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Meanwhile, its financial markets are bleeding, the property market has gone up in smoke, local government debt appears alarming, and foreign investors are exiting in droves. Real estate — which was a huge part of China's economy — has been hit badly, he said. AdvertisementTravel has picked up after years of pandemic lockdownServices is another pillar of China's economy that Beijing has been trying to build up. AdvertisementThis is in part because new growth industries are not able to take the place of real estate — yet. Because the property market accounts for one-quarter of China's GDP and more than two-thirds of household wealth, its overall drag on China's economy is much greater than whatever is doing well right now.
Persons: , Rory Green, GlobalData.TS Lombard, AllianceBernstein, John Lin, Lin, Donald Trump's, Louise Loo, Wood Mackenzie, AllianceBerstein's Lin, Nomura, Loo Organizations: Service, Business, Bloomberg TV, Oxford Economics, Nomura, Oxford Locations: China, GlobalData.TS, Real, COVID, Beijing, Europe, Taiwan, South Korea
Watch CNBC's full interview with JPMorgan's Kevin Foley
  + stars: | 2024-02-26 | 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 JPMorgan's Kevin FoleyKevin Foley, JPMorgan global head of debt capital markets, joins 'Money Movers' to discuss the Federal Reserve's decision making, the impact to the credit markets, and why there's so much pent up demand.
Persons: JPMorgan's Kevin Foley Kevin Foley Organizations: JPMorgan
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOptimism around economy has led activity in refinance markets, says JPMorgan's FoleyKevin Foley, JPMorgan global head of debt capital markets, joins 'Money Movers' to discuss the Federal Reserve's decision making, the impact to the credit markets, and why there's so much pent up demand.
Persons: JPMorgan's Foley Kevin Foley Organizations: JPMorgan
A cyclical slowdown has to come unless you’re in the camp that thinks structural growth of the economy has risen dramatically. We don’t think that’s the case. Do you think that’s the case? The jobs market is a byproduct of GDP growth. I think that this should make people feel a little bit better about the prospects for the year.
Persons: Bell, Satyam Panday, It’s, we’ve, that’s, Warren Buffett, Charlie Munger, Warren Buffett’s, Buffett, Munger, , Charlie, Berkshire Hathaway, Brian Fung Organizations: CNN Business, Bell, New York CNN, Satyam, Federal Reserve, Berkshire Hathaway, Investors, Oracle, , Berkshire, US, Facebook, YouTube Locations: New York, Real, Berkshire, Omaha, “ Berkshire, The Omaha , Nebraska, Texas, Florida
With annual inflation nearing 30% and a currency in freefall, Nigeria is facing one of its worst economic crises in years, provoking nationwide outrage and protests. The currency is down around 70% since May 2023 when Tinubu took office, inheriting a struggling economy and promising a raft of reforms aimed at steadying the ship. In a bid to fix the beleaguered economy and attract international investment, Tinubu unified Nigeria's multiple exchange rates and enabled market forces to set the exchange rate, sending the currency plunging. In January, the market regulator also changed how it calculates the currency's closing rate, resulting in another de facto devaluation. Years of foreign exchange controls have also generated enormous pent-up demand for U.S. dollars at a time when overseas investment and crude oil exports have declined.
Persons: Bola Tinubu, Tinubu Organizations: U.S, greenback Locations: IBADAN, Nigeria, Ibadan, freefall, Nigerian
Big deals are back with a $53 billion bang
  + stars: | 2024-02-21 | by ( Theron Mohamed | ) www.businessinsider.com   time to read: +3 min
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. This week alone, Capital One agreed to acquire Discover for $35 billion, Truist Financial announced a $15.5 billion sale of its insurance arm, and Walmart shook hands to buy TV maker Vizio for $2.3 billion. The trio of transactions, worth a combined $53 billion, have lifted the value of deals announced worldwide this year to $425 billion — a 55% increase from the same period in 2023, Bloomberg estimates. Transactions worth more than $5 billion plunged 60%, from nearly 150 deals in 2021 to fewer than 60 last year, LSE Group found. Potential headwinds include stubborn inflation, a surprise recession, escalating armed conflicts, regulatory crackdowns, and uncertainty over this year's presidential election.
Persons: Organizations: Service, Discover, Truist Financial, Walmart, Bloomberg, Business, London Stock Exchange, LSE Group, dealmaking, Federal Reserve
China's travel activity and spending jumped above pre-pandemic levels during the Lunar New year holiday, in a sign that consumption was improving in the world's second-largest economy. Tourists spent nearly 632.7 billion yuan ($87.95 billion) on domestic holiday trips, a 47.3% year-over-year jump, data showed. State broadcaster China Central Television said citing the ministry that domestic trips represented a 19% rise over the same period in 2019 while spending rose 7.7%. The Chinese mainland saw 3.6 million tourist departures and 3.23 million tourist arrivals during the holidays, according to the ministry, as mutual visa-free travel with certain countries hastened the recovery in both outbound and inbound travel during the holidays. However, sustainability of the bump in travel remains uncertain as tourism revenue per trip still remained below the pre-pandemic level.
Persons: Nomura Organizations: country's Ministry of Culture, Tourism, Tourists, China Central Television Locations: Sunday, State, China
Homebuyers are facing a worsening affordability situation with mortgage rates hovering around the highest levels in more than a decade. Mortgage rates shot higher Friday after a monthly government report on wholesale prices showed inflation is still persistent and hotter than most analysts had expected. Mortgage rates hit their last high in October but then fell sharply over the next two months, leveling out at around 6.6% in December. In February's report, builders said they expected mortgage rates to continue to moderate in the coming months. "And while mortgage rates still remain too high for many prospective buyers, we anticipate that due to pent-up demand, many more buyers will enter the marketplace if mortgage rates continue to decline this year."
Persons: Matthew Graham, Alicia Huey Organizations: Mortgage News, . Census, National Association of Home Builders Locations: Albany , California, Birmingham , Alabama
Mortgage rates rise for the second week, reaching 6.77%
  + stars: | 2024-02-15 | by ( Anna Bahney | ) edition.cnn.com   time to read: +6 min
Washington, DC CNN —After treading water for months, US mortgage rates jumped higher Thursday following a string of strong employment and inflation reports. “On the heels of consumer prices rising more than expected, mortgage rates increased this week,” said Sam Khater, Freddie Mac’s chief economist. The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The addition of needed inventory and the prospect of lower mortgage rates this year may spur buyers to jump into the market. “This spring, buyers are likely to see lower mortgage rates than in the fall of 2023, which may mean more eager buyers in the market,” Jones said.
Persons: Freddie Mac, , Sam Khater, Freddie Mac’s, Khater, Bob Broeksmit, Broeksmit, Jerome Powell, Hanna Jones, who’ve, Lisa Sturtevant, Jones, Alicia Huey, ” Jones Organizations: DC CNN, , Mortgage Bankers Association, Labor Department, Federal Reserve, Realtor.com, National Association of Home Builders Locations: Washington,
Ford CEO Jim Farley discussed a range of topics Thursday from hybrid and electric vehicles to how the automaker is dealing with international competitors. Ford Pro "If you're looking for the future of the automotive industry stop looking at FDS [full self-driving] and Tesla , look at Ford Pro," Farley said. The transformation of Pro, Farley said, has been a notable success for the company. "We always had a super successful Pro business … but there was no focus on it." Despite the success of Pro, Ford continues to lose money in its Model e business, which hosts its fleet of electric vehicles.
Persons: Jim Farley, Farley, Ford, Li Auto, Warren Buffett's Berkshire, BYD, Jim Cramer's, Jim Cramer, Jim Organizations: Wolfe Research, Club, Ford, Ford Pro, Warren Buffett's Berkshire Hathaway, CNBC Locations: U.S, Europe, EVs, China, Warren Buffett's, Berkshire, breakeven
AdvertisementChina's economy and markets were weak coming into 2024, but investor sentiment could worsen after the ongoing Chinese New Year break. "Service consumption growth will likely slow sharply after the Chinese New Year holiday on fading pent-up demand and weakening consumer confidence," the economists wrote. Authorities have pulled more than a dozen moves since January to try to stabilize the stock market rout and support downbeat property market demand amid its real-estate crisis. After all, there were suggestions earlier that authorities are considering a stabilization fund to rescue the flailing stock market. AdvertisementMainland stock markets are closed this week for public holidays.
Persons: , Rich Lesser, Lesser, Hang, Xi Jinping Organizations: Beijing, Service, Chinese Ministry of Commerce, Nomura, Boston Consulting, Hang Seng China Enterprises, Authorities Locations: China, Beijing, Hong Kong
Morgan Stanley initiates Ford as a top pick Morgan Stanley said it's standing by its top pick status on Ford. Morgan Stanley initiates Dynatrace as equal weight Morgan Stanley initiated the software stock with an equal weight and said patience is needed. Morgan Stanley reiterates Disney as overweight Morgan Stanley said Disney's participation in a sports streaming bundle is 'low-risk." Morgan Stanley adds Huntington Bancshares to the financials finest list Morgan Stanley added the regional bank to its financials finest list. Morgan Stanley reiterates Rivian as overweight Morgan Stanley said it's standing by its overweight rating on the stock, but that the company will need "substantial funding" to complete its Georgia plant.
Persons: Goldman Sachs, Goldman, ANET, hyperscaler, Morgan Stanley, Ford, it's, Dynatrace, Redburn, Evercore, Susquehanna, Piper Sandler, Trimble, Piper, Riley, Bernstein, Disney, Huntington Bancshares, Huntington, Banks, Stephens, Cantor Fitzgerald, Stratasys, Cantor, Rivian Organizations: Arista Networks, Ford, downgrades, Airlines, UBS, Nvidia, NextEra Energy Partners, Taiwan Semiconductor, Apple, Apple Services, DIS, FOX, Deutsche Bank, Walmart, Citi, GSK, " Bank of America, of America Locations: NVDA's, North America, NAPA, Georgia
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. "We are noticing a shift, but we are also driving it," Lego Chief Product and Marketing Officer Julia Goldin told Business Insider of the "kidult" trend. This story is available exclusively to Business Insider subscribers. Lego will be putting further efforts around its botanical range around key occasions in 2024, Goldin said. In October, Pharrell Williams biopic, "Piece by Piece," will be released to movie theaters, which will be told using Lego animation.
Persons: , Julia Goldin, Goldin, Lego, McLaren, Ayrton Senna, Pharrell Williams, Lego Goldin Organizations: Service, Business, Lego, Petronas, BMW, Mercedes
Home prices declined slightly in November while posting yearly gains, suggesting the housing sector has cooled somewhat heading into 2024. The house price decline came at a time where mortgage rates peaked, with the average Freddie Mac 30-year fixed rate mortgage nearing 8%, according to Federal Reserve data. But as more inventory comes on the market and mortgage rates remain elevated, sale prices may be beginning to wilt. That has led some analysts to say that the market could bounce back as the traditional spring buying season begins. The index tracks a three-month period when mortgage rates were zig-zagging and ended on a down note, said Danielle Hale, chief economist at Realtor.com.
Persons: , Brian Luke, San Francisco, Cleveland –, Luke, , Freddie Mac, Selma Hepp, Danielle Hale Organizations: Dow Jones, Seattle, Cleveland, Midwest, Federal Reserve Locations: , San, Miami, Tampa, Atlanta, Charlotte , New York
SAVANNAH, Ga. (AP) — The Georgia Ports Authority said Tuesday that it moved a record number of automobiles across its docks in Brunswick last year, while goods shipped to Savannah in cargo containers declined 16%. The news comes as port authority CEO Griff Lynch has set a goal of Brunswick surpassing the Port of Baltimore as the No. We've been creating capacity in Brunswick,” Lynch said in an interview, adding that more growth is possible in 2024. Savannah handled 4.9 million container units of imports and exports last year, down 16% compared with calendar 2022. “I fully believe that when we look at February and March and April, we should see some positive numbers year-over-year,” Lynch said.
Persons: Griff Lynch, We've, ” Lynch, Lynch, , Organizations: Georgia Ports Authority, Brunswick, Port, Auto, Hyundai, Kia, U.S Locations: SAVANNAH, Ga, Georgia, Brunswick, Savannah, Port, Port of Baltimore, Southern, U.S, Atlanta, West, New York, Los Angeles, Long Beach , California
"The model is forecasting lower economic growth in 2024 and I believe that will be realized," Harvey said, predicting a slowdown this quarter that will continue into the summer. AdvertisementHarvey also called on the Fed to end its inflation fight, arguing price growth has already normalized based on real-time housing data. "What the Fed has done in this cycle has made things worse, so we will be very fortunate to get out of this with slow growth." That could slow economic growth in the short term but prevent a full-blown recession later, he said. On the other hand, he argued the US should aim to accelerate economic growth to 5% by capitalizing on innovations like artificial intelligence and decentralized finance.
Persons: Campbell Harvey, Julia Roche, Harvey, hasn't, it's Organizations: Service, Federal, Business, Duke University, Fed
Hyundai Motor, the world's No.3 automaker by sales with its affiliate Kia Corp, reported a net profit of 2.2 trillion won ($1.65 billion) for the October-December period versus a profit of 1.7 trillion won a year earlier. That compared with a 2.9 trillion won average forecast by LSEG SmartEstimate, which is weighted towards estimates from analysts who are more consistently accurate. It expects a 4.9% jump in North American vehicle sales but a 3.7% drop and 0.6% fall in vehicle sales in China and Europe, respectively. "Hyundai Motor expects the business environment will remain difficult to predict, due to macro uncertainties centered on emerging markets and a downturn in the real economy," Hyundai Motor said in a statement. Shares in Hyundai Motor were trading up 2.0% after it reported its earnings, outperforming 0.1 rise for the benchmark Kospi.
Persons: Hyundai, LSEG SmartEstimate, Lee Jae, Lee Organizations: Hyundai, Hyundai Motor, Kia Corp, Eugene Investment, Securities Locations: San, San Leandro , California, South, Russia, China, Europe
The 11th Circuit U.S. Court of Appeals has scheduled oral arguments in the case for March 27 in Atlanta. Attorneys for father and son Greg and Travis McMichael and their neighbor, William “Roddie” Bryan, are asking the court to throw out hate crime convictions returned by a jury in coastal Brunswick in 2022. Bryan joined the chase in his own truck and recorded Travis McMichael shooting Arbery at close range with a shotgun. The McMichaels and Bryan stood trial on hate crime charges in U.S. District Court less than three months after all three were convicted of murder in a Georgia state court. Also pending are appeals by all three men of their murder convictions in Glynn County Superior Court.
Persons: Ahmaud Arbery, Greg, Travis McMichael, William “ Roddie ” Bryan, Bryan, Arbery, Greg McMichael, Travis McMichael's, Julian Bond, , McMichaels Organizations: 11th Circuit U.S, Appeals, Prosecutors, Blacks, Court Locations: SAVANNAH, Ga, Georgia, Atlanta, Brunswick, Arbery, U.S, Glynn County
Last year, U.S. companies announced 55% more CEO changes than in 2022, according to outplacement firm Challenger, Gray & Christmas. Boards didn't want to make changes, CEOs themselves didn't want to leave. The retail industry in 2023 saw 52 CEO departures, its second-highest number since Challenger, Gray & Christmas started tracking them, and more than double the 21 CEO turnovers in 2022, according to the firm's data. It was below 2019's record 63 CEO departures in the industry. In Korn Ferry's separate analysis of retail CEO turnover in 2023, the executive recruitment firm found 57% of new chief executives named in the industry last year were already working for the company they will lead.
Persons: Michelle Gass, Levi Strauss, Macy's, Andy Challenger, Challenger, Korn Organizations: Kohls Corp, National Retail Federation Inc, Challenger Locations: New York, U.S
BANGKOK (AP) — Asian shares were mixed on Wednesday after Japan reported its exports jumped nearly 10% in December, though shares in Tokyo declined. Hong Kong’s Hang Seng surged 2% to 15,569.39, helped by gains in technology companies like e-commerce giant Alibaba, which surged 3.8%. The index rose 0.3% to 4,864.60. United Airlines flew 5.3% higher after it also reported stronger profit for the last three months of 2023 than analysts expected. Among Tuesday’s headliners was Verizon Communications, which rose 6.7% after beating analysts’ profit estimates.
Persons: Wang Jiangjun, Hang Seng, ” Gabriel Ng, India's Sensex, Gamble, D.R, Horton, Brent Organizations: Japan, China Securities Regulatory Commission, Capital Economics, Nikkei, Bank of, Nasdaq, Dow Jones, Procter, United Airlines, Boeing, Max, Tesla, Intel, Verizon Communications, General Electric, Analysts, Federal Reserve, Treasury, New York Mercantile Exchange, U.S Locations: BANGKOK, Tokyo, China, Shanghai, Bank of Japan, South Korea, Australia, Bangkok
New York CNN —New Hampshire, the “first-in-the-nation” primary state (which will hold those elections Tuesday), has been a relatively “better-off” state than most others nationally. Median income/povertyThe typical New Hampshire household has a higher income compared to the average in the United States, and a smaller share of state’s residents are in poverty. Southeastern New Hampshire — where three-quarters of the state’s residents live — benefits from being close to the Boston metropolitan area, said Phil Sletten, research director at the left-leaning New Hampshire Fiscal Policy Institute. Some 42% of New Hampshire residents approved of Biden on the economy, with 55% disapproving, according to a November CNN/University of New Hampshire poll. But when it comes to their personal finances, New Hampshire residents are downbeat.
Persons: ’ ”, Charlie Dougherty, , ” Dougherty, “ You’ve, Patricia M, Anderson, Patrick Connelly, ” Connelly, that’s, Brian Gottlob, , Spencer Platt, Lori Harnois, Gottlob, Phil Sletten, Sletten, Joe Biden, Biden, Gina Ferazzi Organizations: New, New York CNN —, United States, of Labor Statistics, Wells, Labor, Reserve, Dartmouth University, CNN, Housing, Tax Foundation, Tourism, Census, Granite State, Survey, New Hampshire —, University of New, Commerce Department, University of New Hampshire Survey Center, Patrons, Los Angeles Times, Independents Locations: New York, New York CNN — New Hampshire, Granite, New Hampshire, Boston, , New Hampshire, “ New Hampshire, , Hampshire, Chester , New Hampshire, Manchester, Devon, Bartlett , New Hampshire, Ohio, Washington, New, Canada, Pennsylvania, United States, Granite State, University of New Hampshire, Colebrook , New Hampshire
Curled on the couch in my daughter Kristil's Parisian apartment, the sound of a key turning jolted me awake. Relief at hearing Kristil's return home turned to anxiety as I recognized the voice of a friend whom I disapproved of. The immediate aftermath was a strained silence between Kristil and me, a palpable divide that marked a turning point in our relationship. When my daughter went to college, it was hard to let goKristil and I had always been close. The confrontation with Kristil and her friend in Paris felt like the culmination of years of harbored concerns and miscommunication.
Persons: Kristil's, sipping lattes, Kristil Organizations: Left Bank, Ivy League, Columbia University —, Columbia Locations: Wisconsin, Kristil, Paris
Barclays CEO C.S. Venkatakrishnan said he is "very optimistic" about the outlook for the U.K. economy, speaking to CNBC at the World Economic Forum in Davos, Switzerland. "I think the U.K. consumer is in very decent shape ... The typical products on offer to U.K. consumers are two-year and five-year mortgages. So the two things that have hit the pocket book are coming down, and I will say I'm very optimistic on the U.K.," he added.
Persons: Venkatakrishnan, — Lucy Handley Organizations: Barclays, C.S, CNBC, Economic Locations: Davos, Switzerland
Fed Finds Economy Holding Stable, Price Pressures Easing
  + stars: | 2024-01-17 | by ( Tim Smart | Jan. | At P.M. | ) www.usnews.com   time to read: +4 min
Notably, the report suggested that inflation was not as powerful a force as it had been a few months back. These numbers point to a strong spring, especially with the Fed getting more dovish. “Both changes would support the economy and extend growth, but also likely weaken the US dollar,” Khurana says. Businesses are entering 2024 in a positive mood, according to Dun & Bradstreet’s quarterly Global Business Optimism index released on Tuesday. The National Association of Homebuilders’ sentiment index improved in January to its highest level since September.
Persons: , , David Russell, Chip, ” Brij, Khurana Organizations: Federal Reserve, , Fed, Wellington Management, National Association of Locations: York, Dun
Data compiled by The Earnings Scout shows the early reporters have had no trouble beating earnings expectations so far. Tuesday Goldman Sachs is set to report earnings before the bell, followed by a conference call at 9:30 a.m. What history shows: Goldman exceeds earnings expectations 85% of the time, data from Bespoke Investment Group shows. What history shows: Bespoke data shows PNC tops earnings expectations 75% of the time. What history shows: KeyCorp shares have fallen on four of the last five earnings days, Bespoke data shows.
Persons: Goldman Sachs, Morgan Stanley, Hugh Son, Goldman, James Gorman, Ted Pick, it's, Jefferies, Schlumberger, SLB, Wells, Roger Read Organizations: JPMorgan Chase, Bank of America, Citigroup, Wall, PNC Financial, CNBC, Investment Group, Management, LSEG, PNC, Regional Banking, JPMorgan, UST, Schlumberger Locations: Wells Fargo, Cleveland, Pittsburgh, 3Q23, SLB
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