Assuming there isn’t a big turnaround today, markets look to close lower for the third consecutive week. With the war in Iran unabated and the price of oil stubbornly high, inflation concerns have heated up. Investors are now looking at the Federal Reserve (Fed) for guidance. However, it is unlikely the Fed will come to the rescue anytime soon. Despite meeting next week, the odds are for the committee to keep interest rates steady and possibly indicate no further rate cuts this year. These headwinds will likely weigh heavily on the markets in the coming weeks, especially if the Strait of Hormuz remains closed. Here’s hoping the situation in Iran is resolved sooner rather than later.
Given that the situation in Iran remains volatile and the future unpredictable, I want to focus this week on news that you may have missed. Let’s take a break from Iran for a week. The first story that caught my attention regards Gen Z and their newfound love of malls. According to the Wall Street Journal (WSJ), Gen Z is hanging out at the mall in large numbers, giving mall owners a little hope that things may turn around. Per the WSJ, shoppers age 18 to 24 bought 62% of all their general merchandise in stores last year, compared with 52% for those 25 and older. And that percentage represents a lot of cash, since Gen Z’s anticipated annual global retail spending surpasses $12 trillion over the next four years. Some malls are making themselves more social-media friendly, while some online retailers are opening stores inside malls. There may be hope yet.
In other news, we learned that the largest media company in the world (by revenue) is YouTube, owned by parent company Alphabet. YouTube’s $62 billion in total revenue last year surpassed Disney’s $60.9 billion (not including its parks business). Additionally, the video platform’s $40.4 billion in ad revenue is more than Disney’s, Paramount’s, NBCUniversal’s, and Warner Bros. Discovery’s combined. As consumers cut the cord, advertisers pivoted from television to online where many people now consume media. Having said that, YouTube has a way to go to catch up with social media giant Meta’s $196.2 billion in ad revenue last year. Not only are online ads ubiquitous but seemingly found everywhere. I won’t be surprised when we begin seeing ads on our appliances and in our cars.
For a more unusual story, I turn to space mirrors. Yes, you heard that right. Startup company, Reflect Orbital, plans to launch low-orbit satellites with giant mirrors shining daylight down to earth at night, which it says could power solar panels. The company is currently waiting for a regulatory green light from the Federal Communications Commission (FCC). If it wins approval, the company may launch a test satellite as soon as this summer. By 2030 it aims to have 5,000 mirrored satellites in orbit. Detractors have some concerns including exacerbating light pollution, disorienting animals, and perhaps disrupting human sleep. Others suggest the light produced won’t be enough to power solar panels. Yet there is hope. A better application could be on the moon, which has two-week-long nights with no atmosphere to dilute the sunbeams.
In more serious news, the International Energy Agency (IEA) met this week and announced that it will release 400 million barrels of stockpiled oil to bring down the price of oil. The decision to release more oil than ever before was unanimous among the IEA’s 32 member nations. This move more than doubles the IEA’s previous record 182 million barrels, set after Russia invaded Ukraine in 2022 and is only the sixth emergency oil release in the IEA’s 52-year history. There will be at least a two-week lag, but we might expect prices to fall in the not-to-distant future.
In closing, I learned this week that Apple is releasing eight new emojis with its new iOS 26.4 update. The new emojis include a distorted face, a fight cloud, a ballet dancer, a hairy creature, an orca, a landslide, a trombone, and a treasure chest. As someone who only occasionally uses the laughing emoji, I may need someone younger to help me understand how to use these emojis. And before you use the distorted face emoji know there is a controversy having to do with an ad Apple used in 2022. You may want to hold off on using that one just yet. Now you know.
Bruce J. Mason, MBA
