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Deflation — the trend of prices falling throughout the economy — presents a particularly dangerous trajectory for China, which carries a massive amount of debt. The main components of GDP on the demand side — consumption, investment, net exports — they all have serious problems right now." A shaky property marketMost of China's economic troubles tie directly into its property market. Roughly a quarter of China's population works in agriculture — well above the 3% mark in the US — and that presents its own productivity limitations. From an unstable, debt-ridden property market to anti-business policies and demographic issues, Beijing has plenty to tackle if it hopes to match the same growth as decades past.
Persons: David Dollar, Biden, Dexter Roberts, Roberts, Terry Group, it's, Xi Jinping Organizations: Service, China's National Bureau of Statistics, People's Bank of, Federal Reserve, Brookings, Bloomberg, JPMorgan, Financial Times, China's, Global, US Census Bureau, Atlantic Council, Communist Party, Garden Holdings, Beike Research Institute, Terry Locations: Beijing, Wall, Silicon, China, People's Bank of China, China's US, Western, Russia, Asia, Ukraine, Mexico, China cratered, Rocky
[1/2] A general view of the sun rising behind the White House in Washington, U.S. January 22, 2021. REUTERS/Jonathan Ernst/File PhotoWASHINGTON, Aug 11 (Reuters) - President Joe Biden's comment about China being a "ticking time bomb" referred to internal economic and social tensions that could have an effect on how Beijing interacts with the world, a White House official said Friday. Kirby defended the funding request, saying, "Yes, this is an urgent need for us to be able to provide an alternative." Biden told donors: "China is a ticking time bomb ... China is in trouble. Liu said China's GDP growth continued to provide an important support for the development of the global economy.
Persons: Jonathan Ernst, Joe Biden's, John Kirby, Kirby, Liu Pengyu, Biden, Liu, We've, Xi Jinping, Andrea Shalal, Michael Martina, Chris Reese, David Gregorio Our Organizations: White, REUTERS, Reuters, China's National Bureau, Statistics, Thomson Locations: Washington , U.S, China, Beijing, Utah, Washington, United States, India
Recent research found that fully remote workers were less productive than office workers. A recent analysis of multiple studies by the Stanford economist Nick Bloom, a leading remote-work expert, found that fully remote workers were 10% to 20% less productive than their in-office counterparts. But the research has found, on average, those working in the office at least some of the time are more productive . Even Zoom, which is synonymous with remote work, recently called some employees back to the office for at least two days a week. Bloom recently estimated 60% of Americans worked fully in person, 30% worked in person between one and four days per week, and 10% worked fully remotely.
Persons: Nick Bloom, Mark Zuckerberg, Marc Benioff, Jeff Moriarty, Moriarty, he's, Kate Ecke, Ecke, telehealth, it's, Raj Choudhury, Stanford's Bloom, Bloom Organizations: Service, National Bureau of Economic Research, Stanford, Bureau of Labor Statistics —, Meta, Harvard Business School Locations: Wall, Silicon, India, Chicago, New Jersey
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 7, 2023. The consumer price index (CPI) dropped in the world's second-largest economy, the National Bureau of Statistics said, its first decline since February 2021. Of the 443 S&P 500 companies that have reported results as of Tuesday, 78.6% beat analyst expectations, according to Refinitiv data. Declining issues outnumbered advancing ones on the NYSE by a 1.18-to-1 ratio; on Nasdaq, a 1.63-to-1 ratio favored decliners. The S&P 500 posted 16 new 52-week highs and 7 new lows; the Nasdaq Composite recorded 60 new highs and 178 new lows.
Persons: Brendan McDermid, Jason Krupa, Patrick Harker, Gina Bolvin, Wells, Penn Entertainment's, Walt Disney's, Uber, Krupa, Echo Wang, Bansari Mayur Kamdar, Johann M, Shounak Dasgupta, David Gregorio Our Organizations: New York Stock Exchange, REUTERS, Penn Entertainment, Dow, Nasdaq, Consumer, Index, Lenox Advisors, New York Federal Reserve Bank, Philadelphia Fed, Bolvin Wealth Management Group, Traders, FedWatch, Wall, Nvidia, Apple, National Bureau of Statistics, Dow Jones, Bank of America, Casino, Walt, Walt Disney's ESPN, NYSE, Thomson Locations: New York City, U.S, Boston, New York, Bengaluru
The Consumer Price Index (CPI) for July, due on Thursday, is expected to show a slight acceleration from last year. The consumer price index (CPI) dropped in the world's second-largest economy, the National Bureau of Statistics said on Wednesday, its first decline since February 2021. According to preliminary data, the S&P 500 (.SPX) lost 31.47 points, or 0.70%, to end at 4,467.91 points, while the Nasdaq Composite (.IXIC) lost 162.31 points, or 1.17%, to 13,723.96. Six of the top 11 S&P 500 sectors rose, with energy stocks (.SPNY) leading the gain. Of the 443 S&P 500 companies that have reported results as of Tuesday, 78.6% beat analyst expectations, according to Refinitiv data.
Persons: Brendan McDermid, Jason Krupa, Patrick Harker, Gina Bolvin, Michelle Bowman, Wells, Penn Entertainment's, Walt Disney's, Uber, Krupa, Echo Wang, Bansari Mayur Kamdar, Johann M, Shounak Dasgupta, David Gregorio Our Organizations: New York Stock Exchange, REUTERS, Penn Entertainment, Dow, Nasdaq, Lenox Advisors, New York Federal Reserve Bank, Philadelphia Fed, Bolvin Wealth Management Group, Traders, FedWatch, Wall, Nvidia, Apple, Index, Bank of America, National Bureau of Statistics, Dow Jones, Casino, Walt, Walt Disney's ESPN, Thomson Locations: New York City, U.S, Boston, New York, Bengaluru
China swings into deflation as recovery falters
  + stars: | 2023-08-09 | by ( Reuters Staff | ) www.reuters.com   time to read: +4 min
BEIJING (Reuters) -China’s consumer prices fell into deflation in July, while factory gate prices extended their declines, as the world’s second-largest economy struggled to revive demand and pressure mounted for authorities to release more direct stimulus. FILE PHOTO: Staff sort fruits at a Walmart in Beijing, China, September 23, 2019. China’s economic recovery slowed after a brisk start in the first quarter, as demand at home and abroad weakened. “Both CPI and PPI in year-on-year terms fell into negative territory and confirmed economic deflation,” said Xing Zhaopeng, senior China strategist at ANZ. Otherwise, economic data showing some growth improvement is required, which is not coming through yet.”JAPAN-STYLE DEFLATION?
Persons: Tingshu Wang, , , Xing Zhaopeng, Xing, Frances Cheung, Japan’s “, Liu Guoqiang Organizations: Walmart, REUTERS, National Bureau of Statistics, Authorities, CPI, PPI, ANZ, , OCBC Bank, NBS, Investors Locations: BEIJING, Beijing, China, Shanghai, Singapore, JAPAN, Brazil
Customers select tomatoes at a stall inside a morning market in Beijing, China August 9, 2023. The consumer price index (CPI) dropped 0.3% year-on-year in July, the National Bureau of Statistics (NBS) said on Wednesday, compared with the median estimate for a 0.4% decrease in a Reuters poll. The producer price index (PPI) declined for a 10th consecutive month, down 4.4% and faster than the forecast 4.1% fall. Asian shares were on the defensive on Wednesday as the Chinese price data confirmed its economic recovery was losing steam. Beijing has set a consumer inflation target of around 3% this year, which would be up from 2% recorded in 2022, and for now, authorities are downplaying concerns about deflation.
Persons: Wang, Japan’s “, , Gary Ng, Liu Guoqiang, Xia Chun, Tommy Wu, Wu Organizations: REUTERS, National Bureau of Statistics, , Asia Pacific, Natixis, Commerzbank Locations: BEIJING, Beijing, China, Asia, Brazil, Japan, Hong Kong
Pork prices are a significant driver of the consumer price index, and have fallen 26% year-on-year. Pork is the largest driver of the country's Consumer Price Index basket, comprising approximately 3% of it, per the Economist Intelligence Unit. "A rough rule of thumb is therefore that a 10% increase in the pork price will push up the CPI by 0.3%," the EIU said in a research note. The swing in pork prices over the past many years has thrown a huge challenge in front of China's hog farmers. This oversupply and resulting decline in pork prices has weighed heavily on the country's consumer price index, pushing the country into the region of deflation.
Persons: Oversupply, Xi Organizations: Service, Intelligence Unit, National Bureau, Statistics Locations: Wall, Silicon, China, Beijing
President Biden will announce an executive order that bans investments in some Chinese tech companies in 2024. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. The Wednesday development marks the latest step by the White House to limit investors' involvement and access to Chinese markets. In July, the Wall Street Journal reported that the US could soon curb cloud providers from selling services to China. It's another sign that illustrates how the Chinese economy has stumbled out of the pandemic rather than rebounding.
Persons: Biden, Joe Biden, Janet Yellen Organizations: Service, New York Times, White, Wall Street Journal, Bloomberg, China's National Bureau, Statistics Locations: Beijing, China, Wall, Silicon
Shop and factory prices both fell in China last month, according to data released Wednesday. That means the country is suffering deflation for the first time in over two years. It's the latest in a long list of concerns for Beijing as China's post-COVID rebound fizzles out. That's another economic worry for Beijing, which is also contending with faltering growth, skyrocketing youth unemployment, and massive amounts of debt. The data released Wednesday is likely to lead to more calls for fiscal stimulus, according to analysts.
Persons: Hargreaves, Steve Clayton, Jim Reid Organizations: Service, Privacy, China, National Bureau of Statistics, CPI, PPI, Deutsche Bank Locations: China, Beijing, Wall, Silicon
The consumer price index fell by 0.3% in July from a year ago, but was up by 0.2% when compared with June, according to the National Bureau of Statistics Wednesday. The year-on-year CPI print for July was slightly better than expectations for a 0.4% decline, according to analysts polled by Reuters. It was still the first year-on-year decline since early 2021, according to official data accessed via Wind Information. The producer price index fell by 4.4% in July from a year ago, better than the 5.4% decline in June, the data showed. However, the year-on-year PPI read was worse than the 4.1% forecast by a Reuters poll.
Persons: Zhiwei Zhang Organizations: National Bureau, Statistics, Reuters, Information, CPI, PPI Locations: BEIJING, China
The United States has spent much of the past 18 months struggling to control inflation. China is experiencing the opposite problem: People and businesses are not spending, pushing the economy to the verge of a pernicious condition called deflation. For 10 straight months, the wholesale prices generally paid by businesses to factories and other producers have been down from a year earlier. Deflation is particularly serious in a country with very high debt, like China. Overall debt is now larger in China, compared with national economic output, than in the United States.
Organizations: National Bureau of Statistics Locations: States, China, Japan, United States
Hong Kong CNN —The Chinese economy has slipped into deflation, with consumer prices falling for the first time in more than two years in another sign of weakening demand. The consumer price index (CPI) fell by 0.3% in July from a year ago, according to China’s National Bureau of Statistics on Wednesday. The producer price index (PPI), which measures goods prices at the factory gate, also dropped by 4.4% in July from a year earlier. Signs of deflation have become more prevalent in the world’s second biggest economy in recent months, sparking concerns that China could enter a prolonged period of stagnation. China is also suffering from a prolonged slump in its real estate sector, and weak trade.
Persons: That’s Organizations: Hong Kong CNN, National Bureau, Statistics Locations: Hong Kong, China
But falling prices there could end up being good news for the rest of the world. However, falling prices there aren't necessarily bad news for everyone else. In China, prices are falling rather than risingData from the National Bureau of Statistics published Wednesday showed China's factory-gate prices, as measured by the producer price index, plunging 4.4% year-on-year in July for a tenth straight month of declines. Falling prices in the world's second-biggest economy could "give central bankers in the US, UK and Europe pause for thought when they weigh up their next steps," according to AJ Bell investment director Russ Mould. So deflation in China might end up being bad news for Beijing – but a blessing in disguise for the rest of the world.
Persons: it's, China's, Hargreaves Lansdow n's, Steve Lansdown, AJ Bell, Russ Mould Organizations: Service, Privacy, Apple, Nike, Federal Reserve, National Bureau, Statistics, Beijing, Bank of England Locations: China, Wall, Silicon, Beijing, West, Saudi Arabia, Russia, Ukrainian
These shifts have sparked conversations among financial advisors and their clients, who may have varying levels of optimism about the country's economic outlook. Of course, with recessions notoriously difficult to predict, even for economists, advisors have warned clients about making fear-based investing decisions. Recession 'highly unlikely' in the next 12 monthsOne definition of a U.S. recession is two consecutive quarters of negative gross domestic product, or GDP, which happened during the first two quarters of 2022. 'We constantly educate our clients'Whether the economy is heading for a mild recession or soft landing, experts emphasize the need for ongoing client education. "We constantly educate our clients and make them prepared for whatever the world's going to throw their way," she added.
Persons: buzzword, Douglas Boneparth, Boneparth, Ted Jenkin, Jenkin, Carolyn McClanahan Organizations: Federal Reserve, Bone, CNBC's, U.S . Bureau of Labor Statistics, U.S . Labor Department, National Bureau of Economic Research, CNBC's FA, Planning Partners Locations: U.S, New York, Atlanta, CNBC's, Jacksonville , Florida
A study from economists at MIT and UCLA found productivity dropped when people worked from home. The study observed groups of data-entry workers in India working from home and from the office. Some workers argue they're more productive working remotely. Those in the work-from-home group were 18% less productive than those working from the office. Why data-entry workers?
Persons: It's, David Atkin, Andy Jassy, Zuckerberg's Meta Organizations: MIT, UCLA, Service, National Bureau of Economic Research, Massachusetts Institute of Technology, University of California, Fortune, Microsoft, Amazon Locations: India, Wall, Silicon, Los Angeles, Chennai
Government policymakers struggling to address the problem are now leaning on colleges to do more to find jobs for graduates. The job performance of school administrators was already tied to the percentage of their students who find employment after graduation. In some cases, the scrutiny is so intense that students resort to fabricating job offers to placate school officials. Over the last three decades, as China’s economy grew by leaps and bounds, more people attended college, seeing it as a pathway to promising careers. This year’s estimated graduating class of 11.6 million students is expected to be the largest ever, and future classes are expected to be even bigger.
Organizations: National Bureau of Statistics, China Macroeconomy, Renmin University of China Locations: China
The rise of remote work, high interest rates, and climate regulations all pose problems for office buildings. A new study found that more than 2,000 US office buildings could be converted into up to 400,000 apartments. And new environmental regulations require that buildings meet certain energy efficiency standards that can require costly renovations. Turning office buildings into apartments isn't a new concept, and it's one that New York City has embraced in theory. Of course, office buildings require some retrofitting to be turned from sprawling workplaces to livable apartments.
Persons: Arpit Gupta, Candy Martinez, Stijn Van Nieuwerburgh, Insider's Jordan Hart Organizations: Service, National Bureau of Economic Research, Los, New York City, jkaplan Locations: Wall, Silicon, Greater New York City, San Francisco, Los Angeles, New York City, New York
CNN —Days of heavy rain have caused severe flooding in China’s leading grain-producing region in the northeast, killing 14 people and raising concerns about food security as floodwater inundated farmlands. As the storm moved further north, another 14 deaths were reported Sunday in the city of Shulan in Jilin province. Firefighters operate a drainage machine near a village in the city of Mudanjiang in northeastern China's Heilongjiang province on August 5. A cornfield is submerged by floodwater in a village in Hebi city, Henan province on August 5. A flooded farm in Xinxiang city, Henan province on August 5.
Persons: Doksuri, Zhang Tao, floodwater, Typhoon Khanun, Xi Jinping Organizations: CNN, Xinhua, Firefighters, China’s Ministry of Water Resources, Communist Party, Ministry of Agriculture, Rural Affairs, National Bureau of Statistics, China Meteorological Administration, Qiushi, Communist Locations: China, Beijing, Hebei, Shulan, Jilin province, Heilongjiang, Mudanjiang, China's Heilongjiang, Jilin, Harbin, Shangzhi, Wuchang, Liaoning, Hebi city, Henan province, Henan, Xinxiang city
How hospitals are using A.I. to fight doctor burnout
  + stars: | 2023-08-07 | by ( Bertha Coombs | ) www.cnbc.com   time to read: +3 min
Foy and other doctors at Baptist Health have been using the DAX app, powered by artificial intelligence, from Microsoft's Nuance division since last year. The program transcribes doctors' and patients' comments, then creates a clinical physician summary formatted for an electronic health record. Dr. Trachella Johnson CNBCThe app frees doctors from having to type up notes during patient visits, and from having to finish them up at night. The cost of tackling burnoutHarnessing AI programs to put pajama time to rest, and helping doctors and nurses fight burnout, is a top priority for Baptist Health's chief digital and information officer Aaron Miri. "There's new economies of scale ... that healthcare will be able to get into [by] leveraging AI," Miri said.
Persons: Tra'chella Johnson Foy, Foy, Trachella Johnson, Aaron Miri Organizations: Baptist Health, Trachella Johnson CNBC, Baptist, National Bureau of Economic Research Locations: Jacksonville , Florida, Miri
A new study looks at the productivity of remote workers versus those in-office. It showed that productivity dropped by 18% among a group of workers randomly assigned to WFH. More employers are pushing for workers to return to the office in a hybrid role or full-time. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Meanwhile, JPMorgan kickstarted a trend across Wall Street to instill a back-to-office mandate for its managing directors.
Persons: Michael Bloomberg Organizations: Service, National Bureau of Economic Research, Workers, McKinsey, Pew Research, NYC, Bloomberg, JPMorgan Locations: Wall, Silicon, Chennai
But aside from simply skirting a recession, it’s not obvious what the economy would look like in a soft landing. And who even declares that the Fed has officially defied the odds and achieved a soft landing? The main aspect of a soft landing, according to economists, is the absence of a recession, which is determined by the National Bureau of Economic Research (NBER.) In a soft landing, the job market has to remain intact. The other key feature of a soft landing is for the Fed to successfully control inflation, but that’s open to some interpretation.
Persons: we’ve, , Kayla Bruun, , Julia Pollak, ” Pollak, Josh Markman, cooldown, Austan Goolsbee, ” Goolsbee, Raphael Bostic, Michelle Bowman, Patrick Harker, Armour, Ralph Lauren Organizations: CNN Business, Bell, DC CNN, Federal Reserve, Bank of America, Fed, National Bureau of Economic Research, Morning, Atlanta, ZipRecruiter, Labor, Bel Air Investment Advisors, Federal, Federal Reserve Bank of Chicago, Bloomberg, Atlanta Fed, , Tyson Foods, UPS, Fox, Restaurant Brands, The National Federation of Independent Business, US Commerce Department, China’s National Bureau of Statistics, Disney, US Labor Department, National Statistics, University of Michigan Locations: Washington
Chinese developers are allowed to sell residential projects before completion but are required to put those funds in escrow accounts. Local city governments permit them to withdraw a portion of the funds, depending on the progress of construction. China's housing ministry did not respond to Reuters request for comment on the tightening of developers' access to escrow funds. FALTERING HOUSING DEMANDThe new measures come as property demand is sluggish - China's property sales between May and June showed the largest monthly drop this year, based on sales by floor area, and investment in property also slumped. Under those rules, the authority has asked the bank to make escrow funds available only to developers who have other sources of funding to cover construction costs, said the person.
Persons: Gary Ng, Ng, Clare Jim, Tang, Sumeet Chatterjee, Muralikumar Organizations: Asia Pacific, National Bureau of Statistics, Thomson Locations: HONG KONG, BEIJING, Asia, Hunan, Hefei, Xiamen, Hong Kong, Beijing
After being drafted by the Los Angeles Rams in 1991, Crews spent five years bouncing between six professional teams, including one in Germany. "I would have made more money at McDonald's," Crews, 55, said. It's unclear how much money Crews made in total during his NFL career, which included 32 games for the Rams, San Diego Chargers and Washington Redskins. The Chargers now play in Los Angeles, and Washington D.C.'s team is now called the Commanders. When his ex-teammate stopped lending him money, Crews took a job sweeping factory floors for $8 per hour, he said.
Persons: Terry Crews, Crews, Dax Shepard's, I'd, Organizations: National Football League, Los Angeles Rams, Green Bay Packers, NFL, Rams, San Diego Chargers, Washington Redskins, The Chargers, Washington D.C, National Bureau of Economic Research, CNBC Locations: Germany, Wisconsin, McDonald's, Los Angeles, Washington, skylines
"You're too old to work at 35, but too young to retire at 60," one person wrote, bemoaning the "curse." It refers, specifically, to the typical Chinese employer's preference for hiring workers who haven't reached the sell-by date of their 35th birthday. And it's not just about finding work — Chinese workers being phased out at what was previously viewed as the prime of their careers means their livelihoods could be seriously affected. "At this point in time, youth unemployment is high, so many young workers are willing to work for less. Seah told Insider that increased competition for younger workers "will eventually drive up youth wages, making them relatively more expensive to hire."
Persons: haven't, Hector Retamal, Huang, Tania Lennon, Lennon, I, Kevin Frayer, workhorses, Kelvin Seah, Seah, aren't, National University of Singapore's Seah Organizations: Twitter, Service, Getty, Peterson Institute for International Economics, International Institute for Management Development, China Initiative, Bureau of Statistics, National University of Singapore, National Bureau of Statistics, Employers, National University of Singapore's Locations: China, Wall, Silicon, Weibo, Beijing, AFP, Quy Huy
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