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☆ Apple, Microsoft, Tesla, and Meta see a combined $625 billion wipeout in market value amid August's stock slump
▼ + stars: | 2023-08-26 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

Four Big Tech companies - Apple, Microsoft, Tesla, and Meta - lost a combined $625 billion in market value this month. Apple, Microsoft, Tesla, and Meta have seen a combined $625 billion slump in market value so far this month, Insider calculations show. Apple has led the market-cap declines with a $314 billion slump, followed by Tesla with a $117 billion drop, Microsoft with $114 billion and Meta, $80 billion. AdvertisementAdvertisementOther factors have also weighed on Big Tech stocks in recent months. While Microsoft, Tesla, Apple, and Meta all saw their market capitalizations take a hit, one tech company has notably defied the trend — Nvidia.

Persons: Tesla, Insider's Phil Rosen Organizations: Big Tech, Apple, Microsoft, Meta, Service, Federal Reserve, Nvidia Locations: Wall, Silicon, America

☆ Another Trump presidency will spark a constitutional and economic crisis, warns billionaire investor George Soros
▼ + stars: | 2023-08-25 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

George Soros expects a economic crisis if Donald Trump regains the White House. He told Project Syndicate the US would face both a constitutional, and economic, crisis. The Soros Fund Management founder made his remarks in a Project Syndicate article as the 2024 election cycle gets underway and Trump faces a host of legal battles. AdvertisementAdvertisementThat's not stopped Trump from seeking the Republican nomination for a third time – something that's not sitting well with Soros. But if I am wrong, the US will face a constitutional crisis that is likely to bring on an economic crisis as well," he added.

Persons: George Soros, Donald Trump, It's, Trump's, He's, Trump, that's, Soros Organizations: Syndicate, Federal, Service, Soros Fund Management, Trump, Republican Locations: Wall, Silicon

☆ Former Treasury Secretary Larry Summers faces backlash from Jim Bianco, Paul Krugman for inflation 'chart crime'
▼ + stars: | 2023-08-25 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

Former Treasury chief Larry Summers got panned for posting a graph suggesting US inflation could be tracing the same path now as in the 1970s. Nobel laureate Paul Krugman said the chart was "problematic on many fronts", adding the 1970s story was different. Market veteran Jim Bianco slammed the post as "chart crime", pointing out scale and calculation inconsistencies. In another post, Summers urged the Federal Reserve to reject suggestions that inflation is "securely under control." "Lots of people beating up on Larry Summers over his chart making recent disinflation look just like the mid-70s disinflation, which reaccelerated.

Persons: Larry Summers, Nobel, Paul Krugman, Jim Bianco, Summers, Bianco Organizations: Treasury, Service, Federal Reserve, Bianco Research Locations: Wall, Silicon

☆ Billionaire investor Ray Dalio says India's moon landing demonstrates its economic 'ascendance'
▼ + stars: | 2023-08-25 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

Ray Dalio heralded India's economic potential following its moon landing on Wednesday. The Chandrayaan-3 landing was "one of many straws in the wind showing its ascendance," he said. "India's successful lunar mission ... is another one of many straws in the wind showing its ascendance," Dalio said in a post on X. The landing meant India became the first country to reach what is thought to be the most water-rich region on the moon – beating Russia, China, and the US. Dalio has hailed India as the next big global investing opportunity previously amid worsening relations between Washington and Beijing.

Persons: Ray Dalio, Dalio, Deng Xiaoping, Narendra Modi, Elon Musk, Goldman Sachs Organizations: Service, Bridgewater Associates, Indian, Elon Locations: Bridgewater, India, Wall, Silicon, China, Russia, Washington, Beijing

☆ Dedollarization suffers a blow as the greenback's share in global payments hits a record high
▼ + stars: | 2023-08-24 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

The international drive to end the dollar's dominance has suffered a blow, with the greenback's role in global payments hitting a record high. SWIFT data showed as much as 46% of foreign-exchange payments in July via the messaging system involved the dollar. The jump in dollar usage comes at a time when countries including China and Russia are trying to move away from the greenback. AdvertisementAdvertisementThe jump in dollar-based SWIFT payments raises challenges to the movement to end the greenback's supermacy of global payments and fund transfers. Some market experts however have ridiculed the so-called dedollarization efforts, with one calling the proposed BRICS currency plan "embarrassing."

Persons: SWIFT Organizations: Service, Society, Worldwide Interbank Financial Telecommunication, Bloomberg Locations: China, Russia, Wall, Silicon, India, Ukraine

☆ A 40% rout in Apple bonds is signaling trouble for bank balance sheets with big debt holdings, markets guru Larry McDonald says
▼ + stars: | 2023-08-24 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

A 40% plunge in Apple's bonds highlights the risks facing banks' debt portfolios, according to Larry McDonald. The markets guru highlighted risks tied to mortgage-backed securities, which are on track for a third annual decline. McDonald seemed to suggest that if the bonds of top-rated companies such as Apple could take such a knock from rising interest rates, declines in the broader debt market could be sizable. MBS securities are closely related to mortgage rates. The US average 30-year mortgage rate surged to a 23-year high of almost 7.5% this month, indicating the scale of price displacement in the mortgage debt market.

Persons: Larry McDonald, Bonds, McDonald Organizations: Service, Fed, Silicon Valley, Apple, MBS, BlackRock's, Atlanta Locations: Wall, Silicon

☆ Paul Krugman and Mohamed El-Erian are divided over the Fed's inflation target ahead of Powell's speech
▼ + stars: | 2023-08-23 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

Paul Krugman backed calls for the Fed to change its inflation target to 3% – but Mohamed El-Erian says there's little chance of that happening. The two economists voiced their views ahead of Fed chair Powell's speech at Jackson Hole on Friday. "It is very hard for a central bank to change an inflation target when it has been missing it so consistently," El-Erian said. The two economists' comments come ahead of Fed chair Jerome Powell's speech at the 2023 Jackson Hole Economic Symposium on Friday. "It is very hard for a central bank to change an inflation target when it has been missing it so consistently," El-Erian told CNBC on Monday.

Persons: Paul Krugman, Mohamed El, there's, Jackson, Erian, Jerome Powell's, Jason Furman's, Krugman, it's, Powell Organizations: Service, CNBC Locations: Wall, Silicon

☆ Brazil's real, not the dollar, could be the solution to Argentina's currency turmoil, an economist says
▼ + stars: | 2023-08-23 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

Argentina should peg the peso to Brazil's real, not the US dollar, to deal with exchange-rate instability and hyperinflation, an economist said. "If Argentina wants a currency peg so badly - Dollarization is after all just a peg - peg to Brazil," Robin Brooks said. "If Argentina wants a currency peg so badly - Dollarization is after all just a peg - peg to Brazil. AdvertisementAdvertisementSome market experts have also backed the idea of Argentina potentially adopting the US currency – economist Steve Hanke recently called for the nation to mothball its central bank and dollarize. Brooks' latest comments come after he suggested earlier that Argentina needs a recession to fix its crashing currency, not dollarization.

Persons: Robin Brooks, Brooks, Javier Milei, Steve Hanke Organizations: Service, Institute of International Finance, South, greenback Locations: Argentina, Brazil, Wall, Silicon, South American

☆ Tesla's value plunged nearly $200 billion since mid-July – and Elon Musk's EV maker faces a bumpy road ahead
▼ + stars: | 2023-08-23 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

Tesla's value has fallen nearly $200 billion in just over a month. That's dragged Tesla's market cap down almost $200 billion to about $730 billion as of Tuesday's close, per Google Finance. A mix of inflation, higher interest rates, and recession fears have driven Tesla's decline. Higher interest rates tend to be bad news for high-growth stocks, including Tesla, because it eats away at company profitably through expensive borrowing costs. Investors also get deterred from piling into equities as rising interest rates tend to push up returns on bond investments, making them a safer investment compared to stocks.

Persons: Elon Musk's, That's, Jerome Powell's, Tesla, Gordon Johnson, Cathie Wood, Johnson, she'd Organizations: Elon Musk's carmaker, Service, Elon Musk's, Google Finance, Federal Reserve, Investors, CNBC Locations: Wall, Silicon

☆ Americans now need to spend 43% of their income to afford a home as mortgage rates surge to a 23-year high
▼ + stars: | 2023-08-22 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

Americans need to spend nearly half of their income to afford a home as mortgage rates soar, a market expert said. "US housing affordability is worse today than the peak of the last housing bubble," Charlie Bilello said. The average rate on the 30-year fixed mortgage jumped this week to a 23-year high of 7.48%, per Mortgage News Daily. Mortgage rates have climbed in response to the Federal Reserve's steep interest-rate increases over the past six quarters to combat inflation. "US housing affordability is worse today than the peak of the last housing bubble.

Persons: Charlie Bilello Organizations: Mortgage, Service, Privacy, Mortgage News, Creative Planning Locations: Wall, Silicon

☆ China's economy is hitting a wall after years of optimism, former Treasury Secretary Larry Summers says
▼ + stars: | 2023-08-21 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

China's economy is finally hitting a wall after years of optimism about the nation's future, Larry Summers said. According to Summers, US GDP is set to exceed China's for another generation. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. China's struggling economy has become a worry factor for investors amid fears that the Asian nation's deepening slowdown could have spillover effects for global markets. US President Joe Biden went as far as to say China's economy could be a "ticking time bomb" as the nation also suffers from sluggish growth and high unemployment.

Persons: Larry Summers, Summers, Joe Biden Organizations: Service, Harvard Locations: Wall, Silicon, Russia, Japan, Washington, United States, Berlin, Cuba, Eastern Europe

☆ Global stock markets have been buoyed by 'stupid' people ignoring China and Russia risks, veteran investor says
▼ + stars: | 2023-08-21 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

The veteran investor highlighted key economic threats to global equities including high interest rates and China's slowdown. The Independent Strategy president highlighted key risks to global output, including a slowdown in China, Russia's sanction-hit economy, and high inflation across the West. They are related," Roche said during a recent interview on CNBC's "Squawk Box Europe." On China, Roche stressed risks related to the country's floundering property sector. "Much longer higher interest rates means that they actually have to squeeze profit margins in order to get inflation figures to come down," he said.

Persons: Stocks, David Roche, Roche Organizations: Service, Global, Independent, ., Equity, Federal Reserve, Federal, Fed, America Locations: Wall, Silicon, China, Beijing

☆ The dedollarization drive is facing a confidence crisis as the yuan, ruble and Argentine peso simultaneously plummet, an analyst says
▼ + stars: | 2023-08-20 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +4 min

Slumps in the ruble, yuan, and Argentine peso underscore how the US dollar is a more reliable currency, an expert told Insider. In the past week alone, the Chinese yuan, Russian ruble, and the Argentine peso plunged, forcing the countries' central banks to take drastic measures to calm markets. The Chinese currency fell Thursday to its weakest level this year amid investor anxiety over the deepening slowdown in the world's second-largest economy. Last month, Russian president Vladimir Putin said more than 80% of his country's trade with China is settled in the yuan and ruble. "The recent decline and volatility in the Chinese Yuan, the Russian Ruble, and to a lesser extent the Argentine Peso, will only add further challenges to the idea of de-dollarization," Zain Vawda, market analyst at DailyFX, said.

Persons: Slumps, Vladimir Putin, Yuan, Zain, Vawda, Paul Krugman, Larry Summers, It's Organizations: Service, Argentine, International Monetary Fund Locations: Argentine, Ukraine, Wall, Silicon, Argentina, Moscow, Beijing, Russian, China

☆ Americans are exhausting their excess savings - and could run out funds this quarter, Fed study says
▼ + stars: | 2023-08-18 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

Americans are burning through their savings and could run out funds as early as this quarter, a Fed study showed. As of June, Fed estimates show US households held less than $190 billion of aggregate excess savings. With excess savings dwindling, Americans have leaned on their credit cards for spending. Excess savings refer to the difference between actual savings and the pre-recession trend, Fed researchers said. As of June, Fed estimates show that US households held less than $190 billion of aggregate excess savings.

Persons: Hamza Abdelrahman, Luiz Oliveira, Abdelrahman, Oliveira Organizations: Service, Privacy, Federal Reserve Bank of San, San Francisco Locations: Wall, Silicon, Federal Reserve Bank of San Francisco

☆ Ken Griffin's Citadel is having another good year as its flagship fund surges 9%
▼ + stars: | 2023-08-17 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

Citadel is having a good year, with its flagship fund Wellington up about 9%, Bloomberg reported. The strong performance follows Citadel's record profits of $16 billion last year. 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 PolicyBillionaire Ken Griffin's hedge fund Citadel is notching up another strong year. Citadel's strong numbers build on 2022's record profits of $16 billion for investors. It also helps offset a 35% plunge in trading revenue for Citadel during the first half of this year amid a decline in market volatility.

Persons: Ken Griffin's, John Paulson Organizations: Citadel, Wellington, Bloomberg, Service, Privacy, Energy Locations: Wall, Silicon, Wellington, Ukraine, Chicago

☆ An $11 trillion wealth wipeout has set the world back for the first time since 2008, thanks to a trifecta of high inflation, interest rates, and currency declines
▼ + stars: | 2023-08-16 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

That's thanks to a trifecta of inflation, rising interest rates, and currency depreciation against the US dollar. But inflation, rising interest rates and currency depreciation caused a reversal in 2022," UBS analysts wrote in a note. That's sparked an aggressive policy reaction from central banks, which have hiked interest rates sharply over the past year. Higher inflation and interest rates tend to chip away at consumer spending power, eating away at individual savings and wealth. According to UBS, local currency depreciation against the greenback also played a big role in eroding global wealth.

Persons: That's Organizations: UBS, Service, Federal, greenback, Fed Locations: Wall, Silicon, Europe, North America, Asia, Pacific, Ukraine

☆ 'Rich Dad Poor Dad' author Robert Kiyosaki slams Janet Yellen for trumpeting Bidenomics: 'What is she smoking?'
▼ + stars: | 2023-08-16 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

"Rich Dad Poor Dad" author Robert Kiyosaki took a jab at Janet Yellen for touting Bidenomics. Has she filled her gas tank lately?" The Treasury Secretary on Monday cheered Biden's Inflation Reduction Act for driving economic growth at a time when Americans are financially strapped. "Treasury Secretary Janet Yellin says the IRA Inflation Reduction Act is "turning point" in saving our planet, "what is she smoking?" Has she filled her gas tank lately?

Persons: Dad, Robert Kiyosaki, Janet Yellen, Yellen, Joe Biden's, Kiyosaki, Janet Yellin, rekindling, Kevin O'Leary Organizations: Service, Bidenomics, Reserve Locations: Wall, Silicon, Las Vegas , Nevada

☆ 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

☆ Top economist David Rosenberg says Bill Ackman's bet against Treasurys could end as badly as his Herbalife wager
▼ + stars: | 2023-08-11 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

David Rosenberg took a jab at billionaire investor Bill Ackman for his bet against US Treasurys. His view contrasts to Ackman who revealed he's shorting 30-year US Treasurys as a hedge against high inflation. That contrasts to Ackman's view of stubbornly high inflation, which has led him to short US Treasurys. Bond prices tend to have an inverse relationship to interest rates. When interest rates go up, bonds usually fall.

Persons: David Rosenberg, Bill Ackman, Ackman, he's, Rosenberg, Fran Fed's Organizations: US, Service, Rosenberg Research, Reserve, Ackman's, Federal Reserve Bank of San, Federal Reserve, Pershing, stoke Locations: Wall, Silicon, Federal Reserve Bank of San Francisco

☆ The US economy seems to be getting a boost from Hollywood - but Hollywood is missing out
▼ + stars: | 2023-08-11 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

Hollywood seems to be boosting the US economy, but its home state of California is being left out. But Hollywood strikes over the last 100 days have likely dealt a $3 billion blow to California. The rush of moviegoers has helped boost the US economy, with consumers showing they're willing to spend. A 100-day strike among writers and actors in Hollywood has likely dealt a $3 billion blow to California's economy so far, experts say. A dream for the US but a nightmare for California: Hollywood is having a double-edged effect on the nation.

Persons: Oppenheimer, Greta Gerwing's, Barbie, Todd Holmes, CNBC's Organizations: Hollywood, Service, AMC Theatres, Guild of America, SAG Locations: California, Wall, Silicon, Hollywood

☆ The sizzling stock rally is under threat, and company profits could shrink as consumers feel the squeeze, JPMorgan strategist says
▼ + stars: | 2023-08-10 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

2023's blistering stock rally is under threat, according to a top JPMorgan Asset Management strategist. The impact of banking chaos could soon start to weigh on stocks, David Lebovitz said. Ahead of Thursday's inflation report, Lebovitz also commented on company margins and whether sticky costs will weigh on firms' pricing power. "When we look at the consumer, the consumer looks fine today, but the consumer is beginning to bend. That's going to undermine the pricing power that's allowed a lot of these companies to keep their heads above water," he added.

Persons: David Lebovitz, Lebovitz, that's, David Rosenberg Organizations: JPMorgan Asset Management, Service, Bloomberg, Nasdaq Locations: Wall, Silicon

☆ Hollywood's 100 days of strikes have likely dealt a $3 billion blow to California's economy, a university professor says
▼ + stars: | 2023-08-10 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

Hollywood strikes have likely dealt a $3 billion blow to California's economy over the last 100 days. That's according to entertainment industry expert and academic Todd Holmes, per CNBC. Todd Holmes, an entertainment industry professor at Cal State Northridge, based his estimate on economic analysis from the last time writers went on strike in 2007. "A lot of different people are impacted surrounding the industry," Holmes told CNBC, saying the strikes are "causing them a lot of hardship." Holmes expects the strikes could cost California between $4 to $5 billion if they roll on till October.

Persons: Todd Holmes, AFTRA, Holmes, Barbie, Oppenheimer Organizations: Hollywood, CNBC, Service, Writers Guild of America, SAG, Cal State Northridge, Milken Institute Locations: Wall, Silicon, Los Angeles, Local, California, Hollywood

☆ Tesla's sales in China have tumbled and its slumping economy may not be to blame, Bank of America says
▼ + stars: | 2023-08-10 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

Tesla sales in China have slumped – and it's faltering economy may not be the reason why, according to Bank of America. That's because demand for Tesla rival BYD rose 4%, while Tesla deliveries dropped 31% month-over-month in July. It suggests demand for Teslas in China is waning in the face of local competition. In a recent note, the bank highlighted Tesla Model 3 and Model Y deliveries in China dropped by 31% month-over-month in July, while its largest EV competitor in China, BYD Auto, grew 4% month-over-month. Tesla has repeatedly dropped prices of its vehicles over the past year, in a bid to undercut rivals and boost market share.

Persons: BYD, TSLA, John Murphy, Tesla, Murphy Organizations: Bank of America, Service, EV, BYD, Beijing Locations: China, Wall, Silicon, BYD

☆ Tesla's 'Master of Coin' bids the EV-maker farewell after racking up a $590 million fortune
▼ + stars: | 2023-08-09 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

A Tesla exec's departure will see him leave with a $590 million fortune, according to Bloomberg. Despite owning less than 1% of Tesla's common stock, Kirkhorn has still gone home with deep pockets, according to the company's latest proxy filing. In 2022 alone, Kirkhorn earned about $16.3 million in stock awards, while being awarded almost $1.3 million in options. The company's stock has surged more than 100% year-to-date, boosting its market cap to roughly $800 billion, per Markets Insider data. Vaibhav Taneja, Tesla's chief accounting officer will step in Kirkhorn's role following his exit.

Persons: Zachary Kirkhorn, Elon Musk's carmaker, Kirkhorn, Tesla, Musk, Kirkhorn's, Vaibhav Organizations: Bloomberg, Tesla, Service, Elon Musk's, GM, Ford Locations: Wall, Silicon, Elon

☆ Student-loan payments and steeper interest rates will pave way for a severe consumer-led recession, top economist David Rosenberg says
▼ + stars: | 2023-08-09 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

The resumption of student loan payments combined with interest-rate hikes will fuel a consumer-led recession, David Rosenberg warned. Rosenberg has been bearish on markets and the US economy for a while, and has faced backlash over it. After a three-year pause, the federal government will start charging interest on federal student-loan balances once more, and student-loan borrowers will start making payments again in October. The loan repayments, combined with higher interest rates, threaten to to trigger a consumer slowdown, Rosenberg said in a CNBC interview. So, I think that it's going to be consumer-led," Rosenberg said, speaking about a prospective recession.

Persons: David Rosenberg, Rosenberg, Joe Biden's, " Rosenberg, he's Organizations: Service, CNBC, Fed Locations: Wall, Silicon

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