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The recovery in China has been much slower than what other major countries experienced when they lifted their pandemic restrictions. Still, the Chinese consumer has proved to be resilient in the face of these broader economic challenges. It marked the fastest pace of growth since the first quarter of 2022, fueled by higher spending from Chinese consumers. Club stock results Recent financial results from our China-exposed companies show that Chinese consumers have been holding up even as broader economic recovery is delayed. China is a growth market for each company and improvement in economic activity there should be a catalyst for these stocks.
Persons: Estee Lauder, , Ting Lu, WYNN, hasn't, Jim Cramer's, Jim Cramer, Jim, Jason Lee Organizations: Starbucks, Wynn Resorts, WYNN, China Index Academy, National Bureau of Statistics, Club, Gaming, Prestige, CNBC Locations: China, China's, Beijing, Macao, Asia, SBUX
Here's the inflation breakdown for May 2023, in one chart
  + stars: | 2023-06-13 | by ( Greg Iacurci | ) www.cnbc.com   time to read: +5 min
The CPI is a key barometer of inflation, measuring prices of anything from fruits and vegetables to haircuts and concert tickets. Where consumers saw inflation, deflation in MayConsumers saw gasoline prices decline 5.6% between April and May, according to the CPI report. "Energy prices at this time last year were just absurd," Leer said. watch nowBut food and energy prices can be volatile. "The progress on core inflation has stalled out in recent months," said Greg McBride, chief financial analyst at Bankrate.
Persons: Michael M, Leer, Greg McBride, They're, Ben Bernanke, Olivier Blanchard Organizations: Lincoln Market, Santiago, Getty, U.S . Bureau of Labor Statistics, Consumers, CPI, Bureau of Labor Statistics, BLS, U.S . Federal Reserve, Peterson Institute for International Economics, Bankrate Locations: Prospect, Brooklyn, New York City, U.S, Ukraine
The growth in bookings is largely driven by pent-up demand from loyal customers returning to taking summer vacations and other leisure travel, said the analysts. JPMorgan upgraded Carnival shares to "overweight", while Bank of America raised its rating on the stock to "buy", and the analysts raised their price targets on all the three cruise companies. Carnival shares rose 14% to a more than 1-year high in early trading on Monday while Norwegian Cruise gained nearly 8%. The S&P 500 Hotels Resorts & Cruise Lines Sub-Industry Index was up 0.9% led by gains in cruise stocks. Commercial airline shares were also making gains on Monday amid falling crude oil prices and growth in demand for seats.
Persons: Chibuike Oguh, Granth Vanaik, Stephen Culp, Lance Tupper, David Gregorio Our Organizations: YORK, Carnival Corp, Cruise Line Holdings, JPMorgan, Bank of America Global Research, Carnival, Royal Caribbean Cruises, Bank of America, Norwegian Cruise, Royal, Hotels Resorts, Cruise, Southwest Airlines, Hawaiian Holdings, American Airlines, Thomson Locations: Royal Caribbean, New York
Amid "continued demand momentum" for the cruise industry, JPMorgan is bullish on Carnival . The bank upgraded the cruise liner's shares to overweight from neutral in a Monday note. Analyst Matthew Boss also raised his price target to $16 from $11, implying more than 22% upside from Friday's close. Boss underscored Weinstein's comments that Carnival is "no longer riding the coattails of a post-pause pent-up." "On the top-line, we came away confident in current trends with all three management teams," Boss said.
Persons: Matthew Boss, Boss, Josh Weinstein —, , — CNBC's Michael Bloom Organizations: JPMorgan, CCL
New York CNN —The Teamsters union is holding a vote right now among more than 330,000 members to authorize a strike against UPS. If UPS workers strike, it would be the largest single-employer strike in US history. UPS (UPS) is simply too big – delivering an average of 17 million domestic packages a day – to have all the packages it handles moved by competitors. The strike vote being conducted through July 16 is likely to pass overwhelmingly, as virtually all such votes do. If a deal is reached, but a majority vote against it, there will still be a strike this time.
Persons: couldn’t, Sean O’Brien, , Carol Tome, it’s, O’Brien, , James Hoffa, Hoffa, ” O’Brien Organizations: New, New York CNN, Teamsters, UPS, United, FedEx, US Postal Service, CNN, ” Union, Teamster, Deutsche Bank Locations: New York, United States
Walking into a boxing gym can be an assault on the senses, whether it’s the ringing of a bell, the smell of accumulated sweat or the quick rat-a-tat of the speed bag. But if you stay for a while, you’ll find that boxing provides one of the most complete workouts available, blending full-body strength training and cardiovascular endurance with exercises designed to improve balance, coordination and reflexes. A boxing workout can help strengthen your back, stabilize your shoulder muscles and even work parts of your legs you didn’t know you had. “Boxing workouts will keep you sharp,” said Dwight Pratchett, a boxing coach at Main Street Boxing and Muay Thai in Houston. Even without access to a gym, you can still incorporate boxing into your regular workout routine, with minimal equipment required.
Persons: , Dwight Pratchett Organizations: Main, Muay Locations: Muay Thai, Houston
Why It MattersA reduction in the deposit rates is one lever that policymakers can use to stimulate spending. The hope is that the lower rates will give consumers an incentive to spend or invest money instead of parking their savings in the bank. After China scrapped its Covid restrictions late last year and reopened the economy, there were expectations that pent-up demand would push consumers to start spending freely — but that has not played out in many sectors of the economy. In the first three months of the year, China’s economy grew at 4.5 percent, helped by a pickup in spending on dining out and luxury goods. Betty Rui Wang, senior China economist at the Australia-based bank ANZ, said confidence in the economy is weak across Chinese households and private-sector businesses.
Persons: Larry Hu, Betty Rui Wang, , , Wang, Li You Organizations: China, Macquarie Group, People’s Bank of China, ANZ, Communist, Commerce Locations: China, Australia, Beijing
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBNY Mellon CEO: I am 'struck by' to see how interested European CEOs are at investing in the U.S.Robin Vince, BNY Mellon president and CEO, joins 'Squawk on the Street' to discuss Vince's vantage point on deposit flows, the pent-up demand for foreign investors, and more.
Persons: Robin Vince Organizations: BNY Mellon, Mellon Locations: U.S
Recent data shows that China is also contending with worse-than-expected consumer spending, slowing manufacturing and weak home sales. What it means for markets: US-based companies doing business in China stand to lose if the economy continues on a downward trajectory. Qualcomm (QCOM), with a 67% exposure rate to China, issued disappointing forward guidance during earnings last month, citing China’s slow recovery. JD.com (JD), one of the largest Chinese companies trading in the United States, has fallen by nearly 36% this year. The air purifier market is poised to grow as climate change increases air pollution and exacerbates breathing difficulties.
Persons: That’s, China —, Capvision, China Nicholas Burns, , Goldman Sachs, Dow, JD.com, Morgan Stanley, Goldman, Ayaz Ebrahim, CARR, Johnson, Ivan Menezes, Diageo, Menezes ’, Menezes, King Charles III, Debra Crew, Johnnie Walker, Ivan, Javier Ferrán, “ Ivan Organizations: CNN Business, Bell, New York CNN, International Monetary Fund, Factories, Bain, Group, Micron Technology, Nasdaq, Apple, Intel, Starbucks, Nike, Bank of America, Las, Qualcomm, Nvidia, Wynn Resorts, WYNN, MGM Resorts, MGM, China . Companies, Dragon, Goldman Sachs Group, Nomura, Barclays, JPMorgan, Asia Pacific, Bloomberg, Google, Carrier Global, Johnson Controls, Economic Co, Diageo, India, Business, , Whisky Association, Northwestern University’s Kellogg School of Management Locations: New York, China, Washington, Beijing, United States, Hong Kong, Dragon China, Canada, Pune, India
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailJapan's economy is not as strong as what headline growth implied, says economistNorihiro Yamaguchi of Oxford Economics says the country's economy will remain resilient in the coming months as there's still room for pent-up demand, but the "picture is not that bright" beyond that.
Persons: Norihiro Yamaguchi Organizations: Oxford Economics
Home prices may fall as recent gains and higher borrowing costs restrain demand, Jeremy Siegel says. "The higher interest rates and 40% increase in home prices more than doubled the cost of homes for buyers," the retired Wharton finance professor said in his weekly commentary for WisdomTree on Monday. "Mortgage rates had ticked down to 6% a few months ago before rising back above 7% now — so perhaps we see some renewed softness in housing prices," Siegel added. Higher interest rates translate into larger monthly mortgage payments, which mean banks are willing to lend significantly less money to homeowners today than they were a few years ago. "Shark Tank" investor Barbara Corcoran has argued there's a load of pent-up demand, and called for home prices to surge 20% once interest rates fall by two percentage points.
Persons: Jeremy Siegel, Wharton, Siegel, , WisdomTree, joblessness, Barbara Corcoran, Jeff Greene Organizations: Service, Federal Locations:
BEIJING, June 5 (Reuters) - China's services activity picked up in May, a private-sector survey showed on Monday, as a rise in new orders shored up a consumption-led economic recovery in the second quarter. The reading contrasts with the official PMI released last week that showed a slower pace of expansion in the services sector. The Caixin survey showed service companies reported a rise in new business last month when the first May Day holiday following China's COVID reopening boosted orders for hotels, restaurants and travel agencies. Caixin/S&P's composite PMI, which includes both manufacturing and services activity, picked up to 55.6 from 53.6 in April, marking the quickest expansion since December 2020. "This divergence highlights that economic growth is lacking internal drive and market entities lack sufficient confidence, underscoring the importance of expanding and restoring demand," he said.
Persons: shored, Wang Zhe, Ellen Zhang, Ryan Woo, Sam Holmes Organizations: P Global, PMI, Caixin Insight, Thomson Locations: BEIJING, Beijing
The worst of the debt ceiling crisis is over now that lawmakers have passed a bill and sent it to President Joe Biden for signing, but investors are about to see an influx of Treasury securities enter the market. A large issuance of new Treasurys could push down prices of holdings in investors' portfolios. While large investors scoop up the new T-bills, the extent to which individual investors capture the benefit will also depend on the Federal Reserve's policy stance. "As you get past the debt ceiling, getting paid on your cash is still a concern, and doing it with T-bills where you still get a 5% yield is attractive," Tannuzzo said. "Interest rates have been so low, and to see 4%, 5% on T-bills – you can make money on money, and that's wonderful," Shagawat said.
Persons: Joe Biden, Morgan Stanley, Gene Tannuzzo, Tannuzzo, James Shagawat, Greg McBride, Shagawat, Treasurys, he's, Michael Bloom Organizations: Treasury, Columbia, Federal, Federal Reserve, AdvicePeriod
But for every recession alarm bell, the continued strength in the labor market seems to be an answer to those worries. “I think even in a recession environment, we’re going to have a relatively strong job market. “It’s still possible that the case of avoiding a recession is, in my view, more likely than that of having a recession. Jobs market still hot, but coolingThat’s not to say that the jobs market hasn’t slowed down. Powell said he’s not particularly worried about the cooling of the labor market over the last year.
Persons: That’s, , Jamie Cox, they’re, Mark Zandi, , I’ve, we’ve, Dave Gilbertson, Jerome Powell, “ We’ve, ” Powell, It’s, Julia Pollock, Powell, he’s, , ZipRecruiter’s Pollock, – CNN’s Bryan Mena Organizations: New, New York CNN, Labor Department, Costco, Federal Reserve, Harris Financial Group, Moody’s Analytics, Target, Labor Locations: New York
The increase in the unemployment rate from a 53-year low of 3.4% in April reported by the Labor Department on Friday was mostly driven by Blacks. The backfilling of these retirements and increased demand for services are some of the factors driving job growth. Most economists expect overall payrolls growth to continue at least through the end of the year. The drop in household employment combined with a 130,000 increase in the labor force to boost the unemployment rate. The unemployment rate for blacks jumped to 5.6% from 4.7% in April.
Persons: payrolls, Sal Guatieri, Nick Bunker, Lucia Mutikani, Chizu Nomiyama, Andrea Ricci Organizations: Labor Department, Blacks, BMO Capital Markets, Fed, Reuters, Treasury, Reuters Graphics Reuters, Leisure, Writers Guild of America, Labor Department's Bureau of Labor Statistics, Thomson Locations: WASHINGTON, U.S, Toronto, joblessness
US job growth beats expectations in May
  + stars: | 2023-06-02 | by ( Lucia Mutikani | ) www.reuters.com   time to read: +2 min
Nonfarm payrolls increased by 339,000 jobs last month, the Labor Department said in its closely watched employment report on Friday. Data for April was revised up to show payrolls rising by 294,000 jobs instead of 253,000 as previously reported. Despite strong hiring, the unemployment rate rose to 3.7% from a 53-year low of 3.4% in April. The backfilling of these retirements and increased demand for services are some of the factors driving job growth. Most economists expect payrolls growth to continue at least through the end of the year.
Persons: Lucia Mutikani, Chizu Organizations: Federal Reserve, Labor Department, Reuters, Fed, Thomson Locations: U.S
Slower US job, wage gains expected in May
  + stars: | 2023-06-02 | by ( Lucia Mutikani | ) www.reuters.com   time to read: +5 min
Nevertheless, the Labor Department's closely watched employment report on Friday is expected to still show the labor market remaining tight. PROGRESS ON INFLATIONBut the overall labor market remains upbeat, with first time applications for state unemployment benefits hovering at very low levels. Slowing wage inflation is corroborated by other measures like the Atlanta Fed's wage tracker, which has come off its peaks. Financial markets see a nearly 70% chance of the Fed keeping its policy rate unchanged at its June 13-14 meeting, according to CME Group's FedWatch Tool. The Labor Department's Bureau of Labor Statistics, which compiles the employment report, did not record the work stoppage in its May strike report.
Persons: Bill Adams, Brian Bethune, Nancy Vanden Houten, Lucia Mutikani, Chizu Organizations: Federal Reserve, Labor, Comerica Bank, Data, Labor Department, Atlanta, Boston College, Fed, Writers Guild of America, Labor Department's Bureau of Labor Statistics, Oxford Economics, Thomson Locations: y WASHINGTON, Dallas, New York
Outside the COVID-19 pandemic, it was the biggest jump since 2010, reflecting a drop in household employment and a rise in the workforce. "However, the other areas of softness in this report suggests that the labor market is losing steam. The backfilling of these retirements and increased demand for services are some of the factors driving job growth. While not dismissing the household survey, economists said the establishment survey was the more reliable of the two. The fall in household employment combined with a rise of 130,000 in the labor force to boost the unemployment rate.
Persons: payrolls, Sal Guatieri, Nonfarm, Mike Blake, Gus Faucher, Conrad DeQuadros, DeQuadros, Daniel Zhao, Lucia Mutikani, Chizu Nomiyama, Andrea Ricci, Paul Simao Organizations: Labor Department, BMO Capital Markets, Fed, Reuters, Leisure, Treasury, REUTERS, Reuters Graphics Reuters, Financial, Writers Guild of America, Labor Department's Bureau of Labor Statistics, PNC Financial, Brean, Thomson Locations: WASHINGTON, U.S, Toronto, Oceanside , California, Pittsburgh , Pennsylvania, New York
NEW YORK, June 2 (Reuters) - Citigroup Inc (C.N) CEO Jane Fraser said scrapping the sale of its Mexican retail business, known as Banamex, and pursuing an initial public offering (IPO) was in the best interest of shareholders. "We acted decisively, we acted very swiftly and we said 'okay, we're gonna go down the IPO path,'" Fraser said in an investor conference in New York. Citi announced last week the sale process, which had dragged on for more than a year, had been scrapped. It has signed nine sales agreements nine markets and closed seven deals, including in Australia, India and Vietnam. The CEO held off on giving guidance about trading revenue, citing a landmark U.S. bill to lift the debt ceiling that has just passed and is still being digested by markets.
Persons: Jane Fraser, we're, Fraser, Goldman, John Waldron, Morgan Stanley, Tatiana Bautzer, Saeed Azhar, David Gregorio, Lananh Nguyen, Nick Zieminski Organizations: YORK, Citigroup Inc, Citi, Goldman Sachs, Inc, JPMorgan, Bank of America Corp, Citigroup, Thomson Locations: New York, Australia, India, Vietnam, U.S, Ukraine
We are buying 100 shares of Wynn Resorts (WYNN) at roughly $96.89 apiece. Before the Covid pandemic, the company generated about 75% of its earnings before interest, taxes, depreciation, and amortization (EBITDA) from its Macao properties. And since the Macao properties' cost structure was reduced to minimize losses during the lockdowns, the operating leverage as revenues recover has been both notable and underappreciated by the market. Despite recent weakness due to fresh Covid concerns, the May CGR numbers numbers for Macao indicate that there has not been any material slowdown in gaming. Wynn stock is still up nearly 17% year-to-date, and we believe China's long-term economic recovery is on track.
Persons: Jim Cramer's, GGR, Covid, Wynn, WYNN, Jim Cramer, Jim Organizations: Wynn Resorts, WYNN, Macao, Boston, CNBC Locations: China, Macao, U.S, Las Vegas, Boston, Beijing
Photographer: Qilai Shen/Bloomberg via Getty Images Qilai Shen | Bloomberg | Getty ImagesChina's much-vaunted economic rebound after its emergence from strict zero-Covid lockdown measures has yet to fully materialize, prompting some economists to speculate that further fiscal stimulus or monetary policy easing could be coming down the pipeline. Data from China's Bureau of Statistics shows that 6 million of the 96 million 16 to 24-year-olds in the urban labor force are currently unemployed. watch nowIn a research note Monday, Capital Economics assessed that, despite losing some momentum, China's economic recovery was still progressing at the start of the second quarter, with scope for further service sector-led improvement. But we do not expect policy rate cut or major fiscal stimulus, barring a precipitous fall in exports in the coming months." Any consensus among economists as to the trajectory of fiscal and monetary policy seems to be unraveling in light of the tenuous recovery.
Yet despite all odds, 61% of those surveyed said they plan to travel this summer, up from the 49% who said the same in summer 2021. Some 56% of adults are more likely to stay in a hotel this summer than they were in 2022, according to the AHLA/Morning Consult survey. Booking Holdings is also an analyst favorite, with an average rating of overweight and 10% upside to the average price target, per FactSet. While prices are still high, the latest consumer price index for April showed the airline fares index fell 2.6% month over month, after rising in February and March. Airlines are essentially sold out for summer travel, according to TD Cowen analyst Helane Becker.
Persons: Matt Kramer, They're, You've, Sylvia Jablonski, Kramer, Freed, Bernstein, David Vernon, Price, Robin Farley, Farley, James Hardiman, Hardiman, Josh Weinstein's, RevPar, Tony Capuano, Chris Nassetta, Biden, Hilton, they've, Airbnb, Brian Chesky, it's, Evercore, Mark Mahaney, amortization, Mahaney, Cowen, Helane Becker, Becker, — CNBC's Michael Bloom, Ashley Capoot Organizations: KPMG, KPMG Consumer, Survey, Cruise ETF, Royal, Holdings, Marriott, United Airlines, Morning, American, & Lodging Association, Cruises, UBS, Citi, CCL, CNBC, Hilton Worldwide, U.S . Travel Association, State Department, Booking Holdings, Booking, Airlines, Delta Air Lines, Copa Holdings, Panamanian, Copa Airlines Locations: United States, Royal Caribbean, United, Caribbean, CocoCay, Thursday's, China, North America, Asia, Europe
Contributions to 529 college savings programs fell late last year and early this year, according to industry data, as consumers saved less overall and battled high inflation. The state-sponsored savings accounts, named for a section of the tax code, can be used to pay for education expenses, primarily college costs. Still, that was an improvement over the fourth quarter of 2022, when net inflows were $1.5 billion. And those fourth-quarter inflows were significantly lower than the more than $4 billion in the same period of 2021. The drop in contributions was a result of not only reduced overall savings and high inflation but also the postpandemic reopening of the economy, which released pent-up demand for spending, Paul Curley, director of savings research at ISS, said in an email.
LONDON, May 19 (Reuters) - The European Central Bank must continue its fight to tame inflation "with determination" because wages are rising, fiscal policy is too generous and inflation expectations remain too high, ECB board member Isabel Schnabel said on Friday. Their comments came against a backdrop of concerns about fallout on the financial system from an abrupt series of ECB rate hikes and speculation about a pause in tightening by the U.S. Federal Reserve. "This is why it's so important that we show strong determination to bring inflation back to 2%," she told an event in London. But Schnabel said the ECB should go on "raising rates to a sufficiently restrictive level and keeping them at that level for as long as necessary". At the same time it had "the tools to provide liquidity to the euro area financial system, if needed to preserve financial stability", she added.
"It's just a really precarious time of year for airline employees," Anthony Cataldo, a flight attendant for American Airlines with 33 years' experience, told Insider. Such predictions have left some airline workers anxious about carrying the industry through what could be a record-breaking travel season, four mainline pilots and flight attendants told Insider. Compared to last summer, airline staffing levels have largely improved, with Delta and United hiring thousands of new employees this year. The Southwest and American Airlines pilot unions both voted to authorize a strike this month. Air traffic control remains understaffedAs of April, the crowded airspace around New York City had 129 certified air traffic controllers — just over half of the staffing target of 226 — with 67 air traffic controllers in training, according to aviation firm Rinaldi Consultants.
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