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☆ Dow tumbles nearly 400 points, notching biggest one-day drop since March
▼ + stars: | 2023-09-26 | by ( Krystal Hur | ) edition.cnn.com time to read: +3 min

New York CNN —Stocks tumbled Tuesday after a slew of economic data stoked fears about the US economy’s cloudy outlook and further interest rate hikes from the Federal Reserve. The Dow Jones Industrial Average fell 388 points, or 1.1%, its biggest one-day decline since March. The stock market remains in a bull market, however — it would need to fall 20% from its peak to enter bear territory. “The Fed will see the reacceleration of house prices as a reason to keep interest rates higher for longer,” said Bill Adams, chief economist at Comerica Bank. JPMorgan Chase CEO Jamie Dimon said Tuesday in an interview with the Times of India that he is preparing the bank’s clients for a 7% interest rate scenario, further spooking investors.

Persons: Stocks, ”, Bill Adams, paring, Brent, JPMorgan Chase, Jamie Dimon, Moody’s Organizations: New, New York CNN, Federal Reserve, Dow Jones, Nasdaq, Comerica Bank, Fed, Silicon Valley Bank, Signature Bank, West Texas, JPMorgan, Times, Fitch Locations: New York, Times of India

REUTERS/Jonathan Ernst Acquire Licensing RightsNEW YORK, Sept 25 (Reuters) - A U.S. government shutdown would negatively impact the country's credit, credit rating agency Moody's said on Monday, a stern warning coming one month after Fitch downgraded the U.S. by one notch on the back of a debt ceiling crisis. Moody's has an "Aaa" rating for the U.S. government with a stable outlook - the highest creditworthiness it assigns to borrowers. "Fiscal policymaking is less robust in the U.S. than in many Aaa-rated peers, and another shutdown would be further evidence of this weakness," Moody's said in a statement. The economic impact of a shutdown would likely be limited and short-lived, with the most direct economic impact caused by lower government spending. Of course, the longer the shutdown lasts, the more negative its impact would be on the broader economy, said Moody's.

Persons: Jonathan Ernst, Moody's, Fitch, William Foster, Foster, Davide Barbuscia, Megan Davies, Sharon Singleton, Josie Kao Organizations: U.S . Capitol, REUTERS, U.S, Reuters, P Global, Aaa, Republican Party, Thomson Locations: Washington , U.S, U.S, Washington, Aaa, Moody's

☆ First on CNN: Two out of three workers say prices are still rising faster than wages, new survey shows
▼ + stars: | 2023-09-25 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

Sixty-seven percent of employees say the cost of living is outpacing growth in their salary and wages, according to a Bank of America survey shared exclusively with CNN on Monday. High inflation is a major reason why just 42% of employees say they feel financially well, according to the Bank of America survey. Likewise, 64% of employees say they are stressed about their finances. 23% of women losing sleep over moneyJust 38% of women say they feel financially well, according to the Bank of America survey. While 61% of Asian employees say they feel financially well, just 44% of White employees, 40% of Hispanic and 35% of Black said the same.

Persons: That’s, “, ” Lorna Sabbia, Joe Biden, Biden, ”, Black, Sabbia, ” Sabbia Organizations: New, New York CNN, Bank of America, CNN, Bureau of Labor Statistics, of Labor Statistics, Bidenomics The Bank of America, ABC News, Washington Post, ABC, “ Companies Locations: New York

☆ Moody’s: Government shutdown could hurt America’s top credit rating
▼ + stars: | 2023-09-25 | by ( Alicia Wallace | ) edition.cnn.com time to read: +3 min

Minneapolis CNN —The United States’ credit rating could come under pressure if the government shuts down, Moody’s Investors Service cautioned Monday. A shutdown would be “credit negative” for the US sovereign, according to a Moody’s note. Moody’s is the only one of the three major credit rating agencies to assign the United States an outstanding rating of AAA. Standard and Poor’s downgraded the United States in 2011, following the debt ceiling standoff then. In August, Fitch Ratings knocked America’s credit rating down to AA+ after the most recent debt ceiling debate.

Persons: “, ” Moody’s, Poor’s, Moody’s, It’s, Donald Trump’s, —, Betsy Klein, Matt Egan Organizations: Minneapolis CNN, United, Moody’s, AAA, Fitch, Congressional, US Travel Association, Federal Reserve, Labor Statistics Locations: Minneapolis, United States

☆ Analysis-Amid Israel turmoil, markets want continuity at central bank helm
▼ + stars: | 2023-09-21 | by ( Steven Scheer | ) www.reuters.com time to read: +5 min

JERUSALEM (Reuters) - Financial markets are hoping Prime Minister Benjamin Netanyahu keeps Bank of Israel Governor Amir Yaron for a second term to safeguard the bank’s independence and provide reassuring stability to an economy rattled by political turmoil this year. FILE PHOTO: The Bank of Israel building is seen in Jerusalem June 16, 2020. “Therefore, markets and credit rating agencies are reading more into the question of ‘yes’ or ‘no’ to a second term. “Who will be governor is a major concern for investors abroad,” said Leader Capital Markets Chief Economist Jonathan Katz. Israeli media have reported that Netanyahu is considering Efraim Benmelech - a professor of finance at Kellogg School of Management at Northwestern University.

Persons: Benjamin Netanyahu, Amir Yaron, Ronen, Netanyahu, Yaron, Karnit Flug, Fitch, ”, Jonathan Katz, “, ” Katz, Nadine Baudot, Jacob Frenkel, ” Frenkel, Netanyahu’s, Flug, Stanley Fischer, Fischer, Efraim Benmelech, Benmelech, Andrew Abir Organizations: Bank, Israel, Bank of, REUTERS, Netanyahu’s, Wharton School, University of Pennsylvania, Reuters, ”, Capital Markets, Bank of Israel, Israel Democracy Institute, U.S . Federal Reserve, Kellogg School of Management, Northwestern University Locations: JERUSALEM, Bank of Israel, Jerusalem, Israeli, United States, Ukraine, Russia, “ Israel, Israel

Sept 18 (Reuters) - Cadence Bank (CADE.N) CEO Dan Rollins calls the regional banking crisis from earlier this year "March madness." Interviews with half a dozen regional bank executives and economists show the March banking crisis has had a lasting impact on the regional banking industry and the economy. Torsten Slok, chief economist at Apollo Global Management, said the banking crisis had "a magnifying effect" on the Fed's tightening but its full impact would come with a lag. The failure triggered a crisis of confidence, with depositors moving their money from regional banks to the perceived safety of the largest lenders. The KBW Regional Bank Index (.KRX) is down about 20% since early March despite a summer rebound.

Persons: Dan Rollins, Rollins, Mark Zandi, ”, Zandi, Torsten Slok, Slok, Cadence's Rollins, Steve Wyett, Wyett, Banks, Cadence’s Rollins, Randy Chesler, Chesler, Moody's Zandi, Jeff Jackson, Raj Singh, Singh, Paritosh Bansal, Anna Driver Organizations: Cadence Bank, Moody’s, Apollo Global Management, Bank, Reuters Graphics, Valley, Regional, BOK, Federal, Loan, Thomson Locations: . Federal, Silicon, Tulsa , Oklahoma, Kalispell , Montana, Wheeling , West Virginia

☆ Sino Ocean: China property woes deepen as a big developer suspends debt payments
▼ + stars: | 2023-09-15 | by ( Michelle Toh | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —A major Chinese property company has suspended offshore debt payments, deepening turmoil in the beleaguered sector. Property sales by floor area dropped 7.1% in the January to August months, compared to the first eight months of 2022. On Thursday, Moody’s downgraded its outlook for the overall sector, citing a downturn in residential sales and continued jitters about the health of the industry. In June and July, nationwide property sales fell around 20% compared to the same period a year before, it said in a report. This reversed “the 11.9% growth for the first five months, reflecting renewed weakness in residential property,” the agency added.

Persons: Houlihan Loukey, Sidley Austin, Moody’s, — CNN’s Juliana Liu Organizations: Hong Kong CNN, Hong, National Bureau, Statistics, China SCE Group Locations: China, Hong Kong, Sino, Beijing

☆ The Parallel Memoirs of Ruth Simmons and Drew Gilpin Faust - The New York Times
▼ + stars: | 2023-09-14 | by ( Pamela Paul | ) www.nytimes.com time to read: +2 min

Simmons was close to her mother and Faust clashed with hers, but neither wanted anything resembling her mother’s lives. Both studied foreign languages, lived abroad for the first time during school, studied the humanities at Ivy League grad schools and entered academia. I’d urge every educator to assign “Up Home” to high school students or incoming college freshmen. “So many people hear coming-of-age or bootstrap stories and think they get it,” Simmons told me. “So often,” she lamented, “people believe that if you are a victim of want that somehow escaping that is all you desire.”

Persons: Simmons, Faust, Anne Moody’s, ”, ” Simmons, — Simmons Organizations: Ivy League grad, New York Locations: Texas, Mississippi

☆ China’s growth is buried under great wall of debt
▼ + stars: | 2023-09-13 | by ( Yawen Chen | ) www.reuters.com time to read: +8 min

Most of these 3,000-plus entities were created by local governments during the 2008 crisis to skirt a central government ban on direct state borrowing. These vehicles had already accumulated 80 trillion yuan of liabilities at the end of 2022, according to analysts at Guosheng Securities. At a more optimistic 30% discount, the proceeds would jump to 55 trillion yuan, which would cover all outstanding interest-bearing debt. S&P analysts calculate that about 20 trillion yuan of LGFVs’ loans may be at risk of restructuring. If Xi won't boost property wholeheartedly and is not able to count on consumers, his efforts to revive China’s growth have to focus on smashing the great wall of local debt.

Persons: Wen Jiabao, Xi Jinping, Wen, Xi, Peter Thal Larsen, Sharon Lam, Aditya Sriwatsav Organizations: Reuters, HK, Guosheng Securities, Citi, Finance, Reuters Graphics, Financial Times, Investment, Oxford Economics, Thomson Locations: Beijing, China, Shanghai, New York, China's Southwestern Guizhou, United States

☆ Americans have never been wealthier
▼ + stars: | 2023-09-11 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

Consumer wealth has now completely recovered from the recent inflation-driven drop in stock prices and real estate holdings. This bump in wealth was driven mostly by a surge in the value of Americans’ stock market investments, which grew by $2.6 trillion during the quarter. Those rate hikes rocked financial markets, crushing the value of stock holdings, cooling the housing market and raising the specter of a recession. “Further, volatility in wealth since the onset of the pandemic will remind households of the fragility of any gains.”The stock market has rebounded in tandem with the US economy. And there are signs that some Americans are struggling to get by.

Persons: specter, “, Goldman Sachs, Janet Yellen, Joe Biden’s, Marc Rosen, ” Rosen Organizations: New, New York cnn, Federal Reserve, Moody’s Analytics, Bloomberg News, White, CNN, Wall Street, New York Federal Reserve Locations: New York, United States

☆ Palm Fronds and Car Parts: Assemblage Art in Los Angeles
▼ + stars: | 2023-09-11 | by ( Jori Finkel | More About Jori Finkel | ) www.nytimes.com time to read: +1 min

A decade ago, priced out of renting an apartment and studio in Los Angeles, the artist Dominique Moody built a steel-clad, wood structure on a 20-foot flatbed trailer. It was an experiment in making a small, mobile abode before the tiny home trend took off. Steeped in assemblage, the process of making art from found or scavenged objects, Moody, 66, fashioned her home out of reclaimed materials where others would have gone straight to Home Depot. Starting Oct. 1, the Nomad will be parked outside the Hammer Museum as part of the sixth edition of “Made in L.A.,” a biennial spotlighting emerging and underrecognized artists living in Los Angeles. And it serves as a teaser for what’s inside, as this year’s exhibition is not just made in Los Angeles, but to an extraordinary degree made of it, with objects scavenged from the city streets — ranging from palm fronds to broken car parts — showing up in many of the works.

Persons: Dominique Moody, Moody, Ford Organizations: Hammer Museum Locations: Los Angeles, L.A

☆ IAA Mobility: China's automakers take the world by storm with EV push
▼ + stars: | 2023-09-07 | by ( Laura He | ) edition.cnn.com time to read: +8 min

Leonhard Simon/Getty ImagesEven before the show kicked off, Renault chief executive Luca de Meo was on French radio talking up the rapid advances made by Chinese EV makers. Competitors worry that Chinese brands may eventually dominate the global EV market. In Europe, the top destination for China’s car exports, sales of Chinese EVs are booming. Supply chain advantageA major factor contributing to the lower cost of Chinese EVs is the country’s dominance of the EV battery supply chain. However, geopolitical tensions could complicate Chinese EV firms’ global push.

Persons: Leonhard Simon, Luca de Meo, ” de Meo, ” “, ”, Dylan Khoo, Li Yunfei, Oliver Zipse, Khoo, It’s, — Hanna Ziady, Olesya Dmitracova Organizations: Hong Kong CNN, Visitors, Renault, Chinese EV, RTL Radio, China Association of Automobile Manufacturers, China Passenger Car Association, Union, UBS, Europe Auto, EV, New, Research, Deloitte, BMW, ABI Research, Jato Dynamics, “, China’s SAIC, MG, IAA, SNE Research Locations: China, Hong Kong, Munich, Germany, Chinese, Europe, Australia, Southeast Asia, Japan, Russia, New York, United States, France, British, United Kingdom, South Korean

☆ Who caused Maui’s devastating wildfire? Lawsuit adds telecom companies and landowners to the list
▼ + stars: | 2023-09-07 | by ( Andy Rose | ) edition.cnn.com time to read: +3 min

The original suit claimed Hawaiian Electric was to blame for the fire, because it did not deenergize power lines that were knocked down by high winds. Shares of Hawaiian Electric have plunged 67% since the fires erupted August 8. Hawaiian Telecom is privately owned. Maui County filed a separate lawsuit late last month against Hawaiian Electric and its subsidiaries, alleging that the utility company’s negligence caused the devastating wildfires. Hawaiian Electric CEO Shelee Kimura said in a statement following Maui’s lawsuit that the company believes the complaint is factually and legally irresponsible.”

Persons: LippSmith, Graham LippSmith, “, ”, inexcusably, Shelee Kimura Organizations: CNN, Hawaiian, Lahaina, Charter Communications, Hawaiian Telecom, Hawaii Telecom, Electric, Hawaiian Electric, National Weather Service, Watch Locations: Maui, Lahaina, Kula, Olinda, Charter, West Maui, Maui County

☆ Country Garden: China's biggest homebuilder dodges default but faces a rocky road ahead
▼ + stars: | 2023-09-06 | by ( Michelle Toh | ) edition.cnn.com time to read: +7 min

CNN —Chinese property giant Country Garden has twice narrowly avoided defaulting on its debt in a matter of days. Here’s what to know about Country Garden, and the future it faces. That was down significantly from revenue of about 523 billion yuan ($71.6 billion) and net profit of approximately 41 billion yuan ($5.6 billion) in 2021. Investors have since been bracing for a potential default by Country Garden, which has openly admitted this could happen soon. Country Garden shares in Hong Kong have plunged 55% so far this year as investors dumped the stock.

Persons: it’s, —, Evergrande, Yang Huiyan, Yang, “, Fitch Organizations: CNN, Getty, Garden, Hong Kong Locations: China, Hong Kong, Foshan, Guangdong, Zhenjiang, China's, Jiangsu, United States, Evergrande, Beijing, Fuyang, Anhui

☆ Goldman Sachs cuts US recession odds to 15% as economic optimism grows
▼ + stars: | 2023-09-05 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

New York CNN —Goldman Sachs is increasingly confident that the US economy will stick the soft landing that many thought was nearly impossible to pull off. In a research report published Monday night, Goldman Sachs lowered its estimated chance of a US recession over the next 12 months to just 15%. Goldman Sachs pointed to “solid” job growth and rising real (inflation-adjusted) wages that should allow real disposable income to “reaccelerate” next year. The August jobs report, released late last week, showed that hiring remains solid, though it has slowed from the blockbuster pace of earlier in the post-pandemic recovery. “The August jobs report couldn’t be much better,” Moody’s Analytics chief economist Mark Zandi wrote Friday on X, formerly known as Twitter.

Persons: New York CNN — Goldman Sachs, Goldman Sachs, That’s, It’s, ”, “, Jan Hatzius, ” Hatzius, Hatzius, reaccelerate ”, Mark Zandi Organizations: New, New York CNN, Federal Reserve, Wall Street, Bloomberg, Atlanta Locations: New York

☆ Country Garden dodges default by making last minute debt payments, state media reports
▼ + stars: | 2023-09-05 | by ( Laura He | ) edition.cnn.com time to read: +2 min

The two dollar payments come after the company won last minute support late last week from Chinese investors to delay payment of a maturing yuan-denominated bond. Country Garden, which was China’s largest residential developer by sales last year, hasn’t responded to a CNN request for comment. Shares in Country Garden, which dropped as much as 5% on Tuesday, pared losses following the publication of the media reports. It has about 31 billion yuan ($4.3 billion) in bonds set to mature through the end of 2024, according to Moody’s. The eight bonds have a total outstanding balance of 10.8 billion yuan ($1.5 billion) and are set to mature later this year, the report said.

Persons: hasn’t, Yicai Organizations: Hong Kong CNN, China Securities, CNN Locations: Hong Kong, Moody’s

☆ Country Garden stocks surge after bondholders agree to extend debt payment
▼ + stars: | 2023-09-04 | by ( Laura He | ) edition.cnn.com time to read: +4 min

The deal was significant, as it was the first debt extension the firm has secured since its liquidity crisis became public last month. According to the agreement with creditors, which was reported by multiple state-owned media outlets on Saturday, Country Garden will now be able to stretch its payment of the outstanding principal of $540 million into 2026. This particular bond had the largest outstanding balance that the company needed to pay out among its onshore debt in the coming year, they added. Country Garden, which was China’s largest residential developer by sales last year, is battling a cash crunch. It has about 31 billion yuan ($4.3 billion) in bonds set to mature through the end of 2024, according to Moody’s.

Persons: hasn’t, ’, Yeap Jun Rong Organizations: Hong Kong CNN — Investors, CNN, China Overseas, Southern Media Group, Huatai Securities, IG Locations: China, Hong Kong

☆ Hurricane Idalia's price tag could cost $20 billion in damage, according to Moody's Analytics
▼ + stars: | 2023-08-31 | by ( Matt Egan | ) edition.cnn.com time to read: +1 min

CNN —Hurricane Idalia caused billions of dollars in damage, but the price tag won’t be nearly as high as other major hurricanes, Moody’s Analytics said Thursday. According to preliminary cost estimates from Moody’s, Hurricane Idalia caused between $12 billion and $20 billion in damage and lost output. For context, Hurricane Ian, which made landfall in Western Florida last year as a Category 4 storm, caused an estimated $112.9 billion of total damage in the United States, according to the National Hurricane Center. Not only that, but Kamins notes that property values in the Big Bend are lower than the rest of the state. Moody’s RMS plans to release official estimates of insured losses in the next two weeks.

Persons: Idalia, Ian, Adam Kamins, Kamins, ” Kamins Organizations: CNN, National Hurricane Center, Moody’s Locations: Moody’s, Western Florida, United States, Florida’s Big Bend

☆ Climate change turns US utilities grimly exciting
▼ + stars: | 2023-08-31 | by ( Robert Cyran | ) www.reuters.com time to read: +6 min

A hotter and stormier world is making life unpleasantly exciting for shareholders, as Hawaiian Electric Industries (HE.N) shows. Yet while European firms have buried power lines underground to avoid damage from storm and fires, American utilities have generally balked. The firm said a second fire began in the same area several hours later, after the utility had turned off local power lines. Separately, Hawaiian Electric Industries, the parent company of Hawaiian Electric, said on Aug. 24 it had suspended its dividend. The company said HEI had withdrawn $170 million and Hawaiian Electric had withdrawn $200 million from their existing revolving unsecured credit facilities to strengthen their balance sheets.

Persons: Joe Biden, Jill Biden, Josh Green, Jaime Green ,, Lady of, Kevin Lamarque, HEI, Fitch, Lawrence, Peter Thal Larsen, Sharon Lam, Aditya Sriwatsav Organizations: Hawaii, REUTERS, Reuters, Hawaiian Electric Industries, United, Utilities, Hurricanes, Lawrence Berkeley National, Edison International, Consolidated Edison, Dow, Maui, Hawaiian Electric, Electric, Thomson Locations: Lady of Hawaii, Lahaina, Maui, Hawaii, U.S, United States, Americas, Europe, Alaska, California, New York, Arkansas , Louisiana, Texas

Even as the import ban kicked in, tables were filled at Japanese restaurant Fumi in Hong Kong on August 24, 2023. Kathleen Magramo/CNNHours before China’s announcement, the Asian financial center of Hong Kong – a semi-autonomous Chinese city – imposed its own ban on aquatic product imports from 10 Japanese regions including Tokyo and Fukushima. Japanese Prime Minister Fumio Kishida has reportedly “strongly” requested via diplomatic channels that China “immediately overturn” the ban. Still, Fei too thought that the bans from China and Hong Kong would have limited impact on Japanese trade. Consequently, even considering the reputational damage for Japanese seafood products, Japan’s overall exports will not be materially undermined,” Fei said.

Persons: “ It’s, ”, Thomason Ng, Fumi’s, “, Kathleen Magramo, Japan’s, Masanobu Sakamoto, Fumio Kishida, ” Sakamoto, –, Nigel Marks, there’s, CNN “ It’s, ” Marks, David Krofcheck, ” Krofcheck, Stefan Angrick, Angrick, That’s, China “, Fei Xue, Fei, ” Fei, restaurateurs, Hong Kong’s, Cara Man, we’ll Organizations: CNN, Hong Kong’s, East China, Fisherman’s Cooperative Association, ” “ Fishermen, Japanese, Tokyo Electric Power Company, TEPCO, Curtin University, University of Auckland, World Health Organization, Moody’s, Economist Intelligence Unit, “ Seafood Locations: Hong, Hong Kong’s Central, Fumi, Asia, Japan, China, Fukushima, Hong Kong, Tokyo, Weibo, East, Beijing, Australia, Ocean, South Korea, Taiwan, New Zealand, Japanese, Central, Japan’s Hokkaido, Kyushu, Kagoshima, Norway, Canada

☆ Maui government files lawsuit, accuses Hawaiian electric company of causing Lahaina wildfires
▼ + stars: | 2023-08-24 | by ( Samantha Delouya | ) edition.cnn.com time to read: +3 min

Maui County is seeking damages from HECO that may total tens or hundreds of millions of dollars, according to John Fiske, an attorney representing the county in the lawsuit. “Our primary focus in the wake of this unimaginable tragedy has been to do everything we can to support not just the people of Maui, but also Maui County. We are very disappointed that Maui County chose this litigious path while the investigation is still unfolding,” a spokesperson from Hawaiian Electric told CNN in a statement. Hawaiian Electric Company is a for-profit company that serves 95% of Hawaii’s customer base and trades on the New York Stock Exchange. This isn’t the first time a utility company has been blamed for its alleged role in a powerful wildfire in recent years.

Persons: “ inexcusably, John Fiske, “, ” Jim Kelly, Fiske, ”, CNN’s Anna, Maja Rappard, Natasha Chen, Afshar Organizations: CNN, Hawaiian Electric Company, National Weather Service, Watch, Hawaiian Electric, New York Stock Exchange, Pacific Gas Locations: Maui County, HECO, Maui, Hawaiian, California, Lahaina, Kula, Olinda

New York CNN —The stock market has boomed this year, and one big reason is a company without much name recognition — unless you’re a hard core video gamer. Nvidia (NVDA) has surged 222% this year, including a 3% bump Thursday following super impressive earnings. But Nvidia is by far the most sought-after AI stock. Revenue went from $6.7 billion in the second quarter last year to $13.5 billion this year. The results were even stronger than the $11.2 billion in revenue that Wall Street analysts expected.

Persons: it’s, Jacob Bourne, Raj Joshi Organizations: New, New York CNN, Nvidia, Meta, Nasdaq, Revenue, Wall, Federal Reserve, ”, Intelligence, Moody’s Investors Service Locations: New York, Santa Clara , California

☆ Home affordability is the worst it has been since 1984
▼ + stars: | 2023-08-24 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

Washington, DC CNN —Buying a house requires a much bigger slice of people’s income now — making this the most unaffordable housing market since 1984, by one measure. The number of cost-burdened renters increased by 1.2 million, to a record 21.6 million households, between 2019 and 2021. In all, 40.6 million households were housing-cost burdened in 2021, including 20.3 million who were severely burdened. Affordability picture remains grim this yearHopeful house hunters continued to face challenging affordability conditions in July as rising mortgage rates and historically low housing inventory pushed prices higher, said Edward Seiler, the Mortgage Bankers Association’s associate vice president for housing economics. “Unfortunately, given today’s lack of inventory and affordability levels, it may take years before home affordability returns to more ‘normal’ levels,” he said.

Persons: Black Knight, Knight, “, ”, Andy Walden, Edward Seiler, Seiler, Joel Kan, Walden, ” It’s Organizations: DC CNN, Federal Reserve, Black, Joint Center for Housing Studies of Harvard University, Mortgage, Moody’s Investors Service Locations: Washington

☆ Macy’s sounds the alarm on credit card delinquencies
▼ + stars: | 2023-08-23 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

This situation is hurting Macy’s business, driving down credit card revenue by 36% year over year and contributing to a quarterly loss, he said. Citing worsening consumer leverage metrics, Macy’s is bracing for a further increase in “bad debt” in its credit card portfolio. “I think the credit card revenue is an indication of some of the pressures that we’re actually seeing on the consumer,” Mitchell said. Consumer credit card debt topped $1 trillion during the second quarter for the first time on record, according to the New York Federal Reserve. More concerningly, new credit card and auto loan delinquencies have now surpassed pre-Covid levels, according to Moody’s Investors Service.

Persons: New York CNN —, ” Adrian Mitchell, Macy’s, ” Mitchell, ” Macy’s, Locker Organizations: New, New York CNN, Citibank, Consumer, New York Federal Reserve, Moody’s Investors Service, Credit Locations: New York, Wells

☆ Moody's estimates Hawaiian wildfire caused up to $6 billion in economic losses
▼ + stars: | 2023-08-22 | by ( Ramishah Maruf | ) edition.cnn.com time to read: +1 min

New York CNN —Moody’s RMS estimated up to $6 billion in economic losses from the devastating wildfires in Hawaii, which killed at least 115 people and destroyed countless homes and businesses. The losses could range from $4 billion to $6 billion, Moody’s said Tuesday. About 75% of the losses will be covered by insurance because of the island’s high insurance penetration rates, according to the risk modeling agency. The loss estimate is wide-ranging, including “property damage, contents, and business interruption, across residential, commercial, industrial, automobile, and infrastructure assets,” Moody’s said. Most of the losses are concentrated in Lahaina, Moody’s said, where insured property value ranged from $2.5 billion to $4 billion.

Persons: Moody’s, ” Moody’s, ”, Rajkiran Vojjala Organizations: New, New York CNN, Maui Emergency Management Agency Locations: New York, Hawaii, “, Maui, Lahaina

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