TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why X users in Brazil may lose the platform.
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00:00I'm Conway Gittins reporting from the New York Stock Exchange. Here's what we're watching on the street today.
00:05A tame inflation report gives Wall Street the green light to move higher. The personal consumption expenditures index for July rose just
00:130.2% as expected. Over the past 12 months, the Federal Reserve's preferred inflation gauge is up two and a half percent.
00:21Couple that modest rise in inflation with data showing a resilient consumer and an orderly slowdown in the labor market and
00:28investors believe the stage is set for the Fed to start cutting rates in September.
00:33In other business headlines, new worries are emerging about Elon Musk's ability to handle all the battles
00:40he's facing. The latest threat comes from Brazil, where X is facing a government-ordered shutdown.
00:46Musk has been locked in a war of words with South America's most populous nation.
00:51The billionaire has refused to employ a coordinator to handle required removal of posts deemed political
00:59misinformation by the government ahead of municipal elections. A shutdown in Brazil would compound revenue trouble for X with
01:07171 million active social media users knocked off the social network according to local estimates.
01:13Musk can hardly afford that with global revenues in freefall since he took over in 2022.
01:20Meanwhile, the spat has spread to Starlink, the satellite internet service powered by Musk's other company,
01:27SpaceX. The Brazilian Supreme Court has frozen Starlink's domestic bank accounts,
01:31putting service in one of Starlink's major markets in jeopardy. And if that's not enough, in another part of the world,
01:39Musk is fighting the European Union.
01:42Regulators there say X
01:44violated its Digital Services Act aimed at putting guardrails on misinformation and harmful speech. In that case,
01:50Musk could be hit with a fine of up to 6% of X's global sales.
01:56That'll do it for your daily briefing from the New York Stock Exchange. I'm Conway Gittens with The Street.