Rising credit card debt and delinquencies, along with the popularity of "buy now, pay later" options, are causing concern for younger consumers who may face financial turmoil due to higher inflation and limited income. Banks and credit card lenders are already reducing new credit accounts in response to this trend.
Moody's has downgraded China's ability to repay its government borrowing, citing the potential ripple effects of a property sector crisis on the country's economy, which could lead to the need for bailouts of local governments and state-owned enterprises struggling with rising debts, hindering investment and growth. This outlook change signals an increased risk of default by Beijing. China's finance ministry expressed disappointment with the decision, stating that the recovery has been progressing steadily. The slowdown in China's economy began before the crackdown on excessive borrowing in 2020, and the property sector's decline is expected to have a more significant impact on economic growth than anticipated, with factors such as weaker demographics contributing to a projected decline in potential growth by 2030. Moody's expects China's economy to grow at a slower pace of 4% annually in 2024 and 2025, compared to the pre-pandemic average of 6% to 7%. Although China's credit rating remains at A1, the lowering of its outlook suggests the possibility of a future credit rating cut.
Global stocks decline for a second consecutive session and US Treasury yields fall as investors evaluate central bank policies and slowing economic growth.
Despite recent declines, long-term interest rates are expected to remain high, challenging the prevailing belief that government debt is a "free lunch" and raising concerns about inflation and interest rates, particularly as central banks continue to purchase government debt, according to Kenneth Rogoff, professor of economics at Harvard University. Shifting global economic realities may require policymakers to reassess their beliefs and acknowledge the potential risks of high debt and interest rates.
Moody's has downgraded China's government credit ratings to negative, citing concerns over mounting local government debt, a deepening property crisis, and the need for increased financial support from authorities. This reflects risks to China's fiscal, economic, and institutional strength, as well as persistently lower medium-term economic growth and downsizing in the property sector.
The housing market in Texas is experiencing weakness due to rising mortgage rates and home insurance premiums, leading to a 14.2% drop in sales volume in September, though there is a slight increase in pending home sales in Dallas.
Mortgage rates are expected to decrease slightly in December as inflation cools, with a gradual overall downward trend projected through 2024. However, the current inflation rate remains higher than the Federal Reserve's target, indicating further progress is needed.
China's share of U.S. imports has decreased in recent years, but its global share of green-tech exports is growing, revealing the hidden growth of indigenous green tech supply chains.
Despite ongoing recession concerns, stock prices experienced a significant increase last month, suggesting the possibility of a Santa Claus rally, supported by factors such as cooling inflation, lowering interest rates, a healthy economy, strong employment, and potential cash influx from the sidelines.
Global stocks are set for a second consecutive decline as investors try to gauge the policy direction of major central banks and the pace of economic growth, with expectations rising for rate cuts by the Federal Reserve and European Central Bank, while U.S. Treasury yields have fallen; Wall Street saw the Dow and S&P 500 decrease, while the Nasdaq Composite gained, and the dollar index rose amidst a fall in inflation and concerns over demand offsetting supply worries in commodity trading.
Workers in low-wage jobs should not be blamed for their wages and tipped workers often rely on tips to supplement their incomes, making it important to consider their circumstances before deciding to tip.
Investors can earn thousands of dollars in interest by depositing $15,000 into a long-term certificate of deposit (CD) with rates ranging from 5.00% to 5.30%.
Half a million New Yorkers left the state in search of a lower cost of living, with Florida being the most popular destination followed by New Jersey, Connecticut, and Pennsylvania.
Minnesota's economy grew at a slower rate than the national average in the second quarter of 2023, with a 0.7% increase in real gross domestic product (GDP) compared to the national increase of 2.1%, indicating a trend of slower growth in Minnesota compared to the rest of the country.
Job openings in the US dropped in October to the lowest level since March 2021, raising concerns and impacting the potential interest rate policy of the Federal Reserve as it assesses the state of the labor market.
Wall Street's main indexes were mixed as investors analyzed economic data to determine the likelihood of rate cuts by the Federal Reserve, while megacap stocks rebounded from previous losses.
Bank executives at the Goldman Sachs US Financial Services Conference reiterated caution and conservative outlooks for the industry, citing the resilience of the US economy but warning of continued loan losses and urging restraint in 2024 forecasts.
Fannie Mae predicts that mortgage rates will continue to drop in 2020 and home prices will recover by 2025, leading to a modest rebound in home sales and an increase in total mortgage originations.
The adoption of cashless payment in Uganda is increasing, with 80% of mobile transactions being done by people in the informal sector, according to a recent report. However, these transactions tend to be of lower value, while high-value transactions are more prevalent in the formal sector.
The U.S. dollar is near a one-week high against other currencies after a drop in job openings and expectations that the Federal Reserve may not raise interest rates further, while the euro has fallen and investors believe the European Central Bank may deliver its first rate cut by March.
Moody's has downgraded China's government credit ratings outlook from stable to negative, citing concerns over mounting local government debt, a deepening property crisis, and lower medium-term economic growth. The downgrade sparked a slump in China's blue-chip stocks and prompted major state-owned banks to sell US dollars forcefully.
Elon Musk's criticism of remote workers and the lack of willingness to work may have some merit, according to new research from the Bank for International Settlements, which found that workers' preferences for fewer working hours have shifted since the pandemic, a phenomenon attributed to COVID handouts.
The UK government's plan to cut net migration by 300,000 people may have mixed economic impacts, particularly in certain sectors like social care, and could lead to challenges in tax revenues, borrowing, and support for pensions as the UK workforce is expected to decline in the coming years. However, the government's focus on dependants in the plan may lessen the overall economic impact, but it remains unclear how it will affect care workers and certain types of students.
The ISM barometer of business conditions at service companies rose to 52.7% in November, indicating expansion in the economy and surpassing economists' expectations.
Job openings in the U.S. declined in October to the lowest level since March 2021, reflecting a downward trend in job availability since early 2022, with decreases in healthcare, finance, insurance, and real estate, while information sector job openings increased.
44% of baby boomers reported that their financial situation is worse this holiday season compared to last year, with factors such as a lack of financial literacy, rising interest rates and inflation, market fluctuations, continued employment, conservative investment strategies, and healthcare costs contributing to the decline.
The American Dream now costs $3,455,305, which includes expenses such as marriage, two children, homes, healthcare, cars, and education, making it unattainable for many Americans due to rising costs.
The November S&P Global U.S. PMI Composite remained unchanged at 50.7, indicating modest expansion in business activity, driven mainly by growth in the service sector despite a contraction in manufacturing new orders.
Despite earning higher income, Americans are facing financial difficulties due to rising costs, high interest rates, and increased levels of debt, leading to a surge in the demand for debt resolution programs, as per a recent study by Achieve.
Moody's Investors Service has downgraded its outlook for Chinese sovereign bonds to negative due to concerns about rising debt and the impact of a property downturn on the nation's economy.
China's top-down approach to reversing population decline, focused on hortatory directives instead of incentives or supportive policies, may worsen the problem and fail to address societal changes and personal choices that contribute to declining birth rates.
US stock markets could face several challenging conditions in 2024, including slowing economic growth and geopolitical turmoil, leading to a significant decline in the S&P 500, according to a JPMorgan strategist.
Kevin O'Leary predicts that high interest rates will lead to a "downsized America," with individuals having to live in smaller homes and drive smaller cars, but there are steps individuals can take to prepare, such as saving money, budgeting meticulously, delaying major purchases, prioritizing essential items, and investing in inflation-resistant assets.
Jeffrey Goldberg, editor-in-chief of The Atlantic, boldly refuses to normalize Donald Trump and warns about the dangers of a potential second Trump presidency, stating that it poses a threat to the existence of America as we know it.
Federal Reserve Chairman Jerome Powell is expected to closely follow news about Spotify's recent job cuts, regardless of whether he uses the music streaming platform as a guitar player or not.
Wall Street's main indexes fell as investors await economic data to determine if the Federal Reserve will cut interest rates in early 2022.
Nigeria's trade in Q3 2023 experienced significant growth, with total exports increasing by 60.78% compared to the previous quarter, and the top five countries that buy the most products from Nigeria are Spain, India, the Netherlands, Indonesia, and France.
The European Central Bank may take further interest rate hikes off the table due to a significant fall in inflation, leading to increased expectations of rate cuts and a dovish shift in policy.
India is projected to become the world's third-largest economy by 2030, driven by demographic advantages, policy initiatives, and a shift in the global economic landscape, with a transition from a service-dominated to a manufacturing-dominated economy being crucial for its growth.
Zimbabwe is using funds generated from its platinum exports to repay a $400 million loan from the African Export-Import Bank, as the country relies on its mineral wealth to establish lines of credit, amid difficulties in securing loans from international financiers.
India is projected to remain the fastest-growing major economy for the next three years, positioning it to become the world's third-largest economy by 2030, according to S&P Global Ratings.
The selloff in mainland China and Hong Kong stocks deepened as concerns about the health of the Chinese economy persist, with the MSCI China Index and benchmark CSI 300 Index both experiencing declines and Moody's downgrading its outlook for Chinese sovereign bonds.
Inflation is causing the threshold for being considered middle class in the United States to increase, with experts questioning by how much the threshold is changing. A recent study found that the minimum annual income needed to be considered middle class in Indiana in 2023 was $62,897, while the cheapest state was Alabama at $51,798 and the most expensive state was Hawaii at $82,630. However, experts caution that these figures are subjective and the definition of middle class is not fixed. The middle class has been shrinking over the past 20 years, but inflation rates are decreasing and wages are rising.
Moody's has issued a negative outlook for the Chinese government's financial health due to concerns about the potential cost of bailing out debt-burdened local governments and a shrinking property sector, although it reaffirmed its overall A1 credit rating for the Chinese government.
India is projected to become the world's third largest economy by 2030, with S&P Global Ratings predicting a GDP growth of 7% in the fiscal year 2026-27 and recognizing the importance of India transforming into a manufacturing-dominated economy, upskilling workers, increasing female participation in the workforce, and harnessing the potential of the domestic digital market and automotive sector.
Experts predict that rents in Colorado could fall due to real estate issues and an oversupply of apartments, benefiting renters but causing concerns for investors.
Japanese banks are providing crash courses to younger staff to help clients navigate higher interest rates, as many of these employees have no experience dealing with inflation, presenting a wake-up call for the banks to change the mindset of their staff or risk losing out on opportunities.
Japanese banks are providing crash courses to their younger staff to help them navigate higher interest rates, as the shift to an inflationary environment poses challenges for the generation of professionals who have little experience with rising rates.
China's services sector expanded at a faster pace in November, with new businesses showing improvement, despite a contraction in the official survey, indicating a mixed picture of the sector.
South Korea's inflation eased in November, providing relief to policymakers concerned about persistent inflation risks and supporting their decision to maintain a restrictive monetary policy for a longer period.