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 […]
US Business Activity Unexpectedly Jumps, Risking More Inflation
Augusta Saraiva Bloomberg April 21, 2023 S&P Global composite measure rose to 11-month high in April Firms increased prices at fastest pace in seven months US business activity unexpectedly climbed this month to nearly a one-year high, bolstered by stronger services and manufacturing that threatens to reignite inflationary pressures. The S&P Global flash April composite purchasing managers […]
China’s Consumer-Driven Growth Gives Boost to Global Economy
Bloomberg News April 18, 2023 GDP expands 4.5% in first quarter, fastest pace in a year Citigroup, SocGen upgrade full-year growth forecasts China’s economy grew at the fastest pace in a year in the first quarter, putting Beijing on track to meet its growth goal for the year without adding major stimulus, while also helping […]
Fed’s Bullard Says Recession Fears Off-Base and Urges More Hikes
Steve Matthews Bloomberg April 18, 2023 A strong labor market should keep the expansion going, he says Bullard reiterates favored rate outlook in Reuters interview Federal Reserve Bank of St. Louis President James Bullard said he favored continued interest-rate hikes to counter persistent inflation, while recession fears are overblown. “Wall Street’s very engaged in the idea there’s […]
US Paychecks Are Outpacing Inflation, Giving Fed Fodder for Hike
Molly Smith Bloomberg April 18, 2023 Median earnings ran above consumer prices in first quarter Strong wage gains may tilt Fed toward another rate hike in May US workers are starting to see pay gains run faster than inflation, amplifying their purchasing power and giving the Federal Reserve reason to raise interest rates again next […]
Yellen says U.S. banks may tighten lending and negate need for more Fed rate hikes
David Lawder Reuters April 15, 2023 WASHINGTON, April 15 (Reuters) – U.S. Treasury Secretary Janet Yellen said banks are likely to become more cautious and may tighten lending further in the wake of recent bank failures, possibly negating the need for further Federal Reserve interest rate hikes. Yellen said in a “Fareed Zakaria GPS” interview […]