Baby boomers have benefitted from a "massive" wealth transfer from the government over the last 40 years, resulting in a $129 trillion transfer of wealth into their pockets, according to Bank of America Research.
US underlying inflation picked up along with consumer spending in the third quarter, indicating a possible interest rate hike, while the UK faced declining employment and the eurozone showed signs of recession.
A new study reveals that levels of pessimism among British households are higher than ever, surpassing even the height of the pandemic and the 2008 financial crisis, indicating widespread despondency that will impact the upcoming general election.
Zimbabwe will extend its multi-currency system anchored by the U.S. dollar until 2030, reversing the previously set 2025 deadline, due to diminishing confidence in the Zimbabwean dollar.
India has asked utilities to import 6% of their coal requirement until March to cope with rising power demand and inadequate supply of domestic coal.
The United States and Nevada are experiencing high inflation, leading to a record number of 401k withdrawals as people struggle to make ends meet.
Asia's central banks, including Japan and Malaysia, are facing the challenge of balancing monetary policy and battling inflation as they raise interest rates, leading to weaker local currencies and higher living costs for consumers.
Alibaba Chairman Joe Tsai emphasizes the potential of the Asia region despite slower economic growth in China and global security concerns, highlighting the hardworking nature and high levels of education in Asian countries. He also stresses the importance of communication between US and Chinese businesspeople to avoid conflicts and build trust in the complex geopolitical world.
Money managers, research firms, and market newsletter writers have recently issued commentary on the markets, which has been edited by Barron's.
The Communist Party of China has reviewed a set of policy measures to facilitate the revitalization of northeastern China, emphasizing the importance of industrial innovation, development of modern agriculture, ecological protection, and clean energy sources.
The stock market's inability to sustain a rally is a troubling sign as the selloff intensifies.
China's debt-saddled regions, including Tianjin, Guizhou, and Yunnan, are struggling to handle their massive debt burdens, leading to a reduction in investment and economic growth, as well as unfinished properties, and questions remain about the effectiveness of Beijing's debt-swap plan to address the issue.
The article discusses the economics behind all-you-can-eat buffets and explores various economic concepts such as adverse selection, sunk costs, diminishing marginal returns, and the flat rate pricing bias.
Retailers may be exaggerating the extent and impact of theft to divert attention from other issues affecting their business, such as weak demand and mismanagement, according to retail analysts. While theft has increased during the pandemic, it represents a small percentage of retailers' sales and is just one of many challenges they face, including online shopping and poor inventory planning. Retailers' focus on theft may be a strategy to draw government action and deflect attention from other problems.
China's president, Xi Jinping, has unveiled a stimulus package, appointed a new finance minister, and made a visit to the central bank, indicating the government's commitment to support economic growth and address the strains faced by local governments due to natural disasters and a weak economy.
Daily Kos is encouraging people to get involved in the upcoming elections to support the Black community.
Income inequality in the United States is a deeply rooted issue, with the top 10% of households owning 69% of the country's wealth while the bottom 50% only own 2.5%, and even within the top 10%, the top 1% own 12 times more than the bottom 50%. Moreover, the middle class is also shrinking, with their share of the country's wealth declining over the years compared to the top 10%.
The US GDP grew at a rapid pace of 4.9% in Q3 2023, yet President Biden's approval rating remains unaffected, possibly due to concerns over inflation; meanwhile, Democratic Congressman Dean Phillips intends to challenge Biden in the primary election based on the need for younger leadership.
The US economy is similar to the World Series in that it involves good, but not great, teams competing against each other.
Russia's Central Bank has raised its key lending rate for the fourth time in half a year to 15% in an effort to combat surging inflation, with inflation expected to be about 7% for the year and the bank targeting a decrease to 4% in 2024.
The Bank of Canada awarded millions of dollars in bonuses to almost all of its top executives in 2022, despite warnings against factoring in rising inflation into worker compensation, according to documents obtained by the Canadian Taxpayers Federation.
Small business owners and CFOs express pessimism about the US economy, with CFOs more hopeful about their own companies but small business owners having a historically low number of respondents believing it's a good time to expand operations.
Goldman Sachs CEO David Solomon warns that the U.S. economy may be more fragile in 2024 and that the Federal Reserve could raise rates further due to inflationary pressure.
Large parts of Ghana are experiencing power blackouts due to gas shortages, worsening the country's economic crisis, with limited gas supply leading to a gap of 550MW at peak time, according to the Ghana Grid Company (GRIDCo).
Ghana is experiencing power blackouts and a worsening energy crisis, exacerbating the country's economic woes, which include high inflation, a weak currency, and mounting debts.
Small businesses and investors are feeling the impact of the Federal Reserve's interest rate hikes, with the typical mortgage rate surpassing 8% and credit cards charging record-high interest rates, making it difficult for home buyers to enter the real estate market and leading to a slowdown in housing turnover.
U.S. consumer spending increased by 0.7% in September, driven by purchases of motor vehicles and travel, and accompanied by elevated inflation readings; however, spending is expected to cool off in early 2024 due to the depletion of excess pandemic savings.
Some Wall Street banks, including JPMorgan Chase and Deutsche Bank, are expecting the US Treasury to announce a need to borrow around $1.5 trillion in the fourth quarter and first quarter of 2024, on top of the $1 trillion borrowed in the third quarter, which is contributing to the recent rise in long-term yields.
The United Auto Workers (UAW) strike at Ford's Kentucky Truck Plant in Louisville played a pivotal role in pushing the company to reach a tentative agreement with the union after 41 days of negotiations, with the threat of a strike at Ford's Rouge Manufacturing Complex in Michigan looming if a deal was not reached. The agreement still needs to be ratified by UAW members, but Ford's CEO is pleased with the tentative deal and workers are returning to work to maintain pressure on General Motors and Stellantis.
The Bank of Japan is expected to raise its consumer price index outlook for fiscal 2024 to the 2% growth range, indicating three consecutive years of inflation above the target.
Consumer spending continued to drive economic growth in the third quarter of 2023, as gross domestic product (GDP) increased at a rate of 4.9%, beating expectations and putting recession fears to rest. However, concerns about high mortgage rates and limited housing supply could slow economic growth in the coming quarters.
Bank of America is recommending investors to invest in stocks that cater to baby boomers, who are benefiting from high interest rates and have more disposable income, while avoiding stocks that rely on cash-strapped millennials who are burdened with debts and high expenses. Sectors like healthcare, entertainment, and home improvement are likely to benefit from this trend, while clothing retailers may face headwinds.
Bank of Ireland has announced a 0.25% increase to its variable mortgage rates, affecting tens of thousands of customers, as the European Central Bank continues to raise interest rates, with further rate hikes expected from Irish lenders in the coming months.
Americans' sentiment declined this month, largely due to a wobbly stock market, with higher-income consumers and those with sizable stock holdings being particularly affected.
The BRICS currency, which aims to replace the US dollar as the world's reserve currency, is almost ready and awaiting political consent from all BRICS countries before its release.
Russia's Central Bank has raised its key interest rate to 15% in an effort to bring down high inflation caused by increased government spending, particularly on the war in Ukraine, which has led to rising domestic demand that outpaces production capabilities.
US consumer spending exceeded expectations, rising 0.7% in September and contributing to the strong economic growth seen in the last quarter, fueled by solid wage growth and drawdown of savings accumulated during the pandemic, although the resumption of student loan repayments and higher borrowing costs pose potential challenges for future spending.
High inflation is expected to persist in the global economy next year, posing a risk of interest rates remaining higher for longer than anticipated, according to a Reuters poll of economists. While some central banks were initially predicted to start cutting rates by mid-2024, the survey suggests that a growing number of economists are now pushing the more likely date into the second half of next year.
Expectations are high for a significant decline in petrol and diesel prices in South Africa for November, providing much-needed relief to consumers who have been hit hard by previous fuel increases, although the final adjustment could still be affected by the ongoing conflict in Israel and the trajectory of oil prices.
Bank of America is recommending investors to focus on "old-people stocks" that cater to wealthy baby boomers, such as American Express and cruise-ship lines, while avoiding companies that rely on cash-strapped millennials, due to the widening generational wealth gap in the US.
Nigeria's inflation rate is projected to reach a record level of 30% by the end of the year, driven by various factors including a widening exchange rate gap and a heavy rainy season affecting harvests, according to data and analytics company Stears.
The UK government's post-Brexit policy of reducing banana prices in supermarkets may negatively impact workers in Africa's poorest countries, potentially betraying the EU's promise to protect them.
Cup Noodles is changing its packaging to paper cups, making it more environmentally friendly and allowing the ramen to be made in the microwave, but keeping the same logo and design. The update is part of Nissin Foods USA's broader environmental changes to become more sustainable.
The cost of goods and services in the US rose by 0.4% in September, driven in part by higher oil prices, keeping pressure on the Federal Reserve to consider raising interest rates; however, the rate of core inflation over the past year fell slightly to 3.7%, the lowest level since June 2021.
Wall Street economists and the Federal Reserve have lowered the probability of a recession within the next year, citing declining inflation, a stable Federal Reserve, and strong economic growth, but this optimism is based on lagging economic data and fails to consider the potential negative revisions in the future.
Florida's car insurance rates have increased by 30 percent in the past year as the state faces escalating home and car insurance premiums due to excess litigation, extreme weather events, and a growing number of uninsured drivers.
Young high-income earners in the US are increasingly leaving states like California and New York in favor of states with lower taxes and housing costs, with Texas and Florida seeing the largest net migration gains, according to an analysis of income and migration data from the IRS.
China's property developer Country Garden has defaulted on its debt, triggering potential payouts on credit default swaps; the company's failure to make a bond repayment highlights the deepening crisis in China's property market.
High inflation is expected to persist in the global economy next year, posing a higher risk than initially forecasted and indicating that interest rates will remain elevated for a longer period, according to a Reuters poll of economists. Most central banks are delaying interest rate cuts until the second half of 2024, with inflation still rising faster than desired. The poll also reveals downgraded growth forecasts and upgraded inflation predictions for a majority of the surveyed economies. The U.S. economy stands out with unexpected strong growth, while some economists suggest that current policy may not be restrictive enough.
Against all odds, the US economy grew at an annualized rate of almost 5% last quarter, more than double the previous quarter, largely due to the power of low mortgage and loan rates, strong consumer balance sheets, increased productivity, and low employee turnover; however, there are concerns that the Federal Reserve hasn't done enough to combat inflation and that future revisions may change the story.