JPMorgan Chase CEO Jamie Dimon warns Wall Street of the potential for further inflation and a possible recession, as governments around the world seek more money for the green economy and other initiatives.
Portugal's parliament has extended tax breaks for foreign residents until the end of next year, despite criticism that the program has led to rising housing prices that are unaffordable for many Portuguese citizens.
Central banks' continued efforts to combat inflation risks could push developed countries, including Britain, into recession next year, according to the Organisation for Economic Co-operation and Development (OECD). The OECD warned that there is a high chance of policymakers getting it wrong and posing a threat to the global economy's "soft landing" forecast. It predicted sluggish growth for the UK in 2024 and stated that there is little prospect of a pre-election surge in activity. Additionally, the report highlighted concerns about geopolitical tensions and the potential impact on energy markets and trade routes.
U.S. stocks began the day on a positive note as Q3 GDP growth was revised up to 5.2% while inflation measures for the quarter were revised down, calming rate worries.
Despite positive economic indicators such as low unemployment and real wage growth, President Biden's approval on the economy remains low due to persistent concerns about affordability and inflation.
Between July and October, the economies of 16 US states contracted, raising concerns about a possible recession, although the economies of 33 states grew during this period.
Americans are increasingly withdrawing from their 401(K) retirement accounts to meet everyday expenses, putting themselves at risk of financial consequences in the future due to market decline and tax penalties.
The United States is facing a worsening debt crisis, with the national debt reaching $33.8 trillion and actual liabilities potentially as high as $200 trillion, prompting financial educator Robert Kiyosaki to advocate for investing in physical assets such as gold, silver, and real estate as a means of protecting wealth.
The cost of the gifts from the "Twelve Days of Christmas" song reached an all-time high of $46,729.86 in 2023, but the increase was relatively modest compared to last year's jump, reflecting the effects of the Federal Reserve's monetary policy tightening and the broader trend of inflation. The total cost of buying all 364 items mentioned in the song surged above $200,000 for the first time in the 40-year history of the Christmas Price Index. Some items, such as the pair of turtle doves, experienced significant increases in price due to their rarity and limited supply.
Argentina President-elect Javier Milei plans to appoint Luis Caputo as his economy minister, a market-friendly pick who has previously served as the country's central bank governor and finance secretary under former President Mauricio Macri.
The US trade deficit in goods widened in October, while wholesale inventories dropped slightly, with imports remaining flat and exports of American-made goods falling.
Although housing costs are expected to ease slightly in 2024, it won't be a significant improvement, according to Realtor.com's housing forecast, with home prices and mortgage rates only slightly lower, which will worsen the supply of existing homes.
In November, German inflation dropped to 3.2% compared to the previous year, with a sharper month-on-month decline of 0.4%, while EU inflation is expected to continue declining, posing a threat to the Euro.
The US dollar is heading towards its worst monthly performance in a year, which is good news for countries relying on imports and dollar-denominated debt, but could result in higher costs for American businesses and consumers.
The OECD Chief Economist warns that the Federal Reserve and the European Central Bank will need to maintain high interest rates for longer than expected to combat inflation in their economies.
The use of Buy Now, Pay Later services has surged during the holiday season, with a 43% increase in Cyber Monday purchases, but experts warn that consumers may face financial difficulties if they accumulate debt they can't pay off.
Hedge-fund manager Bill Ackman agrees with the expectation that the Federal Reserve will cut rates in 2024 and urges the central bank to make this move as soon as possible.
The U.S. has the highest annual gross domestic product (GDP) and is on track to produce nearly $27 trillion in goods and services this year, but it ranks seventh in terms of per capita GDP, with Luxembourg, Ireland, and Switzerland taking the top spots.
Many companies are cutting non-cash benefits, such as retirement plans and insurance, to reduce costs amid high inflation, with more expected to do so in 2024, according to Glassdoor analysis.
The global economy is expected to slow down next year due to wars, inflation, and high interest rates, with the Organization for Economic Cooperation and Development predicting a growth rate of 2.7% in 2024, the slowest since 2020, although recessions are projected to be avoided.
The typical American household must spend an additional $11,434 annually just to maintain the same standard of living they enjoyed in January of 2021, highlighting the financial strain caused by inflation, even as the rate of U.S. inflation recedes and the economy remains strong by many measures.
President Joe Biden's climate law is directing clean energy funding to low-income, less-educated, and fossil fuel towns, benefiting communities in need and driving job creation in these areas, according to a new analysis by the Treasury Department.
President Joe Biden is adopting an economic populism strategy by criticizing big businesses for not lowering prices, aiming to address voter pessimism about the state of the American economy.
Despite concerns about the economy, a record number of Americans, over 18 million, participated in the Thanksgiving holiday shopping weekend, with a significant portion of them preferring online shopping; however, worries about high interest rates and inflation persist among consumers.
Sri Lanka has been informed of a debt-restructuring agreement with creditor nations to address its financial crisis, but is still awaiting an official confirmation letter, according to a government source.
Billionaire investor Bill Ackman expects the US Federal Reserve to cut rates soon in order to avoid a sharp downturn in the economy, as the Fed has raised interest rates 11 times since March 2022 to control inflation.
Vietnam's parliament has approved a decision to raise the effective tax rate on multinationals, including Samsung, to 15% starting from January 1, potentially impacting foreign investments in the country.
Holiday sales are expected to increase this year by 3% to 4% compared to last year, with shoppers seeking better prices and promotions in light of economic uncertainty, according to the National Retail Federation. The holiday shopping season began earlier and will last longer than in 2022, with many consumers receiving promotional ads in September to encourage earlier spending. Despite early deals, shoppers are still looking forward to Black Friday, with the Mall of America preparing for large numbers of shoppers. However, concerns over the economy are leading shoppers to focus on buying apparel, shoes, toys, and tech gifts for kids. The NRF estimates that 182 million people will shop during Thanksgiving to Cyber Monday, and around 74% plan to shop during the Thanksgiving holiday weekend, with many hoping to find good deals. The majority of shoppers are planning to wait for better deals or cheaper options, and younger consumers are less likely to splurge on gifts this year due to increased frugality and financial considerations.
The repatriation of profit and dividends on foreign investments in Pakistan surged in October, indicating that the State Bank of Pakistan has eased controls on dollar outflows, but experts warn that this outflow could undermine efforts to maintain foreign exchange reserves at a reasonable level.
Pakistan's gross domestic product (GDP) contracted during FY23 under the PDM-led coalition government, while GDP growth in FY22 under the PTI regime was slightly higher than previously estimated, according to the National Accounts Committee. The committee also approved the first quarter GDP growth rate at 2.13%.
Billionaire investor Bill Ackman believes that the Federal Reserve may start cutting interest rates in the first quarter, earlier than what the markets are currently predicting.
Hong Kong logistics operators are being forced to relocate due to land resumption exercises, threatening the city's logistics industry and its contribution to the local economy, despite government plans to develop the industry in the Northern Metropolis and offer financial compensation. Operators are struggling to find suitable relocation sites and are concerned about the uncertainty surrounding their businesses. The government's focus on high-value-added logistics services and smart logistics management is seen as a way to adapt to changing industry needs.
India's economy is projected to become the largest in the world by 2052, surpassing the US, with a GDP of $45 trillion, according to a report by CLSA.
Tax lawyers are concerned that a Supreme Court case on taxing "unrealized" gains could have significant implications for the U.S. tax code and the economy.
Chinese citizens are moving billions of dollars out of the country, investing in overseas properties, gold bars, and high-interest bank accounts due to concerns over the country's economy and anti-business policies, with fears of devaluing Chinese currency.
Gas prices in the US have been falling or remaining steady since September 19, with the national average standing at just below $3.25 as of Tuesday, attributed to a recent decline in oil prices, a seasonal dip in demand, and easing inflation.
The main events for Asian markets on Wednesday include interest rate decisions and guidance from New Zealand and Thailand, as well as inflation figures from Australia, with the underperformance of Chinese stocks continuing despite the central bank's commitment to accommodative monetary policy.
Labour markets in the rich world are undergoing a transformation as workers face a golden age of scarce and highly rewarded manual activity, supported by government spending and the boost of artificial intelligence (AI) to productivity, leading to higher wages, according to The Economist magazine. With factors such as demographic change, policy, and AI interacting differently in different conditions, governments must remove barriers to AI use in regulated professions and support workers in the transition rather than impede it.
Stocks closed mostly higher on Tuesday, supported by strong consumer confidence and optimism that the Federal Reserve will pause interest rate hikes, while Treasury yields fell after a Fed official expressed confidence in lowering inflation.
Despite concerns over inflation and the economy, U.S. consumers set record levels of spending during the Thanksgiving weekend, with over 200 million shoppers making purchases both in-person and online, exceeding early projections from the National Retail Federation. Online shoppers spent a record $38 billion over the five-day period, driven by high discounts, and while consumer confidence remains low, the spending spree reflects a gap between sentiment and actual spending.
The U.S. economy is experiencing strong wage growth, low unemployment rates, and a significant increase in median net worth, leading to a positive outlook for the market, particularly in big cap tech and large cap growth sectors.
Bank of America predicts a soft landing for the US economy in 2024, with a bullish price target for the S&P 500, due to earnings acceleration despite potential GDP slowdown.
The Chinese economy is experiencing challenges such as a weak housing sector, high government debt, and increasing unemployment.
A record-breaking number of over 200 million people shopped online and in-store during the holiday weekend, surpassing last year's figures and reflecting the resilience of consumers in the face of inflation and high interest rates.
Consumer confidence in the US economy, particularly regarding jobs and incomes, has improved, which could benefit President Biden's re-election prospects, according to a survey by the Conference Board. However, concerns about inflation remain, and analysts suggest that work still needs to be done to bolster Biden's position with voters, particularly among younger demographics.
The release of methane from the oil and coal industry could cause 1 million unnecessary deaths by midcentury unless immediate action is taken, according to a report by the International Energy Agency. Methane is a potent greenhouse gas that contributes significantly to global warming and has a larger warming effect than carbon dioxide. However, the report states that existing technologies can be used to mitigate methane emissions, offering hope for reducing the negative impact.
Big businesses have been able to avoid the negative impact of rising interest rates, as they locked in cheap funding before rates began to rise and invested surplus cash into higher-interest income generators; however, small businesses and risky borrowers are already facing increased costs, and if interest rates don't decrease, big companies will also face a sharp rise in borrowing costs as a significant amount of debt comes due in the next few years.
CD interest rates are unlikely to increase in 2024 and are more likely to drop due to factors such as inflation, changes in treasury yields, and bank needs. It is recommended to lock in a high CD rate now before they start decreasing.
The rise in loan delinquencies is impacting consumers as interest rates increase, with credit-card delinquencies reaching their highest level in 7 years.
China's aging population, debt-driven economic model, and struggling property market are raising concerns of "Japanification," a prolonged period of deflation and weak economic growth, which could benefit Western nations but pose challenges for China's people and the Chinese Communist Party. However, there are indications of economic recovery in China, with positive growth in various sectors and government efforts to stabilize the property market. To avoid long-term stagnation, China needs to adopt a new growth model and address its debt-fueled growth.