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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
The US isn't going to suffer a recession, Janet Yellen said Monday. "Growth has slowed, but our labor market continues to be quite strong," she told Bloomberg. But China’s economic slowdown does pose risks, the Treasury Secretary warned. But the Treasury Secretary did warn of one potential threat to both global and US growth: China. "Many countries do depend on strong Chinese growth to promote growth in their own economies, particularly countries in Asia," Yellen said.
Persons: Janet Yellen, Yellen, Joe Biden Organizations: Bloomberg, Service, Federal Reserve, Unemployment, , Apple, Nike Locations: Wall, Silicon, India, Maryland, China, Asia, United States
YOUR MONEY How to get high rates to work for you
  + stars: | 2023-07-17 | by ( Chris Taylor | ) www.reuters.com   time to read: +4 min
July 17 (Reuters) - There is no doubt that higher interest rates are hard on a many people – especially if you are taking out a loan on a home or a car, or are struggling to catch up with credit-card debt. But for some, steep interest rates are not actually bad news. In fact, 38% of people say they have benefited from higher interest rates during the past year, according to a new survey from Allianz Life Insurance. “That’s the dichotomy: Higher interest rates are both crushing some people and benefiting others at the same time,” says Kelly LaVigne, vice president of Consumer Insights for Allianz Life. That means if you have some savings set aside, it is time to think about how to flip this negative of higher interest rates into a positive.
Persons: , , Kelly LaVigne, Amy Arnott, Morningstar, Arnott, Rowe, Baird, Jeremy Keil, Keil, George Gagliardi, Lauren Young, Aurora Ellis Organizations: Allianz Life Insurance, Consumer, Allianz Life, U.S . Federal Reserve, Morningstar, FDIC, Bills, CIT Bank, BMO Alto, Citizens, Financial, Thomson Locations: New Berlin , Wisconsin, Toronto, Lexington , Massachusetts
The deadliest Marine sniper by number of confirmed kills is Chuck Mawhinney. The Vietnam War was a brutal conflict that left many of the service members who survived it with invisible scars. In Vietnam, Mawhinney "figured he'd never make it home alive," according to "The Sniper," a new book by Jim Lindsay written with input from the marksman. "Chuck" Mawhinney poses with a replica of the M40 sniper rifle he used during the Vietnam War. Another author of a series of books on snipers, Peter Senich, was able to use his connections with the Marine Corps archives to access Mawhinney's kill sheets showing 103 confirmed kills, officially making him the deadliest Marine sniper.
Persons: Chuck Mawhinney, wasn't, Charles, Chuck, Mawhinney, Jim Lindsay, wouldn't, George Gill, Gill, Charles B, Garrett White, Joseph Ward, Ward, who'd, Carlos Hathcock, Norm Chandler, Peter Senich, Jayson Jacoby, Lindsay, he'd Organizations: Service, US Marine Corps, Marine Corps, Forest Service, Marine, Baker City Herald, Associated Press Locations: Vietnam, Wall, Silicon, Oregon, Baker City
The Biden administration will forgive $39 billion of student debt for about 800,000 borrowers. Only those who've made repayments in an income-driven plan for either 20 or 25 years are eligible. That means the policy probably isn't much help to anybody younger than 40. The Education Department said it will start notifying borrowers who are eligible to have their debt repayments forgiven over the next few weeks. The Biden administration's latest move comes two weeks after the Supreme Court struck down its broader plan to cancel up to $20,000 worth of student debt for federal borrowers.
Persons: Biden, Joe Biden's Organizations: Service, Education Department Locations: Wall, Silicon
Some economists think the central bank could wreck the job market if it sticks to that target. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Some economists fear that to lop a final percentage point off the inflation rate, the Fed will end up wrecking the jobs market. In 2023, that's not yet happened – with jobs numbers rising over the past six months and unemployment holding steady at under 4%, even though inflation has rapidly cooled. If Americans start losing their jobs, expect a lot more questioning of the hallowed 2% target.
Persons: Ben Bernanke's, it's, that's, BlackRock, Rick Rieder, Bloomberg's Organizations: Federal Reserve, Service, Fed Locations: Wall, Silicon
Marc Andreessen told billionaires to homeschool their children at the Sun Valley conference. Legendary venture capital investor Marc Andreessen has used this week's Sun Valley conference to espouse the benefits of homeschooling. Musk and Zuckerberg have been been trading barbs online since Musk summoned Zuckerberg to a cage fight last month. Meanwhile, it's not the first time that Andreessen has called for more homeschooling. "It certainly feels like we're on the front end of a pretty dramatic homeschooling boom," Andreessen said.
Persons: Marc Andreessen, “ We’re, Puck's Dylan Byers, Peter Thiel, Andreessen, Elon Musk, Mark Zuckerberg, Byers, Musk, Zuckerberg, it's, Colossus, Andreessen Horowitz, Ben Horowitz Organizations: Sun, Morning
Artificial intelligence could become the next battleground for Elon Musk and Mark Zuckerberg. Artificial intelligence could become the next battleground in the ongoing feud between Tesla CEO Elon Musk and Meta Platforms boss Mark Zuckerberg. The two billionaires – who've been trading barbs online since Musk summoned Zuckerberg to a cage fight last month – are working to challenge the dominance of ChatGPT owner OpenAI. Zuckerberg responded by telling Musk to "send [him his] location", setting the stage for a physical confrontation. Insider tech reporter (and resident combat sports expert) Hasan Chowdhury believes that Zuckerberg would have the edge in that one.
Persons: Elon Musk, Mark Zuckerberg, – who've, Musk, Zuckerberg, OpenAI, it's, It's, Sam Altman's, Hasan Chowdhury Organizations: Meta, Financial Times, Microsoft, Nvidia Locations: DeepMind
Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Beijing finally curtailed three years of harsh zero-COVID lockdowns late last year, but its economy has subsequently run into significant turbulence that's sparking alarm across the world. In July 2022, the government was still taking a zero-tolerance approach to COVID-19, limiting the country's economic output. Foreign direct investment in China has also dried up, with spending from outside China dropping by $20 billion, or a sixth, year-on-year, per data from the Wall Street Journal. It's a growing list of concerns that makes grim reading for Beijing, whose dreams of a smooth revival have quickly turned nightmarish.
Persons: lockdowns, they'll Organizations: Service, country's, Wall Street, Beijing Locations: Wall, Silicon, Beijing, China
The latest Consumer Price Index report showed inflation cooling to just 3% in June. But there could be other types of economic pain ahead, with the jobs market slowing and some forecasters warning of a recession. But there could be other types of economic pain ahead. There are also other factors totally out of the Fed's control that could cause economic pain. In other words, while it's a welcome relief that inflation is falling, the US economy is nowhere near out of the woods just yet.
Persons: – who've Organizations: Federal Reserve, Service, Fed, Philadelphia Fed Locations: Wall, Silicon, Russia, OPEC
They could also be the struggling theater industry's last chance to make money this summer. Struggling movie theaters might see "Barbie" and "Oppenheimer" – which both come out July 21 – as their last chance to make money this summer. Forecasters think "Barbie" will be the highest-grossing film in the US this summer with earnings between $215 million and $319 million, the data shows. Sandwiching the two movies on Box Office Pro's leaderboard is Tom Cruise's latest "Mission Impossible" flick. AMC has lost money for 15 consecutive quarters, while Cineworld – which owns Regal Cinemas – filed for Chapter 11 bankruptcy last year.
Persons: Greta Gerwig's, Christopher Nolan's, Oppenheimer, Tom Cruise's, Meg, Mario, Indiana Jones Organizations: AMC, Alamo, Mario Bros
AI could transform business like the internet – or end up in the tech graveyard like the Metaverse. Companies will have a chance to show that their increased spending on AI tech helped them make more money, over the quarter in which ChatGPT fully established itself in the public consciousness. Zealots have used early success stories like Nvidia, Tesla, and other mega-cap names to argue that AI is like a new version of the internet – technology that outlasts a period of initial hype, and then transforms the way that business is done forever. But for every dot-com boom there's so-called "disruptive tech" like crypto or the Metaverse – fads that end up losing companies money, rather than boosting their profits. In other words, soon companies will have to show that AI can raise their profits like the internet did – or else it'll be consigned to the tech graveyard like the Metaverse was.
Persons: Jensen, Jordan Stuart, Federated Hermes Organizations: Morning, America, Semiconductor, Nvidia, Tesla, Federated Locations: ChatGPT
China is teetering on the brink of deflation – where prices fall, rather than rise. Essentially, it's the opposite of what's happening in the US – and that could be a huge red flag for the global economy. Deflation "is a very bad sign macroeconomically," economist Richard Koo said in a recent episode of Bloomberg's "Odd Lots" podcast. "Individually, [people trying to save money] might be doing the right things, but collectively, they may be killing the economy." But if those policies don't work, there could be pain ahead for the global economy.
Persons: it's, Richard Koo Organizations: Service, US Federal Reserve, Gross, Apple, Nike Locations: China, Wall, Silicon, Beijing, Japan
AI could transform business the way the internet did – or be consigned to the tech graveyard like the Metaverse was. Companies will have a chance to show that their increased spending on AI tech helped them make more money, over the quarter in which ChatGPT fully established itself in the public consciousness. But for every dot-com boom there's so-called "disruptive tech" like crypto or the Metaverse – fads that end up losing companies money, rather than boosting their profits. "But finding companies that can actually make money using this technology is going to be really difficult." In other words, soon companies will have to show that AI can raise their profits like the internet did – or else it'll be consigned to the tech graveyard like the Metaverse was.
Persons: Jensen, Jordan Stuart, Federated Hermes Organizations: Morning, America, Semiconductor, Nvidia, Tesla, Federated Locations: ChatGPT
Amazon is offering its deepest discounts in years this Prime Day. Inflation and high interest rates have made nearly everyone in the US poorer over the past year. From basic necessities to high-end tech, the online retailer is offering its steepest discounts in years, research by CFRA shows. (Although not Jeff Bezos, who's seen his personal fortune balloon by $44 billion over the past year thanks to Amazon's soaring share price). If all that economic doom and gloom wasn't too off-putting, check out our list of the best 2023 Prime Day deals.
Persons: It's, Jeff Bezos, who's Organizations: Service, Federal, Bank of America, Amazon, Sony, Bikes Locations: Wall, Silicon
CNN —A collection of first-edition books and jazz memorabilia belonging to the late Rolling Stones drummer Charlie Watts will go up for auction in September. Leading the auction will be a signed first-edition copy of F. Scott Fitzgerald's "The Great Gatsby." “Charlie built his collection of modern literature and jazz with passion, intelligence and dedication, and this two-part auction celebrates his distinguished collecting taste,” they added. Christie's Images Limited 2023The collection also includes objects that once belonged to jazz legends, including Watts’ favorite saxophonist, the late Charlie Parker, according to the release. Christie's Images Limited 2023Highlights from the collection will go on display in Los Angeles between July 25 and 29 and New York between September 5 and 8.
Persons: Charlie Watts, Scott Fitzgerald, Scott Fitzgerald's, Benedict Winter, Mark Wiltshire, “ Charlie, George Orwell, Agatha Christie, James Joyce, Fitzgerald, Watts, Charlie Parker, Parker, Irving Berlin, George Gershwin’s, “ Porgy, Bess, , Charlie, Dave Green Organizations: CNN Locations: London, American, British, Los Angeles, New York
Wall Street hasn't been so divided for two decades, according to Bloomberg. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Similarly, the Federal Reserve's own forecasters say it's a 50-50 call whether the US will manage to escape a severe economic slump. And you can add Wall Street to the list of places where there's limited agreement on if there'll be a recession before the end of this year. The range of views on Wall Street is so wide that when it comes to stocks, analysts haven't been so divided for 20 years, according to Bloomberg.
Persons: Joe Biden, Janet Yellen, there'll, Goldman Sachs, there's, Morgan Stanley's, Mike Wilson, haven't Organizations: Bloomberg, Service, Federal, Bank of America, JPMorgan Locations: Wall, Silicon
BlackRock's CEO talked up bitcoin last week, with the asset manager trying to launch a fund that tracks it. BlackRock is trying to become the first asset manager to launch a fund tracking the price of bitcoin. CEO Larry Fink has backed up his firm's push for the spot ETF by repeating bitcoin bulls' usual talking points, saying last week that the token is akin to "digitizing gold" and could eventually "revolutionize" finance. And the fact that BlackRock filed for its ETF off the back of that rally probably speaks to Wall Street's desire not to miss out on another potential bull run. BlackRock's spot ETF filing, and Fink's conversion from skeptic to potential savior, suggest that Wall Street is determined not to make the same mistake twice.
Persons: Larry Fink, aren't, Fink hasn't, Sam Bankman, bitcoin Organizations: BlackRock, Securities and Exchange Commission, Institutional, SEC
The recession is already here for the rich
  + stars: | 2023-07-10 | by ( George Glover | ) www.businessinsider.com   time to read: +2 min
But some of the country's wealthiest people are already feeling worse off. The Wall Street Journal coined the term "richsession" to describe an economic slump that hits the rich harder. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. There is a different kind of economic slump on the horizon – a so-called "richsession". Wall Street Journal reporter Justin Lahart coined that term at the start of this year to refer to a downturn that disproportionately impacts some of the country's wealthiest people.
Persons: Justin Lahart, Lahart, Elon Musk, Mark Zuckerberg –, Goldman Sachs, it's Organizations: Street Journal, Service, Federal, Philadelphia Fed, Wall Street, of Labor Statistics, Atlanta Fed Locations: Wall, Silicon
Charlie Watts book collection to be offered for sale at auction
  + stars: | 2023-07-10 | by ( ) www.reuters.com   time to read: +2 min
[1/2] Members of the Rolling Stones (L-R) Charlie Watts, Ronnie Wood, Mick Jagger and Keith Richards arrive for the "Exhibitionism" opening night gala at the Saatchi Gallery in London, Britain April 4, 2016. REUTERS/Luke MacGregor/File PhotoLONDON, July 10 (Reuters) - Books and jazz memorabilia belonging to late Rolling Stones drummer Charlie Watts will go under the hammer in a two-part sale in September, auction house Christie's said on Monday. "Charlie Watts: Gentleman, Collector, Rolling Stone – Literature and Jazz" will feature more than 500 lots, with price estimates ranging from 800 pounds to 300,000 pounds ($1,023 - $383,730). Also on sale are rare editions of books by George Orwell, James Joyce, Arthur Conan Doyle and Agatha Christie. The flagship auction will take place in London on Sept. 28, while an online sale will run from Sept. 15-29, Christie's said.
Persons: Charlie Watts, Ronnie Wood, Mick Jagger, Keith Richards, Luke MacGregor, Christie's, Scott Fitzgerald, Harold Goldman, George Orwell, James Joyce, Arthur Conan Doyle, Agatha Christie, Watts, Charlie Parker's, Porgy, Bess, George Gershwin, “ Charlie, Marie, Louise Gumuchian, Ed Osmond Organizations: Saatchi, REUTERS, Thomson Locations: London, Britain
But leaders face a common conundrum: Should they compare members of their team relative to one another or evaluate everyone independently? It can push out otherwise excellent employees who are averse to the dog-eat-dog culture that can grow out of stack ranking systems. It is possible to take this tendency into account when designing a relative ranking system based on objective criteria. Even in isolation, stack ranking systems don't "necessarily kill collaboration, provided you incorporate collaboration into the criteria," he says. "There's this notion that you can have a healthy level of competition and still foster collaboration," Georgiadis says.
Persons: George Georgiadis, Georgiadis, gravitate, there's Organizations: Kellogg School of Management, Service, Kellogg School, GE, Microsoft Locations: Wall, Silicon
A video appears to show dozens of Wagner Group soldiers preparing to leave Africa. The video follows a report by Jeune Afrique that said 500 to 600 mercenaries had left Bangui on Thursday. But Wagner's relationship with the Kremlin has fractured in recent weeks after the group's leader Yevgeny Prigozhin ordered his soldiers to march on Moscow in June. Wagner mercenaries have been accused of committing atrocitiesIn this handout photo taken from video released by Prigozhin Press Service, Yevgeny Prigozhin, the owner of the Wagner Group military company, records his video addresses in Rostov-on-Don, Russia, Saturday, June 24, 2023. Wagner mercenaries have been accused of committing atrocities in CAR, according to reports.
Persons: Wagner, Yevgeny Prigozhin's, Putin, Alia Brahimi, Yevgeny Prigozhin, Prigozhin, Aleksander Lukashenko, Vladimir Putin, Faustin, Fidele Gouandjika Organizations: Wagner Group, Jeune Afrique, Service, Wagner, NBC News, Central African Republic, Council, Foreign Relations, Prigozhin Press Service, Prigozhin Press, Associated Press, Central African, NBC, Sky News, CAR's Department of Defense, Sky Locations: Africa, Wall, Silicon, Moscow, Bangui, CAR, Libya, Mali, Sudan, Belarus, Rostov, Don, Russia, CAR's, Washington
Ukraine has made "tactically significant gains" around the besieged city of Bakhmut, a think tank says. Geolocated footage published Thursday shows that Ukrainian troops made gains in Yahidne, around a mile north of Bakhmut, according to Washington DC-based think tank the Institute of the Study of War (ISW). However, it is unlikely that they have many more reserves to commit to the battle, the UK Ministry of Defense said. Along with the gains around Bakhmut, Ukraine's forces have also continued operations in at least three other sectors of the frontline on Friday, according to ISW. Diego Herrera Carcedo/Anadolu Agency via Getty ImagesIn August 2022, Russia attacked Bakhmut using a combination of Wagner Group mercenaries, Russian soldiers, and pro-Russian separatist forces.
Persons: ISW, Bakhmut, Volodymyr Zelenskyy, Mark Milley, Milley, Diego Herrera Carcedo, Wagner, Yevgeny Prigozhin, Vladimir Putin Organizations: MoD, Service, Washington DC, of, Ukrainian, Staff, UK Ministry of Defense, Anadolu Agency, Getty, Moscow, US Joint Chiefs, CNN, Bakhmut, Wagner Group, Kremlin Locations: Ukraine, Bakhmut, Wall, Silicon, Yahidne, Russia, Chasiv Yar, Donetsk Oblast, Zaporizhia Oblast, Zaporizhia, Donetsk, Russian, Belarus
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