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☆ America has lost half its public companies since the 1990s. Here’s why
▼ + stars: | 2023-06-09 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Why it matters: The count of publicly listed companies traded on US exchanges has fallen substantially from its peak in 1996. It’s not that America has half as many companies as 30 years ago – it’s that companies are increasingly staying private, largely outside the scrutiny of the public eye. Publicly listed companies are subject to regulatory oversight and disclosure requirements, which help ensure transparency and maintain investor confidence. “I think it’s natural that companies would delay going public when valuations get halved and investors are not enthusiastic about investing in new companies,” said Kennedy. Some private equity funds have even taken advantage of the bear market to buy up publicly traded companies.

Persons: Matthew Kennedy, “, ”, Kennedy, Torsten Slok, Janet Yellen, Matt Egan, Yellen, Antony Blinken, Elon Musk, Laxman Narasimhan, Jamie Dimon Organizations: CNN Business, Bell, New York CNN, Center for Research, Renaissance, Apple, Microsoft, Party, Apollo Global Management, “ Companies, Wells, China, CNN, China Business Council, FedEx, Pepsi, Walmart, Ford, JPMorgan Chase, America ., Marshall Locations: New York, America, Wells Fargo, United States, China, Washington, Beijing

☆ White House hails the end of the supply chain nightmare
▼ + stars: | 2023-06-08 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

New York CNN —White House officials on Thursday hailed the unclogging of supply chains and suggested that further easing of bottlenecks will help cool inflation. “Critical supply chains are significantly more fluid and resilient than they were when the President took office,” White House officials wrote in a supply chain scorecard shared first with CNN. The traffic jam of vessels backed up ports, once a symbol of the supply chain crisis, has all but disappeared. The White House economists said it is a “positive development for consumers” and struck a hopeful tone it will continue. The blog post said there is a high correlation between producer prices and supply chain pressures, suggesting the easing in supply chain pressure may continue to cool inflation.

Persons: ”, Biden, Biden’s, ” Lael Brainard, ” Torsten Slok, “ Organizations: New, New York CNN, White, CNN, National Economic Council, Consumers, IRI, Shipping, New York Federal, Apollo Global Management, Defense, EV, White House Council, Economic Advisers, Institute of Supply, Federal Reserve Locations: New York, Ukraine

☆ Europe is struggling with a precarious water situation ahead of another drought-riven summer
▼ + stars: | 2023-06-05 | by ( Sam Meredith | ) www.cnbc.com time to read: +2 min

European policymakers are battling to get to grips with a growing water crisis ahead of what researchers fear could be yet another climate crisis-fueled summer of drought. Water resources in Europe are growing increasingly scarce because of the deepening climate emergency, with record-breaking temperatures through spring and a historic winter heatwave taking a visible toll on the region's rivers and ski slopes. Reservoirs in Mediterranean countries like Italy have fallen to water levels typically associated with summer heatwaves in recent weeks, threatening agricultural production, while protests have broken out over water shortages in both France and Spain. It comes as temperatures are poised to climb through summer and many fear Europe's already "very precarious" water problem could get even worse. "We are actually getting problems with the water supply here — we have to think about this."

Persons: Europe's, Torsten Mayer Organizations: Arenas, Arenas del Rey, Austria's University of Graz, European Union, University of Graz Locations: Arenas del, Granada, Spain, Europe, Italy, France, Germany, Austria

☆ Stock Market Chaotic New Normal Will Screw Over Wall Street Investors
▼ + stars: | 2023-06-04 | by ( Linette Lopez | ) www.businessinsider.com time to read: +11 min

Wall Street desperately wants the stock market to go back to the good ol' days. In that environment, any idiot — or anyone on Wall Street — could buy almost any asset, sit back, and watch its value increase. In this scenario, the stock market gets choppy. It was a pull-in-case-of-emergency valve that we pulled for so long that now it feels normal to Wall Street. Despite this constant caterwauling from Wall Street, Americans are working, spending, and helping the economy defy doom-and-gloom forecasts.

Persons: Justin Simon, Jasper Capital, that's, hasn't, it'll, Richard Hayne, —, haven't, Joe Weisenthal, Richard Haynes, Torsten Slok, Simon, Linette Lopez Organizations: Street, San Francisco Fed, Fed, Urban Outfitters, Auto, Walmart, Bloomberg, Urban, NASDAQ, Federal, Apollo Global Management Locations: Jasper, Wall Street, American

☆ Premarket stocks: Why current US recession warnings are unlike all the others
▼ + stars: | 2023-05-12 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

A US recession is coming, they say, in the second half of 2023. JPMorgan CEO Jamie Dimon warned on Thursday of great economic danger lurking just over the horizon. Things weren’t great last year: Inflation hit a 40-year peak, gas prices were elevated, consumer sentiment plunged and markets fell by 20%. “This has been the most predicted potential recession in memory,” said Federal Reserve Bank of Richmond President Tom Barkin way back in January. Historically, recession typically coincides with that peak, said Barry Gilbert, asset allocation strategist for LPL Financial.

☆ Fed will keep rates elevated for 'quite some time', says Apollo Global's Slok
▼ + stars: | 2023-05-08 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFed will keep rates elevated for 'quite some time', says Apollo Global's SlokTorsten Slok, Apollo Global partner and chief economist, joins 'Squawk on the Street' to discuss if the equity market is complacent about the debt ceiling, what the debt ceiling standoff will mean for rates and more.

The Fed's meeting will be followed with expected rate increases by the European Central Bank on Thursday and the Bank of England next week. But the U.S. central bank is furthest along in the process, and may signal that this week's rate increase is the last, at least for now. Inflation has been edging down, gradually, with the main price index the Fed watches still more than double the central bank's 2% target. The anticipated quarter-percentage-point increase on Wednesday will put the target federal funds rate at roughly the same spot, between 5% and 5.25%. With this rate increase, Fed officials will hit a level that will be about 1 percentage point above the rate they consider to have a neutral impact on economic activity.

Treasury yields dropped on the back of the report. More specifically, we looked at the rolling 100-day correlation between Nasdaq-100 stocks and the SHY ETF. Here are the five-most correlated Nasdaq-100 stocks to falling rates. Here are the five-most correlated Nasdaq-100 stocks to falling rates. Stock Chart Icon Stock chart icon Shares of Seagan are one of the more closely correlated stocks of the iShares short-term bond yield ETF.

☆ The Fed warned of a looming credit crunch. Americans say it’s already arrived.
▼ + stars: | 2023-04-11 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

We just saw a more extreme distribution play out in the stock market, too. Just 20 names drove 90% of the gains in the S&P 500 over the first three months of the year. The Fed has been warning of tightening credit conditions since last month's handful of bank failures, but policymakers spoke as if it were some future event. Remember, a so-called credit crunch means lenders raise the bar for borrowers, and people have to meet stricter parameters to get a loan. "The credit crunch has started," Torsten Slok, chief economist at Apollo Global Management, said in response to the report.

☆ Americans are already feeling the effects of a credit crunch
▼ + stars: | 2023-04-10 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

A Monday New York Fed survey found that Americans' feel like their access to credit is deteriorating. Fed Chair Jerome Powell previously said the banking stress that started with Silicon Valley Bank could trigger a credit crunch. New York Fed Survey of Consumer ExpectationsAdditionally, the survey found that the perceived probability of missing a minimum debt payment in the next three months climbed 0.3% to 10.9%. "The credit crunch has started," Torsten Slok, chief economist at Apollo Global Management, said in response to the report. Tighter credit conditions means lenders raise the bar for borrowers, and households have to meet stricter parameters to obtain a loan.

☆ In 3 to 6 months service inflation will slow dramatically, says Bleakley's Peter Boockvar
▼ + stars: | 2023-04-10 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailIn 3 to 6 months service inflation will slow dramatically, says Bleakley's Peter BoockvarTorsten Slok, chief economist at Apollo Global Management, and Peter Boockvar, CIO at Bleakley Financial Group, join 'The Exchange' to discuss regional banks reorganizing balance sheets, the prolonged effects of a credit crunch, and future Fed policy plans.

☆ Watch CNBC's full interview with Apollo's Torsten Slok and Bleakley's Peter Boockvar
▼ + stars: | 2023-04-10 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Apollo's Torsten Slok and Bleakley's Peter BoockvarTorsten Slok, chief economist at Apollo Global Management, and Peter Boockvar, CIO at Bleakley Financial Group, join 'The Exchange' to discuss regional banks reorganizing balance sheets, the prolonged effects of a credit crunch, and future Fed policy plans.

☆ 'The credit crunch has started': Here's what tighter lending standards mean for American consumers and businesses as banks navigate the SVB wreckage
▼ + stars: | 2023-04-08 | by ( Carla Mozée | ) www.businessinsider.com time to read: +6 min

"Each bank is going to apply those credit standards differently," a source told Insider. Requiring higher minimum credit scores and minimum repayments and curbing credit limits were among tweaks banks were making. Lending to consumers dropped and credit standards and terms "continued to tighten sharply," with marked rises in loan pricing. A "dramatic worsening of firm and consumer access to bank credit," is how a 2014 paper on the Federal Reserve's website describes a credit crunch. Tighter lending standards may have a big impact on floating-rate loans versus fixed loans, CFRA equity analyst Alexander Yokum told Insider.

☆ Premarket stocks: The US economy is unwell. April could be a cruel month
▼ + stars: | 2023-04-06 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

New York CNN —After months of a remarkably strong US labor market and economy, everything seems to be slowing down. The question is whether Friday’s monthly jobs report, easily the most anticipated piece of data out this week, will confirm the trend. The unflinching resilience of the US labor market is one of the greatest sources of tension in today’s economy. Over the past year, the Fed has raised interest rates from nearly zero to a range of 4.75% to 5% to cool the economy. A slowdown in the official US jobs report Friday could signal an economic sea change.

☆ Premarket stocks: These are the only stocks that matter right now
▼ + stars: | 2023-04-05 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Leading the way in growth are tech stocks like Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Tesla (TSLA) and Meta (FB). That’s been a boon to large cap tech stocks that are more sensitive to interest rates because they tend to borrow more than established companies and rely more on the prospect of future earnings. But it also means that the current market rally is thin, as the major indexes outperform the average stock. Strong outperformance from the largest stocks often power indexes to rise, said Liz Ann Sonders, chief investment strategist at Schwab, in a note Tuesday. But healthy markets should be characterized by greater participation of the “soldiers” — the rest of the stocks, she said.

☆ The key issue from the banking crisis is a behavioral change in credit, says Apollo's Torsten Slok
▼ + stars: | 2023-03-31 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe key issue from the banking crisis is a behavioral change in credit, says Apollo's Torsten SlokTorsten Slok, Apollo Global Management chief economist, joins 'Closing Bell Overtime' to discuss changes in small bank lending patterns, tighter lending data raising risk of a harder landing, and more.

Deposits held by small U.S. banks dropped by a record $119 billion to $5.46 trillion after the collapse of Silicon Valley Bank on March 10, according to data released Friday by the Federal Reserve. "We expect stress in the banking system to weigh on credit growth, which will in turn reduce real GDP growth," Goldman Sachs analysts led by chief economist Jan Hatzius wrote in a note, referring to gross domestic product. Tighter credit conditions will exert meaningful pressure on economic activity, but the effect will not be catastrophic unless the situation escalates into "full-blown crisis of confidence," Barclays analysts wrote in a note last week. U.S. regulators announced on Monday they would backstop a deal for regional lender First Citizens BancShares (FCNCA.O) to acquire failed Silicon Valley Bank, triggering an estimated $20 billion hit to a government-run insurance fund. "Banking system stress remains high, but there are some signs of stabilization," Bank of America Corp (BAC.N) analysts wrote in a note.

☆ As banking sector confidence falters, central banks called on to do more
▼ + stars: | 2023-03-26 | by ( Davide Barbuscia | ) www.reuters.com time to read: +4 min

NEW YORK, March 26 (Reuters) - Some investors and analysts are calling for more coordinated interventions from central banks to restore financial stability, as they fear that tumult in the global banking sector will continue amid rising interest rates. On Friday, shares of Deutsche Bank (DBKGn.DE) plunged amid concerns that regulators and central banks have yet to contain the worst shock to the banking sector since the 2008 global financial crisis. Global central banks including the Federal Reserve have recently taken measures to enhance the provision of liquidity through the standing U.S. dollar swap line arrangements. "The issue with European banks and big U.S. banks at the moment is confidence. Meanwhile, overall deposits in the banking sector have declined by almost $600 billion since the Fed began to raise interest rates last year, the biggest banking sector deposit outflow on record, noted Torsten Slok, chief economist at Apollo Global Management.

☆ Premarket stocks: The banking meltdown may have done the Fed's work for it
▼ + stars: | 2023-03-22 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

But in a strange twist, it’s possible that the banking meltdown actually did some work for the Fed in bringing down prices without raising interest rates. That could have the equivalent effect of the Fed hiking rates by half a point, said Goldman Sachs economists on Tuesday. Bank stocks rebound as Janet Yellen, Jamie Dimon work to restore confidenceThe collapse of Silicon Valley Bank and Signature Bank rippled through markets last week. The Treasury secretary reiterated that the federal government would be willing to rescue uninsured depositors at small banks if lenders suffer bank runs, raising the specter of contagion. The SPDR Regional Banking Equity Traded Fund, which tracks a number of small and mid-sized bank stocks, gained 5.8% for the day.

☆ Analysis: Market turmoil is doing central bankers' jobs for them
▼ + stars: | 2023-03-21 | by ( Yoruk Bahceli | ) www.reuters.com time to read: +5 min

European Central Bank President Christine Lagarde reckons market turmoil may do some of the ECB's tightening for it if it dampens demand and inflation. Financial conditions reflect the availability of funding in an economy, so they dictate spending, saving and investment plans of businesses and households. Central banks have been trying to tighten them by raising rates to slow rising prices. Signs of tightening financial conditions were plentiful. "Central banks no longer have a good idea about the true tightness of monetary policy," he said.

New York CNN —Global banks just suffered their worst week since 2008. Credit Suisse and First Republic: Two more banks wobbled but remained upright through the week. Meanwhile, First Republic bank received a $30 billion lifeline on Thursday from some of the largest banks in the United States. US-traded shares of Credit Suisse were down nearly 7% and First Republic shares plunged by about 33% on Friday. That doesn’t mean that banks taking money from the FHLB and participating in the Federal Reserve’s emergency Bank Term Lending Program, which lent out $12 billion to banks this week, are in big trouble.

Some industry executives said the central bank should prioritize financial stability now. “Go fast and hard on financial stability; go gradual and slow on price stability,” said Peter Orszag, chief executive of financial advisory at investment bank Lazard Ltd (LAZ.N). The central bank declined to comment. Others have joined in, with the European Central Bank raising rates by 50 basis points earlier this week. The events this past week correspond to a 1.5% increase in the Fed funds rate, Slok wrote.

☆ Silicon Valley Bank's collapse has made the Fed's job way harder, top economist says
▼ + stars: | 2023-03-17 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The Federal Reserve will struggle to achieve a "no landing" scenario now that Silicon Valley Bank has collapsed, according to Apollo Global Management's chief economist. Torsten Sløk said he's expecting the regional banking crisis to lead to a fall in lending levels. "The slowdown that was already underway because of the Fed raising rates might come faster," he told Bloomberg. Its stock then cratered 87% in two days before it was taken over by regulators – and the share prices of other regional banks like First Republic and Western Alliance have also plunged since its collapse. The banking crisis has led to some of Wall Street's top names raising alarm bells about the Fed – which is still upping borrowing costs in a bid to tame inflation.

☆ Analysis: Investors brace for hard landing as banking woes stoke recession fears
▼ + stars: | 2023-03-16 | by ( David Randall | ) www.reuters.com time to read: +5 min

[1/3] The Charging Bull, or Wall Street Bull, is pictured in the Manhattan borough of New York City, New York, U.S., January 16, 2019. “The no landing scenario has quickly evaporated,” said Emily Roland, co-chief investment strategist at John Hancock Asset Management. A financial accident has happened, and we are going from no landing to a hard landing driven by tighter credit conditions,” he wrote in a Wednesday note. Some investors believe regulators' quick backstop of Silicon Valley Bank, which included guaranteeing the funds of depositors, will prevent a crisis and allow for a soft landing. “The odds of a soft landing have gone down and the likelihood of a hard landing has gone up,” he said.

The Treasury said late on Saturday that Hunt would offer financial incentives for parents with young children, disabled people and others to rejoin the workforce in his tax and spending budget plan on Wednesday. The government said it hopes the announcements this week will get hundreds of thousands of people into work. Hunt also plans to allow disabled people and those with long-term health conditions to work without removing their supplementary financial support, the Treasury said. "A Conservative government will always cut taxes when we can, but we won't run out of money. We will be responsible with the public finances," he told Sky News.

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