GM and BRRR.

Yesterday's CPI report laid the groundwork for today's market response, and U.S. stock indexes opened on a positive note following the release of the June producer price index. The CPI report unveiled a CPI of 3.0% year-on-year, slightly lower than the anticipated 3.1%, while the CPI Core stood at 4.8% year-on-year, in line with expectations of 5.0%.

The market reacted favorably to the CPI report, and today's opening saw U.S. stock indexes climbing higher.

Adding to the positive sentiment generated by yesterday's CPI report, the June producer price index reinforced the market rally. According to the Bureau of Labor Statistics, the producer price index (PPI) for June increased by a modest 0.1%, falling short of economists' projection of a 0.2% rise.

With these combined developments, investors welcomed the signs of cooling inflation and its potential impact on the economy. While the market rally reflects optimism, the Federal Reserve's monetary policy decisions will not be solely influenced by these recent figures as they pledge to keep rates elevated for the foreseeable future.

We think the elevated rates cause substantial risk to commercial real estate and regional banking, so we continue to monitor for weakness in those sectors. We’ll report on it prominently should it arise.

Zooming in to today’s AI news, we’re covering Elon Musk’s new AI company X.ai, and his continued pledge to fight wokeness and disinformation.

We’re also covering reaction to the EU’s new proposed legislation around Central Bank Digital Currencies. There’s major concerns it’ll serve primarily as a surveillance tool.

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AI: The Money Robots

xAI: Musk's Answer to AI Wokeness & Safety

Elon Musk, the CEO of Tesla and SpaceX, has launched a new artificial intelligence startup named xAI. The team comprises engineers from major U.S. tech firms, and the startup aims to build an alternative to ChatGPT, an AI developed by OpenAI, a company Musk co-founded. Musk's vision for xAI is to create a "maximally curious" AI that seeks to understand the universe, which he believes will be pro-humanity and safer.

• Diverse Expertise in the Team: The xAI team includes professionals from Google's DeepMind, Microsoft, and other tech giants. Notable members include Igor Babuschkin, a former engineer at Google's DeepMind, Tony Wu and Christian Szegedy, who both worked at Google, and Greg Yang, previously at Microsoft.

• AI Safety Focus: Musk's vision for xAI is to create a "maximally curious" AI that seeks to understand the universe, which he believes will be pro-humanity and safer. Dan Hendrycks, who will advise the xAI team, is currently director of the Center for AI Safety, further emphasizing the company's commitment to AI safety.

  Future Plans and Predictions: Musk predicts that superintelligence, or AI that is smarter than humans, will arrive in five or six years. The xAI website announced an upcoming Twitter Spaces event on July 14, indicating that the company is actively engaging with the public and sharing its progress and plans.

  Read more

Crypto World

Digital Euro Proposal: A Step Forward or Privacy Nightmare?

The European Commission has introduced draft legislation for a digital euro, aimed at modernizing the currency for the digital economy. This has raised privacy concerns, with critics fearing it could increase government surveillance on spending. The Commission and European Central Bank (ECB) assure that the ECB won't have access to identities during transactions, but the proposal is controversial, with opposition from individuals and the banking industry.

• Privacy Pledge: The European Commission stresses that the digital euro is not for surveillance. Finance Commissioner Mairead McGuinness has confirmed that the ECB won't access individual identities during transactions, and late changes were made to the draft to enhance privacy protection language.

• Industry Resistance: Banks fear the free access to digital euros may discourage traditional bank usage, while the retail sector opposes paying for processing digital euro payments. The Commission's plan imposes limits on the digital euro holding and caps transaction fees to alleviate these concerns.

• Approval Process: The proposal requires the approval of the European Parliament and EU Council. Some parliamentarians have expressed opposition, drawing parallels to a Soviet-like society. The legislation faces significant hurdles before becoming law.

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AI Art of The Day

The BRRR’s Portfolio Update

NVDA leading the way in early trading while crypto lags.

On Watchlist:
$AMD: NVDA’s strongest competitor
$ASML: They make the machines that make AI machines
$ISRG: Robot Surgeons
$OPRA: Growing web-browsing solution

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The BRRR is meant for informational purposes only. It is not meant to serve as investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.