The rising cost of living in Ghana, fueled by inflation and economic crisis, is pushing more people into poverty and exacerbating inequality, with low-income households spending over half their earnings on food and informal workers receiving little support, despite being essential workers during the COVID-19 pandemic. The government's failure to implement sustainable reforms and its underinvestment in social protections have contributed to the worsening crisis.
Wall Street Breakfast discusses various topics including short selling, the termination of the Truth Social and Trump media merger, market predictions, and the impact of debt and interest rates.
The rise of "homeland economics" is causing governments to abandon the principles of free markets, which is leading to a loss of faith in democracy in Africa and the Middle East.
The recent surge in bond yields is causing a significant shift in markets, but there is still optimism among investors.
Argentina's soybean processing plants are facing a shortage of soybeans due to a historic drought, leading to widespread factory closures and a decline in exports, as the country struggles to import enough soybeans to keep its crushing factories open.
South Africa's central bank governor, Lesetja Kganyago, stated that the bank will not intervene to protect the weakening rand currency and that its focus remains on fighting inflation.
The rise in interest rates on US treasury bonds is causing concerns of turbulence in the bond markets, potentially leading to a crash in other asset markets.
The Pakistani rupee has strengthened against the US dollar for a month due to a military-backed crackdown on currency smugglers, with analysts expecting the rupee to reach 280 to the dollar in the near future.
The Federal Reserve's acceptance of the recent surge in long-term interest rates puts the economy at risk of a financial blowup and higher borrowing costs for consumers and companies.
Sam Bankman-Fried, the former FTX CEO, cancelled his speaking engagements at the World Economic Forum's annual meeting in Davos and a Time magazine event, with author Michael Lewis stating that he made these decisions based on calculations that deemed the individuals and events unworthy of his time.
Russia is expected to export a historically high amount of wheat this year, gaining a larger share of the global market and undermining Ukraine's position as a top wheat exporter, which would have major economic and war-fighting implications for Ukraine; Russia's actions are also aimed at cultivating alliances with developing nations and gaining positive publicity.
U.S. Treasury yields stabilize after reaching multi-year highs as investors analyze economic data, particularly the slowing private job growth in September, fueling speculation that the Federal Reserve's interest rate hikes may soon come to an end.
Developing countries require $2 trillion in annual climate investments, with the majority of the funding expected to come from the private sector, according to the IMF, who warns that relying on public funds could lead to high debts. The IMF suggests implementing carbon pricing schemes and emissions taxes, as well as tightening regulations for ESG labels and improving investment climates, to attract private investments for climate initiatives.
Gas loadshedding plan being developed in Pakistan due to depletion of natural gas reserves, with gas supply limited to eight hours in the winters; measures being taken to address gas shortage for industry and crackdown on power thieves underway.
Indian javelin thrower Neeraj Chopra won a gold medal at the Asian Games despite controversy over his first throw not being recorded, prompting accusations that Chinese officials were trying to cheat and deliberately target Indian athletes.
Asia's competitive advantage has shifted from cheap labor to industrial services, including logistics, waste management, and data centers, according to a report by KKR's heads of global and Asia macro, who believe that the demand for infrastructure and logistics in countries like India, China, Japan, and others will continue to accelerate. Japan, in particular, is experiencing a capex cycle and corporate reform that is boosting shareholder returns, making it an attractive investment opportunity. Meanwhile, India is witnessing significant growth in infrastructure investment and exports, leading to increased productivity and economic growth. China's economy is undergoing a transition, with a growing digital economy and emphasis on decarbonization.
The White House's "Bidenomics" agenda and excessive government spending, coupled with the Federal Reserve's low interest rates, could lead to a catastrophic economic crisis marked by inflation not seen since the Great Depression, putting strains on American families and depleting savings, requiring urgent action to reduce spending and avert disaster.
A growing amount of data indicates that a significant economic crisis, comparable to the Great Depression, could occur if government spending is not reduced to combat inflation.
Andorran MPs have implemented a temporary ban on foreigners buying property in an effort to address a housing crisis caused by an influx of affluent expats, with rising real estate prices forcing many locals to move to neighboring Spain; the ban will be replaced by a tax on foreign property purchases to fund affordable rentals, although critics argue that wealthy foreigners may still apply for residency permits.
The Gulf Cooperation Council (GCC) markets, particularly Saudi Arabia and the UAE, are seeing a rise in inbound and cross-border mergers and acquisitions activity, with 80% of respondents executing or having executed these deals in the past 12 months, driven by the strategic interconnectedness and pivotal strength of the region, as well as the countries' ambitious economic diversification plans.
According to a report by the European Union's Copernicus Climate Change Service, this year is on track to be the hottest year ever recorded, with September 2023 being the warmest September on record, and the global mean temperature for January-September 2023 being 0.52 degrees Celsius higher than the average.
According to a report by ADP, US employers added 89,000 new private-sector jobs in September, which is significantly lower than the expected 153,000 new hires. However, data from the Bureau of Labor Statistics showed a surge in available jobs, indicating a contrasting picture of the labor market.
The World Bank has lowered its GDP growth estimate for China in 2024 due to elevated debt and weakness in the property sector, which has been hit by a downturn leading to unfinished homes and a decline in housing prices. While the impact on the overall economy may be limited, smaller regional banks and local government financing vehicles (LGFVs) are at higher risk. Policymakers have signaled a shift in their approach to the property market, and the long-term prospects of the sector may be hindered by demographic factors and a high rate of home ownership. However, experts believe that real estate will remain an important industry in the future.
Asia-Pacific markets rise as U.S. Treasury yields ease from 16-year highs following weak jobs data, with Japan, South Korea, and Australia all trading higher, while Hong Kong's Hang Seng index looks set for a rebound after losses on Wednesday; Carter Worth, CEO of Worth Charting, predicts lower interest rates and stocks by the end of 2023, contrary to consensus forecasts, while Vanguard's Aliaga-Diaz believes there is a limit to how high yields will go due to rate uncertainty; oil prices fall sharply, hitting their lowest level since September 5.
China's economic malaise is attributed to a failure to implement necessary reforms, with structural threats to stability increasing and growth expectations diminishing, according to a report by Rhodium Group and the Atlantic Council, which warns that the country's goal of becoming the world's largest economy may be delayed.
The political dysfunction within the House GOP, including the ouster of former Speaker Kevin McCarthy, is causing concerns for financial markets and adding new risks at a time of heightened fears about inflation, bond yields, and oil markets. The potential for a government shutdown and the delay in electing a new Speaker further compound the worries and could impact consumer confidence and economic data needed by the Federal Reserve to make decisions on interest rates.
Investment bank Société Générale's global strategist, Albert Edwards, warns that the stock market's strength in 2023, despite the effects of higher interest rates, resembles the period leading up to the 1987 Black Monday crash, raising concerns of a potential repeat.
Rating agency Fitch warns about a possible government shutdown after the ousting of U.S. House Speaker Kevin McCarthy, but states that it would not impact the country's sovereign rating as the governance issues are already factored in.
The recent surge in global bond yields, driven by rising term premiums and expectations of higher interest rates, signals the potential end of the era of low interest rates and poses risks for heavily indebted countries like Italy, as well as Japan and other economies tied to rock-bottom interest rates.
Wall Street closed higher as the bond market loosened its grip on stocks, with the S&P 500 rising 0.8% and the Dow Jones Industrial Average rising 0.4%; tech stocks helped support the market after a previous decline, while Treasury yields eased and oil prices dropped.
Opening a 1-year CD account now could be beneficial for savers due to the high interest rates, locked rates, and predictability it offers.
China's economic growth this year may be as low as 2 percent, half of what the International Monetary Fund predicts, due to problems in the property sector, weak foreign direct investment, and other structural issues, according to Daniel Rosen of the Rhodium Group. The IMF has forecasted 5.2 percent growth for China, but Rosen believes growth above 3 percent is unlikely in the medium term. Additionally, concerns are rising that China's economic challenges could hinder global growth.
The United States is expected to add 170,000 jobs in September, which would mark the fourth consecutive month with an increase below 200,000, potentially exacerbating the labor shortage and making it difficult for the Fed to control inflation. The unemployment rate is forecast to fall slightly to 3.7%, while wage growth is expected to rise 0.3%. The impact of labor-union strikes, such as the expanded strike by auto workers, could also affect employment growth.
The Mortgage Bankers Association's index of mortgage applications fell to a nearly three-decade low as consumer demand cooled sharply due to a surge in mortgage rates.
The Federal Reserve may not raise interest rates again this year due to an already uncertain political climate in Washington, as well as a cooling economy, slowing inflation, and potential negative impacts from high interest rates and a government shutdown.
Housing prices in the US have become increasingly unaffordable, with median home prices in 99% of examined counties out of reach for the average income earner, due to rising mortgage rates and home prices, as well as a shortage of available homes for sale.
Mortgage rates in the U.S. housing market are approaching 8%, causing concern and potentially discouraging home-buying demand due to higher monthly mortgage payments relative to incomes.
Billionaire investor Bill Ackman warns that the American economy is starting to slow due to high interest rates and highlights potential challenges for certain individuals and commercial real estate investors, but his firm's top three holdings, Chipotle Mexican Grill, Restaurant Brands International, and Lowe's Companies, have seen varying performances in the market.
Wedbush warns that retailers such as Best Buy, Wayfair, and Williams-Sonoma may be at risk as student loan repayments resume for millions of Americans.
The US Supreme Court is deciding whether the funding structure of the Consumer Financial Protection Bureau (CFPB) is legal, with payday lenders arguing that the funding arrangement is unconstitutional, though justices at the Supreme Court appeared skeptical of their arguments; a decision is expected next year, and Senator Elizabeth Warren hopes the court will decide in favor of the CFPB to prevent potential disruptions to people's lives and the economy.
The South African rand traded slightly higher against the US dollar as the weakening of the greenback supported risk sentiment, following a few days of weakness for the rand.
Treasury Secretary Janet Yellen remains optimistic about the US economy despite challenges such as record inflation, rising interest rates, and geopolitical conflicts, citing the strong labor market and resilient consumer as contributing factors to a soft landing, while also discussing the potential impact of artificial intelligence on the economy and the need for Congress to allocate funds for Ukraine.
DoubleLine Capital CEO Jeffrey Gundlach, also known as "The Bond King," warned of a weakening economy in 2024 and a potential financial crisis as Americans rely on credit card debt to sustain their spending, leading to a "death spiral" in their personal finances. He pointed to indicators such as an inverted yield curve and a plateauing unemployment rate as signs of economic volatility. Gundlach also advised investors to favor fixed-income assets over stocks, citing high valuations and rising bond yields.
Consumer spending in Minnesota is slowing down as the economy stabilizes after the COVID-19 pandemic, with a shift from goods to services, and rising prices for essential items like housing and gas impacting consumer behavior.
Kenya's 10-year Eurobond rates surge to 18.7%, signaling default concerns, as investors worry about the country's ability to refinance its foreign obligations and President Ruto's call for debt restructuring adds to uncertainty.
Poland's central bank has lowered its key interest rate despite concerns that it is a political move, as the country's inflation rate drops to 8.2%; analysts speculate that the rate cut is aimed at assisting the conservative government ahead of the upcoming parliamentary elections.
Contrary to popular belief, SBI's chief economist argues that it is the public sector undertakings (PSUs), not private firms, that have been lagging behind in capital expenditure.
A new report from Moody's Analytics has shown that the presence of a Cheesecake Factory in a mall can be used as an indicator of the mall's financial health. Mall loans backed by malls with a Cheesecake Factory have a higher current payment rate compared to those without the chain, suggesting that the restaurant has a quantifiable impact on mall performance.
The European economy has decreased in size compared to the American economy, but factors such as GDP per person and productivity show that countries like Denmark and Austria are more productive than America. Adjusting for purchasing-power parity, the EU's GDP is roughly 95% of America's, and productivity in countries like Austria, Belgium, and Denmark is higher on an hourly basis. However, narrowing the gap in total GDP would require Europeans to work more hours.
The US economy added 89,000 private-sector jobs in September, falling well below expectations of 160,000 jobs, indicating some labor market weakness despite other signs of strength.