Investor optimism that mortgage giants Fannie Mae and Freddie Mac are on the road to privatization has been reignited by Donald Trump's victory in the Iowa caucuses.
HDFC AMC has secured approval to start six feeder funds in GIFT City in India, allowing foreign investors to invest in its domestic mutual fund schemes without capital gains tax. However, the minimum investment size of $150,000 means only wealthy investors can take advantage of this opportunity.
Low-income borrowers are facing increasing financial difficulties, with rising delinquencies in car loans and credit cards, and missed opportunities to refinance mortgages at historically low rates during the pandemic, according to a report by the Federal Reserve Bank of New York.
Market trading has been mixed as jobless claims reach a 16-month low, leading to uncertainty over potential rate cuts from the Federal Reserve.
Atlanta Federal Reserve President Raphael Bostic is open to reducing U.S. interest rates sooner than expected if there is convincing evidence that inflation is falling faster than anticipated, but he also cautions against premature rate cuts that could lead to upward pressure on prices.
The average rate for a 30-year mortgage dropped to its lowest level in seven months, leading to an increase in homebuyers and sellers entering the housing market; however, experts warn that the rising demand may outpace the limited inventory available.
Blackstone Group Co-Founder Stephen Schwarzman believes that US growth is currently strong due to consumer spending and excess savings, but potential Federal Reserve interest rate cuts may be needed to maintain a positive market environment and avoid a recession. Schwarzman also expresses concerns about the regulatory environment under Biden and highlights investing opportunities in energy transition, data centers, and European real estate.
Uganda's government faced a deficit in domestic revenue of Shs394.60 billion in December 2023, highlighting issues with tax administration and declining revenue collections.
The number of Americans filing for unemployment benefits unexpectedly dropped to the lowest level in 16 months, indicating a resilient labor market despite high interest rates and inflation.
Two financial services companies, Fannie Mae and Freddie Mac, top the list of most indebted companies in the world, with a combined debt of over $7 trillion, while US-based companies make up the majority of the 100 most-indebted companies globally, and Toyota, Amazon, and Apple are among the most-indebted companies in their respective industries.
Over half of Americans were considered "thriving" in 2023, only slightly higher than during the Great Recession and the first year of the COVID-19 pandemic, according to a Gallup poll, with the decline in the thriving rate potentially impacting Joe Biden's chances of re-election in 2024.
California's population decline appears to be slowing after residents left the state in droves due to high housing costs and other quality-of-life issues, with the state losing $29 billion in taxable income to other states, but experts predict a return to growth and population stabilization as international migration resumes and fewer residents leave.
UK Chancellor Jeremy Hunt has indicated his desire to cut taxes in the upcoming spring Budget, stating that countries with lower taxes tend to have more dynamic, faster-growing economies. The potential for tax cuts rests on inflation falling this year, which would provide room for further reductions. Hunt believes that low-tax economies are more competitive and generate more revenue for public services like the NHS. The government is awaiting a forecast from the Office for Budget Responsibility before providing further detail on the scale of potential tax cuts.
China has discovered a massive deposit of lithium, a key material in the country's new-energy sector, increasing its supply and boosting China's position in the lithium supply chain and global EV market.
The number of Americans filing new claims for unemployment benefits reached its lowest level in nearly 1-1/2 years, suggesting strong job growth in January and potentially complicating the Federal Reserve's plans to cut interest rates in March.
Bankers at the World Economic Forum in Davos are expressing optimism about the finance sector, with Blackstone's Steve Schwarzman noting a return of "animal spirits", and Morgan Stanley's Ted Pick anticipating lower interest rates to stimulate deals.
The number of Americans applying for unemployment benefits fell to its lowest level in over a year, indicating the resilience of the labor market despite high interest rates aimed at cooling the economy.
The Philadelphia Fed's gauge of regional business activity improved slightly in January but remains in negative territory for the fifth consecutive month, indicating deteriorating conditions; however, the data was not as weak as other regional manufacturing gauges such as the Empire State Index.
The number of Americans applying for unemployment benefits reached a 16-month low, but the decrease was influenced by a decline in New York state filings related to school holidays, and economists caution against interpreting it as a sign of a stronger labor market or economy.
The soaring housing prices in big cities have made it difficult for even higher income earners to afford a home, with some cities now requiring at least 20 more years to afford a home compared to 2001, according to data from Arrived.
UK mortgage losses are increasing at the fastest rate since the financial crisis, as rising interest rates make it difficult for families to keep up with repayments. This comes after the fastest rise in borrowing costs in nearly four decades, with banks bracing themselves for continued losses, despite recent rate cuts.
The recent mortgage rates are generally favorable for homebuyers, with a decline expected throughout the year, but fluctuations are anticipated before reaching a steady rate of 6% by the end of the year, influenced by factors such as inflation rates and economic conditions.
Economist Steve Hanke predicts that the stock market will decline, a recession will occur, and inflation will drop below 2% by the end of the year due to overvalued stocks, a shrinking money supply, and the impact of changes in the US money supply on inflation.
Millions of workers are facing smaller year-end bonuses as high inflation and slowing job growth continue to impact employers, according to new data published by payroll software company Gusto. The average bonus paid by U.S. firms in December was $2,145, a 21% decline from the previous year, with bonuses falling across every industry except for the technology sector. The transportation sector saw the sharpest decline in bonuses, indicating easing conditions in transportation and warehousing sectors. Furthermore, there was a decrease in the share of workers receiving bonuses, signaling a continued easing of labor market pressure for businesses.
Spending on residential improvements and repairs is projected to shrink this year due to high prices, interest rates, and weak home sales, but there may be a slight improvement by the end of the year, according to the Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at Harvard University.
A Bankrate survey reveals that nearly 40% of Gen Z-ers and millennials believe it is more difficult for them to build wealth compared to their parents, highlighting the generational gap, with younger generations facing higher living costs and student debt burdens, although they are adopting alternative strategies to boost their financial wealth such as side hustles; however, as boomers pass away, younger generations are expected to inherit their wealth, potentially transforming the political and financial landscape.
The Bank of Canada is expected to start cutting interest rates in the second half of 2024, with a total reduction of 150 basis points by 2025, according to CIBC Capital Markets deputy chief economist Benjamin Tal. He believes that both the central bank and the Federal Reserve will wait until inflation is "absolutely dead" before implementing rate cuts. Tal also predicts that the Canadian economy will experience weak GDP growth in the first half of 2024 but will see some improvement in the housing market as interest rates fall. He suggests that interest-sensitive sectors like construction, utilities, and manufacturing will do well ahead of rate cuts.
President Joe Biden visited North Carolina to promote his administration's infrastructure and economic development plans, announcing $82 million in new investment to expand internet broadband and highlighting other infrastructure investments in the state, while also taking aim at former President Donald Trump and congressional Republicans who voted against his infrastructure package; the visit comes as the 2024 presidential campaign takes shape and both parties look to appeal to voters on economic issues.
Russia's national wealth fund has seen a significant decrease in liquid assets since the country's invasion of Ukraine, with the amount of easily liquidated assets falling by over 44%, potentially leaving Russia vulnerable to shocks if oil prices continue to decline.
Germany, once known as an economic powerhouse, is currently experiencing a standstill in its economy with a contraction of 0.3 percent last year and predictions of little growth in 2024, leading to farmer protests and a decline in industrial output.
Gold reserves play a vital role in ensuring economic stability, as they serve as a dependable store of value and influence a country's creditworthiness, amidst growing economic uncertainties and financial crises.
The Federal Reserve's interest rate hikes, implemented to combat inflation under President Biden, have resulted in a significant deficit and added to the national debt, leading to the Treasury having to issue debt to cover the losses, according to experts.
Melania Trump delivers the eulogy at her mother's funeral in a live stream.
China's economic downturn and unemployment crisis are causing a crisis of confidence, particularly among young people, as subdued consumption and limited job opportunities erode the country's long-term economic potential.
A new study from Oxford Economics reveals that declining inflation has particularly benefited low-income earners in the US, potentially leading to increased consumer spending and an overall boost to the economy in 2024.
Oaktree Capital, a distressed-debt giant, sees significant opportunities in the credit market as a large amount of debt is set to mature in the coming years, with a particular focus on commercial real estate and the potential for portfolio acquisitions and credit-risk transfer deals.
Chinese universities are facing challenges in providing employment opportunities for their graduates, as youth unemployment remains high and job prospects remain scarce, leading to an increasing number of students pursuing further education or engaging in part-time and entrepreneurial work instead.
Despite the global economy's resilience in the face of various challenges, such as conflicts, economic slowdown in China, surging financial stress, trade fragmentation, and climate change, the World Bank predicts slower global growth that falls short of the Sustainable Development Goals, with the first half of the 2020s being the weakest in 30 years, although the US economy could outperform expectations.
A mountain of debt in commercial real estate is putting borrowers at risk of not being able to refinance due to higher interest rates and increased vacancies, potentially leading to bankruptcies for property firms and small banks.
The US economy has experienced little change in recent weeks, as hiring has stalled and prices have grown modestly, leading to speculation of interest rate cuts this year and a cooling of the economy.
The world could potentially see its first trillionaire within the next decade, as the wealth gap continues to widen and billionaires like Elon Musk, Jeff Bezos, and Warren Buffett see their fortunes grow significantly, according to a report by Oxfam International. The report highlights the urgent need for tax reform and other measures to address the growing wealth disparity and reduce poverty.
The Bank of Canada is expected to maintain the current interest rate, but observers are paying close attention to the announcement for any signs of a potential rate hike in the future, which could impact the housing market and fixed rates.
Treasury Secretary Janet Yellen defends the Democrats' pandemic response package, stating that the current state of the U.S. economy justifies the steps taken to revive it and that inflation is under control.
More than 250 ultra-rich individuals from 17 countries, including Abigail Disney and Brian Cox, have signed an open letter at the World Economic Forum in Davos, urging governments to tax the rich and transform extreme private wealth into a investment for the common democratic future.
Signs of cooling in the labor market, with larger applicant pools, lower turnover rates, and easing wage pressures, could help keep inflation low and provide optimism for future growth, according to a Federal Reserve survey.
U.K. inflation edges higher in December after a change in tobacco taxes, but remains near its slowest pace in two years, meeting Prime Minister Rishi Sunak's pledge to cut inflation rate in half.
Hopes for a March rate cut from the Federal Reserve are diminishing due to stronger retail sales and comments from Federal Reserve Governor Christopher Waller, leaving the timing of the first rate cut of 2024 uncertain.
Bank CEOs meeting at the World Economic Forum in Davos expressed concerns about competition from fintech firms and private lenders, while also complaining about onerous regulations and discussing the challenges of the global economy.
The CEO of Cantor Fitzgerald, Howard Lutnick, warns of a potentially "very ugly" real estate market in the next two years, with a possible massive default in loan sales and a generational change in the industry. Lutnick also expresses skepticism towards optimistic predictions about rate hikes by the Federal Reserve.
China's GDP grew by 5.2% in 2023, but its nominal GDP in dollar terms fell for the first time in 29 years as its share of the global economy decreased for the second consecutive year.