🚀 Fed Chair hints at potential interest rate hike

Market Overview
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Year To Date Performances:

1. Federal Reserve Chairman Kevin Warsh delivered a hawkish address at the Jackson Hole Economic Symposium, warning that persistent price pressures could compel the central bank to execute an interest rate hike. Clarifying his policy outlook following a well-criticized July press conference, Warsh firmly reaffirmed the Fed's 2% personal consumption expenditures (PCE) inflation target and identified short-term interest rates as the primary instrument for managing the economy. He noted that broad price indexes show inflation remaining stubbornly elevated—with over half of PCE components exceeding 3% annual growth—and signaled that artificial intelligence developments and balance-sheet adjustments are not driving immediate policy decisions. By prioritizing price stability over monetary easing, Warsh's stance creates clear tension with President Donald Trump's push for lower interest rates and establishes high stakes for the Fed's upcoming September meeting.

2. Walmart and the U.S. Department of Justice have resolved a high-profile 2020 federal lawsuit that accused the retail giant of unlawfully dispensing controlled substances and exacerbating the national opioid crisis through its pharmacy operations. Although the joint statements did not disclose specific financial terms, the agreement formally concludes a long-running legal dispute that originally alleged civil violations under the Controlled Substances Act. The resolution follows a 2024 judicial ruling that narrowed the government's claims, as well as Walmart's separate $3.1 billion settlement in 2022 with state, local, and tribal governments. Both parties expressed satisfaction with the outcome, effectively clearing one of the Justice Department's largest enforcement actions brought against a single commercial pharmacy chain during the broader opioid litigation era.

3. Despite reaching record box office performance and all-time stock high valuations, Imax remains without a buyer nearly nine months after CEO Rich Gelfond signaled openness to a sale, largely due to structural conflicts of interest and a surging price tag. Acquiring the cinema technology leader poses significant strategic hurdles for traditional Hollywood studios—such as Disney, Universal, Paramount, and Warner Bros.—which rely on Imax's studio-agnostic positioning to fairly distribute blockbuster release windows and would struggle to fill a year-round premium screen calendar independently. While tech giants and streamers including Netflix, Apple, and Amazon, as well as private equity firms, present fewer competitive conflicts, Imax's nearly 80% stock surge over the past year has pushed its valuation to roughly $3 billion, causing potential suitors to pause. With strong momentum fueled by record-breaking ticket sales from hits like "The Odyssey" and high-profile pre-sales for upcoming blockbusters like "Dune: Part Three," Imax remains financially robust and positioned to thrive as an independent entity, enabling management to maintain high valuation demands rather than rush into a transaction.

   Headlines

   1. The US Treasury is looking to cut Banque Misr UAE’s ties to the US due to it’s ties to Iran.

   2. Apple is raising the prices for Apple TV and Apple One.