Former World Economic Forum member Bill Browder criticized the organization, calling it a "corporate, money-making machine" and stating that the high prices for attending Davos have priced out important voices.
The biggest banks in the US reported strong profits in 2023, supported by higher interest rates, a strong economy, and resilient consumer spending, despite dealing with the industry costs of the previous year's banking crisis that caused the collapse of Silicon Valley Bank and Signature Bank.
The Dow opens higher as the S&P 500 flirts with a record high after positive PPI data and earnings.
Gold prices surged after soft US producer prices data increased expectations of interest rate cuts, while US-led airstrikes on Houthi rebel targets in Yemen boosted haven demand, leading to the biggest jump in a month; meanwhile, the Canadian dollar remained little changed against the US dollar as oil retreated from earlier gains.
National averages for mortgage rates are slightly down, though they continue to fluctuate, and experts predict that rates will fall slowly throughout 2024.
New York Fed President John Williams and Cleveland Fed President Loretta Mester express caution about cutting interest rates too soon, emphasizing the need for sustained evidence of inflation reduction before taking action.
The US and UK have conducted strikes on Houthi rebel sites in Yemen as a response to the Iran-backed militants' attacks on vessels.
Rates on fixed mortgages in Canada have dropped by a full percentage point, presenting an opportunity for homebuyers and homeowners looking to secure more affordable rates, although there are warnings that committing to a long-term mortgage with rate cuts in the forecast could increase costs in the future.
Despite President Biden celebrating the December inflation report as progress, data suggests that the path to normalcy may be challenging as prices for everyday goods continue to rise, burdening low-income Americans and causing financial strain.
Bank of America's quarterly profit shrank due to one-off charges and lower interest income, but the bank remains optimistic about the U.S. economic outlook.
JPMorgan CEO Jamie Dimon believes that San Francisco is in worse shape than New York and needs lower rents to attract workers, citing the city's population decline and concerns about crime and rent as reasons for people leaving.
America's workforce is shifting towards the South, with workers moving to cities like Sarasota and Tampa in Florida, while leaving cities like College Station in Texas, as economic growth in the South outpaces the overall economy.
Despite the positive impact of a guaranteed-income pilot program in Los Angeles, recipients face financial challenges once the program ends and must find ways to maintain stability and economic mobility in the face of economic inequality.
Moving to low-tax states like Florida, Texas, and Tennessee may not provide as much tax savings as expected, particularly for lower-income households, according to an analysis by the Institute on Taxation and Economic Policy. These states have regressive tax systems that disproportionately burden lower-income residents, with factors such as property taxes and the lack of tax credits contributing to the disparity. Despite this, these states remain popular relocation destinations due to other factors like housing costs and weather.
Renters are experiencing a more painful hit from inflation compared to homeowners, with the cost of renting surging while homeowners' monthly payments remain steady, leading to a divide in how the two groups experience inflation.
Taylor Swift's upcoming Eras Tour in Europe is already having a significant financial impact, with hotels and short-term rentals experiencing high occupancy rates and price hikes, leading to an economic boost for the continent.
The UK's economy rebounded in November with a growth of 0.3%, driven by stronger retail sales, although economists warn that the country is still at risk of recession.
China's full-year exports fell by 4.6% in 2023, marking the first decline since 2016, due to sluggish global demand, while imports fell by 5.5%; however, there was a slight improvement in December suggesting a slight recovery in global appetite for Chinese goods.
China's excessive investment and capacity, combined with its surplus supply and low prices, are destabilizing world trade and creating a serious trade shock for Europe, while risking its own economy and creating the potential for a global trade war.
China's consumer prices have been declining for three consecutive months, marking the longest streak of deflation since 2009, while exports experienced their first annual decline in seven years, raising concerns about the need for government support to reverse the trend.
Germany's economy is expected to face challenges in 2024, including a decline in GDP growth, stagnation, struggles in the automobile industry, budget constraints, and adverse weather conditions.
US President Joe Biden's campaign for reelection is facing challenges as Americans are not feeling the positive impact of economic growth and recovery, with high prices and inflation still negatively impacting their wallets, despite the government's claims of progress.
Donald Trump Jr. made misleading claims about the current economic climate, ignoring positive indicators such as low unemployment and stock market performance.
Investors are underestimating the risk of an economic slowdown and "greedflation" will not be able to support the market in 2024, according to Société Générale.
Argentina's annual inflation rate reached the highest level in 32 years at 211.4% in 2023, surpassing Venezuela, due to shock measures and a 50% currency devaluation implemented by President Javier Milei to tackle inflation.
The World Economic Forum's Global Risk Report warns of increasing risks in areas such as the environment, economy, misinformation, and conflict, with polarization making it harder to address these concerns.
Argentina experienced an annual inflation rate of 211.4% in 2023, the highest in 32 years, driven by shock measures implemented by President Javier Milei, including a currency devaluation, with food and non-alcoholic beverages being the biggest contributors.
The mini-documentary "The Rising Cost of Money" explains why the price of money is set to rise after three decades of decline and what it means for various aspects of the global economy.
The delinquency rates for credit card debt in the US have surpassed pre-pandemic levels, with increasing numbers of people falling behind on payments, as inflation and rising interest rates make debt more expensive.
Argentina's annual inflation rate reached 211% in December, the highest level since the early 1990s, as President Javier Milei implements tough austerity measures to combat hyperinflation.
Vivek Ramaswamy, a US Presidential candidate, warns that a potential BRICS common currency could severely impact the US economy by increasing borrowing costs and suggests pegging the dollar to hard commodities as a solution.
James Galbraith, economist and author, believes that the U.S. Federal Reserve should cut interest rates in response to the damage done to the housing market and long-term investment plans due to rising interest rates, while expressing concern about inflated valuations in the financial markets and downplaying worries about the national debt, calling them unnecessary scare tactics. He also criticizes the lack of consensus among economists regarding the causes of inflation and advocates for specific diagnosis and treatment in economics. In terms of reforming the U.S. economy, Galbraith prioritizes reducing the size and power of the financial sector and demilitarization.
The U.S. federal budget deficit widened to $129 billion in December, and economists are increasingly concerned about the negative impact of rising spending on long-term economic growth.
Manufacturers in Iowa express concerns over President Biden's green energy policies, inflation, and the growing cost of federal regulations, which are estimated to be over $50,000 per employee per year for smaller firms.
Numerous analysts have an optimistic outlook for the world economy in 2024, but this positivity may be influenced by recency bias and overlook the mounting challenges to global growth, such as geopolitical tensions and economic headwinds.
Inflation gains accelerated in December, indicating that the Federal Reserve's efforts to achieve price stability are not yet complete, potentially dampening hopes for early rate cuts.
Mercedes-Benz auto workers in Tuscaloosa County, Alabama, have joined the United Auto Workers (UAW) union, prompting a strong response from Governor Kay Ivey, who emphasized the state's economic success and criticized the influence of out-of-state special interest groups; Mercedes-Benz has stated that it will respect the workers' decision.
The average long-term U.S. mortgage rate rose to its highest level in four weeks, reaching 6.66%, while 15-year fixed-rate mortgages saw a slight decrease to 5.87%.
American homeowners are taking advantage of lower mortgage rates to refinance, leading to a significant increase in activity and a decrease in monthly payments, according to the Mortgage Bankers Association (MBA). Experts note that the decline in rates has also sparked more buyer activity in the housing market, despite elevated prices.
Vehicle prices continued to moderate in December and throughout 2023, with new vehicle prices rising only 1% year over year, resulting in automakers and dealers having to use incentives to cut prices and move inventory. The used car market also saw prices moderating, with a 1.3% year-over-year slip in 2023.
China's auto exports reached a record high of 4.91 million vehicles in 2023, driven by the surge in new energy vehicle (NEV) exports, backed by the country's domestic market, low-carbon development push, modern industrial system, and mature industrial chains.
The market is expected to pull back from its recent rally as December's high CPI reading suggests stickier inflation in 2024, leading investors to reassess narratives and become more cautious about interest rate cuts.
Since the start of the Biden-Harris administration, there has been a significant increase in business applications, indicating a surge in business formation and economic activity that is expected to drive robust job creation.
Consumer prices in the US rose 3.4% over the year, driven by higher housing, dining out, and car insurance costs, indicating slow progress in fighting inflation and suggesting that the Federal Reserve may be cautious in cutting interest rates.
The Consumer Price Index (CPI) report for December 2023 shows that All Items CPI accelerated and surprised on the upside, while Core CPI held steady and beat expectations slightly, with core services ex-housing running well above the Fed's 2.0% target. This could have implications for the U.S. economy and financial markets, potentially leading to a more hawkish approach from the Fed.
The consumer price index (CPI) for December showed that core prices rose faster than expected, impacting Federal Reserve policy and causing the S&P 500 to turn moderately lower; however, the upcoming producer price index (PPI) report could change the outlook.
Inflation rose more than expected in December, driven by increased energy and housing costs, posing challenges for controlling price pressures in the economy and creating financial burdens for U.S. households.
Traders are reducing their bets on Federal Reserve rate cuts following higher-than-expected inflation data, causing stocks, bonds, and the dollar to struggle for direction.
Credible Operations, Inc. provides tools and information to help improve your finances, including current mortgage rates from multiple lenders, along with tips on comparing rates, qualifying for a mortgage, applying for a mortgage, and refinancing a mortgage.
The number of Americans applying for unemployment benefits reached its lowest level in almost three months, indicating a strong labor market that continues to perform well despite elevated interest rates.