The China Show 8/1/2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a minute ago
- Yahoo
'Tariffs are starting to bite': Latest inflation, jobs data sparks Wall Street concern over US economy
Stocks have continued to notch record highs this year as investors bet on a resilient economy and minimal fallout from tariff-driven inflation. But last week, both assumptions came under pressure. It was a packed week for economic data, offering a more nuanced and, in some cases, sobering look at the state of the US economy. The week kicked off with signs of strain in the labor market: The hiring rate fell to a seven-month low, and the quits rate, a key measure of worker confidence, dropped to just 2%. On Wednesday, GDP data showed the economy rebounded at a 3% annualized pace in the second quarter, recovering from a surprise Q1 contraction driven by a pre-tariff surge in imports. But economists cautioned that the headline growth masked underlying softness. Sales to private domestic purchasers, a key proxy for consumer and business demand, rose just 1.2%, the weakest pace since 2022. Greg Daco, chief economist at EY-Parthenon, called the rebound an "economic mirage," adding that policy uncertainty, rising inflation pressures from tariffs, and tighter immigration constraints are starting to weigh more visibly on economic activity. Then, after the Fed held interest rates steady, Thursday's release of its preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, showed price increases accelerated in June as inflation remained above the Fed's 2% target. Consumer spending also showed signs of strain as real personal spending rose just 0.1% in June following a revised 0.2% drop in May. The week culminated in a disappointing July jobs report, which offered the clearest sign yet that the labor market may be cracking. The US added just 73,000 jobs, far short of the 104,000 forecast. Even more striking were sharp downward revisions to May and June, which erased a combined 258,000 jobs, the largest two-month downgrade since May 2020. Taken in totality, last week's data painted a picture of mounting economic pressure, with growing signs that households are beginning to feel the strain as the second half of the year gets underway. "Tariffs are starting to bite," EY's Daco told Yahoo Finance. "They're leading to higher inflationary pressures, which are curtailing consumer spending and prompting businesses to adopt more of a wait-and-see approach." Michael Pearce, deputy chief US economist at Oxford Economics, said the overall trend is becoming clearer: "The signs are that consumer spending is losing momentum." He added that "as real income growth wanes, we expect an increasing drag on consumer spending, particularly on discretionary purchases and goods most exposed to tariff-driven price increases." While auto sales had been front-loaded earlier this year ahead of tariff implementation, Pearce pointed to renewed declines in tariff-sensitive categories like furniture. He noted that any short-term lift from early buying is now "mostly in the rear-view mirror," and warned that consumers have yet to fully absorb the impact of tariff-driven shocks to income and purchasing power. Adding to the pressure, trade tensions escalated as President Trump raised tariff rates on several US trading partners, including a surprise 39% levy on imports from Switzerland. "There's a repeated refrain that tariffs are not having an impact, and that assessment misses the mark," Wells Fargo economists, led by Jay Bryson, said in the latest installment of Yahoo Finance's Chartbook series. "Consumer spending is not as sturdy as it was initially reported in the first quarter," the team added. "With two months of data on hand for the second quarter, it is becoming increasingly clear that households are reducing their discretionary outlays." The strain is also beginning to show in corporate earnings. "When you take a look at companies like Whirlpool, like P&G, they are being impacted by tariffs," Michael Kantrowitz, chief investment strategist at Piper Sandler, told Yahoo Finance's Opening Bid. "There seems to be a sort of bifurcation when it comes to how tariffs are impacting bottom lines. Those that are focused on products for consumers ... And then you've got other companies, like Big Tech, that is sort of immune to the tariff situation." But even Big Tech is starting to feel the squeeze. Apple (AAPL) CEO Tim Cook warned this week that the company expects a $1.1 billion tariff hit this quarter. Elsewhere, a slew of consumer-facing companies, including Shake Shack (SHAK), Canada Goose (GOOS), and snack maker Kellanova (K), have struggled this earnings season as price-sensitive shoppers pull back. With contributing reporting from Yahoo Finance's Josh Schafer. Allie Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at
Forbes
3 minutes ago
- Forbes
Solana's SOL Vs. Ripple's XRP: Which Crypto Is Better For Long-Term Investors?
Solana's SOL and Ripple's XRP are very popular digital tokens. Both of these tokens have drawn the interest of investors around the world, and they have managed to become some of the most valuable digital assets by total market capitalization. Investors might consider putting their money into one, or both, of these cryptocurrencies, so this guide can help provide them with information they need to make well-informed decisions. Overview Of Solana's SOL And Ripple's XRP SOL is the native digital asset of Solana, a high-performance blockchain platform that developers can use to create apps. The platform is capable of handling impressive amounts of transactions, so interested parties can build all kinds of software programs on it. Solana has a unique proof-of-stake (POS) consensus mechanism that uses an innovation called proof-of-history (POH), which helps enable significant transaction volume. Another major draw of Solana is its low transaction fees. At the time of this writing, Solana's median fee per transaction was $0.00064, which was far lower than Ethereum's median fee of roughly $0.51. XRP is the native digital asset of a blockchain called the XRP ledger, which can settle transactions in a time frame of three to five seconds. XRP can function as a bridge currency, meaning that it can be used to exchange one fiat currency for another without relying on a centralized intermediary like a financial institution or bank. Ripple has generated significant visibility over the years, and its digital asset, XRP, has repeatedly ranked as one of the most valuable digital currencies by total market capitalization, according to CoinMarketCap. One major draw of XRP is its low transaction fees; the token can settle transactions for $0.0002 each. Understanding The Technology Behind SOL And XRP Solana uses a POS consensus mechanism that relies on POH, in which the system provides each individual block with a timestamp. This unique innovation has provided the Solana network with high bandwidth and very low transaction costs. The platform processes thousands of transactions per second. Ripple relies on a blockchain called the XRP Ledger, which records all transactions involving XRP. The ledger has its own unique consensus mechanism called the XRP Ledger Consensus Protocol, which is capable of approving transactions even if some participants do not act appropriately. Solana can process thousands of transactions per second, due to its unique POS consensus mechanism that relies on POH. At the time of this writing, the network was processing roughly 3,750 transactions per second, according to the Solana homepage. Ripple, on the other hand, can process 1,500 transactions per second. Both Solana and Ripple use smart contracts, although they are used for different purposes. Solana is a platform for decentralized applications or dApps, and its smart contracts are called 'programs.' Users can harness these contracts by executing transactions that contain instructions telling them what to do. Ripple smart contracts are different in that they allow participants to make transactions without a centralized intermediary. Ripple smart contracts work by holding funds in conditionally held escrows. Once the needed conditions are met, the escrows release the relevant funds. Asset Adoption There is more than one way of measuring a digital asset's adoption, with one of those being transaction volume. As mentioned, the Solana network can process roughly 3,750 transactions per second. Figures for XRP transactions on the Ripple network came with a monthly cadence, and the network processed more than 10 billion XRP transactions every month between July 2024 and July 2027, according to XRPSCAN figures from The Block. If one wants to evaluate SOL and XRP as speculative assets, they can look at the total market capitalization of these digital currencies. At the time of this writing, XRP was the third-largest cryptocurrency by total market capitalization, according to CoinMarketCap. Solana's SOL was the sixth-largest by this particular measure. Market Performance And Future Outlook The XRP token has gone from being worth $0.01 in late 2013 to roughly $3.21 at the time of this writing, according to CoinMarketCap. This represents an increase of roughly 32,000%. There are many predictions involving the XRP cryptocurrency. One such prediction, which appeared on the Binance website, indicated that the digital token would be worth close to $4 by 2030. The page displaying this prediction stated that the exact figures contained were formulated based on the input of verified Binance users and third parties. The SOL token has also displayed some very impressive returns over the years, going from roughly $0.66 in April 2020 to approximately $187.00 at the time of this writing, according to CoinMarketCap. This represented a gain of more than 28,000%. Some analysts have predicted that under certain conditions, the SOL token could surpass $1,000 by 2030, according to a Benzinga article. More specifically, this price forecast is based on Solana's ability to scale successfully while avoiding security issues. However, other market observers are less bullish, voicing their concerns about Solana's repeated network failures and competition from rival platforms like Ethereum. Regulatory Challenges And Risks The regulatory environment is still far from mature, and this creates uncertainty for both SOL and XRP. In July 2025, the crypto community lauded the approval of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), the first piece of federal legislation specifically written for cryptocurrencies. However, policymakers have a long way to go, as U.S. lawmakers were considering both the CLARITY Act and the Anti-CBDC Surveillance State Act at the time of this writing. As of now, the extent to which the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have jurisdiction over digital currencies has not been clarified. More specifically, the CFTC has asserted that it has jurisdiction over virtual currencies under the Commodity Exchange Act, a claim that has been upheld in federal court. However, the SEC has previously taken action against those involved with certain digital currencies. The CLARITY Act is meant to shed some light on exactly where the jurisdiction of these two government agencies lies. In 2023, the SEC filed a lawsuit against Coinbase and in which it claimed that SOL was an unregistered security, according to CoinDesk. The Solana Foundation, a nonprofit whose website describes it as being 'dedicated to the decentralization, adoption, and security of the Solana ecosystem,' disagreed with this assertion, claiming that SOL is not a security. The regulatory status of XRP is complicated. In 2023, a federal judge ruled that Ripple's sales of XRP to institutions did in fact represent sales of unregistered securities. However, the same judge decided that Ripple's sales of XRP through exchanges did not represent sales of securities. At the time, the judge fined Ripple $125 million, according to CoinDesk. While Ripple had previously stated that it planned to appeal, CEO Brad Garlinghouse stated in June 2025 that 'Ripple is dropping our cross appeal, and the SEC is expected to drop their appeal, as they've previously said.' This should leave the current ruling, along with the $125 million fine, in place. Real-World Use Cases XRP is meant to provide liquidity for those looking to send money from one place to another. A good use case for these is remittances, where an individual might send money to their relatives overseas. By using XRP, a user can make a cross-border payment that will settle quite quickly. The XRP token can also be used as a bridge currency, making it so that parties can make a transaction using two different fiat currencies without going through a centralized intermediary like a financial institution. The XRP token is also used to pay for transactions that take place on the XRP ledger. SOL has many use cases. For starters, it is the native digital asset of the Solana network, and as a result, users harness it to pay the network's transaction fees. Some of these rewards then go to validators. Another use case of SOL is staking. Users can stake their SOL in order to contribute to the security of the network and also earn rewards by doing so. Past that, holders of SOL can use the token to vote on potential network upgrades. Investment Potential Both SOL and XRP have experienced some very impressive upside during their lifetimes. Past that, analysts have made some very bullish predictions about how much the two digital tokens could appreciate. As stated earlier in this article, one prediction contained on the Binance website indicated that XRP could be worth over $4 by 2030. A separate panel of experts, whose input was featured in a Benzinga article, stated that XRP could reach $5.81 this year. Analysts have also supplied bullish predictions for SOL, with market observers stating in a Binance article that it could surpass $180 this year and $230 by 2030. Which Is Better For Long-Term Investors? Investors should keep in mind that both XRP and SOL are speculative assets. They are not like stocks, which represent ownership rights in companies that generate revenue and earnings. They also don't make regular interest payments like many bonds. In other words, interested parties cannot perform fundamental analysis on XRP and SOL the same way they would analyze shares of stock (or bonds). Nobody knows what the future will hold. However, investors may want to keep in mind that SOL is the native digital asset of the Solana blockchain, which has benefited from significant activity over the years. In 2024, more than 80% of decentralized exchange (DEX) transactions took place on the Solana network, according to a Helius report. Further, during the first five months of this year, close to $900 billion' worth of DEX trading volume took place on this network. Ripple, on the other hand, has been relevant for over a decade. Ripple first came into existence in 2012, and its native token has therefore been around longer than Solana's SOL, as Solana first became available to the public in 2020. Ripple's XRP also benefits from a robust community, which has some very enthusiastic supporters. The engagement this token receives on platforms like X (formerly Twitter) is a testament to how much support it has. Bottom Line Investors considering XRP and SOL need to remember that while these two have both generated significant visibility and some very compelling gains over the years, they are both speculative assets that do not produce income, revenue or earnings. Risk is inherent to investment, and it is difficult to reliably predict how these digital assets will perform in the future. At the same time, investors should remember that if the entire crypto space continues to draw investment and rise in value, SOL and XRP could both continue to appreciate. Frequently Asked Questions (FAQs) Which Has A Higher ChanceOof Mass Adoption, SOL or XRP? Nobody knows for certain what the future will hold. However, if the future mirrors what has happened in the past, Solana's SOL has a better chance of obtaining mass adoption, considering how much traction it has generated during its relatively brief lifespan. Is SOLOor XRP Better For Short-term Trading? Short-term cryptocurrency trading is highly risky and subject to market manipulation, and it would be difficult to name one of these digital assets as better for this particular purpose. Any investors who are considering such activity should perform thorough due diligence. What Are The Biggest Risks For Investing In SOL? SOL is a purely speculative asset, and its price is driven by factors like hype and sentiment. Many have described Solana as an 'Ethereum killer,' and its native token SOL could potentially fall in value if competitor platforms rise in popularity. What Are The Biggest Risks For investing In XRP? XRP is a purely speculative asset, and its price fluctuations are driven by hope and sentiment. The XRP token has generated significant visibility as the native token of the XRP Ledger, and if one or more competitors take the market position of this blockchain, it could cause the XRP token to lose favor and fall in value. Is It A Good Idea To Hold Both SOL and XRP? While diversification, or not putting all your eggs in one basket, is always a good idea, there are many ways to establish a diverse portfolio of digital assets without owning both SOL and XRP. There are thousands of digital assets available, and if investors are considering any of them, they can benefit from conducting thorough due diligence.
Yahoo
24 minutes ago
- Yahoo
'Tariffs are starting to bite': Latest inflation, jobs data sparks Wall Street concern over US economy
Stocks have continued to notch record highs this year as investors bet on a resilient economy and minimal fallout from tariff-driven inflation. But last week, both assumptions came under pressure. It was a packed week for economic data, offering a more nuanced and, in some cases, sobering look at the state of the US economy. The week kicked off with signs of strain in the labor market: The hiring rate fell to a seven-month low, and the quits rate, a key measure of worker confidence, dropped to just 2%. On Wednesday, GDP data showed the economy rebounded at a 3% annualized pace in the second quarter, recovering from a surprise Q1 contraction driven by a pre-tariff surge in imports. But economists cautioned that the headline growth masked underlying softness. Sales to private domestic purchasers, a key proxy for consumer and business demand, rose just 1.2%, the weakest pace since 2022. Greg Daco, chief economist at EY-Parthenon, called the rebound an "economic mirage," adding that policy uncertainty, rising inflation pressures from tariffs, and tighter immigration constraints are starting to weigh more visibly on economic activity. Then, after the Fed held interest rates steady, Thursday's release of its preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, showed price increases accelerated in June as inflation remained above the Fed's 2% target. Consumer spending also showed signs of strain as real personal spending rose just 0.1% in June following a revised 0.2% drop in May. The week culminated in a disappointing July jobs report, which offered the clearest sign yet that the labor market may be cracking. The US added just 73,000 jobs, far short of the 104,000 forecast. Even more striking were sharp downward revisions to May and June, which erased a combined 258,000 jobs, the largest two-month downgrade since May 2020. Taken in totality, last week's data painted a picture of mounting economic pressure, with growing signs that households are beginning to feel the strain as the second half of the year gets underway. "Tariffs are starting to bite," EY's Daco told Yahoo Finance. "They're leading to higher inflationary pressures, which are curtailing consumer spending and prompting businesses to adopt more of a wait-and-see approach." Michael Pearce, deputy chief US economist at Oxford Economics, said the overall trend is becoming clearer: "The signs are that consumer spending is losing momentum." He added that "as real income growth wanes, we expect an increasing drag on consumer spending, particularly on discretionary purchases and goods most exposed to tariff-driven price increases." While auto sales had been front-loaded earlier this year ahead of tariff implementation, Pearce pointed to renewed declines in tariff-sensitive categories like furniture. He noted that any short-term lift from early buying is now "mostly in the rear-view mirror," and warned that consumers have yet to fully absorb the impact of tariff-driven shocks to income and purchasing power. Adding to the pressure, trade tensions escalated as President Trump raised tariff rates on several US trading partners, including a surprise 39% levy on imports from Switzerland. "There's a repeated refrain that tariffs are not having an impact, and that assessment misses the mark," Wells Fargo economists, led by Jay Bryson, said in the latest installment of Yahoo Finance's Chartbook series. "Consumer spending is not as sturdy as it was initially reported in the first quarter," the team added. "With two months of data on hand for the second quarter, it is becoming increasingly clear that households are reducing their discretionary outlays." The strain is also beginning to show in corporate earnings. "When you take a look at companies like Whirlpool, like P&G, they are being impacted by tariffs," Michael Kantrowitz, chief investment strategist at Piper Sandler, told Yahoo Finance's Opening Bid. "There seems to be a sort of bifurcation when it comes to how tariffs are impacting bottom lines. Those that are focused on products for consumers ... And then you've got other companies, like Big Tech, that is sort of immune to the tariff situation." But even Big Tech is starting to feel the squeeze. Apple (AAPL) CEO Tim Cook warned this week that the company expects a $1.1 billion tariff hit this quarter. Elsewhere, a slew of consumer-facing companies, including Shake Shack (SHAK), Canada Goose (GOOS), and snack maker Kellanova (K), have struggled this earnings season as price-sensitive shoppers pull back. With contributing reporting from Yahoo Finance's Josh Schafer. Allie Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
