A Commodities Crunch Caused by Stingy Capital Spending Has No Quick Fix
By Chuin-Wei Yap (Dow Jones) — HONG KONG — A yearlong steep climb in commodity prices is testing an economics maxim: High prices cure themselves by spurring supply and quenching demand. Languishing commodity prices led producers to slash capital spending on major resources by nearly half over the last decade, shrinking stocks of industrial metals […]
Champion of Key Fed Inflation Gauge Says Policy Shift Is Needed
Tuesday, June 8, 2021 06:45 AM By Liz Capo McCormick and Rich Miller 5-year, 5-year forward rate is now consistent with Fed goal Former Fed official Sack says further climb would be problem (Bloomberg) — The economist who helped change the way the Federal Reserve assesses long-run inflation expectations says their current level means the central bank needs […]
JPMorgan’s top equity strategist Kolanovic says the next market leg higher is coming soon
After a calm spring, the stock market appears poised to push higher once again, according to JPMorgan’s Marko Kolanovic. After a dramatic comeback in 2020 and strong start to this year, the equity market has been stuck in neutral in recent weeks. The S&P 500 is trading near a record high, but has been bouncing around the […]
CNBC: Deutsche Bank warns of global ‘time bomb’ coming due to rising inflation
Inflation may look like a problem that will go away, but is more likely to persist and lead to a crisis in the years ahead, according to a warning from Deutsche Bank economists. In a forecast that is well outside the consensus from policymakers and Wall Street, Deutsche issued a dire warning that focusing on […]
Economist Who Said Inflation Was Dead Now Thinks It’s Alive
Sunday, June 6, 2021 09:00 PM By David Goodman (Bloomberg) — A quarter of a century after declaring the death of inflation, Roger Bootle is seeing signs of its rebirth. Pockets of price growth are emerging from the cost of used cars to lumber as the world starts to recover from the coronavirus pandemic. That’s […]
World stocks fall on inflation concerns amid strong U.S. data reports
Asian shares were a touch below a recent three-month top on Thursday with China a tad weaker as investors weighed inflation concerns ahead of key U.S. economic data while oil prices rose to near 1-1/2 year highs. MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.3% to 711 points. It went as high as 712.57 […]
U.S. Services Gauge Climbs to Record, Showcasing Faster Recovery
Thursday, June 3, 2021 07:39 AM By Vince Golle ISM orders, activity indexes pick up from month earlier Measure of order backlogs also highest in data to 1997 (Bloomberg) — U.S. service providers expanded at the fastest pace on record in May, highlighting the rapid improvement in business activity across the economy. The Institute for Supply […]
Global Food Prices Surge to Near Decade High, UN Says
Thursday, June 3, 2021 03:01 AM By Megan Durisin UN gauge of world food costs climbed for 12th month in May ‘Very little room’ for shocks to production, demand: economist (Bloomberg) — Global food prices extended their rally to the highest in almost a decade, heightening concerns over bulging grocery bills as economies struggle to exit […]
Amid hiring troubles, rising prices, U.S. growth gains speed -Fed
WASHINGTON (Reuters) -The U.S. economic recovery accelerated in recent weeks even as a long list of supply chain troubles, hiring difficulties, and rising prices cascaded through the country, Federal Reserve officials said in their latest review of economic conditions. The economy grew at a “somewhat faster rate” from early to late May, the Fed reported […]
Intel reiterates chip supply shortages could last several years
Intel Corp’s (INTC.O) CEO said on Monday it could take several years for a global shortage of semiconductors to be resolved, a problem that has shuttered some auto production lines and is also being felt in other areas, including consumer electronics. Pat Gelsinger told a virtual session of the Computex trade show in Taipei that the work-and-study-from-home […]