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☆ US stocks will soon beat European peers again as hotter inflation means the region is heading into more aggressive rate hikes, BlackRock says
▼ + stars: | 2023-03-07 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

The S&P 500 this year has gained about 5% while German and French stocks are up in the 14% area. Good news on the economy means the European Central Bank (ECB) needs to hike rates more to cool inflation," wrote Wei Li, global chief investment strategist at BlackRock Investment Institute. "The ECB faces a stark trade-off between pushing up unemployment or living with persistent inflation," wrote Li. Market pricing indicates rates will peak around 3.9% compared with expectations of 3.2% in February, with fewer rate cuts expected next year. We're underweight European stocks but like the financial, energy, healthcare and consumer discretionary sectors," said Li.

☆ Why Some Investors Are Still Waiting for Discounts on Corporate Bonds
▼ + stars: | 2023-03-05 | by ( Matt Grossman | ) www.wsj.com time to read: 1 min

New bonds from corporate stalwarts such as United Parcel Service contributed to nearly $150 billion in high-grade sales last month. Corporate-debt yields are near decade-plus highs and the economy is humming. Some investors still think bonds from America’s blue-chip companies are a bad bet. Their caution stems from the relatively scant premium offered by corporate bonds relative to ultrasafe U.S. government debt, which is also paying some of its most generous yields of the past 15 years. The 5.7% yield on investment-grade corporate bonds—among the highest since 2009 in Intercontinental Exchange index data—looks less appealing next to yields above 5% on some Treasury debt, several investors said.

☆ 'Huge hunger cliff' looms, warns expert: Average recipient to get $90 less in food stamps as Covid aid ends
▼ + stars: | 2023-03-02 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

watch now"That's a really tight budget if you're talking about low-income families," said Ellen Vollinger, SNAP director at the Food Research and Action Center. The Food Research and Action Center has advocated for congressional legislation to address the problem. Food bank braces for increased demandLos Angeles County Regional Food Bank workers help with food distribution in Willowbrook, California, on April 29, 2021. The food bank has been increasing its food purchases in recent weeks to anticipate increased demand for food assistance, Flood said. In the aftermath of the pandemic's onset in 2020, the food bank was serving 1 million county residents, Flood said.

March 1 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. How Asian markets trade on the second day of the month on Thursday may come down to which of these two forces retains the most momentum. chartSpiraling bond yields, rates and inflation expectations aren't confined to the U.S. - euro zone PMIs also highlighted stagflationary pressures, while euro zone inflation expectations are the highest in over a decade and, in a rare occurrence, pushing above U.S. equivalents. Can Asian markets withstand these pressures on Thursday and take their cue again from China's economic renaissance? There are no top-tier Asian economic data releases on tap - South Korean retail sales, Australian building approvals and Japanese consumer confidence - leaving flash February euro zone inflation as perhaps the biggest market-mover of the day.

☆ 'Dr. Doom' Nouriel Roubini says stocks and bonds will suffer for years to come as inflation hovers close to 6%
▼ + stars: | 2023-02-24 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Stocks and bonds are in for more severe losses for years to come, according to Nouriel Roubini. Roubini, who was among commentators who accurately predicted the 2008 crisis, warned investors that inflation could hover close to 6% despite the Fed's scramble to bring down high prices. Over the last year, central bankers have raised interest rates 450 basis-points to tame high inflation, a move that's weighed heavily on stock and bonds. That's because central bankers will be torn between raising interest rates to fight inflation, and lowering interest rates to alleviate debt burdens, he warned. Roubini urged investors to move away from "traditional" investments like bonds and equities, and to instead invest in inflation hedges, including short-term bonds, inflation indexed bonds, commodities, and precious metals such as gold.

☆ Hot inflation data keeps causing the market to go down — listen to the 'Homestretch'
▼ + stars: | 2023-02-24 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHot inflation data keeps causing the market to go down — listen to the 'Homestretch'Jim Cramer explains why Wall Street is selling off Friday after the release of the personal consumption expenditures price index data. He also offers insight into why Club holdings such as Linde are performing well.

The major Detroit pickup truck brands are sitting on growing inventories of unsold vehicles, according to Cox Automotive data provided to Reuters. Inventory levels are over 100 days’ supply for rival Stellantis NV's (STLAM.MI) Ram half-ton and heavy-duty pickups. Stellantis said in a statement it had no downtime planned at any of its North American plants, but constantly reviewed its inventory levels and would make production adjustments as needed. February sales growth was led by a 54% increase in sales to fleet customers, Power and LMC said. Especially for trucks," said Ohio dealer Rhett Ricart, whose Ricart Automotive Group sells Ford and GM trucks at different stores.

☆ Personal spending growth outpacing personal income growth is worrying data: SoFi's Liz Young
▼ + stars: | 2023-02-24 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailPersonal spending growth outpacing personal income growth is worrying data: SoFi's Liz YoungLiz Young, SoFi's head of investment strategy, and CNBC's experts discuss the core PCE price index data, the actual inflation data, and more.

"There have been a number of approaches, but so far without getting any response" from the government, the source added. But progress has been complicated by a two-year civil war that broke out in November 2020, killing thousands of people and displacing millions. The international bond only makes up a small part of the country's total external government debt, which stood at $27.4 billion in the third quarter of last year, according to World Bank data. International bondholders have not formed a private creditors committee for the extension proposal because Ethiopia has continued to service the bond normally, two of the sources added. Recent filings show that Franklin Templeton Fixed Income Group and Allianz Global Investors U.S. LLC are some of the holders of the bond, according to EMAXX data.

☆ Japan's factory activity shrinks at fastest pace in 2-1/2 years-PMI
▼ + stars: | 2023-02-21 | by ( ) www.reuters.com time to read: +2 min

The au Jibun Bank flash Japan manufacturing purchasing managers' index (PMI) fell to a seasonally adjusted 47.4 in February, from a final 48.9 in the previous month. Factory output and new orders decreased for an eighth straight month and at faster rates than January, the sub-index data showed. By contrast, service-sector activity grew for a six month with further relaxation of domestic COVID-19 countermeasures. The au Jibun Bank flash services PMI rose to an eight-month-high of 53.6 seasonally adjusted in February from the previous month's 52.3 final. Overall, the au Jibun Bank Flash Japan composite PMI was at 50.7 in February, in line with last month's final figure, as the gloomy manufacturing index was offset by a rosy service PMI.

Feb 22 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. Wall Street and world stocks had their worst day this year after purchasing managers index data showed that the U.S. services sector is roaring back to life. Stocks slumped, volatility and the dollar rose, the two-year Treasury yield neared November's post-2007 peak, the implied U.S. terminal rate rose to a new high of 5.36%, and a potential 50 basis point rate hike next month is coming on traders' radar. As analysts at Schroders put it: "A new regime in policy and market behavior is unfolding before our eyes." If the dollar and U.S. yields continue to rise, one of this year's consensus trades and the allocation of hundreds of billions of dollars to emerging markets will have to be revised.

☆ Black couples pay a higher tax penalty for marriage than White couples. Here’s why
▼ + stars: | 2023-02-20 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +4 min

A recent study by the Tax Policy Center, for example, found that Black couples on average face higher tax costs associated with marriage than White couples. “We find that Black couples are more likely than White couples to experience an income tax penalty from marriage and to face higher penalties. Differences in dollars and centsResearchers found that among couples hit with a marriage penalty, Black couples paid less in dollars ($1,804 versus $2,091) but more as a share of their income than White couples (1.8% versus 1.4%). Only 33% of Black couples got a marriage bonus compared to 44% of Whites, and those bonuses were roughly $170 smaller on average. “Taken together, Black couples in this income group paid, on average, a net penalty of $358.

☆ Wholesale prices rose 0.7% in January
▼ + stars: | 2023-02-16 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWholesale prices rose 0.7% in JanuaryCNBC's Rick Santelli joins 'Squawk Box' to report on the latest January read of the producer price index data, initial jobless claims, and housing starts.

☆ Amid persistent inflation, 54% of Americans are using savings to pay for everyday expenses
▼ + stars: | 2023-02-16 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Inflation is still taking a hefty toll on households, recent reports show. Prices continued their upward momentum in January, rising 0.5% for the month and 6.4% over the past 12 months, according to the latest consumer price index data released by the U.S. Bureau of Labor Statistics. To make ends meet, 27% of Americans said they've had to take money out of savings and more than half, or 54%, said they used that money to pay for everyday expenses, such as groceries and rent, the recent Country Financial Security Index found. More from Personal Finance:What is a 'rolling recession' and how does it impact you? "Inflation has shredded household budgets over the past two years, and not just when it comes to one-off discretionary expenses or special occasions, but for keeping up with day-to-day bills," said Greg McBride, chief financial analyst at Bankrate.com.

☆ Fed's Mester says more rate hikes needed to combat inflation
▼ + stars: | 2023-02-16 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

When the Fed met at the start of the month to deliberate on interest rate policy, it moderated the pace of what had been a torrid barrage of rate hikes and lifted its overnight target rate by quarter percentage point, to between 4.5% and 4.75%. The Fed signaled more rate hikes are coming to help lower overly high inflation levels back to the 2% target. Mester, who does not have a vote on the Federal Open Market Committee this year, noted she would have been open to a larger rate rise at the gathering. “It is welcome news to see some moderation in inflation readings since last summer, but the level of inflation matters and it is still too high,” Mester said. This will cool inflation and wage pressures and “as a result, I expect to see good progress on inflation this year,” the official said.

☆ European markets expected to open mixed; investors await U.S. CPI data
▼ + stars: | 2023-02-14 | by ( Hannah Ward-Glenton | ) www.cnbc.com time to read: 1 min

European markets are expected to open muted Tuesday morning as investors assess the economic outlook. U.S. consumer price index data set for release Tuesday will determine whether the Federal Reserve opts for further monetary policy tightening, while Europe and Japan are also set to release key data later in the week. The pan-European Stoxx 600 index closed 0.9% higher Monday, with most sectors and major bourses finishing in positive territory. Household goods led gains with a 2% increase, while oil and gas stocks slipped 0.2%. U.S. stock futures ticked lower Tuesday morning as investors looked ahead to key inflation data.

☆ Retail investor risk appetite improves with AI stocks leading
▼ + stars: | 2023-02-14 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +5 min

Retail investors had a poor year in 2022, with the average portfolio ending the year down around 35% from all-time highs, Vanda Research previously estimated. However, retail investors have shown renewed interest in the early part of 2023. Meanwhile, shares of early meme stocks GameStop (GME.N) and AMC Entertainment (AMC.N) have pared some losses after last year's tumble. "Investor enthusiasm is also attracting short-sellers that are skeptical about some of the resulting valuations," said Evan Niu, an analyst at Ortex, which tracks real-time short interest data. AI software firm Veritone (VERI.O), SoundHound and BigBear.ai also show a pick up in short interest, Ortex data showed.

☆ Here's the breakdown of the inflation report for January — in one chart
▼ + stars: | 2023-02-14 | by ( Lorie Konish | ) www.cnbc.com time to read: +1 min

High inflation has followed the U.S. economy into 2023, as consumers continued to see high prices in January. Inflation rose 0.5% for the month and 6.4% over the past 12 months, according to consumer price index data released by the U.S. Bureau of Labor Statistics on Tuesday. Both results were higher than some economists' expectations, which had predicted 0.4% for the month and 6.2% year over year. Almost half of Americans think we're already in a recessionThe CPI measures the average change in consumer prices based on a broad basket of goods and services. Other areas that saw a monthly decline in prices include used cars and trucks, medical care, and airline fares.

☆ Americans' breakfast takes a hit as egg prices surpass beef and the cost of orange juice soars
▼ + stars: | 2023-02-14 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +2 min

Orange juice prices, meanwhile, are notching record highs, and have spiked 30% year-to-date. Egg prices jumped 70% in a year, with high production costs nudging 12 eggs to a record price of $4.82 last month. Wholesale eggs price are lowering on a weekly basis, however, but this hasn't hit grocery stores quite yet. On the contrary, ground beef prices have fallen from record levels, resulting in a dozen eggs costing more than a pound of ground chuck. Elsewhere, orange juice prices notched record highs, surging 30% year-to-date as recent hurricanes, frost, and a plant disease hit production levels.

☆ There’s a new inflation warning for consumers coming from the supply chain
▼ + stars: | 2023-02-13 | by ( Lori Ann Larocco | ) www.cnbc.com time to read: +2 min

While many sources of supply chain inflation that stoked higher goods prices have come down sharply, including ocean freight rates and transportation fuels, bloated inventories due to a lack of consumer demand are sustaining upward pressure on warehouse rates. "But inflationary pressures remain where demand outpaces supply in 2023, including in warehousing through most of the United States, domestic parcel and labor." One reason for the imbalance between warehouse supply and demand is lack of new facilities coming into the market. The Fed is now more focused on services inflation, in particular labor prices, as it expects the pressure in goods inflation to remain downward. But the logistics issues suggest that there will be some elements of sticky inflation on the goods side of the equation.

☆ European markets open muted as investors assess monetary policy outlook
▼ + stars: | 2023-02-13 | by ( Hannah Ward-Glenton | ) www.cnbc.com time to read: 1 min

European markets opened muted Monday as investors assess the economic outlook and the potential for further monetary policy tightening from the U.S. Federal Reserve. Consumer price index data released Tuesday will determine the Federal Reserve's path. The pan-European Stoxx 600 index opened 0.2% higher, with most sectors and major bourses in marginally positive territory. Travel and leisure and construction and material stocks led gains with 0.4% increases, while retail stocks were down 0.4%.

The richest Black mothers and their babies are twice as likely to die as the richest white mothers and their babies. Yet there is one group that doesn’t gain the same protection from being rich, the study finds: Black mothers and babies. The researchers found that maternal mortality rates were just as high among the highest-income Black women as among low-income white women. The richest Black women have infant mortality rates at about the same level as the poorest white women. Generally, rates for Hispanic mothers and Asian mothers track more closely with those of white mothers than Black mothers.

☆ Potential buyers are leveraging high-profile blowups like Frank and FTX to get better terms. Insiders detail how dealmaking is changing in 2023.
▼ + stars: | 2023-02-07 | by ( Paige Hagy | Bianca Chan | Carter Johnson | ) www.businessinsider.com time to read: +10 min

We don't want to look like JPMorgan,'" Jason Mikula, fintech analyst and writer behind Fintech Business Weekly, told Insider. How closely they adhere to it matters greatly in terms of if a deal is on the line," Mandelbaum told Insider. Investors pumped $132 billion globally into fintechs in 2021 and there were more than 900 fintech M&A exits, according to CB Insights. "It's now a buyer's market," Rob Brown, CEO of Lincoln International, a global investment-banking advisory firm, told Insider. One way companies might optimize the due-diligence process without cutting corners is by leaning on machines to help with the heavy lifting.

☆ The current job market is a ‘juggernaut,’ economist says. Here are 6 things to know as a jobseeker
▼ + stars: | 2023-02-03 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Unemployment is at historic lowsThe unemployment rate fell to 3.4% in January — the lowest since May 1969. In fact, you'd have to go back to October 1953 to find a lower unemployment rate (3.1%). "The job market is still strong, and workers have opportunities to go out and find a job that's a better fit for them," Zhao said. "The thing that strikes me the most about the labor market is there aren't layoffs," said Mark Zandi, chief economist at Moody's Analytics. That's not necessarily a bad sign — the job market was also strong in the run-up to the pandemic.

☆ We're entering a far more complicated phase of an economic cycle, says Barclays' Meghan Graper
▼ + stars: | 2023-01-31 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe're entering a far more complicated phase of an economic cycle, says Barclays' Meghan GraperMeghan Graper, global co-head of the investment grade syndicate at Barclays, and Campbell Harvey, Campbell Harvey, Fuqua School of Business finance professor, join 'Squawk Box' to discuss Tuesday's Employment Cost Index data, whether the Federal Reserve should 'stand down' and more.

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