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Over 9,000 concerts organized by Live Nation have been canceled or postponed by the health crisis.

The event promoter/venue operator has reported a significant financial challenge. Live music has taken a quite a halt, but with talks of reopening, safety precautions must be heavily considered; Alabama is introducing socially-distanced arena shows, while Denmark has been hosting drive-in concerts. During a recent earnings call, Live Nation CEO Michael Rapino fielded questions about the future of the concert industry and how he plans to bring things back to normal.


"So over the next six months, we'll be starting slow and small, focusing on the basics and testing regionally," he said. "But whether it's in Arkansas or [another] state that is safe, secure, and politically fine to proceed in, we're going to dabble in fan-less concerts with broadcasts and reduced-capacity shows, because we can make the math work. There are a lot of great artists that can sell out an arena, but they'll do higher-end theaters or clubs."

"So you're gonna see us [gradually reopening] in different countries, whether it's Finland, Asia, Hong Kong — certain markets are farther ahead [in the recovery process]," he continued. "Over the summer there will be testing happening, whether it's fan-less concerts, which offer great broadcast opportunities and are really important for our sponsorship business; drive-in concerts, which we're going to test and roll out and we're having some success with; or reduced-capacity festival concerts, which could be outdoors in a theater on a large stadium floor, where there's enough room to be safe."

"We think in the fall, if there are no second hotspots, you'll see markets around the world [reopening] — Europe, specifically, has talked about opening up 5000-plus [gatherings] in September," Rapino concluded. "And on the venue side, we're dealing with federal, the White House, every government body you can imagine, and we've got a great task force around what we have to do with the venue to make you safe. So I think in the fall you'll see more experimenting and more shows happening in a theater setting, into some arenas. And then our goal is really to be on sale in the third and fourth quarters for 2021 at full scale."

Although drive-in concerts seem like fender benders waiting to happen—and impossible for cities like New York—it'll be nice to have one more activity to keep people occupied.

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The Federal Reserve sets the guardrails for the federal funds rate, and through that helps control the money supply for the nation.

When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.

A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.

One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.

The Federal Reserve The Federal Reserve


The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.

This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.

The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.

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