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☆ Trump lender Axos plunges 15% after short-seller report flags real-estate loan risk
▼ + stars: | 2024-06-04 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

Axos Financial fell as much as 15% on Tuesday after Hindenburg Research announced a short position. The short bet stems from Axos' large exposure to commercial real estate. In a note, the research firm outlined that it's taken a short position in the lender, citing Axos' rising exposure to commercial real estate. AdvertisementTo compare with Axos, the noted cited that the average direct commercial real estate exposure among regional banks is 16.5% on loan books. CEO Greg Garrabrants also previously told Bloomberg that commercial real estate fears are overdone, and the risk is already reflected by Axos' stock price.

Persons: Axos, Hindenburg, —, Hindenburg's, Greg Garrabrants, Donald Trump Organizations: Axos, Hindenburg Research, Service, Securities and Exchange, Bloomberg, Trump Locations: California, Florida

☆ Crypto billionaire Michael Novogratz's firm has tokenized a 316-year-old violin owned by Catherine the Great in order to back a loan
▼ + stars: | 2024-06-04 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

Mike Novogratz's firm has tokenized an 18th-century violin as collateral against a loan, Galaxy said in a press release. Tokenizing the instrument is a way to boost liquidity, and make it more available to interested investors. AdvertisementThe crypto-focused firm Galaxy Digital has tokenized an 18th-century violin, creating a blockchain version of the instrument to use as collateral for a multimillion loan, Bloomberg reported. It is now in the care of Galaxy, which provided Siu a loan, and is using the violin to back it. He added that he is open to eventually fractionalizing the tokenized instrument, allowing investors to purchase a claim.

Persons: Mike Novogratz's, Galaxy, Yat Siu, —, Catherine the Great, Siu, Michael Novogratz Organizations: Animoca Brands, Service, Galaxy, Bloomberg

☆ Stock market today: Indexes slide as investors assess weak economic data
▼ + stars: | 2024-06-04 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

"While a pull-back in US economic data helps bolster the likelihood of Fed rate cuts, it does so for all the wrong reasons." Investors will be watching new jobs data this week, culminating in the May nonfarm payroll report on Friday. AdvertisementUS stocks slumped lower on Tuesday as early June data left investors uncertain about strength in the economy. "While a pull-back in US economic data helps bolster the likelihood of Fed rate cuts, it does so for all the wrong reasons. Concerned investors will turn their attention toward job data later in the week, with job openings data set to be published on Tuesday.

Persons: —, David Morrison Organizations: Service, Bank of America

☆ De-dollarized payment systems are cropping up. Here's why they're unlikely to dent greenback dominance.
▼ + stars: | 2024-06-04 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

The emergence of new regional payment systems likely won't spur de-dollarization, OMFIF said. According to commentary published Thursday, obstacles are already afflicting new regional payment systems, even as de-dollarization rhetoric creeps up. AdvertisementMeanwhile, efforts to assemble regional financial systems have delivered the Pan-African Payment and Settlement System, OMFIF cited as one example. For instance, it's even launched its own payments infrastructure, the Cross-border Interbank Payment System. But China's efforts to create an alternative system are a defensive ploy for now, OMFIF wrote in a separate note from May.

Persons: OMFIF, —, Julian Jacobs, it's, That's, Zoe Liu Organizations: Service, Monetary, Financial, Forum, United Arab, China, Foreign Relations Locations: China , Hong Kong, United Arab Emirates, Thailand, Russia, Ukraine, Beijing, Taiwan

☆ BofA says chip stocks won't peak until mid-2026, and that these 3 sub-industries will thrive until then
▼ + stars: | 2024-06-03 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

That's as the chip industry often undergoes 10 quarters of upside after experiencing a downcycle, a pattern that has just begun. However, chip stocks (SOX) change direction 6-9 months ahead of cycle inflection, so semis could potentially peak sometime around 2H25, or another year+ from now," Bank of America said. Bank of America sees major upside potential for both, holding a $1,500 and $1,680 price objective on each. "Industrial/auto chip stocks are less crowded and offer diversification away from AI, with easier compares going into CY25E," the bank said. AdvertisementBank of America holds a price objective of $890 and $650.

Persons: —, That's, upcycle Organizations: of America, Nvidia, Broadcom, NXP Semiconductors, KLA Corporation, Service, Bank of America Locations: petering, 2H25, CY25E

☆ Global powers are helping Ukraine by giving it money frozen from Russia. That spells bad news for companies still doing business there.
▼ + stars: | 2024-06-03 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

Western firms in Russia risk losing their assets if the US touches Russia's frozen reserves, a think tank expert wrote. Instead, Moscow could target foreign holdings that remain in Russia, making Western companies vulnerable to costly expropriation risk. That's on top of previous measures Russia introduced in retaliation to Western sanctions, such as the freezing of bank accounts owned by "unfriendly" non-residents. Taking the Kremlin at its word, $290 billion worth of Western assets are liable for seizure. "Earlier this month, Russia seized more than €700m ($757m) from three Western banks after a construction project fell apart as a result of Western sanctions.

Persons: Elisabeth Braw, —, Braw, That's, David O'Sullivan Organizations: Service, Atlantic, Center for, West, Reuters, Carlsberg, Danone, European, RBC Ukraine Locations: Russia, West, Moscow, Russian, Ukraine

☆ Car prices are finally falling. Here's why people still aren't buying.
▼ + stars: | 2024-06-03 | by ( Filip De Mott | ) www.businessinsider.com time to read: +1 min

Both new and used car prices are normalizing from pandemic peaks. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementCar prices are falling back down to earth, in a steady decline from 2021 peaks. According to Bank of America, overall car sales have flatlined, despite post-pandemic recoveries ing both pricing and supply. This story is available exclusively to Business Insider subscribers.

Persons: — Organizations: Bank of America, EV, Service, Business

☆ Trump's plan to tax the entire world will result in the type of global trade war not seen since the Great Depression, think tank says
▼ + stars: | 2024-06-02 | by ( Filip De Mott | ) www.businessinsider.com time to read: +4 min

Read previewDonald Trump says his trade policy would be a way to protect the US from exploitation. Yet, by applying a base tariff on virtually all foreign goods, he's starting a "war against trade itself," Alan Wm. Related stories"Economists agree that high tariffs broadened and deepened the Great Depression, when US unemployment reached 25 percent and we nearly lost our democracy," the distinguished visiting fellow wrote. That's why I think we're going to be entering into a trade war next year." For instance, the new 50% tariffs on Chinese semiconductors may seem extreme, but they target a trade that's just below $1 billion a year, he said.

Persons: —, Donald Trump, Alan Wm, Wolff, Trump, Trump's, Kenneth Rogoff, Leland Miller, Biden, Waller, they're Organizations: Service, Peterson Institute for International Economics, Republican, Business, Trump, Peterson Institute, Biden Locations: Britain, China, Beijing, America

☆ Bitcoin is undergoing a tech expansion that one expert says will drive 5-fold growth in just 2 years
▼ + stars: | 2024-06-01 | by ( Filip De Mott | ) www.businessinsider.com time to read: +5 min

Bitcoin's blockchain is slowly becoming more than just a buy-and-hold platform. Ethereum underwent a similar trend, leading to its massive rally in 2021, Bitget CEO Gracy Chen told Business Insider. Advertisement"The Ordinals protocol enabled the growth of memecoins on the bitcoin blockchain, leading to a surge in liquidity within the BTC ecosystem in record time. That's based on the Total Value Locked, or the amount of assets staked on the bitcoin protocol. However, even a twofold weaker surge could still result in a fivefold increase in the leading cryptocurrency's value," Chen wrote in a note.

Persons: Gracy Chen, —, Chen, That's, ethereum, Mining Brian Wright, there's Organizations: Ethereum, Service, BTC, ETH, cryptominers, Mining, Galaxy Locations: memecoins, bitcoin

☆ Stock market today: US indexes rally after cool inflation data
▼ + stars: | 2024-05-31 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

US indices rallied after a promising PCE report. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . As projected, core PCE rose 0.2% in April. ""The equity market wants to see a slowdown in economic growth and today's PCE data provided a soft-landing report," David Donabedian said, chief investment officer of CIBC Private Wealth US. Here's where US indexes stood at the 4:00 p.m. closing bell on Friday:AdvertisementHere's what else happened today:In commodities, bonds, and crypto:

Persons: —, Friday's, David Donabedian, Eric Sterner Organizations: Dow, Nasdaq, Service, Dow Jones, Nvidia, Microsoft, PCE, CIBC Private Wealth, Federal Reserve, Apollon Wealth Management

☆ Stock market today: US indexes edge higher as cooling inflation data props up Fed rate-cut bets
▼ + stars: | 2024-05-31 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

Interest rate cuts are also more likely, after the first-quarter GDP figures were revised lower. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . The lack of surprises in the Personal Consumption Expenditures index was welcomed by investors, as it reinforced the odds of an interest rate cut this year. Earlier this week, first quarter GDP data was revised down on softer consumer spending, adding more reason for why the Fed may eventually have to cut interest rates down. Futures markets indicate at least one rate cut to occur as soon as September.

Persons: Stocks, —, Chris Zaccarelli Organizations: Federal Reserve, Service, Federal, Treasury, Independent

☆ Tariffs on China could end up making inflation worse and hurting US economic growth, S&P Global says
▼ + stars: | 2024-05-31 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

Read previewUS efforts to counterbalance Chinese imports could instead create unsteadiness in the country's fight against inflation, S&P Global Intelligence wrote. Advertisement"Yet economists say the new duties, and tariffs more broadly, may carry an unwelcome consequence: higher prices and a heightened probability of higher-for-longer interest rates," S&P wrote. Of the 14 categories under scrutiny, the top five accounted for just 3% of Chinese imports into the US in 2022, S&P cited. But for domestic manufacturers, tariffs can ease the pressure to lower prices, as Chinese competitors lose their low-cost advantage. In this sense, protectionism can boost economic growth in the long run, but not before fueling market inefficiencies and complicating inflation.

Persons: —, Donald Trump, hasn't shied, Biden, he's, Ben Herzon Organizations: Service, P Global Intelligence, Federal Reserve, Business, P's Locations: China

☆ 3 signs the housing market's affordability recession is finally ending
▼ + stars: | 2024-05-30 | by ( Filip De Mott | ) 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. AdvertisementWhile growth has normalized, prices still remain elevated, with median prices of existing and new homes both near all-time highs. In fact, the Housing Affordability Index fell to its all-time low last year, but Schwab noted that it seems to be pushing back up from the bottom. AdvertisementThe bank added that mortgage rates are likely to keep drifting higher, as federal interest rates normalize at around current levels. "Yet, a stabilization in activity, price growth, and interest rate volatility will likely provide a more stable foundation for the sector."

Persons: —, Charles Schwab, Schwab, That's, homebuilders, it's Organizations: Service, Business Locations: Redfin

☆ Big banks are more at risk of a commercial real estate meltdown than people think, new study says
▼ + stars: | 2024-05-30 | by ( Filip De Mott | ) www.businessinsider.com time to read: +1 min

Big lenders are more exposed to commercial real estate than it might seem at first glance, a study says. In addition to lending to property owners, big firms also offer indirect lending to REITs, raising their exposure by about 40%. Wall Street has been worried about distress in commercial real estate amid high interest rates. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementLeading lenders have greater exposure to commercial real estate debt than typically understood, implying a larger chance of systemic risk, according to a new study.

Persons: — Organizations: Service, Bank Credit Lines, Bank Financial, Business

☆ Stock market today: Indexes slide as rising bond yields pressure stocks
▼ + stars: | 2024-05-29 | by ( Max Adams | Filip De Mott | ) www.businessinsider.com time to read: +2 min

Stocks slipped on Wednesday as traders watched the rise in US Treasury yields. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementStocks dipped on Wednesday — with the Nasdaq falling from a record — as investors watched bond yields move higher for a second day this week, with the 10-year Treasury continuing to climb above 4.5%. US bond yields are hovering around the highest level in about four weeks following a weak government bond auction Tuesday, as well as waning rate-cut hopes amid the latest inflation data.

Persons: Stocks, —, Carol Schleif Organizations: Treasury, Marathon Oil, ConocoPhillips, Service, Nasdaq, Federal Reserve, BMO Family Office, American Airlines Locations: PCE, Here's

☆ What productivity boom? AI will provide just a 1% GDP boost over the next decade, MIT economist says.
▼ + stars: | 2024-05-29 | by ( Filip De Mott | ) www.businessinsider.com time to read: +1 min

The productivity boost that AI technology will generate is being overestimated, according to a new MIT study. AI-led US GDP growth in the next 10 years will rise just 0.93% to 1.16%, economist Daron Acemoglu wrote. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementTalk to nearly any artificial intelligence bull, and they'll likely mention the technology's huge expected economic impact. This story is available exclusively to Business Insider subscribers.

Persons: Daron Acemoglu, That's, Goldman Sachs, — Organizations: MIT, Service, Vanguard, Business

☆ Stock market today: Dow drops 411 points as yields jump ahead of fresh economic data
▼ + stars: | 2024-05-29 | by ( Max Adams | Filip De Mott | ) www.businessinsider.com time to read: +2 min

Stocks fell on Wednesday ahead of fresh economic data on growth and inflation. A $44 billion auction of seven-year Treasury notes was met with tepid demand. Bond yields spiked for a second day, with the 10-year bond climbing by seven basis points to 4.61%. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . On Tuesday, a sale of two and five-year notes was priced to weaker demand from investors.

Persons: Stocks, —, Price Organizations: Service, Dow Jones Industrial, Treasury, Nasdaq, Nvidia

☆ Jamie Dimon says there could be 'hell to pay' if the swelling private-credit market starts showing cracks
▼ + stars: | 2024-05-29 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

"There could be hell to pay" if private credit markets wobble, Jamie Dimon said. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementJPMorgan Chase CEO Jamie Dimon said private credit could spark turmoil if the opaque sector of financial markets weakens. The private credit market—a corner of finance dominated by non-bank lenders who originate loans to private businesses—has grown rapidly in recent years. "And the problems in financial markets are often caused by the 'not good one,' the people that make the mistakes."

Persons: Jamie Dimon, —, Dimon Organizations: Service, JPMorgan, Bloomberg

☆ The S&P 500 could plunge as much as 70% this cycle as markets hit a 'motherlo' of FOMO extremes, famed fund manager says
▼ + stars: | 2024-05-29 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

Legendary investor John Hussman says the latest stock rally is rooted in the extreme fear of missing out. FOMO factors have surged in markets, and stock prices could fall 50%-70% this cycle. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. The legendary bear, famed for predicting the 2000 and 2008 crashes, reiterated that equities could drop as much as 70% this cycle. "Even the more conventional (but less reliable) S&P 500 price/forward operating earnings multiple is at levels that have no rivals except surrounding the 2000 and 2022 peaks," Hussman said.

Persons: John Hussman, —, Hussman, Dow Organizations: Service, Hussman Investment Trust

☆ Ether could surge 500% this cycle as new ETFs trigger a massive bull run, crypto expert says
▼ + stars: | 2024-05-28 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

The price of ether will climb to between $15,000 and $22,500 this cycle, SynFutures CEO Rachel Lin says. "Now the spot ETH ETF is approved, all indicators indicate a massive ETH bull run in the coming months," she said. AdvertisementThe positive verdict on spot ether ETFs last week will kickstart a price rally, according to Rachel Lin, the CEO of SynFutures. Today, 20 months since that date, ETH supply remains at the same 120 million," Lin said. Now the spot ETH ETF is approved, all indicators indicate a massive ETH bull run in the coming months," Lin wrote.

Persons: Rachel Lin, —, Lin, Dow Jones, Ethereum, bitcoin Organizations: Service, Ethereum, bitcoin, Dow, NASDAQ, Standard Chartered, Chartered

☆ The S&P 500 will climb another 6% by year-end as recession risk subsides, UBS says
▼ + stars: | 2024-05-28 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

UBS lifted its S&P 500 price target from 5,400 to 5,600, marking the highest target on Wall Street. The new estimate stems from diminishing recession risk and strong earnings growth. UBS also raised its estimate for earnings-per-share growth for 2024 and 2025. AdvertisementShrinking recession risks and estimate-beating earnings growth have prompted UBS to once again lift its S&P 500 year-end target, the bank said in a Tuesday note. Although UBS had upgraded its S&P target as recently as February, recent economic data has made that month's 5,400 forecast look too weak.

Persons: —, Jonathan Golub, Gary Schilling Organizations: UBS, Service, Chicago

☆ More interest-rate hikes aren't off the table yet, Fed president says
▼ + stars: | 2024-05-28 | by ( Filip De Mott | ) www.businessinsider.com time to read: +1 min

Interest-rate hikes aren't out of the question, Minneapolis Fed President Neel Kashkari said. "If we get surprised by the data, then we would do what we need to do," he said. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementAs markets debate the timing of when interest rates could finally ease, investors shouldn't be so sure rate hikes won't resume. According to Minneapolis Federal Reserve Bank president, Neel Kashkari, monetary policy is likely restrictive enough for now, but no central banker can say with certainty that more rate hikes are completely out of the question.

Persons: Neel Kashkari, —, shouldn't Organizations: Service, Minneapolis Federal Reserve Bank, Business Locations: Minneapolis

☆ The IRS has failed to police the huge tax breaks offered by Puerto Rico, whistleblower claims
▼ + stars: | 2024-05-28 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

Read previewA whistleblower claims that the Internal Revenue Service has not done enough to stop the exploitation of a Puerto Rico tax break, The New York Times reported. According to a letter written by an IRS insider, the agency's three-year campaign to uncover abuse of a tax benefit has failed to make much headway. For instance, the IRS will typically send out "soft letters" to any scrutinized beneficiaries, encouraging them to voluntarily fix any potential issue with their taxes. Yet, the agency hasn't issued any soft letters, the whistleblower said. In an interview with NYT, IRS Commissioner Danny Werfel acknowledged that no soft letters were sent, but highlighted the dozens that have been audited.

Persons: —, Gabriel Hernandez, Hernandez, hasn't, Danny Werfel Organizations: Service, Internal Revenue Service, New York Times, IRS, Business, Puerto, Bloomberg Locations: Puerto Rico, Puerto Rican

☆ Stock market today: Nasdaq hits record, Dow tumbles as bond yields spike
▼ + stars: | 2024-05-28 | by ( Max Adams | Filip De Mott | ) www.businessinsider.com time to read: +2 min

The Nasdaq finished at a record while the Dow tumbled. Nvidia soared but the broader market weakened amid a fresh spike in Treasury yields. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementUS stocks finished mixed on Tuesday, with the Nasdaq at a record but the Dow Jones Industrial Average sliding more than 200 points. Weighing on shares during the session was a jump in Treasury yields as the latest auction was met with lukewarm demand.

Persons: Dow, —, Neel Kashkari, Elon Musk Organizations: Nasdaq, Nvidia, Service, Dow Jones, Federal Reserve, Minneapolis

☆ Why mortgage rates are doomed to stay above 7% for the foreseeable future
▼ + stars: | 2024-05-26 | by ( Filip De Mott | ) www.businessinsider.com time to read: +1 min

Housing experts were betting on mortgage rates to decline this year on looser Fed policy. Yet, the 30-year mortgage rate has been stuck around 7% all year. Freddie Mac and Fannie Mae say they expect mortgages to stay in the 7% range through 2024. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . With the Federal Reserve looking unlikely to ease rates before September, housing market analysts are recalibrating mortgage rate outlooks, as home loan rates are heavily influenced by the Fed funds rate.

Persons: Freddie Mac, Fannie Mae, — Organizations: Service, Federal Reserve, Business

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