German inflation for 2023 fell compared to 2022, but price rises started to increase again in December due to high inflation in the food and energy sectors and the German government's emergency aid package; however, the more moderate rate of inflation provides some relief for consumers and businesses.
The middle class is finding it increasingly difficult to afford dining out due to rising menu prices, reduced discretionary income, overspending on restaurants in the past, inflation causing higher costs for restaurateurs, the addition of surcharges by restaurants, and the constant burden of gratuity.
Asian markets will have to wait until after the weekend to trade on U.S. December employment data, but subdued U.S. trade suggests investors will remain cautious.
Despite concerns about the potential risks and lack of regulation, buy-now-pay-later (BNPL) purchases reached a record-breaking $16.6 billion during the holiday season in the US, indicating that consumers are embracing this flexible payment option. However, economists warn about the potential for overspending and the need for greater transparency in the industry.
The market's expectation of a Fed rate cut in March is premature, according to DoubleLine Capital's Jeffrey Sherman, as core inflation is dampening and the labor market remains strong. However, there are still risks of a recession if inflation re-ignites or if the Fed keeps interest rates high for longer.
Jim Cramer, the popular financial news anchor and founder of Cramer Berkowitz, has a bullish outlook for 2024, recommending JPMorgan Chase and General Motors as must-pick stocks due to their positive performance and potential for growth.
In 2024, high interest rates will become normal globally due to factors like excessive debt and deglobalization, while developments in China and Japan will continue to be major concerns for investors.
Stocks have started the year on a downward trend due to expectations of interest rate cuts by the Federal Reserve, leading to a "dry January" market environment, according to John Hancock Investment Management Co-Chief Investment Strategist Emily Roland.
Global equity markets attempt to rebound as U.S. unemployment data shows a resilient labor market, reducing expectations of Federal Reserve interest rate cuts in 2024.
Texas Governor Greg Abbott declared Texas as the "undisputed economic leader of America" after the state experienced nearly 8 percent economic growth in the third quarter of 2023, surpassing the national expansion rate of about 5 percent.
Investors poured a record $123.1 billion into cash in the first week of 2024, following a trend of risk-averse behavior and reduced demand for stocks, according to Bank of America.
China's economy may be entering a new normal of slower growth, as manufacturing and property sales continue to weaken, and consumer demand shows signs of decline.
Mortgage rates held steady at the beginning of 2024, but economists predict further declines in the future, with the Federal Reserve expected to cut interest rates and homebuyers hoping for rates to drop below 6%.
Michael Burry, known for his accurate prediction of the 2008 subprime mortgage crisis, has remained quiet after his bearish market predictions did not come true, leading some to speculate that his numbers may not be good.
Goldman Sachs estimates that mortgage rates will remain above 6% through 2025, but expects a slight decline in rates by the end of 2024 and 2025 as the Fed cuts interest rates, which could improve housing affordability and boost mortgage originations.
Construction spending in 2023 experienced significant growth due to US fiscal policy, with Oxford Economics Lead US Economist Bernard Yaros predicting minimal risks in the near future but potential changes in tax credits and generative AI tailwinds down the road.
Americans are showing increased confidence in their finances, with interest in buying homes and cars rising despite challenging market conditions, reflecting consumers' improving optimism about their financial outlook.
The UN warns that weak economic growth will hinder progress on sustainable development and urges countries to increase investment to address the climate emergency.
Mortgage rates in the US increased slightly after nine consecutive weeks of declines, but are still lower than a year ago, providing some relief to homebuyers in a challenging market.
Inflation in Germany and France rose in December, driven by energy prices, but economists expect core inflation to continue to slow, dampening expectations of interest rate cuts by the European Central Bank.
Labour's plan to spend an extra £28bn a year on green investments has undergone changes, with the amount being increased over time and contingent on borrowing and private investment, while the Conservatives criticize the plan for potential inflation and debt, and the impact on the economy remains uncertain.
The December jobs report is highly anticipated as investors seek insights into the labor market's condition amid rising interest rates and persistent inflation, with projections indicating a decrease in hiring and a slight increase in the unemployment rate. Slower job growth and wage gains could be favorable for the Federal Reserve, which is considering rate cuts later this year to address inflation concerns. The labor market, although showing signs of normalization, remains tight, and recent data suggests a cooling trend.
Despite positive economic indicators such as low unemployment and wage growth, many Americans feel pessimistic about the economy, with rising grocery prices being a key factor contributing to their negative sentiment.
The economic benefits of online gambling may not be as significant as previously thought, as research suggests that the negative effects of higher problem gambling rates can offset the economic gains, raising questions about industry claims of a nationwide boon.
The Federal Reserve's December meeting minutes suggest that interest rates may be at or near their peak for the current tightening cycle, and there is a possibility of rate cuts in the future depending on progress in inflation and the labor market.
Online spending during the 2023 holiday season reached a new record of $222.1 billion, with mobile shopping surpassing desktop for the first time and accounting for 51.1 percent of online sales, according to a report from Adobe Analytics.
Mortgage approvals in the UK increased in November, while credit card borrowing doubled to £1bn, according to the Bank of England, indicating a revival in the housing market and a rise in consumer lending.
Abdel Fattah el-Sisi won a third term as president of Egypt with 89.6 percent of the votes, facing little opposition and addressing low voter turnout, despite the country's ongoing economic crisis.
Consumers are shifting their spending habits towards smaller, more affordable luxuries like makeup and skincare products amidst economic uncertainty and a slowing job market, leading retailers to offer a wider range of affordable treats to cater to this demand.
Credible Operations, Inc. provides tools and information to help improve your finances, including current mortgage rates and tips for comparing lenders and loan offers.
Banks are maintaining a cautious approach despite having ample reserves, as they continue to prioritize liquidity and defensive behaviors in the face of potential regulatory changes and market volatility. This could result in a longer period of reluctance to lend and higher interest rates for depositors.
The Federal Reserve has stopped discussing the threat of a recession, as slowing inflation and strong growth and employment have alleviated concerns.
Household debt in the US has reached a new record of $17.29 trillion, but adjusting for inflation shows that current credit card debt is actually 15% lower than in 2008, providing some relief amidst concerns about rising debt levels.
The average U.S. mortgage payment dropped by nearly $400 in December from its peak in October, leading to increased interest from homebuyers, according to a report from real estate group Redfin.
Private employers added 164,000 jobs in December, with wages up 5.4 percent from last year, signaling a return to pre-pandemic hiring and a decrease in the risk of a wage-price spiral.
China's stock market continues to struggle, failing to find a fresh start in the new year after a disappointing 2023.
Artificial intelligence is driving the stock market and increasing the valuations of companies like Nvidia, Microsoft, and Palantir Technologies.
Businesses added 164,000 new jobs in December, the biggest increase in four months, indicating a fairly robust U.S. labor market despite a broad slowdown in hiring.
U.S. private employers added more jobs than expected in December, indicating resilience in the labor market and potentially influencing the Federal Reserve's approach to interest rate reductions, while pay growth eased and the number of people quitting their jobs fell to its lowest level since 2021 in November, which could help defuse wage growth and ease price pressures.
Consumers set a new record by spending $222.1 billion online during the holiday season, with "buy now, pay later" options driving the increase, as Americans relied on flexible payment methods to manage their debt while facing inflation and high interest rates.
The Canadian government will bear the additional $700 million cost and 10-month delay in the completion of the Gordie Howe International Bridge.
China aims to restore international flights to pre-pandemic levels by 2024, focusing on direct trips to and from the United States and streamlining entry procedures, according to its civil aviation regulator. Despite increased flights between China and the US, international exchanges remain significantly reduced, hindering Beijing's economic recovery efforts.
Robert Kiyosaki, author of "Rich Dad, Poor Dad," believes that debt can be used as an advantage to buy assets like gold and recommends against living debt-free, warning of a banking crisis, inflation, and a stock market crash. However, he cautions against using debt to purchase items that won't increase in value.
US employers announced the fewest job cuts in December since July, although the total for 2023 was the highest since 2020 due to the impact of the COVID-19 pandemic, with the technology and retail industries being the most affected.
Despite a drop in mortgage rates, home-purchase applications declined over the holidays, revealing muted housing demand and limited inventory in the market.
Labour leader Keir Starmer has stated that the party will not break its fiscal rules to meet its green investment targets, indicating a willingness to scale back on one of its key policies in response to Conservative criticism. Starmer emphasized that the party's main green policy is to achieve zero-carbon power by 2030, and that the £28bn promise for green investment will be subject to fiscal rules.
The Nigerian Naira and the Kenyan Shilling were among the worst-performing currencies in 2023, with both experiencing significant devaluation due to economic policies and external factors.
The yen is facing pressure due to a recent earthquake in Japan, making it less likely for the Bank of Japan to abolish negative interest rates this month.
Mortgage rates have stabilized after a drop in December, and forecasts suggest that they will continue to decrease in 2024, potentially falling below 6%, as inflation cools and the Federal Reserve cuts the federal funds rate.
India's energy transition towards renewable sources could exacerbate inequality, as the states with the most renewable energy potential are already the wealthiest, while coal-dependent and impoverished states will struggle to adapt to the shift and face economic challenges.