Foreign investors poured $43.4 billion into emerging markets debt and stock portfolios in November, the largest net amount since January, driven by expectations of monetary policy easing in developed economies and a more positive view on inflation. However, China continued to experience net outflows, highlighting a divergence in investor sentiment between China and the rest of emerging markets.
Consumer prices rose slightly in November, with a 3.1% annual growth, though core inflation remained steady at 4%, while shelter costs are expected to drop further and weigh down overall inflation.
Kid Rock, who previously declared a boycott on Bud Light, has reversed his stance, stating that he believes the beer brand has received enough backlash for their partnership with a transgender influencer and that he wants to see them rebound. However, Bud Light's sales are still down 30%, indicating that the boycott has had a lasting impact.
Argentina's new president, Milei, plans to devalue the peso by more than 50% against the US dollar and implement austerity measures to tackle the country's economic crisis, although doubling social spending for the poorest is also planned to help offset the impact.
Argentina will devalue the peso by more than 50% as part of emergency measures to help the struggling economy under President Javier Milei, who campaigned on a pledge to replace the peso with the dollar, and the move is supported by the International Monetary Fund.
Many young Americans, particularly Gen Z, are embracing the concept of "soft saving" as a rejection of the traditional mindset of aggressive saving and hustle culture, prioritizing their present comfort and well-being over becoming financially independent in the future.
Americans may be running out of the money they saved during the pandemic, but this might be evidence of a more stable economy rather than a warning sign, as consumer spending has remained strong and higher wages have helped offset inflation.
More shoppers are requesting higher credit limits as lenders become more stringent about issuing new cards, leading to an increase in credit card limit applications, approvals, and rejection rates. This trend is driven by factors such as elevated inflation, interest rates, and the need for emergency funds, prompting people to utilize credit cards more extensively. Consumers with credit scores under 680 have seen the largest increase in credit limit applications, with a higher rate of approval and a decline in rejection rates. The record level of credit card debt and the difficulty of obtaining new cards without damaging credit scores have also contributed to the demand for higher credit limits. Additionally, banks have tightened lending standards due to increased delinquencies and are less likely to approve credit cards for individuals with FICO scores between 620 and 680. Increasing credit limits can positively impact credit scores by lowering credit card utilization, but it is crucial to avoid increased spending and debt accumulation.
The Federal Reserve is expected to leave interest rates unchanged as inflation has moderated and some areas of the economy have shown signs of slowing down, with many economists predicting rate cuts next year in response to the robust employment growth and resilient consumer spending despite the rate hikes.
Germany's ruling coalition has agreed on a new draft budget for next year, aiming to address a €17 billion financial gap caused by a recent court ruling; however, the budget plan will still need approval in parliament.
China's deflationary economy could provide an opportunity for the U.S. and China to "export" deflation to the West, benefiting both economies, but caution is advised to avoid harming the U.S. economy's rebound from the pandemic, warns Société Générale strategist Albert Edwards.
The UK economy shrank more than expected in October due to high interest rates, with contractions in services, manufacturing, and construction raising concerns of a potential recession.
Despite a contraction in the UK economy in October, some analysts believe that the economy is resilient and a recession is unlikely, citing factors such as company resilience, a rebound in November, and positive labor market figures. However, concerns remain over sectors such as manufacturing and the property market, and there is a possibility of a shallow recession in the near future.
President William Ruto announced during Kenya's 60th independence anniversary that the country is emerging from debt distress and experiencing debt relief, despite economic challenges such as tax increases and inflation.
China has become the world's leading producer in seven out of ten advanced industries, including computers, electronics, chemicals, and motor vehicles, surpassing the United States, according to a report by the Information Technology & Innovation Foundation. However, the report suggests that China's dominance may not be sustainable as the Chinese government focuses on developing other key industries such as biopharmaceuticals and artificial intelligence.
Wall Street guru Jim Grant predicts that the US Federal Reserve will cut interest rates later and not sooner, as he believes inflation is permanent and above the central bank's target level.
The second review of Sri Lanka's $2.9 billion IMF bailout could be completed in the first half of 2024 if the country meets debt restructuring and revenue targets, according to an official.
Consumer prices rose 3.1 percent in the year through November, signaling moderate inflation and suggesting that the Federal Reserve is likely to keep interest rates unchanged at its final meeting of the year.
China's banking system is collapsing and could suffer $4 trillion in real estate losses, according to investor Kyle Bass, as the country's real estate crisis and excess supply put significant strain on its financial system.
Argentina devalued its currency by more than 50 percent in an attempt to revive its failing economy and combat high inflation, while also implementing spending cuts and halting new public construction projects.
Argentina's new president, Javier Milei, has announced a sharp devaluation of the country's currency and cuts to subsidies in order to address the economic "emergency" caused by high inflation and fiscal deficits. The measures have been welcomed by the International Monetary Fund as a positive step towards stabilizing the economy.
President Biden's campaign may be affected by the ongoing fight against inflation, despite improvements in the economy and job gains, as Americans are still concerned about high prices and struggle with rising borrowing costs.
The American Dream now costs over $1 million more than the average American makes in their lifetime, with owning a home, a car, raising children, and other basic milestones amounting to a total of $3,455,305, according to a study by Investopedia.
Argentina has announced a sharp devaluation of its currency and cuts to subsidies, citing an economic "emergency," with the newly elected president warning of tough measures to address the country's economic problems.
European policymakers need to react quickly as the weak economy and declining inflation indicate the need for interest rate cuts, even though market pricing suggests cuts may not happen until June.
A recent poll reveals that a majority of Americans feel that the policies of the Biden administration have personally hurt them, yet the poll also shows that Biden is statistically tied with Trump in a hypothetical 2024 contest, indicating a contradiction in Americans' views on their policies and voting preferences.
Argentina's new president, Javier Milei, is considering a drastic plan to replace the Argentine peso with the US dollar, aiming to combat the country's rapid inflation and economic decline, although the feasibility and potential consequences of this plan remain uncertain.
Stock indices close higher as Treasury Secretary Janet Yellen expresses optimism about the economy and inflation easing, while the Consumer Price Index (CPI) rises in November but remains above the Fed's target.
The housing markets most vulnerable to a downturn are in California, New Jersey, and Illinois, while the least vulnerable markets are predominantly in the South, Midwest, and New England regions, according to a housing risk report from ATTOM.
The Federal Reserve's fight against inflation is expected to continue through the 2024 election, with experts believing that a "soft landing" of low inflation without a recession is likely, although it is too early to declare victory. President Biden's economic performance may impact his reelection campaign, as Americans remain concerned about high prices and express dissatisfaction with the economy. The Fed is expected to hold interest rates steady but may face pressure to consider cutting rates in the future.
Inflation has dropped slightly overall, but certain areas such as services and food show increases, while others like fuel, eggs, and some durable goods have seen significant price drops.
A recent survey by Bankrate found that the majority of Americans, regardless of income, feel like the U.S. economy is in a recession, with 59% of adults sharing this sentiment.
Warren Buffett proposes a law that states if the deficit exceeds 3% of GDP, all incumbent members of Congress become ineligible for reelection in order to make them accountable for fiscal decisions.
Inflation dropped slightly last month, but prices in some areas, such as rents and auto insurance, continued to rise, while prices for fuel, eggs, and certain appliances decreased.
Indian Finance Minister Nirmala Sitharaman defends the ban on certain product exports, such as onions, stating it is necessary to protect domestic consumers and claims the economy is on the right track.
The U.S. federal budget deficit for November widened to $314 billion, exceeding economists' expectations, with government spending growing faster than revenues due to increased interest payments on the federal debt.
Housing inflation remained steady in November, with the shelter component of the Consumer Price Index (CPI) increasing by 0.4%, making it the largest contributor to the overall increase in the index for all items except food and energy, according to the Bureau of Labor Statistics. Shelter prices, which account for about a third of overall inflation, grew 6.5% over the 12-month period ending in November. Analysts anticipate a downward trend in shelter costs in the coming months due to an increase in housing inventory and low leverage for rent increases. Home prices, however, are expected to continue rising due to low supply.
Food prices in the United States are no longer rising faster than overall inflation, with grocery prices actually decreasing, but dining out remains expensive due to higher wages for food service workers.
US households' liquid assets, including cash deposits, have reached an unprecedented $18 trillion, with a remarkable increase of $5 trillion in 2020, highlighting consumer resilience and the potential for risk-free returns.
Young Americans are expressing their frustration with inflation on TikTok, posting viral videos that offer tips on how to deal with rising costs, such as buying generic brands and shopping in the international aisle to save money at the grocery store.
Argentina's new president, Javier Milei, is set to announce emergency measures aimed at avoiding hyperinflation and reviving the country's struggling economy, which is currently facing a 140 percent annual inflation rate and 40 percent poverty levels. Milei plans to cut public spending by five percent of GDP and has already reduced the number of ministries. The measures may include significant spending cuts, a potential devaluation of the peso, and further structural reforms that will require congressional approval. However, there are concerns about the potential short-term increase in inflation as prices normalize.
Despite high inflation, a survey found that the top wealth bracket in America is more worried about dysfunction in Washington, with 90% of affluent Americans expressing concern about the political environment heading into the 2024 election.
The "American Dream" now costs an estimated $3,455,305, as rising costs have made common milestones like marriage, homeownership, and raising children unaffordable for most Americans.
30-year mortgage rates remained steady at an average of 7.43%, close to their lowest point in four months, while other loan types also saw slight drops or no change in rates.
The Federal Reserve is expected to maintain interest rates, but investors will closely analyze Chairman Jerome Powell's commentary for any signs of a hawkish stance contradicting market expectations.
Inflation is not as temporary as many believe, according to Jim Grant, founder of Grant's Interest Rate Observer, who argues that the loss of purchasing power due to inflation will not be recaptured and that there is no such thing as deflation in modern monetary life in the US. The November CPI report showed continued price gains, raising concerns about inflation's trajectory despite some optimism about cooling in the future.
Ernst & Young (EY) is conducting a significant round of partner layoffs in the U.S. due to declining demand for certain services, particularly in the advisory sector, as the firm aims to streamline operations following the abandonment of its plan to split the firm.
Ernst & Young is cutting dozens of partners from its US offices due to declining revenues in the accounting sector and the failure to split the company, impacting over 130 junior and senior-level staff.
An investor warns of a potential global crash, citing a sell-off in bank credit and emerging blocs in a new Cold War, while experts offer differing perspectives on the vulnerability of the world economy and the potential impacts on households and trade.
U.S. inflation ticked down in November due to cheaper gas, but prices in certain areas like services continued to rise, keeping the Fed on track to leave interest rates unchanged.