Afternoon Alexa Flash Briefings of September 12 2024

Transcript

00:00This is your daily news briefing from Cheddar.

00:07Mortgage rates dipping to their lowest level since February of last year, the 30-year fixed

00:12rate falling to 6.29% thanks to cooling inflation and a slowing job market.

00:18Despite the drop, mortgage demand remains sluggish with applications up just 1.4% for

00:23the week.

00:24Purchase applications rising 2% but are still 3% lower than a year ago, while refinancing

00:31saw a modest 1% increase.

00:34Affordability challenges and limited inventory continue to weigh on the housing market.

00:39The AI boom is still very much alive and well.

00:43Open AI hitting a staggering valuation of $150 billion.

00:49With its following news of a $6.5 billion equity raise, the new valuation would significantly

00:55surpass the company's previous $86 billion valuation from just earlier this year, positioning

01:01Open AI as one of the world's most valuable startups.

01:05Additionally, banks are in talks to provide the company with the $5 billion credit line,

01:10further solidifying its financial standing.

01:14Some alarming news down south.

01:16Hurricane Francine hit Louisiana as a Category 2 storm on Wednesday, causing severe flooding

01:22and widespread power outages.

01:25Now a tropical storm with 45 mile-per-hour winds, it passed about 35 miles west-northwest

01:31of New Orleans, dumping 6 to 9 inches of rain and breaking daily records.

01:37Over 390,000 power outages were recorded in Louisiana and 60,000 in Mississippi.

01:43The storm is weakening, but will continue to bring flooding as it moves north.

01:48Well, you may have to say goodbye to BurgerFive.

01:51The fast food chain is found for Chapter 11 bankruptcy protection amid struggles with

01:57declining traffic and high interest rates affecting the restaurant industry.

02:02The company, which went public in 2020, has reported significant financial difficulties

02:07with assets ranging from $50 million to $75 million and debts between $100 and $500 million.

02:14Despite efforts to turn around its fortunes, BurgerFive's revenue dropped to $43 million

02:19with a net loss of more than $6 million.

02:21The quarter ending April 1st and same-store sales at its burger chain fell 13%.

02:28We are apparently loving it.

02:30McDonald's extending its $5 meal deal until December.

02:35Initially launched as a month-long promotion in June, the offer, which includes either

02:40a McChicken sandwich or McDouble cheeseburger, small fries, chicken nuggets and a soft drink,

02:45has been successful in attracting customers amid rising inflation and decreased dining-out.

02:51This extension reflects McDonald's strategy to maintain affordability and boost sales

02:55following weaker-than-expected performance earlier this year and similar moves by competitors

03:00like Starbucks, Burger King and Wendy's.

03:04And that's your news update from Cheddar, I'm Dave Briggs in New York.