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CNBC Daily Open: Americans sour on the economy
  + stars: | 2024-02-28 | by ( Sumathi Bala | ) www.cnbc.com   time to read: +2 min
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Mixed bag on Wall StreetU.S. stocks ended mixed Tuesday as investors prepared for key inflation data due out later this week. South Korea's Japan-style measures to boost corporate governance may not work to lift its undervalued stock markets and tackle the so-called "Korea discount." Honor's foray into flip phonesChinese technology firm Honor will launch a foldable flip phone this year, the company's CEO George Zhao told CNBC.
Persons: Joe Biden, Dow, Bitcoin, Tesla, George Zhao, Andrew Organizations: CS Wind America Inc, CNBC, Wall Street, Nasdaq, Apple, Bloomberg, Will, Korea's, Financial Services Commission, Samsung Locations: Pueblo , Colorado, Korea's Japan, Korea
BARCELONA — Chinese electronics maker Honor is working on a smart ring, its CEO told CNBC on Tuesday, just a day after Samsung took the wraps off of its own offering in the product category. Samsung debuted the Galaxy Ring on Monday after teasing it earlier this year. The device, which is the company's first foray into the product category, has multiple sensors that can track health markers, such as the wearer's heart rate. Honor is developing its own smart ring, company CEO George Zhao told CNBC at the Mobile World Congress in Barcelona. "Internally, we have this kind of solution, now we are working on that part, so in the future you can have the Honor ring," he said.
Persons: George Zhao Organizations: Mobile World Congress, MWC, CNBC, Samsung, Mobile Locations: Barcelona, BARCELONA
U.S. prosecutors Friday asked a judge to tighten the bond conditions of billionaire Binance founder Changpeng "CZ" Zhao as he awaits his April sentencing for breaking a federal anti-money laundering law, court filings show. Under the proposed bond, Zhao would be required to provide prosecutors and pretrial services with at least three days' notice before any travel within the country, to give them time to raise any potential objections. An attorney for Zhao did not immediately respond to CNBC's request for comment. Pretrial Services also recommended "a location-monitoring condition," the filing said in a footnote. The filing does not explicitly ask the judge to impose that condition.
Persons: Changpeng Zhao, Binance, Changpeng, Zhao, Richard Jones Organizations: Viva Technology, Porte de, U.S, Zhao, Canadian, United, United Arab Emirates, Court Locations: Porte, Paris, United States, United Arab, Seattle, Washington
For years, Chinese companies and their contractors have been slaughtering millions of donkeys across Africa, coveting gelatin from the animals’ hides that is processed into traditional medicines, popular sweets and beauty products in China. But a growing demand for the gelatin has decimated donkey populations at such alarming rates in African countries that governments are now moving to put a brake on the mostly unregulated trade. The African Union, a body that encompasses the continent’s 55 states, adopted a continentwide ban on donkey skin exports this month in the hope that stocks will recover. Rural households across Africa rely on donkeys for transportation and agriculture. Yet donkeys only breed a foal every couple of years.
Organizations: African Locations: Africa, China, African Union
"The overall percentage is now lower, but the overall volume of deepfake content which is pornographic has exploded," Ajder said. Deepfake porn of pop superstar Taylor Swift has raised awareness of the issue. Criminal deterrentsThis has had an effect on legislation in the UK, where the Online Safety Act has made it illegal to distribute deepfake porn — but not to create it. AdvertisementThough hard to prosecute, criminalizing deepfake porn is still an important deterrent, in his view. In India, a deepfake porn scandal involving Bollywood actresses spurred the government to fasttrack legislation and pressure the big tech companies to prevent AI-generated content from being spread online.
Persons: , Trace, Henry Ajder, Midjourney, Ajder, Taylor Swift, Bauer, Griffin, Elon Musk, Biden, ChatGPT, they're, it's, Ben Zhao, Joe Biden, Joe Morelle, deepfakes, criminalizing Organizations: Service, BBC News, Google, Meta, Coalition, telltale, University of Chicago, NPR, Anadolu, Getty, Associated Press, Federal Communications Commission Locations: Deepfakes, British, New York, New Hampshire, India
Suspicions in the science fiction community have been building for weeks that something was amiss with last year’s awards, which rotate to a different city each year, and in 2023 were hosted in Chengdu, China. What are the Hugo Awards? The awards, first established in 1953, are given annually at a gathering hosted by the World Science Fiction Convention. Writers are nominated and awarded prizes by members of the World Science Fiction Society, which includes science fiction fans. In January, the Hugo Awards revealed which writers had been nominated for last year’s awards, and by how many people.
Persons: Ursula K, Le Guin, William Gibson, Philip K, Dick, Hugo, Kuang, Xiran Jay Zhao Organizations: Science, Convention, Writers, Science Fiction Society, Canadian Locations: China, Chengdu, American, Oxford
The job market might look solid on paper — unemployment is low, job openings are high — but the reality for many Americans on the job hunt tells a different story. "I just think the numbers are underselling how hard it is for job seekers right now." Economists and recruiters say lingering expectations from the "great resignation" and businesses' fears about an imminent recession could be to blame for job seekers' malaise. "How people feel about the job market is informed by their recent experiences with the job market," Glassdoor chief economist Daniel Zhao recently told CNBC. So even if 2024 is shaping up to be a relatively healthy labor market by recent comparison, it doesn't feel quite as strong."
Persons: ghosting, Javier Serrano, Serrano, Daniel Zhao, Bert Bean, aren't, Zhao, it's, Dan Kaplan, Kaplan Organizations: LinkedIn, CNBC, Insight Locations: Orlando, boardrooms
Helen Zhao quit her dream job and spent $34,000 of her life savings to travel. In a CNBC article, Zhao wrote that she wishes she had continued saving while traveling. AdvertisementA woman who quit her dream job to travel says she regrets not saving enough money for a house or retirement. In an article for CNBC, Helen Zhao wrote that she quit her dream job as a video producer at the news outlet in 2022, after working there for four years. Zhao wrote that she traveled to 18 countries in Asia and South America over the course of a year and a half, on a budget of $34,000.
Persons: Helen Zhao, Zhao, , I'm Organizations: CNBC, Service, International Trade Administration Locations: Asia, South America, Los Angeles, Europe
After a brief reprieve in December and January, mortgage rates are moving higher again, and that is taking its toll on mortgage demand. Total mortgage application volume fell 2.3% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. "That's because mortgage rates are climbing again and winter weather has been harsher than usual in much of the country, keeping some house hunters at home." Mortgage rates surged even higher Tuesday after a government report on inflation showed it was still stubbornly higher than expected. "The bond market (which underlies mortgage rates) reacted immediately and forcefully when the numbers came out.
Persons: Joel Kan, Chen Zhao, Bonds, Matthew Graham Organizations: Mortgage, Mortgage News Locations: Pico Rivera , California, Redfin
Changpeng Zhao, founder and CEO of Binance, attends the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris on June 16, 2022. The criminal sentencing of Binance founder Changpeng Zhao on a money laundering rule charge has been postponed until April 30, according to a notice Monday in Seattle federal court. That docket entry did not explain what would be a two-month delay in sentencing Zhao, a Canadian national widely known as "CZ" who is free on a $175 million release bond in the United States. Federal sentencing guidelines suggest a maximum sentence of 18 months in prison for Zhao, but prosecutors reportedly have considered asking for a harsher sentence. Zhao pleaded guilty on Nov. 21 to a charge of failure to maintain an effective anti-money laundering program at Binance, the world's largest cryptocurrency exchange.
Persons: Changpeng Zhao, Zhao, William Burck Organizations: Viva Technology, Porte de, Canadian, CNBC, Department of Justice, Emergency Economic Locations: Porte, Paris, Seattle, United States, Binance
Many worry that a second term for Trump would be an earthquake, but tremors already abound — and concerns are rising that the U.S. could grow less dependable regardless of who wins. Photos You Should See View All 21 ImagesBiden, in contrast, has made support for Ukraine a key priority and moral imperative. But many of America's European NATO allies are worried that with or without Trump, the U.S. is becoming less reliable. German Chancellor Olaf Scholz said he was “currently on the phone a lot with my colleagues and asking them to do more” to support Ukraine. Dalton, a former U.K. ambassador to Iran, said prospects for the Middle East would be “slightly worse” under Trump than Biden.
Persons: Joe Biden, Donald Trump, Emmanuel Macron’s, Trump, Germany’s Angela Merkel, Britain’s Theresa May, Recep Tayyip Erdogan, Vladimir Putin, Viktor Orbán “, , Biden, Richard Dalton, Olaf Scholz, , Scholz, Macron, ” Macron, Boris Johnson, ” Johnson, Putin, Johnson, ” Bronwen Maddox, ” Trump, hasn't, , Dalton, implore Biden, Itamar Ben, Israel, Turkey’s Erdogan, Sergey Lavrov, George W, Zhao Minghao, ” “, Jiwon, Kirsten Grieshaber, Dasha, Suzan Fraser, Nomaan Merchant Organizations: U.S, Trump, NATO, Congressional Republicans, Centre, Politics, University College London, Mail, Associated Press, Hamas, White, Russian, CBS, Biden, Fudan University Locations: U.S, gridlock, Congress, Ukraine, Europe, United States, British, German, Germany, ” Russia, China, Iran, North Korea, Russia, Tehran, Dalton, Israel, Gaza, Turkey, Shanghai, Seoul, South Korea, Berlin, Dasha Litvinova, Tallinn, Estonia, Ankara, Washington
I was 28 years old when I landed my dream video producer job at CNBC. After all, I'd spent most of my adult life focused on the future. So I quit my job at 32, bought a one-way ticket to Peru, and spent a year and a half — and $34,000 — exploring 18 countries across South America and Asia. I spent a lot of my life savings, delaying other goalsThe $34,000 I spent on my sabbatical was a significant portion of my life savings. Siem Reap, Cambodia Helen ZhaoI wish I'd continued investing throughout my travels, putting $200 each month into a large-cap index fund.
Persons: I'd, Helen Zhao, I'm, Roth, Cambodia Helen Zhao Organizations: CNBC, UCLA, Roth IRA Locations: Peru, South America, Asia, Rio De Janeiro, Buenos Aires, Argentina, Brazil, Rio, Bogotá, Colombia, Los Angeles, Siem Reap, Cambodia
Kumail NanjianiKumail Nanjiani at the 75th Primetime Emmy Awards, and as Kingo in "Eternals." He explained that Marvel had faith in the 2021 movie, and sent the cast on a global tour. Nanjiani said he wasn't the only person who worked on the Marvel movie that struggled with the harsh reaction they got. He explained: "We actually just got dinner with somebody else from that movie and we were like, 'That was tough, wasn't it?' and he's like 'Yeah, that was really tough,' and I think we all went through something similar."
Persons: Kumail, Nanjiani, Gilbert Flores, Chloe Zhao's, Michael Rosenbaum, Marvel, Emily Organizations: Variety, Getty Images, Marvel
New York CNN —The first jobs report for 2024, set to be released at 8:30 am ET Friday, is expected to underscore the strength of the US economy despite 11 rate hikes from the Federal Reserve. That can make the January jobs report among the trickiest to forecast, said Sarah House, a senior economist with Wells Fargo. Friday’s jobs report also will include the final annual benchmark review of payroll data for the 12 months that ended in March 2023. However, excluding January 2023, last month’s job cuts were the highest seen in January since 2009, according to Challenger. US worker productivity grew 3.2% in the fourth quarter, according to a BLS report released Thursday.
Persons: Jerome Powell, he’s, Sarah House, Wells, “ We’re, , there’s, Boussour, EY, ” Boussour, Daniel Zhao, Zhao, haven’t, ” Andrew Challenger, people’s paychecks, ” Diane Swonk, , , Swonk Organizations: New, New York CNN, Federal Reserve, Labor, Workers, Challenger, , BLS, KPMG, CNN Locations: New York, Wells Fargo, United States
The job market looks solid on paper. Over the course of 2023, U.S. employers added 2.7 million people to their payrolls, according to government data. Unemployment hit a 54-year low at 3.4% in January 2023 and ticked up just slightly to 3.7% by December. "The labor market has been fairly strong and surprisingly resilient," said Daniel Zhao, lead economist at Glassdoor. More than half, 55%, of unemployed adults are burned out from searching for a new job, Insight Global found.
Persons: Daniel Zhao, Jenna Jackson, it's, Jackson Organizations: Finance, Insight Global, Insight Locations: Ardmore , Pennsylvania
Vargas, a special education instructor, has been mired for months in various stages of interviews for three teaching jobs. Employers' hiring rate fell sharply in 2023, Zhao said. They'll often toss out some number around 40, he told BI. AdvertisementHitting the numbers on job applications is also a priority for Kevin Cash, who previously told BI he's applied to more than 1,200 jobs and has mostly been ghosted. She's accepted a part-time job and plans to teach private classes for students learning English as a second language.
Persons: , Lynne Vargas, Vargas, Daniel Zhao, Cory Stahle, Zhao, Josh Bersin, Debbie Lovich, Lovich, Royal Siu, They'll, Siu, it's, Kevin Cash, They're, Jeff Calnan, Indeed's Stahle, Stahle, She's Organizations: Service, Business, Employers, Federal, BI, Boston Consulting Group, Navy, US Air Force Locations: Middletown , New York, Seattle, Woburn , Massachusetts
Tech has long been considered one of the most desirable industries to work in. Job search site Glassdoor recently released its Best Places to Work report based on current and former employee reviews. They singled out the best industries to work for based on the ones that showed up most on the list. Though it still topped the list, "tech is a little bit less popular this year just because of the news that they've had around layoffs and fears of recession," says Daniel Zhao, lead economist at Glassdoor. Twelve consulting companies made it onto Glassdoor's list, making it the second best industry to work for after tech.
Persons: they've, Daniel Zhao Organizations: Tech, Amazon, Microsoft, U.S, Bain & Company Locations: That's
Remote workers and middle managers are often more vulnerable to layoffs, experts say. Remote workers who are anxious about job security should return to the office, one expert said. Still, there's likely to be more cuts on the way, experts say, and remote workers and middle managers may be prime targets. Middle managers are also vulnerable, experts say. Meta CEO Mark Zuckerberg said in 2023: "I don't think you want a management structure that's just managers managing managers, managing managers, managing managers, managing the people who are doing the work."
Persons: , It's, there's, Ariel Schur, Andy Challenger, Mark Zuckerberg, Daniel Zhao, they're, Daniel Keum Organizations: Service, PayPal, ABS Staffing Solutions, Bloomberg, Wall Street, Meta, Columbia Business School
More importantly, though was Federal Reserve Chair Jerome Powell's pushback against the idea that rate cuts are imminent. So, what does this mean for the housing market, which is eagerly anticipating lower rates to make housing even slightly more affordable? According to Redfin, pushing out timelines for Fed rate cuts means mortgage rates are likely to remain elevated for longer this year, but it doesn't mean relief is off the table for homebuyers in 2024. "Regardless of any short-term volatility in mortgage rates, we expect rates to come down gradually throughout the year," Redfin's Chen Zhao wrote following the Fed meeting. AdvertisementThe real estate group notes that other forces are at work in the mortgage market as well, and the Fed isn't the only input.
Persons: , Jerome Powell's pushback, Redfin's Chen Zhao, Redfin, we'll, Powell, Fannie Mae Organizations: Service, Reserve, Business, US Department of, Treasury, Bank of America
That can make the January jobs report among the trickiest to forecast, said Sarah House, a senior economist with Wells Fargo. Friday’s jobs report also will include the final annual benchmark review of payroll data for the 12 months that ended in March 2023. Fresh data on job cuts and productivityOn Thursday, the layoff picture became clearer. However, excluding January 2023, last month’s job cuts were the highest seen in January since 2009, according to Challenger. US worker productivity grew 3.2% in the fourth quarter, according to a BLS report released Thursday.
Persons: Jerome Powell, he’s, Sarah House, Wells, “ We’re, , there’s, Boussour, EY, ” Boussour, Daniel Zhao, Zhao, haven’t, ” Andrew Challenger, people’s paychecks, ” Diane Swonk, , , Swonk Organizations: New, New York CNN, of Labor Statistics, Federal Reserve, Labor, Workers, Challenger, , BLS, KPMG, CNN Locations: New York, Wells Fargo, United States
Los Angeles Times, eBay, and UPS are three companies that have made recent layoff announcements. Despite cuts at big household names, the nation's layoffs and discharges rate has been steadily low. AdvertisementEmployees at the Los Angeles Times, eBay , Microsoft , and UPS are some of the workers impacted by recent layoff announcements in January. That sector had a layoffs and discharges rate of 0.8% in December, which is actually a small dip from the 0.9% in November. Zhao noted that "the scale here" means that this number probably isn't really going to change because of the recent layoff announcements.
Persons: , Nick Bunker, Bunker, Julia Pollak, ZipRecruiter's, Daniel Zhao, Glassdoor, Zhao, that's, Kory Kantenga, isn't Organizations: Los Angeles Times, eBay, UPS, Service, Microsoft, Bureau of Labor Statistics, North America, Labor, LinkedIn
BEIJING (AP) — As the U.S. presidential campaign moves closer to a Donald Trump-Joe Biden rematch, China is watching uneasily. While Biden has looked for areas of cooperation with China, Beijing is concerned about his efforts to unite allies in the Indo-Pacific in a coalition against China. “For China, no matter who won the U.S. presidential election, they would be two ‘bowls of poison’,” said Zhao Minghao, a professor of international relations at Fudan University in Shanghai. When Biden and Trump squared off in 2020, U.S. intelligence agencies reported before the election that China viewed Trump as “unpredictable” and opposed his reelection. “Trump is by nature volatile and cruel and is a person hard to be familiar with,” said Shi Yinhong, international relations professor at Renmin University of China.
Persons: Donald Trump, Joe Biden, uneasily, Biden, It’s, hasn’t, , Zhao Minghao, Sun Chenghao, Trump, Chuan Jianguo, “ Trump, Sun Yun, Sun, Xi Jinping, Antony Blinken, Xi, Miles Yu, China's, ” Yu, Deng Xiaoping, Shi Yinhong, Shi, Wang Yiwei, ” Wang, ” Shi, ___ Tang, Yu Bing, Chen Wanqing, Eric Tucker Organizations: BEIJING, U.S, China, Trump, , Fudan University, Center for International Security, Tsinghua University, Stimson Center, Hudson Institute, Communist Party, Renmin University of China, White, Institute of International Affairs, Associated Press Locations: China, Beijing, Taiwan, Shanghai, Asia, Pacific, Sun, Washington, Lago, Florida, City, United States, U.S
Maskot | Digitalvision | Getty ImagesWorkers are sour on the job market — but that pessimism may be somewhat misplaced. So far in 2024, for example, big technology firms including Amazon, eBay, Google and Microsoft have announced job cuts. U.S.-based companies planned about 722,000 job cuts in 2023, almost double those announced in 2022, according to Challenger, Gray & Christmas, an outplacement and executive coaching firm. watch nowHowever, those recent headlines mask strength in the overall job market, economists said. "It's still a very robust and resilient labor market overall," Pollak said.
Persons: Daniel Zhao, Zhao, it's, Mark Zandi, Zandi, they've, Julia Pollak, " Pollak Organizations: Digitalvision, Getty Images Workers, Amazon, eBay, Google, Microsoft, Citigroup, Universal Music Group, U.S, Challenger, Moody's, Federal Reserve Locations: BlackRock, U.S
What It Took Young People in China to Get Their Jobs Not long ago, China’s economy was the envy of the world. We spoke to five young Chinese about what it took to find their jobs amid such uncertainty. Now, those boom years are fading, as are many young people’s hopes — with unpredictable consequences for China and the world. Ethan Yi, Class of 2022Qilai Shen for The New York TimesLooking back, Ethan Yi thinks he had been a little entitled, or at least naive. “I think it’s not good for young people to be too comfortable,” she said.
Persons: , hesitating, , people’s, Nadia Yang, Fiona Qin, Qilai Shen, Ethan Yi, Yi, , Phoebe Liu, Gilles Sabrié, Liu, ” Tsuki Jin, The New York Times Tsuki Jin, Jin, Ms Organizations: The New York Times Locations: China, Beijing, Shanghai
A commodity "super squeeze" is denoted by higher prices driven by supply constraints more than a robust growth in demand, he explained. "If it's a supply constraint that's driving high commodity prices, it's a very different story for global growth," he told CNBC via Zoom. Higher prices as a result of a super squeeze are "not as positive." The super squeeze could be deeper, or more prolonged if geopolitical, climate change or energy transition related supply disruptions are larger than expected. He highlighted that extreme weather events and geopolitics have also impacted the agricultural and energy commodity baskets.
Persons: Li Xin, Paul Bloxham, Bloxham, Brian Luke S, Dow, HSBC's Bloxham, Ian Waldie, Brian Luke, Matty Zhao Organizations: Technology, Getty, Visual China, HSBC, CNBC, Paul Bloxham HSBC, Energy, Commission, Commodities, Bloomberg, Dow Jones, of America Securities Locations: SUIXI, CHINA, Anhui, Suixi County, Huaibei City, Anhui Province, China, Israel, Gaza, Ukraine, Red, Australia, Asia, Pacific
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