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November’s existing home sales increased for the first time in six months and prices rose for the fifth straight month. WSJ’s Dion Rabouin digs into the details of the November sales report. Photo: Joe Raedle/Getty ImagesWASHINGTON—A government-controlled mortgage giant has a plan that could help more Americans save around $1,000 on closing a mortgage, the latest attempt to chip away at high costs that officials say discourage home buying. Fannie Mae last month said it would expand the types of mortgages it will purchase that rely on a cheaper alternative to title insurance, which is one of the biggest fixed costs tied to closing a mortgage.
Persons: WSJ’s Dion Rabouin, Joe Raedle, Fannie Mae Organizations: Getty, WASHINGTON
China’s Economy Faces a Sour End to the Year
  + stars: | 2023-11-30 | by ( Jason Douglas | ) www.wsj.com   time to read: 1 min
China’s slowing economy could soon become a major talking point for U.S. companies as they begin to report third-quarter earnings. WSJ’s Dion Rabouin explains. Illustration: Elizabeth Smelov<br>SINGAPORE—A brief rebound in China’s struggling economy showed worrying new signs of flickering out, heaping pressure on Beijing to take bolder steps to rev up growth. Factory activity slid deeper into contraction in November as domestic and foreign orders dried up, while, in an ominous sign for consumer spending, activity in the services sector shrank for the first time this year, according to business surveys released Thursday. Only construction registered any expansion compared with the previous month as government spending on infrastructure increased.
Persons: WSJ’s Dion Rabouin, Elizabeth Smelov Organizations: SINGAPORE Locations: Beijing
The Price Is Wrong for Housing
  + stars: | 2023-11-28 | by ( Justin Lahart | ) www.wsj.com   time to read: 1 min
October’s existing home sales report details the current state of the all-important U.S. housing market and how Americans reacted to mortgage rates that have declined, but still remain much higher than they have been in more than a decade. Photo:Lower rates would make U.S. houses more affordable, just not affordable enough. The pandemic set off a flurry of demand for housing. Americans’ newfound desire for space, the padding of U.S. household finances from government relief checks, and sub-3% mortgage rates were a potent mix that sent home prices skyward. Now the buying frenzy has passed and, with mortgage rates at their highest levels in over 20 years, not many homes are getting sold at all.
Persons: WSJ’s Dion Rabouin
Why the Dollar's Comeback Could Be Bad News for the Stock Market
  + stars: | 2023-11-20 | by ( ) www.wsj.com   time to read: 1 min
Why the Dollar's Comeback Could Be Bad News for the Stock MarketAfter weakening earlier this year, the U.S. dollar is pushing higher and could be headed back toward the 20-year high it touched in 2022. WSJ’s Dion Rabouin explains why this could be bad news for investors. Photo illustration: Noah Friedman
Persons: WSJ’s Dion Rabouin, Noah Friedman Organizations: Stock, U.S .
After weakening earlier this year, the U.S. dollar is pushing higher and could be headed back toward the 20-year high it touched in 2022. WSJ’s Dion Rabouin explains why this could be bad news for investors. Photo illustration: Noah FriedmanBUENOS AIRES—The self-styled anarcho-capitalist who won Argentina’s presidency on Sunday plans to ditch his nation’s peso and adopt the U.S. dollar as the national currency. President-elect Javier Milei ’s top campaign proposal was aimed at eradicating rampant inflation that has for decades ravaged Latin America’s third-biggest economy by removing the battered national currency from circulation and stripping the central bank of its power to print money. Uncontrolled money-printing to cover public expenditures, economists say, has fueled 143% inflation, one of the world’s highest.
Persons: WSJ’s Dion Rabouin, Noah Friedman BUENOS, Argentina’s, Javier Milei ’ Organizations: U.S ., Noah Friedman BUENOS AIRES, U.S
As Rent Rises Cool, So Will Inflation
  + stars: | 2023-11-14 | by ( Justin Lahart | ) www.wsj.com   time to read: 1 min
Will the strong U.S. economic data we’ve seen push the Fed to change policy this year? What comes next depends on how the Fed will interpret the data. Photo: Sarah Silbiger/Bloomberg NewsInflation has been cooling, and a big part of why is that rent increases have as well. That is also why inflation is likely to keep going lower in the months ahead. Tuesday’s inflation report from the Labor Department showed that overall consumer prices were up 3.2% from a year earlier in October, while core prices, which exclude food and energy prices in an effort to better track inflation’s underlying trend, were up 4%.
Persons: WSJ’s Dion Rabouin, Sarah Silbiger Organizations: Bloomberg, Labor Department
With the U.S. projected to borrow $2 trillion yearly for the next decade, the Treasury Department will need to sell a lot more bonds to make up for the deficit. WSJ’s Dion Rabouin explains what it means for the stock market. Photo illustration: Noah FriedmanIn times of war and conflict, investors have long piled into Treasury bonds and other safe-haven assets, bringing interest rates down. But in today’s disintegrating geopolitical environment, where hot spots around the world threaten to upend the supply of key commodities, it’s becoming harder for investors to book their flights to safety. That helps explain why bond yields have risen recently—and may stay high.
Persons: WSJ’s Dion Rabouin, Noah Friedman Organizations: U.S, Treasury Department
China’s slowing economy could soon become a major talking point for U.S. companies as they begin to report third-quarter earnings. WSJ’s Dion Rabouin explains. Illustration: Elizabeth SmelovApple said sales fell for the fourth consecutive quarter, including a decline in China that came as the company faces a broad economic slowdown in the country and new competition from rival Huawei Technologies. The September quarter marks the fourth straight period in which Apple reported year-over-year declines in total revenue, the longest such slump in years. Apple sales were $89.5 billion, down less than 1% from the previous year and largely in line with analyst estimates, even as net income of about $23 billion exceeded expectations.
Persons: WSJ’s Dion Rabouin, Elizabeth Smelov Apple Organizations: Huawei Technologies, Apple Locations: China
WSJ’s Dion Rabouin unpacks the latest GDP report and explains what it says about the state of the economy. Photo: Li Jianguo/Zuma PressAmerican workers are still commanding big pay raises, though not quite as beefy as last year. That is good news for workers but a potential complication for the Federal Reserve’s fight to lower inflation. Employers spent 1.1% more on wages and benefits in July through September than in the prior three months, according to the Labor Department’s employment-cost index, released Tuesday. That was slightly better than the 1% gain in the second quarter and a sign that wage pressures remained strong as economic growth accelerated.
Persons: WSJ’s Dion Rabouin, Li Jianguo Organizations: Zuma Press American, Federal, Employers, Labor
China’s slowing economy could soon become a major talking point for U.S. companies as they begin to report third-quarter earnings. Illustration: Elizabeth SmelovChina’s surprise investigation into Apple supplier Foxconn, a key link in the iPhone supply chain, may be intended to send a message. The one Apple and its suppliers actually receive might do China more harm than good. Chinese authorities have launched tax and land-use probes into subsidiaries of Foxconn , formally known as Hon Hai Precision Industry , the company confirmed last week. That is surprising since Foxconn, which is the world’s largest contract electronics manufacturer, has long had an amicable relationship with China—and is one of the biggest employers in the country.
Persons: WSJ’s Dion Rabouin, Elizabeth Smelov China’s Organizations: Apple, Foxconn, Hai Precision Industry Locations: China
WSJ’s Dion Rabouin unpacks the latest GDP report and explains what it says about the state of the economy. Photo: Li Jianguo/Zuma PressFederal Reserve officials have said for more than a year that beating inflation could require them to hold interest rates higher for longer than investors expected. The swift run-up in long-term Treasury yields—to around 5% from 4% in early August—suggests Wall Street now agrees. As a result, borrowing costs for U.S. businesses and households are rising in ways that could allow the Fed to suspend its historic run of interest-rate increases.
Persons: WSJ’s Dion Rabouin, Li Jianguo, Organizations: Zuma Press Federal Reserve
What the Latest U.S. GDP Report Means for Inflation and Odds of RecessionWSJ’s Dion Rabouin unpacks the latest GDP report and explains what it says about the state of the economy. Photo: Li Jianguo/Zuma Press
Persons: Dion Rabouin, Li Jianguo Organizations: Zuma Locations: U.S
Moderately higher inflation in September would keep Fed officials on track to hold interest rates steady at its Oct. 31-Nov. 1 policy meeting. They are closely watching underlying price trends to gauge whether they have raised short-term interest rates enough to slow the economy and tame inflation. The Fed over the past 20 months has raised interest rates at the fastest pace in four decades. The Fed last raised rates in July, lifting its benchmark federal-funds rate to a range between 5.25% and 5.5%, a 22-year high. Has recent inflation progress stalled?
Persons: WSJ’s Dion Rabouin, Li Jianguo, saul loeb Organizations: Zuma, Wall, Fed, Agence France, Commerce, Commerce Department
Inflation Trends Keep Fed Rate Hikes on Pause
  + stars: | 2023-10-27 | by ( Harriet Torry | Nick Timiraos | ) www.wsj.com   time to read: 1 min
WSJ’s Dion Rabouin unpacks the latest GDP report and explains what it says about the state of the economy. Photo: Li Jianguo/Zuma PressInflation’s summer decline slowed last month. But inflation has improved enough recently for Federal Reserve officials to hold interest rates steady at their meeting next week. The personal-consumption expenditures price index, the Fed’s preferred inflation gauge, rose 0.4% in September from the prior month, the same pace as in August, the Commerce Department said Friday. So-called core prices, which exclude volatile food and energy categories, increased 0.3% in September, compared with a 0.1% rise in August.
Persons: WSJ’s Dion Rabouin, Li Jianguo Organizations: Zuma Press, Federal Reserve, Commerce Department
What Will the Economy Do for an Encore?
  + stars: | 2023-10-26 | by ( Justin Lahart | ) www.wsj.com   time to read: 1 min
Economists expected economic growth to rise significantly and now that we’ve got the latest GDP report, we’ll break down the biggest takeaways in the data. WSJ’s Dion Rabouin will unpack the report and explain what really matters. Photo: Li Jianguo/Zuma PressA lot of investors are familiar with Stein’s law, named after the late economist Herbert Stein : “If something cannot go on forever, it will stop.”Which brings us to Thursday’s gross-domestic-product report. The Commerce Department reported that the U.S. economy grew at an inflation-adjusted 4.9% annual rate, the biggest gain since the fourth-quarter of 2021, and far stronger than the less-than-2% rate that Federal Reserve policymakers think it needs to settle in at to avoid overheating.
Persons: we’ve, WSJ’s Dion Rabouin, Li Jianguo, Herbert Stein Organizations: Commerce Department, Federal Locations: U.S
Economists expected economic growth to rise significantly and now that we’ve got the latest GDP report, we’ll break down the biggest takeaways in the data. WSJ’s Dion Rabouin will unpack the report and explain what really matters. Photo: Li Jianguo/Zuma PressU.S. economic growth surged this summer, as consumers boosted spending ahead of growing challenges that could limit their ability to maintain the momentum. Gross domestic product grew at a seasonally- and inflation-adjusted 4.9% annual rate in the third quarter, the Commerce Department reported Thursday. That was the fastest rate since late 2021 and much stronger than economists were anticipating just a few months ago.
Persons: we’ve, WSJ’s Dion Rabouin, Li Jianguo Organizations: Zuma Press U.S, Gross, Commerce Department
WSJ’s Dion Rabouin unpacks the latest GDP report and explains what it says about the state of the economy. Photo: Li Jianguo/Zuma PressU.S. economic growth surged this summer at the fastest pace since 2021, as consumers spent at a blockbuster rate that will be difficult to sustain. Gross domestic product expanded at a 4.9% seasonally- and inflation-adjusted annual rate in the third quarter—more than double the second quarter pace—the Commerce Department reported Thursday. The acceleration won’t change the Federal Reserve’s plans to hold rates steady at their meeting next week.
Persons: WSJ’s Dion Rabouin, Li Jianguo Organizations: Zuma Press U.S, Gross, Commerce Department
Inflation has picked up in recent months, with prices rising on everything from gas to food and insurance. WSJ’s Dion Rabouin explains how the latest U.S. retail sales report will provide the Federal Reserve the most important data point yet on the state of U.S. consumers. Photo: Jamie Kelter Davis/Bloomberg NewsAdd surging interest rates to the list of threats staring down the U.S. economy. The yield on the U.S. 10-year Treasury note touched 5% on Monday for the first time in 16 years, after climbing rapidly in recent weeks. That is among many borrowing costs—including for other long-term government debt, mortgages, credit cards, auto purchases and business loans—that could slow the surprisingly resilient economy.
Persons: WSJ’s Dion Rabouin, Jamie Kelter Davis Organizations: Federal Reserve, Bloomberg Locations: U.S
Hong Kong’s Financial-Sector Feast Turns to Famine
  + stars: | 2023-10-20 | by ( Jacky Wong | ) www.wsj.com   time to read: 1 min
China’s slowing economy could soon become a major talking point for U.S. companies as they begin to report third-quarter earnings. WSJ’s Dion Rabouin explains. Illustration: Elizabeth SmelovHong Kong’s lackluster stock market epitomizes the challenges that the city is grappling with—China’s economic slowdown, which looks increasingly structural, and Beijing’s tightened grip on the semiautonomous city. Neither issue looks likely to disappear soon, although China’s economy could improve a bit cyclically next year. Weak third-quarter results released Friday by Hong Kong Exchanges and Clearing —the market’s owner and operator—are the latest sign of how entrenched the city’s problems have become.
Persons: WSJ’s Dion Rabouin, Elizabeth Smelov Hong Organizations: Hong Kong Exchanges Locations: semiautonomous
What a Huge Widening of the U.S. Deficit Means for Markets
  + stars: | 2023-10-13 | by ( Dion Rabouin | ) www.wsj.com   time to read: 1 min
Why the Dollar's Comeback Could Be Bad News for the Stock Market After weakening earlier this year, the U.S. dollar is pushing higher and could be headed back toward the 20-year high it touched in 2022. WSJ’s Dion Rabouin explains why this could be bad news for investors. Photo illustration: Noah Friedman
Persons: WSJ’s Dion Rabouin, Noah Friedman Organizations: Stock, U.S .
Why It’s Never Been More Expensive to Buy a Car Supply-chain issues have largely been resolved and inflation is cooling, but car ownership has never been more expensive. WSJ’s Dion Rabouin walks through the data showing why now may be the worst time to buy a car. Photo: David Zalubowski/Associated Press
Persons: Dion Rabouin, David Zalubowski Organizations: Associated
Why It’s Never Been More Expensive to Buy a Car Supply-chain issues have largely been resolved and inflation is cooling, but car ownership has never been more expensive. WSJ’s Dion Rabouin walks through the data showing why now may be the worst time to buy a car. Photo: David Zalubowski/Associated Press
Persons: Dion Rabouin, David Zalubowski Organizations: Associated
Why It’s Never Been More Expensive to Buy a CarSupply-chain issues have largely been resolved and inflation is cooling, but car ownership has never been more expensive. WSJ’s Dion Rabouin walks through the data showing why now may be the worst time to buy a car. Photo: David Zalubowski/Associated Press
Persons: Dion Rabouin, David Zalubowski Organizations: Associated
Why It’s Never Been More Expensive to Buy a Car
  + stars: | 2023-09-20 | by ( Dion Rabouin | ) www.wsj.com   time to read: 1 min
Three Reasons a U.S. Recession May Be Delayed, Not Averted The U.S. economy has been strong so far in 2023, with jobs growth continuing, GDP rising and inflation slowing. But several cracks in the economic armor have started to appear. WSJ’s Dion Rabouin explains. Photo illustration: Noah Friedman/Patrick Semansky/AP
Persons: WSJ’s Dion Rabouin, Noah Friedman, Patrick Semansky Locations: U.S
Fuel Prices Are Soaring. Who Is Feeling the Pinch?
  + stars: | 2023-09-14 | by ( Bob Henderson | ) www.wsj.com   time to read: 1 min
Inflation fell every month for a year, but in July that trend ended with housing prices rising along with the prices for oil and gas. WSJ’s Dion Rabouin digs into August’s CPI inflation report and explains what’s really happening with prices. Photo: Stefani Reynolds/Agence France-Presse/Getty ImagesRising diesel prices are inflating the bills Brett McMahon is getting from the companies that truck in the plywood, rebar and other supplies his concrete-contracting business needs. Asking his clients to renegotiate contracts to ease that pain, he said, has been “hit or miss.”
Persons: Dion Rabouin, Stefani Reynolds, Brett McMahon, Organizations: Agence France
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