US Money Supply Falls for Fifth Month in Hopeful Inflation Sign
Alex Tanzi Bloomberg May 23, 2023 The pace of US money supply declined in April for a fifth month, an unprecedented stretch that offers hope that inflationary pressures will continue to cool. The M2 measure, which includes cash in circulation as well as bank and money market accounts, dropped 4.6% to $20.7 trillion from the same […]
Chinese Stocks Wipe Out 2023 Gains as Headwinds Intensify
Bloomberg May 23, 2023 CSI 300 extends decline as developers’ debt woes resurface Geopolitics, yuan weakness, and uneven recovery are concerns China’s benchmark stock index erased all its gains for the year as a weaker yuan and developers’ debt woes added to persistent worries over growth and geopolitics. The CSI 300 Index closed down 1.4% Wednesday, with […]
US Bank Lending Rises for Fourth Week, Led by Small Institutions
Alex Tanzi Bloomberg May 5, 2023 US bank lending increased for a fourth straight week, suggesting credit conditions remain relatively stable despite elevated concerns about regional lenders. Commercial bank lending rose $41.6 billion in the week ended April 26 after increasing $12.4 billion the prior week, according to seasonally adjusted data from the Federal Reserve out Friday. […]
Jeremy Siegel Sees the Fed Lowering Rates by Year-End
Brandon Sapienza Bloomberg May 5, 2023 The Federal Reserve will lower interest rates by the end of this year, University of Pennsylvania’s Wharton School of Business professor Jeremy Siegel said in an interview with CNBC. Siegel said he believes that pressure is on the Fed to cut rates, especially if wages dip and the labor market cools too […]
US Core PCE Inflation Stays Brisk While Consumer Spending Stalls
Reade Pickert Bloomberg April 28, 2023 Underlying US inflation remained brisk last month, reinforcing the case for another Federal Reserve interest-rate hike next week. The personal consumption expenditures price index excluding food and energy, one of the Fed’s preferred inflation gauges rose 0.3% in March for a second month. Compared with a year ago, the measure was up […]
IBM CEO Sees 30% of Back-Office Jobs Replaced by AI in 5 Years
Brody Ford Bloomberg May 1, 2023 International Business Machines Corp. Chief Executive Officer Arvind Krishna said the company expects to pause hiring for roles it thinks could be replaced with artificial intelligence in the coming years. Hiring in back-office functions — such as human resources — will be suspended or slowed, Krishna said in an interview. These non-customer-facing […]
Stagflation Is the Risk That Eludes Investors Mispricing Markets
Liz Capo McCormick, Garfield Reynolds, and Reade Pickert Bloomberg May 1, 2023 Slowing economy, high inflation create treacherous backdrop Schroders Plc says bonds will be ‘stand out’ asset for 2023 Financial markets are caught up in a tug of war between lingering inflation and concern about a recession as they try to guess the next […]
First Republic’s Jumbo Mortgages Brought On Bank’s Failure (1)
Hannah Levitt, Jenny Surane, and Sonali Basak Bloomberg May 1, 2023 Chairman Jim Herbert helped pioneer mega loans in the 1980s Buyer JPMorgan will share any mortgage losses with the FDIC The seeds of First Republic Bank’s downfall were sown in the jumbo mortgages of Silicon Valley, where a unique strategy to loan wealthy individuals extraordinary […]
Strong US consumer spending seen driving economy in first quarter
Lucia Mitikani Bloomberg April 27, 2023 WASHINGTON (Reuters) – U.S. economic growth slowed more than expected in the first quarter as an acceleration in consumer spending was offset by businesses cutting back on inventory investment in anticipation of weaker demand this year amid higher borrowing costs. The Commerce Department’s advance first-quarter gross domestic product report […]
US Inflation Seen Coming Down Much Faster Due to Tighter Credit
Augusta Saraiva and Sarina Yoo Bloomberg April 21, 2023 Economists lower price forecasts through first half of 2024 Bloomberg survey still puts recession odds at 65% in next year US inflation is now expected to come down faster than originally projected thanks to tighter credit conditions in the aftermath of several bank failures. Economists lowered […]