The European Central Bank became the first G7 central bank today to raise interest rates to counter the economic fallout from inflation induced by the war in Iran. In its first rate hike since 2023, the central bank raised interest rates by a quarter point to 2.25%. Higher prices are pushing up inflation worldwide, and they’re unlikely to subside any time soon. Even if the Strait of Hormuz does reopen soon – which seems unlikely given the renewed strikes this week between the US and Iran, as well as US President Donald Trump’s escalating threats – experts say price pressures will persist through to 2027. With the Bank of Japan expected to follow the ECB’s lead by raising rates this month, questions arise as to whether the US Federal Reserve will feel the pressure as well.
Elon Musk’s SpaceX is set to go public tomorrow in what is expected to be the largest initial public offering in history. The tech and space firm has said its shares should trade at $135 each, which would value the firm at $1.77 trillion – enough to make Musk the first trillionaire. The numbers are astonishing, and out of sync with other share prices: its price-to-earnings ratio is 93.7, whereas the average for the S&P 500 is below 30. And yet, demand for SpaceX shares appears high, as investors are bullish on both artificial intelligence and Musk himself. We won’t be the only ones watching closely when it goes public tomorrow: Anthropic and OpenAI, two other AI leaders who also recently filed to go public, will have their eyes peeled.
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From shopping to services, consumer spending is showing strength across categories. Holiday shopping got an early start, and it’s not just higher earners filling their carts. Bank of America Institute sees continued spending growth recovery for lower- and middle-income households. See what’s driving the trends.
Garment workers in Bangladesh have taken to the streets over the past week, demanding higher wages and forcing more than 600 factories to shut down nationwide.
As AI creates new opportunities, the people who understand a community best play an important role in determining how those opportunities take shape. Across the US, Microsoft is supporting AI literacy classes as part of a new program developed in collaboration with the Public Library Association, working through trusted local institutions to help people build practical AI skills. By pairing new technology with local knowledge, the initiative is helping communities explore how AI can support their needs and open new possibilities, while putting local leaders and organizations at the center of that work. Read the full story here.
We’re breaking down the three main issues that could help decide tomorrow’s elections: the cost of living, Israel, and AI.