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Ratings agency Fitch cut America's credit score in a surprise move Tuesday. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Fitch's downgrade is like an individual's credit score slipping from exceptional to merely very good. If you need more convincing that Fitch's downgrade is no big deal, look no further than the stock market. In other words, Fitch slashed the US's credit score, and Wall Street shrugged.
Persons: Fitch, Joe Biden, Biden, Janet Yellen, who's, Kevin McCarthy, didn't, Organizations: Service, Washington DC, Canada, Democrats, Republicans, Bank of America Locations: Canada, Wall, Silicon, Washington, United States, France
Stocks have racked up easy gains over the past few months thanks to AI and cooling inflation. But investors are suddenly worried about debt again after Fitch slashed its credit rating for the US. The last time this happened was 2011 – and the S&P 500 took six months to recover its losses. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. In response, the S&P 500 dropped 6.5% and took a further six months to recover its losses.
Persons: Fitch, , It's, Stocks, AJ Bell's, Laith Khalaf, Fitch's, Ray Dalio Organizations: Service, Poor's, House Locations: Wall, Silicon, , Washington –, Canada
The downgrade comes two months after Joe Biden and House Republicans reached an 11th-hour deal to stop a catastrophic default. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Here's everything you need to know about the ratings agency's shock move. Fitch said the last-minute debt-ceiling deal after months of shutdown had failed to convince it that Congress will be able to avert future calamities. As debt-ceiling negotiations dragged on earlier this year, the White House warned stocks could crash 45% if the government ever failed to repay its debts – so even a downgrade is bad news for the market.
Persons: Fitch, Joe Biden, Stocks, Joe Biden's, Biden, it's, AJ Bell's, Laith Khalaf, Fitch's, Janet Yellen, Larry Summers Organizations: House Republicans, Service, AAA, Social Security, House, Nasdaq, CME Group, Dow Jones, P Global, Biden Locations: Wall, Silicon, Europe, Asia
It's getting more expensive for Saudi Arabia to borrow, with a key lending rate hitting a record 6%. The Gulf Kingdom plans to spend hundreds of billions of dollars as part of its Vision 2030 project. It plans to fund those efforts with a combination of oil revenue and borrowed cash. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Saudi Arabia has also slashed its oil output by around 10%, or 1 million barrels a day, in a bid to bring in more revenue from its crude exports by squeezing up prices.
Persons: It's, Mohamed bin Salman, That's, bin Salman, LIV Golf Organizations: Service, Bloomberg, Saudi Arabia's Crown, Investment Fund, English Premier League soccer, Newcastle United, PGA Tour Locations: Saudi Arabia, Gulf Kingdom, Wall, Silicon, Gulf, Saudi, Refinitiv, SAIBOR
'FOMO' rules the stock market now
  + stars: | 2023-08-01 | by ( George Glover | ) www.businessinsider.com   time to read: +2 min
Forget AI, the Fed, and inflation – "FOMO" is now the stock market's dominant force. Bears including Morgan Stanley's top strategist Mike Wilson have abandoned their gloomy forecasts amid signs the breakneck rally could last. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy PolicyForget artificial intelligence, forget inflation, forget the Fed. But it also marked the month many bears had to wind back their doom-mongering and accept that the surprise 2023 rally might be for real. Their July climbdowns show that after stocks' longest winning streak in two years, FOMO now rules the market.
Persons: Morgan Stanley's, Mike Wilson, that's, Morgan, who's, Scott Chronert, Wilson, FOMO Organizations: Bears, Service, Federal, Citi, Big Tech Locations: Wall, Silicon
China's manufacturing sector contracted in July, multiple indexes showed. Policymakers have hinted at an economic boost – but are yet to roll out a stimulus package. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. The country's top decision-making body acknowledged that the economy faced "new difficulties and challenges" last week – and pledged to roll out a stimulus package "with precision and force". The Swiss bank predicted policymakers would hint at but fall short of bringing in the "big bang" stimulus package needed to revive growth.
Persons: , Beijing's, Julian Evans, Pritchard Organizations: Service, Privacy, China, P Global Manufacturing, UBS, Economics Locations: Beijing, Wall, Silicon, Swiss, China
Pope Francis called on Russia to restore the Black Sea grain deal Sunday. “I appeal to my brothers, the authorities of the Russian Federation, so that the Black Sea initiative may be resumed and grain may be transported safely,” Francis said. "I appeal to my brothers, the authorities of the Russian Federation, so that the Black Sea initiative may be resumed and grain may be transported safely," Francis said during his weekly Angelus message, delivered to Roman Catholics worldwide. Benchmark wheat prices had their biggest one-day jump in over a decade the week Russia pulled out of the Black Sea grain deal, a United Nations-brokered agreement that had allowed Ukraine to export grains and oilseeds through a safe shipping corridor for the past year. As well as Pope Francis, top policymakers from the UN and European Union have warned that Russia's latest economic assault on the West will make it much more expensive for poorer countries to import grain.
Persons: Pope Francis, Moscow, ” Francis, Francis, Angelus, Pope, António Guterres, Josep Borrell Organizations: UN, Russian Federation, Service, United Nations, Chicago Board of Trade, Kremlin, European Union Locations: Russia, Wall, Silicon, Ukraine, Moscow
The Federal Reserve said last week that it no longer expects a recession in the US. But unemployment will spike above 4% over the next year, according to Vanguard's top economist Joe Davis. "By that metric, it actually is a recession – because you have very modest job losses," he said. "Well, historically, that has been 100% associated with a recession – now, not necessarily deep in magnitude, but a recession." The central bank has raised interest rates from near-zero to over 5% since March 2022 in a bid to tame soaring prices but pledged to take a data-dependent approach to tightening last week.
Persons: Joe Davis, Davis, Bloomberg's, they'll, there'll Organizations: Federal Reserve, Service, Privacy, Fed, Bloomberg Locations: Wall, Silicon
“More times than I can remember, a spouse or child has said to me, ‘If he wasn’t dead, I’d kill him all over again for leaving me with this mess,’” said Greg Rohan, the president of Heritage Auctions. Most people tend to know what to do with traditional investments after someone dies, he said, but when it comes to baseball cards, first-edition books, coins and other collectibles, the loved ones dealing with the estate can be stumped (and annoyed). “People don’t want to think about dying,” said Maggie Thompson, 80, a former senior editor of Comic Buyer’s Guide, which was a newsmagazine that covered the comic book industry. “I realize as I look around my rooms, my family is not going to know what things are.”Ms. Thompson, whose eclectic collection includes Polaroid photos, film posters and comic book art, knows firsthand that not having a plan can mean a lot of responsibility for survivors. Her brother, Paul Edgar Curtis, died last year, and her family spent months dealing with his comic books and other mementos.
Persons: I’d, ’ ”, Greg Rohan, , Maggie Thompson, , Ms, Thompson, Paul Edgar Curtis Organizations: Heritage
Its losing streak could carry on with the Fed taking a "data-dependent approach" to interest rates. Chair Jerome Powell said the central bank would start taking a "data-dependent approach" to rate hikes, with inflation cooling rapidly and the jobs market holding firm. When interest rates stop rising, the dollar becomes less attractive to foreign investors seeking higher yields, meaning the currency is likely to weaken against its rivals. The key number for currency traders to watch going forward will now be the monthly inflationary print, analysts said. If that cooling carries on, the dollar will likely keep sliding – but any flare-up could encourage the Fed to bring in further rate hikes, which could offer some support to the currency.
Persons: that's, Jerome Powell, John Hardy Organizations: Fed, Service, greenback, Federal Locations: Wall, Silicon
Sam Altman's Worldcoin verifies that people are humans using eyeball-scanning orbs. We headed to a shared working space in London to check out the dystopian-sounding tech. If you want to be part of Sam Altman's new crypto project, you'll have to let a shiny silver sphere scan your eyeballs. InsiderWorldcoin was scanning people's eyes out of a shared working space, which gave the dystopian-sounding enterprise a surprisingly low-key feel. We headed to a shared working space in London to check out the dystopian-sounding tech.
Persons: Sam Altman's Worldcoin, Sam Altman's, Altman, Christian Meloni, He's Organizations: Universal Locations: London
Federal Reserve Chair Jerome Powell was asked about "Barbie" and Taylor Swift Wednesday. Powell's comments came after the central bank raised interest rates by another 25 basis points. Economists have pointed to demand for both "Barbie" and Swift tickets as signs that Americans are willing to spend, which could boost growth. Meanwhile, the Fed itself highlighted the Eras Tour boosting hotel revenues in Philadelphia in the latest edition of its monthly economic review, the Beige Book. As much as 99% of traders had expected the 25-basis-point interest-rate hike that the central bank brought in, according to Bloomberg data.
Persons: Jerome Powell, Taylor Swift, Taylor, Jeanna Smialek, Powell, Barbie, Greta Gerwig's, Oppenheimer, Swift Organizations: Service, The New York Times, Bloomberg, Dow Jones Locations: Wall, Silicon, Philadelphia
Hollywood writers and actors have been on strike for over a week. Economists are warning that the shutdown could cost the US billions of dollars. The previous writers' strike in 2007 wiped $2 billion off Los Angeles' economy alone. Major films alone contribute around $250,000 to the US economy each day of production, according to data from the Motion Picture Association. New seasons of "The Last of Us", "Euphoria", and "The White Lotus" have already been delayed as a result of the strikes.
Persons: Milken, Kevin Klowden, It's, Ted Lasso, Jason Sudeikis, Oscar, Susan Sarandon, Olivia Wilde Organizations: Service, Milken Institute's, Yahoo Finance, Motion, Association, The, Guild of America, SAG Locations: Angeles, Wall, Silicon, Los Angeles, California, LA, New York, Albuquerque, Atlanta, Pittsburgh
The Politburo acknowledged a stimulus package would be needed to deal with "new difficulties and challenges". Beijing's top decision-making body the Politburo said late Monday that it would launch its stimulus package "with precision and force" to boost demand, according to Xinhua. The country's economy has also been plagued by a property-market crisis ever since embattled developer Evergrande missed its scheduled debt repayments in 2021. The Politburo had been expected to conclude its July meeting later this week, so Monday's hints of a stimulus package surprised markets. "Though few concrete details were revealed and the language falls short of bazooka-style stimulus measures, we think the tone taken is positive," he added.
Persons: Xi Jinping, Evergrande, Mark Haefele Organizations: Service, Xinhua, CSI, UBS Global Wealth Management Locations: Wall, Silicon, Shanghai, Beijing
China's top decision-making body, the Politburo, is set to meet to discuss the economy Friday. The country's growth has stagnated in recent months, while youth unemployment has soared. The Politburo, which is Beijing's top decision-making body, is set to meet at the end of what could be a make-or-break week for markets. That's become a crucial concern for China in recent weeks, with growth stagnating, youth unemployment soaring, and the country teetering on the brink of deflation. Chinese stocks have struggled in 2023 amid signs the country's economy is faltering after nearly three years of harsh zero-COVID lockdowns.
Persons: That's, Evergrande, Xi Jinping, Mark Haefele, we've Organizations: Service, UBS Global Wealth Management, CSI Locations: Beijing, Wall, Silicon, mull, China, Shanghai
President Joe Biden will create a team tasked with preventing future debt-ceiling standoffs. Biden and Kevin McCarthy reached an 11th-hour deal to prevent a catastrophic default in late May. The White House said it wants to stop politicians “holding hostage the full faith and credit” of the US. The group is largely made up of Biden administration officials including Treasury Secretary Janet Yellen and Attorney General Merrick Garland, the publication reported. The government currently has a self-imposed borrowing limit, which Biden suspended until January 2025 when he signed the Fiscal Responsibility Act of 2023 back in June.
Persons: Joe Biden, Biden, Kevin McCarthy, Janet Yellen, General Merrick Garland Organizations: Service, White, Bloomberg, Progressive, Democrats Locations: Wall, Silicon, United States
On Monday, Russia pulled out of an agreement that allowed Ukraine to export grain. It then started bombing Ukrainian ports and threatened to attack ships. Putin's latest economic assault on the West has sent wheat prices soaring and sparked fears of a global food crisis. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. When international grain prices rise, it becomes more expensive for poorer countries to import those commodities – so Russia's withdrawal from the UN's initiative has fueled policymakers' fears that there could be a worldwide food crisis.
Persons: Vladimir Putin's, António Guterres, Josep Borrell, Hargreaves, Sophie Lund, Yates, Jamie Dimon, Putin Organizations: Service, Initiative, United Nations, UN, JPMorgan, NATO Locations: Russia, Ukraine, Wall, Silicon, Moscow, Europe, European
US singer Tony Bennett (Anthony Dominick Benedetto) performs on stage during an invitation only concert at the newly opened Encore Boston Harbor Casino in Everett, Massachusetts on August 8, 2019. "No country has given the world such great music," Bennett said in a 2015 interview with Downbeat Magazine. The evening's performance resulted in the album, "Tony Bennett: MTV Unplugged," which won two Grammys, including album of the year. Bennett would win Grammys for his tributes to female vocalists ("Here's to the Ladies"), Billie Holiday ("Tony Bennett on Holiday"), and Duke Ellington ("Bennett Sings Ellington — Hot & Cool"). He also won two Emmy Awards — for "Tony Bennett Live By Request: A Valentine Special" (1996) and "Tony Bennett: An American Classic" (2007).
Persons: Tony Bennett, Anthony Dominick Benedetto, Bennett, Antonia Benedetto, Frank Sinatra, Lady Gaga, Sylvia Weiner, Bennett didn't, Cole Porter, Irving Berlin, Jerome Kern, Sinatra, Sinatra's, Cheek, Gaga, Carrie Underwood, Amy Winehouse, Winehouse, Oscar, Amy, Porter, George Gershwin, George Cory, Douglass Cross, Ralph Sharon, Ralph, Danny, David Letterman, Fred Astaire, Elvis Costello, Billie Holiday, Duke Ellington, — Bennett, Louis Armstrong, Barbra Streisand, Paul McCartney, Stevie Wonder, Long, Susan Crow Benedetto, Anthony, Anna, James Infirmary, Bel, Miriam Spier, you'll, it's Bing Crosby, Art Tatum, Lester Young, Stan Getz, Joe Bari, Rosemary Clooney, Arthur Godfrey's, Pearl Bailey, Bob Hope, Mitch Miller, Hank Williams, Miller, Chuck Wayne, Chico Hamilton, Art Blakey, Count Basie, Harry Belafonte's, Martin Luther King Jr, Selma, Bennett's, Johnny Mandel's Oscar, Clive Davis, Tony, Bill Evans, Patricia Beech, Sandra Grant, Susan, Johanna, Antonia, Dae, , Benedetto — Organizations: Associated Press, American, MTV, Ellington, New, Frank Sinatra School of, Arts, Armed Forces Network, Armed Forces Radio, American Theater, Arthur Godfrey's Talent Scouts, Greenwich Village, Paramount Theater, Sinatra, Columbia Records, Count Basie Orchestra, Army, Civil Rights Movement, Carnegie Hall, Columbia, IRS, Kennedy, National Endowment, Arts Jazz, Smithsonian Museum of American Locations: Everett , Massachusetts, Francisco, New York, San Francisco, Little Rock , Arkansas, Astoria, New York City, Queens, Italian, Germany, Greenwich, Montgomery, Los Angeles
Despite the jump there could be tough times ahead for the streaming pioneer. The streamer added just under 6 million subscribers in the second quarter, it said in an earnings report Wednesday. It's no surprise Netflix is focusing on that increase, but there's the very real prospect of tougher times ahead for Netflix. Hollywood strikes, which have seen both actors and writers take to the picket lines, also means more uncertainty for Netflix. Wednesday's results showed revenue rising by a paltry 2.7% in the second quarter, falling short of Wall Street's expectations.
Persons: Emily Organizations: Netflix, Disney, Comcast, Paramount, Warner Brothers Discovery, Apple, YouTube Locations: Paris
Tesla 's plan to share its full self-driving capabilities with original equipment manufacturers has Wall Street analysts talking. TSLA 1D mountain Tesla shares fall after second-quarter earnings The comments from Musk came after Tesla topped second-quarter earnings expectations but showed margin weakness due to recent price cuts. Despite these near-term margin concerns , Morgan Stanley's Adam Jonas highlighted the FSD commentary as his biggest takeaway from the call. He did, however, stress some logistical concerns, including whether Tesla would need "greater involvement" in full software system of its peers. "A potential licensing of FSD would represent an important change of scope in how investors measure the TAM for Tesla."
Persons: Tesla, Elon Musk, we're, Musk, Morgan Stanley's Adam Jonas, Jonas, Goldman Sachs, Mark Delaney, Evercore ISI's Chris McNally, Canaccord, George Gianarikas, — CNBC's Michael Bloom Organizations: Wall, TAM, Tesla
Silicon Valley and Wall Street stars are indulging Robert F. Kennedy Jr.'s presidential campaign. RFK Jr. has said that vaccines cause autism – and the White House recently blasted him for sharing anti-Semitic conspiracy theories. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. This isn't the first time parts of Wall Street and Silicon Valley have backed an anti-establishment firebrand. In both 2016 and 2020, big names like venture capitalist Peter Thiel and Blackstone CEO Stephen Schwarzman backed Republican candidate Donald Trump.
Persons: Robert F, Kennedy Jr, Jack Dorsey, SPAC, Chamath Palihapitiya, Bill Ackman, Kennedy, Jr, Twitter's, who's, Bill Ackman – who's, Jamie Dimon, , Ken Fisher, Mark Gorton, Chamath, David Sacks, Palihapitiya, Ackman, he'd, Peter Thiel, Stephen Schwarzman, Donald Trump Organizations: Twitter, RFK, White House, Service, CIA, Democratic, Pershing Square Capital Management, Fisher Investments, Research, CNBC, vax, Children's Health Defense, PayPal, Blackstone, Republican Locations: Silicon, Wall, Silicon Valley
BlackRock named Aramco CEO Amin Nasser to its board Monday. Nasser leads the world's largest oil producer, which is mainly owned by the Saudi Arabian state. Its decision to name Aramco CEO Amin Nasser to its board Monday provides further ammunition for those critics, signaling that the firm might not be as socially conscious as it says it is. That is the wrong player here, unless [BlackRock CEO] Larry Fink really wants to blur their image on the ESG front," Jeffrey Sonnenfeld, the Yale professor and management expert, said on CNBC Tuesday. Amin H. Nasser, president and chief executive officer of Saudi Arabian Oil Company (Saudi Aramco), speaks at the China Development Forum in Beijing, China, March 19, 2017.
Persons: Amin Nasser, Nasser, Larry Fink's, it's, Larry Fink, Jeffrey Sonnenfeld, Biden, Jamal Khashoggi, He'll, that's, Amin H, Shu Zhang, Reuters Fink, BlackRock's, It's, Fink, he'd Organizations: BlackRock, Aramco, Yale, CNBC, Washington Post, Saudi Arabian Oil Company, China Development Forum, Reuters, McKinsey, Republican Locations: Saudi Arabian, Saudi Arabia, Saudi, Saudi Aramco, Beijing, China, Massachusetts
Big banks have released their earnings over the past few days – and it's clear that Wall Street had a good quarter. Back in March, Silicon Valley Bank collapsed after massive losses in its bond portfolio caused customers like Peter Thiel's Founders Fund to pull their deposits from the lender. That deal was one reason why JPMorgan posted record profits in the second quarter, analysts said. JPMorgan made almost $22 billion in net interest income in the second quarter, up 44% from the previous year. Bank of America, Citi, and Wells Fargo also all logged higher net interest income, thanks to the Fed's aggressive tightening campaign.
Persons: Morgan Stanley, Wells Fargo, Goldman Sachs, Peter Thiel's, Jamie Dimon, Wall Organizations: First Republic, Bank of America, Citi, Fund, First, Western Alliance, JPMorgan, Federal Deposit Insurance Corporation, Government, Federal Locations: Silicon Valley, First Republic
China is signaling to the rest of the world that it's open for business again. Both Elon Musk and Janet Yellen have made trips to Beijing recently. But less money is flowing into the country – with foreign investors likely alienated by Xi Jinping's authoritarianism. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Spooked investors responded by dumping Chinese stocks in a $6 trillion blowout, while the onshore Chinese yuan dropped against the US dollar.
Persons: Elon Musk, Janet Yellen, Xi, Li Qiang, John Kerry, Mark Mobius, he'd Organizations: Service, Privacy, China, Tesla, Communist Party, Bain, Co, Big Tech Locations: China, Beijing, Wall, Silicon, Tianjin, Shanghai, West
It's official: China's economy is faltering
  + stars: | 2023-07-17 | by ( George Glover | ) www.businessinsider.com   time to read: +3 min
Its economy grew 6.3% over the second quarter, falling short of forecasters' expectations. Retail sales growth slowed to 3.1% in June, down from 12.7% the previous month. Beijing finally lifted its harsh zero-COVID restrictions at the end of 2022, sparking hopes of a rapid recovery for the world's second-largest economy. "The pandemic hangover is plaguing China's recovery, Moody's Analytics economist Harry Murphy Cruise said in a research note. China's ruling Politburo is set to meet later this month, and economists expect it to discuss potentially bringing in a stimulus package to boost the country's sputtering growth.
Persons: China's, China –, Harry Murphy Cruise, Mark Haefele Organizations: Service, Privacy, China, Beijing, National Bureau of Statistics, Reuters, CSI, Shanghai, People's Bank of Locations: China, Wall, Silicon, Beijing, People's Bank of China
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