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☆ It’s the wrong time for Trumponomics
▼ + stars: | 2022-11-16 | by ( Ben Winck | ) www.reuters.com time to read: +3 min

NEW YORK, Nov 16 (Reuters Breakingviews) - Former U.S. President Donald Trump tried to juice U.S. economic growth by enacting massive tax cuts and championing lower interest rates. As he sets his sights again on the White House, the country is turning its back on Trumponomics. The U.S. Federal Reserve has been jacking up interest rates in hopes of weakening demand and easing the climb in prices. Former UK Prime Minister Liz Truss proposed tax cuts for Britain's top earners and homebuyers in a mini-budget revealed in September, posing the policy as a way to spur growth. Surging inflation prompted the Fed to start raising interest rates in March to cool demand and slow price growth.

☆ The dollar's blistering rally is almost over as support from US economic outperformance is fading, Societe Generale says
▼ + stars: | 2022-11-03 | by ( Carla Mozée | ) www.businessinsider.com time to read: +4 min

The rally in the US dollar this year is likely to be closer to an end and headed toward "trendless trading," Societe Generale said Thursday. The "drivers of economic outperformance are fading" for the greenback, which has risen to a 20-year high against key rivals. "So far, US rates have risen further and faster than elsewhere, on the back of economic out-performance," Kit Juckes, macro strategist at Societe Generale, said in a note. That means we are close to the end of the dollar's long rally and moving to a phase of trendless trading." As the Fed has tightened, climbing US Treasury yields relative to other sovereign bond yields has bolstered dollar demand among holders of other currencies.

☆ Etsy's COO has 3 tips for making money this holiday season—from 'meaningful' gifts to the color hot pink
▼ + stars: | 2022-10-27 | by ( Tom Huddleston Jr. | ) www.cnbc.com time to read: +3 min

If you're planning to look for more deals and generally be a bit more thrifty this upcoming holiday shopping season, you're far from alone — and retailers are well aware. That's why small-business owners and side hustlers on platforms like Etsy begin preparing for the holiday season before Halloween, says Raina Moskowitz, Etsy's chief operating officer. "The holiday season is really the busiest season and most important time of the year, certainly across retail, but especially for small businesses," Moskowitz tells CNBC Make It. Small businesses especially are getting ready for an uncertain holiday season, as shoppers worry about a potential recession and inflation jacking up prices. Consider your prices carefullyEighty-four percent of holiday shoppers say they'll try to save money compared to previous holidays, according to a recent Bankrate survey.

☆ America's 'Zoomtowns' are running out of water
▼ + stars: | 2022-10-24 | by ( Kelli María Korducki | ) www.businessinsider.com time to read: +11 min

Remote workers aren't just driving up housing prices but also adding more of a burden to already water-strapped regions. Running out of waterAmerica's water crisis, which has been bubbling for years, has become dire. The lack of fresh snow means that less water makes its way into the river and its massive reservoirs — Lake Mead and Lake Powell — upon which the region depends for water. They found that statewide COVID-19 stay-at-home orders triggered "significant increases" in residential water consumption — a trend the researchers attributed, in large part, to remote workers. While population growth does increase water usage, it's (pardon the pun) a drop in the bucket of the bigger-picture crisis.

☆ There's still a bull case for the stock market even as inflation runs hot and rates rise
▼ + stars: | 2022-10-20 | by ( Carla Mozée | ) www.businessinsider.com time to read: +5 min

Today we're also looking at one firm's view that there's still a bull case to be made for stocks, but its sitting on increasingly shaky ground. The upside case for stocks rests largely on two things: inflation and rates. DataTrek Research co-founder Nicholas Colas told clients this week that investors could propel stocks up heading into 2023. "TIPS and Fed Funds Futures prices do currently support the idea that in six months inflation will be dropping and Fed policy will be moving into neutral," Colas said. Individual investors have reduced net purchases of stocks in recent days following the September inflation shock.

☆ P&G’s pricing power hangs by a floss
▼ + stars: | 2022-10-19 | by ( Amanda Gomez | ) www.reuters.com time to read: +3 min

Third-quarter earnings show a company whose pricing power is hanging on by a piece of floss. That suggests people are about to ditch some of their few remaining small joys, even when it comes to necessary goods. The $300 billion consumer goods company led by Jon Moeller said on Wednesday that net sales increased 1% to $20.6 billion, and much of that increase came from jacking up prices. It suggests that the Cincinnati-based company is maintaining some pricing power. Follow @alpgomez on TwitterCONTEXT NEWSProcter & Gamble on Oct. 19 reported net sales of $20.6 billion for the quarter ended Sept. 30.

☆ Clothes, electronics, and toys are set to get cheaper this holiday season. That doesn't really help most Americans deal with inflation.
▼ + stars: | 2022-10-19 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +6 min

Americans are set to receive discounts on clothing, electronics, and toys this holiday season. "You could tell the same story for healthcare, childcare, tuition. Mark PerryPrices of electronics, toys, and apparel could see "massive" discounts in the coming months of over 32%, per an Adobe Analytics forecast. Perry says the "most concerning trends" are in the rising costs of college tuition and hospital services. In comparison, software, electronics, toys, and clothing – industries with less regulation — have seen prices fall, he wrote in a July blog post.

☆ Take Five: Calm or calamity?
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: +5 min

Traders are back on Japanese yen intervention watch, while the U.S. earnings season and a congress of China's ruling Communist Party kick off. Growing expectations of a government u-turn on most of its unfunded tax cuts should end much of the pain. The carnage in British gilts has exposed vulnerabilities in the pensions sector, shining a light on financial stability risks. The IMF warns of "disorderly asset repricings" and "financial market contagion." A market slide has moderated stock valuations, but a downgrade in the earnings outlook could dampen equities' attractiveness.

And futures now assume the inflation fight will fall solely on the BoE and expect it to triple policy rates to as high as 5.8-6% next year. On Tuesday, the independent Institute for Fiscal Studies said Kwarteng needed 62 billion pounds ($68.22 billion) of spending cuts to keep public debt sustainable over time, with borrowing this year on course for 194 billion pounds and still above 100 billion by 2026/27 - over 70 billion higher than OBR forecasts in March. QE involves the purchase of mostly gilts from commercial banks in return for interest-bearing reserves at the central bank. And, unlike other major central banks, the BoE policy rate itself is the rate paid on those bank reserves. NIESR last year urged a solution to the problem whereby Treasury and central bank reduced the maturity mismatch by swapping longer-dated gilts back to Treasury to cut duration of its portfolios.

☆ College costs keep snowballing despite Biden’s efforts to ease student debt burden
▼ + stars: | 2022-10-01 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Shannon-Pettypiece-Circle-Byline-Template.Jpg | Shannon Pettypiece | ) www.nbcnews.com time to read: +6 min

Loans from private banks have gone up even faster, with some charging more than 13% for student loans this fall, people familiar with the industry said. Borrowers with existing loans that have variable rates have started seeing their monthly payments go up from the higher rates, they said. Increased costs mean many students have to borrow more money at higher rates, further exacerbating the student debt problem the Biden administration set out to address. The problem is the cost of higher education,” said Betsy Mayotte, president of The Institute of Student Loan Advisors. “We commend this administration for responding to the call of addressing of the student loan debt crisis,” said Derrick Johnson, president of the NAACP.

☆ Premarket stocks: Ronald Reagan's tax lesson for Britain
▼ + stars: | 2022-09-27 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Citibank analysts called the decision a “huge, unfunded gamble for the UK economy.” Markets dropped precipitously on the news. But much like Truss, Reagan argued that massive tax cuts and deregulation would stimulate productivity and he championed a sweeping tax cut that was passed by Congress that year. According to US Treasury estimates, Reagan’s tax cuts reduced federal revenues by about 9% in the first couple of years. A lesson from history: “When tax cuts are really too big to be sustainable, they’re often followed by tax increases,” wrote David Wessel, director of The Hutchins Center on Fiscal and Monetary Policy. The US dollar appreciated during the Reagan tax cuts because it benefits from global reserve currency status.

☆ UK tax cuts will benefit the rich more than anyone else
▼ + stars: | 2022-09-26 | by ( Anna Cooban | ) edition.cnn.com time to read: +3 min

On Friday, UK finance minister Kwasi Kwarteng announced a bumper set of tax cuts, including scrapping the top rate paid by the highest earners, and reductions in duties paid on house purchases. That’s the biggest tax cut in half a century, according to the Institute for Fiscal Studies. Kwarteng slashed the top rate of income tax — paid by those earning over £150,000 ($161,327) — to 40% from 45%. Kwarteng also announced he would accelerate a plan to cut the basic rate of income tax from 20% to 19%. ‘More to come’Kwarteng told the BBC on Sunday that his tax cuts “favor people right across the income scale.”“We’ve actually put more money into people’s pockets,” he told the broadcaster.

☆ Take no prisoners: In the Fed’s inflation fight, no one is spared
▼ + stars: | 2022-09-26 | by ( Christine Romans | ) edition.cnn.com time to read: +5 min

Global central banks are jacking up interest rates with no end in sight until high inflation is vanquished. The Federal Reserve is aggressively fighting inflation by lifting its benchmark interest rate five times so far this year. There isn’t.”Higher interest rates make life more expensive for anyone who borrows money. The higher rates ding home affordability but also might be holding back home sales. Higher interest rates make financing a car — when you can find one — even more expensive.

☆ Wall Street is completely delusional about the pain that's about to hit the stock market
▼ + stars: | 2022-09-25 | by ( Linette Lopez | ) www.businessinsider.com time to read: +6 min

Despite this clear warning, Wall Street is still delusionally optimistic about how the stock market will perform in 2023. According to Bloomberg, Wall Street analysts expect S&P 500 companies' earnings per share to hit $229 in 2023 — a steady increase from their initial 2023 estimate of $211 at the start of this year. Pretend it's the end of 2019 — not a terrible time for the stock market and the US economy. Even if corporate profits sink back down to that healthy level, it's still a long way down from where the stock market sits right now. All the visuals you've seen of a screaming-red stock market and sweaty traders doing the sign of the cross — those are just the beginning.

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☆ Billionaire Carlyle co-founder David Rubenstein says a Fed rate hike of 100 basis points would shock and depress the market and spook investors about inflation
▼ + stars: | 2022-09-20 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

The Federal Reserve will likely stick with raising rates by 75 basis points at its meeting this week. "The Fed has been telegraphing 75 basis points. If they were to go to 100 basis points, I think it would be shocking to the market," Rubenstein said in a televised interview on Monday. "I know some percentage of people in the market, 14% or so, think it might be 100 basis points, but I think they wouldn't want to shock the market that way. "The Fed is likely to think if they were to do 100 basis points, the reaction would be that they know that inflation is much worse than people think it is.

☆ Everyone talks about all the people moving to Florida. But high prices, hot weather, and shattered expectations are pushing residents out, too.
▼ + stars: | 2022-07-13 | by ( Jordan Pandy | Madison Hoff | ) www.businessinsider.com time to read: +7 min

Florida was the top 2021 destination for movers, with 221,000 more US residents moving in than out. The leavers say the high cost of living, including skyrocketing insurance prices, is a big factor. Take car insurance: Lovelace, a private investigator who uses her car regularly for work, paid $430 a month. The state's chief financial officer, Jimmy Patronis, said in May 2021 that 900 people a day were moving to Florida. A study by Joblist that compared wages to cost of living ranked Florida last out of all 50 states in affordability.

☆ One millionaire landlord was behind half of Milwaukee's evictions during Covid lockdowns last June. Here's the story of how corporate landlords helped drive the evictions crisis
▼ + stars: | 2021-03-26 | by ( Abigail Higgins | ) www.businessinsider.com time to read: +23 min

Corporate landlords in cities like Milwaukee helped drive an evictions crisis during the pandemic. Corporate landlords, which own almost 50% of rental properties, are more likely to evict, advocates say. Before the 2008 recession, corporate landlords owned 20% of rental properties; today, it's nearing a whopping 50%. Since the Center for Disease Control's evictions moratorium took effect last September, evictions by corporate landlords have actually been steadily increasing. There is no national database of evictions, and evictions are only tracked at the level of the country's more than 3,000 counties.

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