Anna's Daybreak News

Monday, 5:12 AM

September 23, 2024

Good morning news friend! Keep up with the latest developments, staying attuned to the rapidly shifting events around you. 📰🌟

Why is Gold Outperforming Stocks?

Gold prices reached $2,621, an increase of 27% in 2024, outpacing the S&P 500’s 20.8%. Gold has climbed 811% since 2000, compared to the S&P’s 517%. 

The Fed cut rates for the first time in 4.5 years, boosting gold prices by 2%. Investors seek gold as a hedge against inflation and a means to diversify portfolios.

Central banks have also tripled their gold purchases since Russia's invasion of Ukraine in 2022, contributing to rising demand.

Moreover, gold is being used in advanced electronics. Experts predict prices will reach $3,000 per ounce.

Source: Read More

SEC Greenlights BlackRock’s Bitcoin Options

The SEC approved options trading for BlackRock's iShares Bitcoin Trust. The options, trading under the ticker symbol "IBIT," will occur on Nasdaq.

The SEC cleared 11 spot Bitcoin ETFs earlier this year. Options trading offers institutional investors a new way to hedge against Bitcoin price fluctuations.

These options will allow investors to buy or sell Bitcoin at predetermined prices before a set expiration date. Last month, trading volume for the IBIT Bitcoin ETF surpassed $875 million.

Experts anticipate further approvals for Bitcoin options from the SEC and BlackRock also aims to extend this model to Ethereum Trust options.

Source: Read More

Motel 6 Changes Hands: $525 Million Acquisition

India-based hotel operator OYO will buy G6 Hospitality (parent company of Motel 6) for $525 million in an all-cash deal.

This acquisition includes the Studio 6 brand, known for extended stays, and is expected to finalize by the end of 2024.

OYO, which operates 320 hotels in 35 states, plans to expand its US presence by adding 250 more hotels this year.

Blackstone purchased G6 Hospitality for $1.9 billion in 2012. Over the years, they tripled investor capital and generated $1 billion in profit. 

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US Banks Reap $1 Trillion From High Interest Rates

US banks made over $1 trillion in extra interest revenue due to the Federal Reserve’s high interest rates.

From March 2022 through mid-2023, banks earned higher rates from the Fed but passed lower rates to most depositors. On average, US banks paid 2.2% interest on deposits, compared to the Fed’s 5.5% rate.

Large banks like JPMorgan Chase and Bank of America paid even lower rates at 1.5% and 1.7%.

Banks held on to nearly two-thirds of the Fed’s interest rate benefits, paying depositors $600 billion in interest.

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Mike Lynch’s Yacht in the Spotlight

Mike Lynch’s sunken yacht, Bayesian, may hold sensitive data that of interest to Russia and China. The vessel sank last month during a storm, resulting in eight fatalities.

Italian divers discovered two watertight safes aboard. They suspect these safes contain super-encrypted hard drives with highly classified information.

Lynch was the owner of Darktrace, a large cybersecurity firm. Authorities explore why the yacht sank so quickly while others survived the storm.

Prosecutors in Italy are investigating allegations of culpable homicide related to the incident.

Source: Read More

“Some pursuits are much duller from the inside. Even piracy they say.”

Baked with love,

Anna Eisenberg ❤️