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Real-time News
September 4th - U.S. retail diesel prices rose to a record high, potentially fueling energy-driven inflation as the wars between Iran and Russia disrupt energy markets. With global supply shortages persisting and the peak demand season approaching, data from the American Automobile Association (AAA) showed that the average price of diesel across the U.S. rose to $5.85 per gallon on Thursday, surpassing the peak reached in June 2022. The rising diesel prices will not only increase the burden on consumers but also pose political challenges to the White House ahead of the U.S. midterm elections, which are just two months away. Furthermore, the continued rise in diesel prices could further hinder the Federal Reserves efforts to curb inflation. In recent weeks, Federal Reserve officials have signaled differing opinions on the necessity of raising interest rates, with the next Fed meeting scheduled for mid-September.On September 4th, three senior Iranian sources stated that the effects of US sanctions and blockades against Iran are beginning to emerge. In recent weeks, the US has sought to further increase economic pressure on Tehran in an attempt to force concessions from Iran in future negotiations. The six-month-long conflict has so far failed to compel Iran to make any of the concessions the US seeks. The sources said that although Iran has managed to circumvent sanctions for decades, recent US measures have made Irans situation more vulnerable. Iran now has only a few channels left to obtain foreign exchange or purchase goods. The sources specifically pointed out that the US attempt to cut off Irans long-standing international financing networks poses a real and imminent threat to Iran. If an economic war successfully breaks the months-long stalemate, it will boost the confidence of US policymakers. However, Iran has also warned that it may respond to economic pressure with military escalation, making the situation even more risky at this critical juncture.Germanys construction PMI for August was 48.7, compared to 42.1 in the previous month.French Agriculture Minister: An estimated 30,000 to 35,000 farms are at risk due to the climate crisis.On September 4th, experts stated that as valuations of some companies in the artificial intelligence (AI) sector begin to appear overvalued, investors should focus on the productivity growth of AI companies. Jakub Nytra, founding partner of venture capital firm Purple Ventures, said, "We are likely to see a reshuffling as investors become more discerning about which technologies can create real value and which are merely functionalities disguised as business models." He predicts that capital allocation will become more selective over the next 6 to 12 months. Market concerns about a bubble persist because companies continued increases in capital expenditure seem endless, and extremely high growth figures raise questions about the sustainability of this expansion. Nytra stated that while AI can transform the economy, not every company that includes AI in its funding pitches deserves an extraordinary valuation. "The ultimate winners will be those companies that use AI to solve costly and extremely complex problems."
