short term there's lot of money to be had with this volatility, and the fact that stocks are able to move up and down with such ease is but a mere showcase for how the financial system needs a facelift in relevancy.' Related: Bed Bath & Beyond sees 'meme-stock' surge – but is it too little, too late? While current market conditions do not replicate the low interest rates and retail investor buoyancy of the Covid era, market records and a robust economy have made meme stocks attractive once again for some. 'You see all these indications where this is full-blown meme mania,' Brent Kochuba, founder of derivatives-data firm SpotGamma, told Bloomberg. 'The macro economic environment really favors the retail and speculative plays,' agreed Al. 'I think were only going to see more speculation and excitement. It's a good time to tune in, because retail players can react and provide insight faster.' Days traders are not necessarily bothered by a company's financial performance, said Rogozinski. 'You have this activist, elective investor who is saying, 'I don't care what the financial statements look like, I don't care what the discounted cashflow is, I like the food, I like the video-game store, I like the meme. So dude, you can go back to Excel spreadsheets if you want, but I really like the chicken tenders,'' he said. There is now a 'third component' to investment, beyond supply and demand, he claimed, 'which is, 'dude, I don't care if you think it's going to go up or not, or if they have assets or liabilities. I care about this company and I'm going to help it out. I'm going to go buy my jeans from American Eagle.'' Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
16 minutes ago
- Yahoo
AI Could Replace Millions of Jobs: Robert Kiyosaki Shares How To Stay Safe
As artificial intelligence (AI) continues to advance, it will have a significant impact on the workforce as we know it. According to a recent McKinsey report, 30% of hours currently worked across the U.S. economy could be automated by 2030, and a National University report found that 300 million jobs could be lost to AI globally. Check Out: Read Next: 'Rich Dad Poor Dad' author Robert Kiyosaki views this as a major cause for concern, especially for those who are just entering the workforce. 'AI will cause many 'smart students' to lose their jobs,' he shared on X. 'AI will cause massive unemployment. Many still have student loan debt.' However, all hope is not lost, as Kiyosaki offered his advice on how to prevent AI from eliminating your income. Robert Kiyosaki: AI Can't Take a Job That You Don't Have Kiyosaki isn't personally worried that AI advances will affect his cash flow. 'AI cannot fire me because I do not have a job,' he wrote. Kiyosaki bucked a traditional path to wealth and instead relies on his own business and investments for his income. 'Years ago, rather than listen to my poor dad's advice of 'Go to school, get good grades, get a job, pay taxes, get out of debt, save money, and invest in a well-diversified portfolio of stocks, bonds and mutual funds,' I followed my rich dad's advice,' he said. 'I became an entrepreneur, investing in real estate using debt, and instead of saving fake money, I have been saving real gold, silver and, today, bitcoin.' Learn More: Kiyosaki's Advice for AI-Proofing Your Wealth To avoid losing your income to AI, Kiyosaki advised workers to take action now to diversify their income sources. This means meandering off the typical path to wealth and focusing on earning money through entrepreneurship and investments rather than being reliant on an employer. 'Please take proactive action,' he wrote. 'Please do not be a victim of this time in history. Please take care, invest in your self and think for yourself. These are not ordinary times.' More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 How Much Money Is Needed To Be Considered Middle Class in Your State? 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on AI Could Replace Millions of Jobs: Robert Kiyosaki Shares How To Stay Safe
New York Post
18 minutes ago
- New York Post
Pakistan says it's ‘very close' to a trade deal with President Trump
Pakistani Foreign Minister Ishaq Dar claimed his country is 'very close' to locking down a tariff deal with the US ahead of President Trump's fast-approaching Aug. 1 deadline for the 'Liberation Day' levies to take effect. Dar met with Secretary of State Marco Rubio and predicted a deal is just days away as the Trump administration scrambles to finalize agreements with countries before the deadline. 'I think we are very close to finalizing a deal with the U.S.,' Dar said during an appearance at the Atlantic Council think tank Friday. 'Our teams have been here in Washington, discussing, having virtual meetings and a committee has been tasked by the prime minister to fine-tune now.' 'It's not going to be months, not even weeks, I would say days.' Since Trump unveiled his 'Liberation Day' tariffs, a deluge of countries have been negotiating with his team to cut lightning deals. 3 Pakistani Foreign Minister Ishaq Dar met with Secretary of State Marco Rubio this week to discuss trade and other issues. Getty Images 3 President Trump has been trying to overhaul US trade policy during his second term. Ron Sachs/CNP / Trump repeatedly agreed to postpone the implementation rate for most of those tariffs, with the most recent deadline being Aug. 1 to give more time for negotiations to play out. So far, he has locked down tariff deals with the United Kingdom, Vietnam, Japan, Indonesia and the Philippines. The Trump administration also has a tariff truce with China, where there is an Aug. 12 deadline to ink a broader deal. At the moment, Trump has imposed a 10% baseline tariff rate on almost all imports, tariffs on Chinese imports, 25% tariffs on automobiles, aluminum, and steel, as well as 25% on imports from Canada and Mexico that don't comply with the United States-Mexico-Canada Agreement. Total US trade with Pakistan clocked in at about $7.3 billion last year, according to the Office of the US Trade Representative. The State Department and Pakistan also confirmed the two sides held talks on trade issues, but didn't reveal a timeline for a deal getting finalized. The State Department did not immediately respond to a request for comment. Earlier this year, fighting erupted between India and Pakistan after the Pahalgam terrorist attack near India's administered Jammu and Kashmir. The incident sparked a chain of events that led to India firing missiles into Pakistan. Pakistan responded in kind. The two countries, which have been mired in decades-long tensions over Kashmir, are both nuclear-armed, which has led to elevated concerns about the conflict spiraling out of control. 3 Pakistan revealed plans to nominate President Trump for the Nobel Peace Prize last month. REUTERS A ceasefire was announced between the two in May. Trump has since publicly taken credit for helping to mediate the differences between the two sides. Last month, Pakistan announced plans to nominate Trump for the Nobel Peace Prize over his 'decisive diplomatic intervention' during the conflict with India.
