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☆ Pakistan’s political crisis will deepen its economic misery
▼ + stars: | 2023-05-12 | by ( Julia Horowitz | ) edition.cnn.com time to read: +7 min

London CNN —The political unrest that’s engulfed Pakistan since former Prime Minister Imran Khan was arrested earlier this week will complicate efforts to secure a financial lifeline from the International Monetary Fund and exacerbate the country’s economic crisis. Pakistan’s economic meltdownThe political tumult in Pakistan comes as the country grapples with a dire economic outlook. The government has been working with the International Monetary Fund to resume a financing program that’s been stalled since November and expires in June. Prime Minister Shehbaz Sharif said in a televised address Friday that the country’s economic problems stem from his predecessor. In February, the ratings agency said about 50% of government revenue will need to go to debt interest payments “for the next few years,” compounding economic woes and fanning political discontent.

☆ Euro falls after dovish ECB
▼ + stars: | 2023-05-04 | by ( Alun John | ) www.reuters.com time to read: +4 min

The ECB eased the pace of its interest rate hikes on Thursday with a 25-basis-point increase to its three policy rates, the smallest since it started lifting them last summer. "The ECB is clearly striking a more balanced tone and the market is pricing a bit of that, the euro is depreciating and pricing for interest rate hikes at future meetings is coming down, but just a little bit." The Fed has guided markets away from the possibility of rate cuts this year, though markets are pricing them in nonetheless. The Norwegian crown took a short trip after Norway's central bank raised interest rates by 25 basis points as expected. It initially softened sharply against the euro and dollar, but recovered.

KARACHI, Pakistan, May 2 (Reuters) - Pakistan consumer prices, driven by food, rose a record 36.4% in the year to April, the highest inflation rate in South Asia and up from March's 35.4%, the statistics bureau said on Tuesday. Pakistan's rural areas recorded food inflation of 40.2%, the bureau told Reuters. Food inflation for both rural and urban areas reached 48.1%, the highest since FY16 when the bureau started recording the categories separately. "The higher reading was expected over the hyperinflation in the food segment," said Amreen Soorani, head of research at JS Capital, a Karachi based investment company. Persistently high inflation has resulted in major lifestyle and consumption changes, with a greater number of people seeking help.

ISLAMABAD, April 28 (Reuters) - Inflation-hit Pakistan on Friday approved a rise of up to 20% in retail prices of general medicines and 14% for essential ones, prompting immediate criticism from drug manufacturers who said the increases were too small. The government decision followed a months-long stand-off with importers and manufacturers, whose associations have been demanding an across-the-board 39% rise, warning that the industry could otherwise collapse. But the government had pushed back against the demands for higher medicine prices, fearing such a move would lose it support months before national general elections. The finance ministry said medicine prices could be reviewed again after three months if the Pakistani rupee appreciated, adding that "no increase under this category" would be granted in the next financial year. The Pakistan Pharmaceutical Manufacturing Association (PPMA) criticised the increase, which it said was way lower than it had expected.

☆ Used Teslas are holding their value better than other cars despite Elon Musk's price cuts
▼ + stars: | 2023-04-26 | by ( Nora Naughton | Alexa St. John | ) www.businessinsider.com time to read: +5 min

Used Tesla Model 3 and Model Ys aren't depreciating substantially, a new study says. Elon Musk's price-cutting frenzy at Tesla doesn't appear to be impacting the company's impressive resale values, according to new data released this week. Slightly more used EVs are being priced just below $25,000 in recent months in order for customers to get the used credit. In September of last year, Tesla made up for roughly two-thirds of the used EV market. This prevents Teslas from flooding the used car market and gives the company more control over its own resale market.

☆ Debt crisis is a scary white swan for US economy
▼ + stars: | 2023-04-25 | by ( Ben Winck | ) www.reuters.com time to read: +8 min

If Democrats and Republicans can’t agree to lift the government’s borrowing limit, the country could suffer an unprecedented and catastrophic default on its debt. The standoff over the debt ceiling is a white swan, or an entirely predictable, very frequent event that has the potential to be as catastrophic as its darker sibling. That is why, in all past scuffles over government borrowing, Congress ended up raising or suspending the debt ceiling. Uncertainty over the timing of the agreement led to the most volatile week for financial markets since the 2008 financial crisis. Failure to lift the debt ceiling soon can spark a vicious cycle of market anxiety, rising borrowing costs and bank stress.

[1/5] People look at handbags on display outside shops in a market, ahead of Eid al-Fitr celebrations in Karachi, Pakistan April 19, 2023. REUTERS/Akhtar SoomroKARACHI, Pakistan, April 20 (Reuters) - Retail sales in Pakistan have witnessed a sharp drop compared to previous years in the run up to the Muslim holiday of Eid al-Fitr, retailers say, as shoppers feel the pinch of decades-high inflation. The lead up to Eid al-Fitr, expected to fall on Saturday in Pakistan to mark the end of the holy month of Ramadan, traditionally sees the highest sales of the year. Asfandyar Farrukh, co-founder of CAP and managing director of Hub, a leather goods store, said that Eid shopping appears to have started sooner and peaked earlier, coinciding with salary pay days, and customers anticipating price increases. The sales drop adds to the slowing of Pakistan's $350 billion economy, which has struggled in recent months amidst tough stabilisation polices, including the central bank raising interest rates to a historic high of 21%.

☆ Argentine peso hits record low in black market as economy creaks
▼ + stars: | 2023-04-20 | by ( Walter Bianchi | ) www.reuters.com time to read: +2 min

BUENOS AIRES, April 20 (Reuters) - Argentina's peso currency sank in widely used parallel markets on Thursday, hitting a record low against the U.S. dollar as concerns grew about the Latin American country's economy, with 104% inflation, reserves dwindling and drought hitting exports. The black market peso , one of several unofficial rates that have flourished as tight capital controls have limited access to official forex markets, weakened almost 4% to 438 per dollar, roughly double the official rate of 218 pesos. The blue-chip swap or CCL rate was at 433 pesos per dollar and the MEP was at 421.3 per dollar, traders said. That has further pressured already weak central bank reserves, forcing it to sell dollars. "The stock (of BCRA reserves) is so small that it cannot withstand negative flows of this magnitude for many more days.

☆ An economic crisis in Pakistan means many are going hungry during Ramadan
▼ + stars: | 2023-04-19 | by ( Sophia Saifi | ) edition.cnn.com time to read: +5 min

Javed IqbalIn Karachi, Pakistan’s financial center, 13 women and children died in March when hundreds of people caused a stampede in the rush for free food. Nine were killed in late March at separate government run flour distribution sites in the northwestern province of Khyber Pakhtunkhwa. The Human Rights Commission of Pakistan has expressed concern at what it called “mismanagement” that caused stampedes at wheat flour distribution centers set up by the government. Khan said a shortage of basic imports such as animal feed and other raw materials essential for food production contributed further to the food crisis and widespread hunger. Ramadan is a period of thanksgiving and shared meals, but the festivities have been overshadowed by the economic crisis.

☆ The housing market's fluctuations of the last year have left the best forecasters torn on what home prices will do in 2023
▼ + stars: | 2023-04-13 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

That said, today's newsletter focuses on the housing market — and why economists can't seem to agree on what it's going to do next. Some of the top real-estate forecasters in the world expect home prices to drop in 2023. Zillow forecasts home prices to climb 0.5% this year, and CoreLogic predicts a year-over-year increase of 3.7% by February 2024. Last month's financial turmoil that Silicon Valley Bank kicked off has led many analysts to anticipate a cut or pause in rate hikes, which could lead to fluctuations in housing demand and affordability. Prices in New York rose nearly 2% Wednesday as fears of a global supply shock intensified.

☆ American offices are half-empty. That could be the next big risk for banks
▼ + stars: | 2023-04-10 | by ( Julia Horowitz | ) edition.cnn.com time to read: +9 min

“I’m more concerned than I’ve been in a long time,” said Matt Anderson, managing director at Trepp, which provides data on commercial real estate. About $270 billion in commercial real estate loans held by banks will come due in 2023, according to Trepp. Questions about the health of banks with sizable exposures to commercial real estate loans cause customers to pull deposits. That forces lenders to demand repayment — exacerbating the sector’s downturn and further damaging the banks’ financial position. The likeliest outcome is thought to be an uptick in defaults and reduced access to funding for the commercial real estate industry.

☆ Robinhood traders are getting smarter with their money. The platform's head of investment strategy explained why.
▼ + stars: | 2023-04-08 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

Steph Guild, Robinhood's head of investment strategy. RobinhoodSteph Guild is the head of investment strategy at Robinhood. Phil Rosen: How have retail investors on Robinhood changed their investing habits now compared to 2022? As the economy faces more risks like a recession and a potential credit crunch, do you think retail investors will change their strategy? What do you think of Guild's insights on retail investors?

☆ Egypt's pound is among the worst performing currencies in 2023. And it's expected to plummet further
▼ + stars: | 2023-04-05 | by ( Lee Ying Shan | ) www.cnbc.com time to read: +4 min

A photo of one hundred Egyptian pound, one hundred U.S. dollars against the pyramids of Giza in Egypt on January 17, 2023. Fadel Dawod | Getty ImagesThe Egyptian pound has plunged almost 20% against the greenback since the start of the year — with some analysts predicting that the currency may still have room to plummet further. Egypt's pound currently ranks as the sixth worst performing currency since Jan. 1, extending a decline that saw it lose more than half its value during 2022. Egypt's embattled economyHowever, the economic woes plaguing the Middle East's most populous country means its pound still has a way to plummet, according to the experts. He expects Egypt's inflation to peak at around 36% in the third quarter, if there are no more devaluations.

KARACHI, Pakistan, April 4 (Reuters) - Pakistan's central bank raised its key interest rate by 100 basis points to a record 21% on Tuesday, as the cash-strapped country stepped up its fight against soaring consumer prices. Investors polled by Reuters had expected an even-bigger rate hike of 200 basis point from the State Bank of Pakistan (SBP), which is facing on consumer price inflation that hit a record annual level of just over 35% in March. Worldwide growth in consumer prices has compounded high inflation in Pakistan caused by a weakening currency, energy tariff increases and elevated food prices due to Ramadan. The SBP has hiked the key rate by cumulatively by 1025 bps since January 2022. In early March, the bank raised its key rate by 300 basis points to 20%, exceeding market expectations, likely to meet a key requirement of the IMF for release of bailout funds.

☆ Egypt's cenbank raises interest rates by 200 bps to tame inflation
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +2 min

March 30 (Reuters) - The Central Bank of Egypt (CBE) raised its overnight interest rates by 200 basis points (bps) on Thursday following a meeting of its Monetary Policy Committee (MPC), saying it aimed to bring high inflation into check. The bank set the lending rate at 19.25% and the deposit rate at 18.25%. The median forecast in a Reuters poll of 15 analysts on Monday was for the bank to increase rates by 200 bps as it struggled to control surging inflation. In February, headline inflation soared to a five-and-a-half-year high of 31.9% from 25.8% in January. "Real GDP growth is expected to soften in fiscal year 2022/23 compared to the previous fiscal year, before picking up thereafter."

☆ Four ways for car buyers to survive the interest-rate crunch
▼ + stars: | 2023-03-23 | by ( Chris Taylor | ) www.reuters.com time to read: +4 min

New car buyers with a monthly payment over $1,000 rose to an all-time high of 16.8% in February, auto information site Edmunds' data showed. While car prices have been leveling off as the supply chain normalizes, interest rates are squeezing buyers' wallets. A monthly car payment of more than $1,000 is starting to show its painful effects. Punishing interest rates are forcing car buyers to make tough decisions. "If you're already tied up with a large car payment, then I suggest you sell it and get a car you can actually afford," Fetters said.

☆ 33-year-old who brought in $467,000 in 13 months renting out his boats: 3 skills you need to start a lucrative side hustle
▼ + stars: | 2023-03-08 | by ( Megan Sauer | ) www.cnbc.com time to read: +6 min

He started a chartering business called SeaEO Nautical Ventures, initially intending to just cover the boat's payments. It's like an Airbnb business: If you start renting a house without the proper permits, you're going to get fined. It takes a lot of talking to people and working with my lawyer to really understand how to be legally compliant. I've actually gotten to the point where I'm really bored. When you really understand sales, you know there's only two reasons people buy things: to fix a problem, or because they love something.

Finance Minister Ishaq Dar had said last week that the external financing assurance was not one of the IMF's conditions for clearance of the funding. Pakistan has completed almost all other measures needed except for the external financing requirement, officials say. Dar said last week that Pakistan will need $5 billion external financing to close its financing gap this fiscal year ending June 30, adding the IMF believed it should be $7 billion. Dar said hoped more external financing will be coming as Pakistan signs the IMF deal this week. Ruiz noted that the difference in foreign exchange rates between the open and informal markets has been very damaging for Pakistan, resulting in shortages of foreign exchange and consequently imported goods.

The SEC in 2016 warned companies that non-GAAP measures that replace GAAP-based methods with individually tailored disclosure could violate its rules. That is up from 11 companies in letters released in January and February 2022. The SEC has long expressed concerns about companies placing too much emphasis on their non-GAAP disclosures compared with GAAP disclosures. Changing how certain non-GAAP measures are calculated can be embarrassing and even costly for companies, accountants said. Graham Holdings said it isn’t violating SEC guidance because it didn’t substitute an alternative recognition or measurement method for the related adjustments.

☆ Jim Cramer's top 10 things to watch in the stock market Wednesday: Fedspeak, stocks bounce, Palo Alto beats
▼ + stars: | 2023-02-22 | by ( Jim Cramer | ) www.cnbc.com time to read: +5 min

As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. ET: Q&A with Jim and Jeff Marks on general investing, market thoughts, education11:30-12:15 p.m. ET: Jim and Jeff discuss the portfolio (Part 2)2:15-2:45 p.m.

☆ Pakistan to shut malls, markets early in energy saving plan
▼ + stars: | 2023-01-03 | by ( Gibran Naiyyar Peshimam | ) www.reuters.com time to read: +3 min

ISLAMABAD, Jan 3 (Reuters) - Pakistan's government has ordered all malls and markets to close by 8:30 p.m. among other measures in a new energy conservation plan, the defence minister said on Tuesday, as the country grapples with an economic crisis. Khawaja Asif told journalists the cabinet-approved measures to shut markets, including restaurants, aimed to save the cash-strapped country about 62 billion Pakistani rupees ($273 million). Pakistan's total liquid foreign exchange reserves stood at $11.7 billion - $5.8 billion with the central bank - as of late last month, having fallen 50% in 2022. Asif said the energy conservation plan also included banning the production of energy inefficient bulbs and fans from February and July respectively. ($1 = 226.7500 Pakistani rupees)Reporting by Gibran Peshimam; Editing by Emelia Sithole-Matarise and Mark PotterOur Standards: The Thomson Reuters Trust Principles.

☆ Analysis: Is the party over? Mexico's peso could lose solid gains in 2023
▼ + stars: | 2022-12-29 | by ( Noe Torres | ) www.reuters.com time to read: +2 min

MEXICO CITY, Dec 29 (Reuters) - Mexico's peso, which is ending 2022 with one of its strongest performances in a decade, could have its gains wiped out in 2023 after an expected end to the Bank of Mexico's rate hikes cycle and a possible recession in top trade partner the United States. "The carry trade, the phenomenon that has benefited (the peso) this year, will likely dissipate a bit," said CI Banco analyst James Salazar. The carry trade refers to a trading strategy of taking advantage of yield differences between Mexico and other economies. Traders at the Chicago Mercantile Exchange, considered a bellwether of market sentiment, have started to bet the peso will begin depreciating. Reporting by Noe Torres; Writing by Anthony Esposito; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

☆ Mark Cuban wants to buy more bitcoin, says gold investors are 'dumb'
▼ + stars: | 2022-12-28 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +1 min

Billionaire Mark Cuban is doubling down on bitcoin and says he even prefers investing in the digital asset over gold. However, Cuban called gold investors "dumb as f---" during his interview with Maher. However, there is a key difference between how gold and bitcoin derive value. On the other hand, bitcoin and other cryptocurrencies are a relatively new form of payment. Bitcoin prices are currently trending far below their January prices while gold has only diminished by a little over 1% year to date as of Dec. 27.

☆ Op-ed: Here are 5 questions to ask your financial advisor before the end of the year
▼ + stars: | 2022-12-19 | by ( Ivory Johnson | ) www.cnbc.com time to read: +3 min

Delpixart | Istock | Getty ImagesThe end of the year is a time to give thanks and celebrate the holidays with our families. It's also an opportunity to reevaluate the previous 12 months and ask your financial advisor some very productive questions. Instead, you should be just as interested in what method your advisor uses to build a portfolio as you are in the result. Ask your advisor to review the holdings and transactions throughout the year to determine if it make sense to capture capital gains and match it against a loss. A financial planner does more than invest your hard-earned money; we also provide estate, long-term-care and education planning.

☆ Car repossessions are on the rise in warning sign for the economy
▼ + stars: | 2022-12-17 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Shannon-Pettypiece-Circle-Byline-Template.Jpg | Shannon Pettypiece | ) www.nbcnews.com time to read: +8 min

WASHINGTON — A growing number of consumers are falling behind on their car payments, a trend financial analysts fear will continue, in a sign of the strain soaring car prices and prolonged inflation are having on household budgets. The percentage of auto loans that were 30 days delinquent was at 2.2% in the third quarter compared with 2.35% delinquent over the same period in 2019, according to data from Experian. By contrast, just over 4% of auto loans went into default in 2009. Another risk to car buyers’ finances is the growing length of auto loans, many of which now exceed seven years. It can also mean higher interest costs over the life of the loan on top of already inflated vehicle prices.

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