DIRS.INFO The most relevant business & tech news

☆ Americans can't get a break thanks to surging mortgages, food and fuel costs. Here's all the ways consumers are getting screwed.
▼ + stars: | 2023-08-12 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +4 min

Americans can't get a break financially, largely thanks to higher interest rates and "greedflation." The US economy may be in good shape, but Americans are getting squeezed from all sides. On top of that, it's become more expensive to pay back debt in a world of higher interest rates. US mortgage rate are at 23-year highsHigher interest rates influence mortgage rates. Mortgage rates tend to fluctuate with 10-year Treasury yields, given lenders typically tie rates to the yield of the 10-year bond.

Persons: it's, Freddie Mac, Fitch, Larry McDonald, Paul Krugman, That's Organizations: Morning, Federal Reserve, U.S, AAA, Brent, West Texas Intermediate Locations: Ukraine, Saudi Arabia, Russia

☆ Packing your kid's lunch will be more expensive this year. The price of bread alone has gone up 30% since 2020.
▼ + stars: | 2023-08-10 | by ( Dominick Reuter | Alex Bitter | ) www.businessinsider.com time to read: +3 min

Inflation is cooling, but food prices remain stubbornly high, led by typical school lunch supplies. Groceries like bread, ham, lettuce, condiments, apples, and juice cost up to 15% more than last year. The lunchbox price increases are even more striking when compared against 2020: Bread prices alone have risen nearly 30%. That has sent wheat prices higher, which in turn raises prices that consumers pay, economist Paul Krugman noted. At the same time, many reported increased profits, a sign that the higher prices weren't always about offsetting higher costs for inputs like ingredients and labor.

Persons: Paul Krugman, Nestle Organizations: Service, US Bureau of Labor Statistics Locations: Wall, Silicon, Ukraine

☆ Top economist Paul Krugman says food inflation has mostly been caused by Russia
▼ + stars: | 2023-08-09 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Food inflation has mostly been brought on by Russia, top economist Paul Krugman said. The Nobel laureate pointed to accelerating food prices over the past year, with the Food and Agriculture Organization's Food Price Index rising to 123.9 in July. But the primary driver of "foodflation" exists outside of the US -- and lies largely in the hands of Russia, Krugman argues. Russia's invasion of Ukraine also spiked fertilizer prices, as the nation is one of the world's largest exporter of fertilizer. Still, Russia's impact is still "at the top of the list" for culprits driving food inflation.

Persons: Paul Krugman, Vladimir Putin, Krugman, Biden, That's, Putin Organizations: Service, Soaring, Food, Agriculture, That's, Observers, Cleveland Fed Locations: Russia, Ukraine, Wall, Silicon, Kazakhstan, Odesa, Europe

☆ 'People give up on recession just as it arrives': Don't count out an economic downturn just yet
▼ + stars: | 2023-07-30 | by ( Matthew Fox | ) www.businessinsider.com time to read: +4 min

Despite solid economic data, some Wall Street strategists are sticking with their gloomy outlook for the economy and stocks. But don't count out a decline just yet: "People give up on recession just as it arrives." Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Société GénéraleEdwards isn't the only bear on Wall Street. And as Edwards highlighted, a decline in profits usually leads to an uptick in layoffs, which could ultimately hurl this economy into a recession.

Persons: Albert Edwards, Greedflation, Edwards, Société Générale Edwards, JPMorgan's Marko Kolanovic, Kolanovic, Morgan Stanley's Mike Wilson, Wilson Organizations: Service, Survey, Loan, Fed Locations: Wall, Silicon

☆ Your snacks are getting more expensive. Blame these big food companies, not inflation.
▼ + stars: | 2023-07-27 | by ( Alex Bitter | ) www.businessinsider.com time to read: +4 min

But major food companies, from Nestlé to Unilever, increased prices much more than that. The world's biggest food companies spent the first half of this year raising prices, according to several earnings reports released this week. Some external factors have impacted the costs that major food companies pay to produce their products. It's especially easy for global food companies to raise prices, given that a few companies own most of the brands in many US grocery stores. But there's some evidence that consumers aren't willing to put up with higher food prices indefinitely.

Persons: PepsiCo's, Ramon Laguarta, We've, James Quincey, Quincey, PepsiCo's Laguarta Organizations: Consumer, Unilever, Service, PepsiCo, Quaker Oats, Gatorade, Federal Reserve, New York Times, Walmart, Costco, Sam's Locations: Nestlé, Wall, Silicon, Ukraine, Clorox, Kingsford, Europe

☆ Here are 3 ways the Fed messed up since 2021 and how it's impacting the economy, according to UBS
▼ + stars: | 2023-07-26 | by ( Matthew Fox | ) www.businessinsider.com time to read: +4 min

The Federal Reserve has made three big mistakes since inflation took off in 2021, according to UBS. "Today's rate hike will probably have to be reversed in a relatively short space of time," UBS said. Today's additional rate hike from the Fed gets to the root of what has went wrong. These are the three big mistakes made by the Fed over the past two years, and how it will impact the economy, according to UBS. "A sensible recognition of the declining quality of economic data would have stopped the blind hike, hike, hike strategy."

Persons: Paul Donovan, Donovan, Jerome Powell, Powell Organizations: Federal, UBS, UBS Global Wealth Management's, Fed Locations: Ukraine

☆ Business Is Betting That Consumers Have Gotten Used to High Prices - The New York Times
▼ + stars: | 2023-07-26 | by ( Peter Coy | ) www.nytimes.com time to read: +1 min

When companies’ input costs go up for some reason, the prices they charge their customers go up like a rocket. The example most of us can relate to is the retail price of gasoline. At least in the feather scenario, retail prices do go down. Rines said he coined the term “price over volume” in June 2022 to describe how companies were fighting higher costs at the time. “If you’re profit-maximizing you’re going to do that and you should do that,” he told me.

Persons: Samuel Rines, Rines, ” Organizations: “ Locations: U.S, Houston

Consumer goods makers say the price hikes are necessary, and that they have taken a hit to margins over the past two years. Some companies such as Clorox (CLX.N) have even begun to ease off the hikes to protect sales volumes as input costs fall. "In the U.S. in particular, these pressures are more acute than in Europe," Janus Henderson portfolio manager Luke Newman told Reuters. U.S. consumer strength has begun weakening, "and that's bad news for the consumer companies," Barclays analyst Iain Simpson said. Still, cost inflation has chipped away at margins, which have broadly fallen 2-4 percentage points over the past two years for the consumer goods industry.

Persons: Janus Henderson, Luke Newman, Newman, Richard Marwood, Robert Klaber, Parnassus, Iain Simpson, Alvarez, Marsal, David Chavern, Stephanie Niven, Niven, Irene Jensen, Jensen, Thomas Joekel, Richa Naidu, Jessica DiNapoli, Matt Scuffham, Deepa Babington Organizations: U.S, Consumer, Reuters, Royal London Asset Management, Investments, Biden, Barclays, Procter, Gamble, Consumer Brands Association, Sustainable Equity Fund, Norges Bank Investment Management, Unilever, Reckitt, Investment, Thomson Locations: Ukraine, U.S, Europe, San Francisco, United States

Former BoE policymaker Kate Barker told the Financial Times this weekend that targetted and temporary tax rises on top earners may be the most effective and fairest way to go. "We're asking monetary policy to do all the work," she said. But the political sensitivity of income tax likely dictates the way forward, however cogent the economics. Yet the more general point of fiscal policy helping with the final throes of the inflation battle continues to be made. "Fiscal Policy should remain aligned with monetary policy in the fight against inflation," the Fund concluded.

Persons: BoE policymaker Kate Barker, President Biden, Mike Dolan, Matthew Lewis Organizations: International Monetary Fund, Bank for International, U.S, Bank of, Financial Times, Fed, U.S . Bureau of Labor Statistics, Britain's, National Statistics, Reuters Graphics Reuters, Reuters, Republicans, Twitter, Thomson Locations: Britain, London

☆ This is 'the end of the beginning' of the battle against inflation, economist says
▼ + stars: | 2023-07-10 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

Drew Angerer | Getty Images News | Getty ImagesCentral banks are at "the end of the beginning" in their battle against inflation, as several factors keep core prices persistently high, according to top Societe Generale economist Kokou Agbo-Bloua. U.S. inflation cooled in May to an annual 4%, its lowest annual rate in more than two years, but core inflation rose by 0.4% month-on-month and 5.3% year-on-year. In assessing the current state of global policymakers' efforts to tame inflation, Agbo-Bloua quoted former British Prime Minister Winston Churchill's remarks in a 1942 speech: "Now this is not the end. It is not even the beginning of the end. He suggested that this has helped to keep the labor market resilient, which will likely extend this lag time.

Persons: Jerome Powell, Drew Angerer, Kokou Agbo, Bloua, Winston Churchill's, we're Organizations: Federal Reserve, Federal, Market, Getty, Societe Generale, British, CNBC Locations: Washington ,, Ukraine, Agbo

☆ As Greedflation Starts to Fade, Wageflation Creeps In
▼ + stars: | 2023-07-06 | by ( Greg Ip | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/as-greedflation-starts-to-fade-wageflation-creeps-in-1adb7b9c

Persons: Dow Jones

American workers are still quitting their jobs, per Bureau of Labor Statistics data. The Bureau of Labor Statistics' newly released monthly Job Openings and Labor Turnover Survey shows that job openings are still high, even though they dropped slightly from April. Plus, the number of workers quitting their jobs actually grew in May, all while layoffs stayed near historic lows. It signals a labor market where workers — especially blue-collar workers — still feel comfortable leaving their jobs, with plenty of opportunities awaiting them, including remote and hybrid options. The sector — which houses, in part, tech workers — was one industry among a handful that saw a dip in its quit rate.

Persons: —, Nick Bunker, it's, Bunker, Joanne Hsu, Hsu, There's Organizations: Labor Statistics, Service, Privacy, Labor, Survey, Bureau of Labor Statistics, University of Michigan, Consumers

☆ It's not just the US: Corporate profits are keeping inflation high in Europe too
▼ + stars: | 2023-07-06 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +4 min

As inflation stays high around the world, some are increasingly blaming high corporate profits. An IMF working paper found that corporate profits account for nearly 45% of European inflation. Inflation is not solely caused by soaring profits, but the working paper finds that profits rising well above pre-pandemic trends have made their mark on European inflation. And Europe might be worse off than the US when it comes to so-called "greedflation," as inflation in the states cools off and profits play increasingly less of a role in keeping costs high. The IMF analysis finds that profits are ultimately playing a larger role in European inflation than in the US and Canada.

Persons: —, hasn't, Niels, Jakob Hansen, Frederik Toscani, Jing Zhou, Noah Sheidlower, Chris Becker Organizations: Service, International Monetary Fund Locations: IMF, Europe, Canada

☆ Take Five: Summer strife
▼ + stars: | 2023-06-30 | by ( ) www.reuters.com time to read: +5 min

1/ TIME FOR SOME NON-FARMInvestors betting on resiliency of the U.S. economy have found solace in the solid labor market. Economists polled by Reuters expect 200,000 new jobs were created in June, a slowdown from recent monthly growth. The jobs report comes after the Federal Reserve skipped raising rates in June after lifting them at 10 straight meetings. No doubt central banks have had some success in quelling inflation with rate rises. Still with the inflation fight far from over, expect companies to now face greater scrutiny from policymakers and consumers alike.

Persons: Lewis Krauskopf, Kevin Buckland, Naomi Rovnick, Amanda Cooper, Karin Strohecker, Jerome Powell, Tuesday's, Wagner, Vladimir Putin's, Dhara Organizations: Reuters, Federal Reserve, CHINA BLUES, Societe Generale, The Reserve Bank of Australia, Aussie, Reuters Graphics Reuters, IMF, Thomson Locations: United States, China, Japan, Lewis, New York, Tokyo, London, U.S, Beijing, Ukraine, Russia

☆ Italy may have dodged a ‘pasta strike’ but food inflation is still high. Here’s why
▼ + stars: | 2023-06-29 | by ( Anna Cooban | ) edition.cnn.com time to read: +8 min

But it shelved the plan, citing “noticeable” falls in pasta prices. Pasta prices dipped in May compared with April, though provisional official data released Wednesday showed that they ticked up again this month. Broader food price inflation, albeit slowing, is still high in Italy and elsewhere. Concerns have grown that retailers and food producers are deliberately keeping prices high to boost profit margins — claims they strenuously deny. That meant they had “locked in higher prices” for longer, he told a gathering of central bankers in Portugal.

Persons: Danni Hewson, AJ Bell, Pasta, Remo Casilli, Andrew Bailey, “, Mintec, Andrew Woods, ”, Jack Allen, Reynolds, That’s, Christine Lagarde, ” Nestlé, ” Lagarde, Jeremy Hunt, —, Cristiano Laurenza, ” — Valentina Di Donato, Hanna Ziady Organizations: London CNN, CNN, ”, Bank of England, Labor, European Union, Capital Economics, European Central Bank, Wednesday, Competition, Markets Authority, Unione Italiana Food Locations: Italian, Italy, United Kingdom, United States, France, Germany, Russia, Ukraine, Cecco's, Fara San Martino, Portugal, Europe, European, “, Sweden

☆ One in seven Britons faced hunger in 2022, says food bank charity
▼ + stars: | 2023-06-28 | by ( James Davey | ) www.reuters.com time to read: +3 min

REUTERS/Peter NichollsSummarySummary Companies 11.3 mln Britons faced hunger in 20223 mln food parcels provided by Trussell Trust in 2022/23 yearIneffective social security system blamedLONDON, June 28 (Reuters) - One in seven people in the United Kingdom faced hunger last year because they did not have enough money, according to a report published on Wednesday by food bank charity the Trussell Trust. Government forecasters estimate UK households are in the midst of the biggest two-year squeeze in living standards since comparable records started in the 1950s. "This consistent upward trajectory exposes that it is weaknesses in the social security system that are driving food bank need, rather than just the pandemic or cost of living crisis," it said. The charity said that 7% of the UK population was supported by charitable food support, including food banks, yet 71% of people facing hunger had not yet accessed any form of charitable food support. Soaring food prices have contributed to the biggest squeeze on living standards in Britain since records began in the 1950s, and prompted questions about who is responsible.

Persons: Jerald, Aryee, Daniel Kennett, Brown, Peter Nicholls, Rishi Sunak's, they've, James Davey, Aurora Ellis Organizations: Volunteers, REUTERS, Trussell Trust, LONDON, Trussell, Department for Work, Soaring, Trade, Thomson Locations: Greenwich, London, Britain, United Kingdom, Scotland

☆ Italians are furious over soaring pasta prices and some are threatening a macaroni strike
▼ + stars: | 2023-06-12 | by ( Associated Press | ) www.businessinsider.com time to read: +7 min

Grocery prices in Europe have been on the rise. Britain — where food inflation has reached 45-year highs — is discussing a similar move. In comparison, U.S. food prices rose 7.7% in April from a year earlier, 8.2% in Japan and 9.1% in Canada. Such controls could actually make food inflation worse by increasing demand from shoppers but discouraging new supply, he said. "The current food price shock does not warrant such intervention," Shearing said.

Persons: —, Furio Truzzi, Borey, Helen Barnard, Anna Sjovorr, hasn't, that's, Neil Shearing, Shearing, SWG pollsters, Carlo Compellini, Marie Antoinette, Roberto Dipiazza Organizations: Service, Shoppers, European Union, Trussell, European Central Bank, U.S . Federal, Capital Economics Locations: Europe, Rome, U.S, Japan, Ukraine, Paris, Britain, Hungary, Croatia, Spain, United Kingdom, London, Canada, Trieste, Italian

☆ Why do businesses keep raising their prices?
▼ + stars: | 2023-06-09 | by ( Samantha Delouya | ) edition.cnn.com time to read: +4 min

Los Angeles CNN —After two years of surging prices, economists still can’t agree on what has caused the world’s worst inflation crisis in decades. The survey of 700 businesses across New York, Atlanta and Cleveland found that strength of customer demand outranked all other factors that companies weigh when setting prices, including steady profit margins and overall inflation. More than 82% of businesses surveyed said demand factored into their pricing decisions, while only 52% of businesses said they take the overall rate of inflation into account when setting prices. Are customers too willing to pay higher prices? Murphy said the restaurant has since raised prices more than once to keep up with inflation.

Persons: “, John Zheng, ”, Zheng, Mr, Mac’s, Mark Murphy, Murphy, ” Murphy, Emily Netti, “ I’ve Organizations: Los Angeles CNN —, New York Federal Reserve, Wharton School, University of Pennsylvania, CNN, Colgate, Procter, Gamble, PepsiCo, Federal Reserve, New York Fed Locations: Ukraine, New, New York, Atlanta, Cleveland, Manchester , New Hampshire, Syracuse , New York, Syracuse

☆ High inflation fails to boost most UK companies' profits
▼ + stars: | 2023-05-30 | by ( David Milliken | ) www.reuters.com time to read: +2 min

LONDON, May 30 (Reuters) - Britain's highest inflation in four decades failed to boost company profits last year, with the exception of oil and gas extractors who benefited from a surge in energy prices, official figures showed on Tuesday. Subsequently, rises in food prices and wages have added to inflation pressures. Margins fell sharply to 12.7% in the final quarter of 2022, however, as oil and gas prices dropped. "Net operating surplus in UK continental shelf companies is strongly related to oil and gas prices," the ONS said. Britain's government has levied a 25% windfall tax on energy profits since May 2022, which it forecast in March would raise 25.9 billion pounds ($32.7 billion) between 2022 and 2028.

☆ ‘Greedflation’ loosens its grip on food retailers
▼ + stars: | 2023-05-24 | by ( Aimee Donnellan | ) www.reuters.com time to read: +4 min

Big food manufacturers like Kraft Heinz (KHC.O) and Unilever (ULVR.L) are ratcheting down the price rises they have been inflicting onto supermarket chains. If food retailers can convince cash-strapped customers to skimp less and pay more, their profit margins will finally start growing. Last week, the country’s food retailers opened negotiations on prices with manufacturers like Coca-Cola (KO.N) and Unilever as food inflation surged to over 15% in March. Food manufacturers can certainly do more. Meanwhile, food inflation remained high at 19.1% in April versus 19.2% in March.

☆ 'Recession is a done deal': A renowned market bear who called the dot-com bubble warns a deep and long downturn will destroy corporate profit margins — setting stocks up for disaster
▼ + stars: | 2023-05-06 | by ( William Edwards | ) www.businessinsider.com time to read: +7 min

But as data continues to come out in the months ahead, Edwards says to pay attention to details beneath the headline numbers. Sure enough, revisions to February and March numbers reported on Friday paint a picture of a weakening labor market. "I think the recession will lead to a collapse in margins and profits and do a lot of damage." In terms of his view on the labor market, Edwards has company in Ian Shepherdson, the chief economist at Pantheon Macroeconomics. But bulls do remain, and they're betting on a scenario where inflation continues to come down — it hit 5% in March, down from its 9.1% peak last year — and the labor market remains intact.

☆ Consumers are finally pushing back against 'greedflation' and rejecting pricey charcoal
▼ + stars: | 2023-05-05 | by ( Alex Bitter | ) www.businessinsider.com time to read: +2 min

Clorox's Kingsford raised prices on charcoal early this year as it prepared for grilling season. Most consumers are wary of "greedflation," or when companies raise prices to pad their profit. That included price hikes on Kingsford, Clorox's charcoal brand, CFO Kevin Jacobsen told Reuters. According to Reuters, eight pounds of Kingsford Original Charcoal briquettes, for instance, cost $7.92 on Walmart's website this week. As a result, Kingsford lost market share to competitors, Jacobsen told Reuters.

☆ Why Prices, Inflation Are Still Soaring: Corporate Price Gouging
▼ + stars: | 2023-05-02 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +16 min

While many of the problems that helped trigger the upward spiral have abated, prices are still high and getting higher. The idea that companies are taking advantage of disruptions to push price increases on consumers has many names — greedflation, excuseflation, price gouging, corporate profiteering — but the gist is the same. Supply-chain issues and other disruptions made sense as drivers of higher prices, Chris Becker, a senior economist and the associate director of policy and research at the Groundwork Collaborative, told me. "Working people are suffering thanks to corporate greed, so we need to enact tougher rules to ensure corporations pay a price when they price gouge." Working people are suffering thanks to corporate greed, so we need to enact tougher rules to ensure corporations pay a price when they price gouge.

☆ Pre-market stocks: Chobani CEO says he won't be captive to profit-margin demands
▼ + stars: | 2023-05-01 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Chobani was slated to go public in 2022 but withdrew its filing as market conditions deteriorated. In a discussion with CNN, Ulukaya said the company still has plans to go public when market conditions stabilize. Single-serve Chobani® products, including Chobani® Flip®, Probiotic, Complete, Less Sugar, Chobani® with Zero Sugar and Greek Yogurt are seen on the shelf at a local grocery store on August 12, 2021 in New York City. But we are OK to be in the public market. I think people understand what Chobani is all about and they understand that this is tomorrow’s brand and tomorrow’s company.

☆ Consumers are wising up to 'greedflation' as food companies keep prices high
▼ + stars: | 2023-04-28 | by ( Alex Bitter | ) www.businessinsider.com time to read: +4 min

Most consumers think food brands are using inflation "as an excuse to hike prices," a survey says. PepsiCo, Nestlé, Conagra, and other food companies say they are trying to cover their costs. While costs of raw materials, labor, and shipping have continued to be high, many food companies have reported leaps in profit at the same time. Many have noticed that food companies' profits have been increasing, too, a sign to them that some of the higher prices are about something other than covering production costs. Recent earnings from food companies suggest that many have raised prices higher than inflation.

Search resuls for: "Greedflation"

25 mentions found