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AdvertisementUS financial firms' interest in China was on its last legs, but a new stimulus package has some investors excited again. The immediate impact of China's $114 billion package, which includes cutting interest rates and reducing the amount of money banks need to keep in reserve, has been big. Traders, investors, and speculators have sent China's stock market to its best month in nearly a decade , signaling that the market players think that Beijing's moves are a "bazooka." Our annual list of Wall Street rising stars is here. According to a new report from The Wall Street Journal, executives attempted to woo the AI researcher back before rescinding the offer.
Persons: , Andres Martinez Casares, Alyssa Powell, Linette Lopez isn't, Linette, Jon Hicks, that's, David Tepper, He's, Tepper, Pan Gongsheng, BI's Filip De Mott, Wall, Natalie Ammari, Crypto, Donald Trump, Kamala Harris, Marc Piasecki, Tyler Le, who's, OpenAI execs, Ilya Sutskever, it's, Tara Anand, aren't, Jerome Powell, Ryan Routh, El Chapo, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, Grace Lett, Amanda Yen, Milan Sehmbi Organizations: Business, Service, Traders, Bank of China, bros, Trump, Getty, Houston Chronicle, Hearst Newspapers, Elon, Wall Street Journal, Netflix, Longshoremen's Association, National Association for Business Locations: China, New York, London, Chicago
A rate cut by the Federal Reserve this month has fueled hopes that the interest rate-sensitive housing market will soon experience a fresh jolt. “What this data tells us is that the housing market in 2024 has been really frozen,” said Chen Zhao, Redfin’s economic research lead. Zhao said a market where 30 to 40 of every 1,000 homes changed hands would signify a healthier housing landscape. “That very low inventory on the market was one of the primary drivers of there being so little turnover.”A shortage of new home construction also contributed to America’s sluggish housing market. “Getting to a healthy housing market is very hard from this point,” Zhao said.
Persons: , Chen Zhao, , Zhao, Redfin, , Jeremiah Vancans, Vancans, , Patrick Chamberlin, Chamberlin, Freddie Mac, it’s, ” Zhao, we’ve Organizations: CNN, Federal Reserve, California ., , Boston, Consumer Financial Protection Bureau, National Association of Realtors Locations: , Redfin, California, California . Los Angeles, Los Angeles, Austin , Texas, The Texas, Sun Belt, New York City, Phoenix
Noel Celis | Afp | Getty ImagesShares of Chinese property developers rallied on Monday after major cities in mainland China unveiled easing measures to boost homebuyer sentiment, following the central bank's blitz of policy stimulus. The Guangzhou city government said in a notice on Sunday that all restrictions on home purchases would be removed, effective from Monday. China Overseas Land & Investment and China Vanke climbed 5.06% and 12.89%. Mainland China's CSI 300 surged 6% Monday, after the index logged its best week in almost 16 years on Friday. The easing measures follow the central government's call last week to combat the property slump last week.
Persons: Noel Celis, China Vanke, Allen Feng, Gary Ng, Ng, Xi Jinping Organizations: HK, Afp, Getty, Mainland Properties, Longfor Group Holdings, Hang Lung, China Resources, ., . China Overseas Land & Investment, China's CSI, CSI, People's Bank of Locations: Guangzhou, China's, Guangdong, China, Shanghai, Hong Kong, . China, , Beijing, People's Bank of China
CNBC's Jim Cramer on Monday looked back at the past three months, picking out positives in a chaotic stretch for the market. He added that the central bank set the stage for a substantial rate cut so they could make the move without sending Wall Street into a panic. The market also broadened out after Big Tech had dominated for months on end, Cramer said. And despite the tumult in the leadup to a divisive presidential election, Wall Street "chose to ignore the drama," he said. "The months of July, August, September gave us some outstanding returns," Cramer said.
Persons: CNBC's Jim Cramer, Cramer, Kamala Harris, Joe Biden, Donald Trump Organizations: Big Tech, Democratic
China's factory activity contracted for a fifth consecutive month in September as the world's second-largest economy struggles to revive its growth momentum. A PMI reading above 50 indicates expansion in activity, while a reading below that level points to contraction. However, China's Caixin PMI was 49.3, compared to 50.4 in August, according to the private survey compiled by S&P Global. The Caixin data released on Monday indicated that China's manufacturing sector experienced its sharpest contraction in 14 months in September, driven by declining demand and a weakening labor market. Headwinds for the manufacturing sector has continued to mount as a prolonged economic slowdown and property crisis dampen domestic demand.
Persons: Zhao Qinghe, Xi Jinping Organizations: National Bureau of Statistics, PMI, Reuters, NBS, P Global, National Bureau, Statistics, People's Bank of China
Rupert Murdoch looks on as he walks on the day of the hearing on the contentious matter of succession of Rupert Murdoch's global television and publishing empire, in Reno, Nevada, U.S. September 23, 2024. British real estate portal Rightmove rejected a sweetened $8.29 billion takeover bid from Rupert Murdoch's Australian property listing firm REA Group on Monday, saying the fourth bid still undervalued the company. That gave Rightmove an implied value of 781 pence per share, about a 3% increase over the previous bid. Rightmove said that during the discussions, REA had requested to extend the deadline to allow it to consider a potential fifth proposal. The U.K. company looks primed for a steady recovery from a property market downturn as the potential for more rate cuts boosts sentiment in the U.K. housing sector.
Persons: Rupert Murdoch, Rupert Murdoch's, REA, Rightmove, Andrew Fisher, Hamish McLennan, Rightmove's Organizations: REA Group, Murdoch's News Corp, REA, OnTheMarket Locations: Reno , Nevada, U.S, British, U.K
In a court filing Monday, Eric Adams argues his bribery charge should be dismissed. The NYC mayor says it was legal for him to accept lavish travel accommodations from Turkey. AdvertisementIn a court filing Monday, New York City Mayor Eric Adams asked a federal judge in Manhattan to dismiss the bribery charge against him, arguing that the lavish travel accommodations he accepted from Turkish officials were gifts, not bribes. "The indictment does not allege that Mayor Adams agreed to perform any official act at the time that he received a benefit," Adams' motion argues. The other charges in Adams' indictment allege he knowingly sought and accepted illegal campaign contributions from corporations and foreign nationals.
Persons: Eric Adams, , Adams, Alex Spiro, Spiro Organizations: Service, New York City, New York, Brooklyn Borough, Turkish Consulate, Turkish Locations: Turkey, New York, Manhattan, New York City, Brooklyn, Turkish
Villa builds homes to be put in backyards, also known as ADUs, with each unit starting at $95,000. See the factory where its homes are built and some properties already set up in people's backyards. AdvertisementBay Area-based startup Villa sells homes that are built in a factory and then installed in backyards. These homes, called accessory dwelling units, or ADUs, have their own address, separate from the main house they sit near. Take a look inside some of Villa's tiny homes and meet their owners.
Persons: , Villa, Heather Miksch Organizations: Service, Villa Locations: backyards, California
That's the lowest turnover rate the market has seen in at least three decades, the firm estimated. Elevated mortgage rates and home prices have been keeping some buyers on the sidelines. That's the lowest turnover rate for any first-eight-month period in at least 30 years, the firm said, comparing the current housing environment to the early- to mid-90s. In that era, home sales were at similar levels, though the total supply of homes was larger, which drove a higher turnover rate, the report added. Homes sales, meanwhile, could notch 4.3 million by the end of the year, a 5% boost from last year's levels, it added.
Persons: , Elijah de la, Freddie Mac Organizations: Service, San Locations: Redfin, Los Angeles, Boston, San Francisco
Lawrence Delva-Gonzalez and his wife went from being $150,000 in debt to having a net worth of $1.5 million. AdvertisementLawrence Delva-Gonzalez, 41, was $150,000 in debt in 2012, working a job that paid $27,000 a year. A little over a decade later, he and his wife grew their net worth to over $1.5 million. By 2017, the two of them could pay down debt to the point of having a net worth of zero. Their net worth grew to over $450,000 in January 2021, over $650,000 in January 2022, over $800,000 in January 2023, and $1.53 million in August 2024, according to his blog The Neighborhood Finance Guy.
Persons: Lawrence Delva, Gonzalez, , maxed, Delva, Doreen, Finance Guy, hasn't Organizations: Service, FIRE, Florida State University, Marine Corps, Public, Finance Locations: Haiti, Delva, Port, Miami, Black
High risk of natural disaster and extreme heat For two decades, they’ve also been some of the most popular places to move as Americans have flocked to the South and West. Much of Vermont, which is not highlighted as high risk in the maps above, saw devastating flooding last year following a record-breaking storm. Jacksonville Tallahassee Gainesville Daytona Beach Orlando Tampa HIGH HURRICANE WIND RISK Sarasota The Tampa metro area has been one of the fastest growing in the country. Many of these new residents have settled in coastal communities that are at high risk for hurricanes. Dallas-Fort Worth sits in an area at high risk for serious thunderstorms, hailstorms and tornadoes.
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More couples than ever before, 87%, reported including cash funds in their wedding registry, according to recent data from Zola. Of couples collecting cash, 37% are putting that money toward purchasing a house. With today's housing market, it's clear why couples are funneling wedding gifts into a down payment. If you're coming into a substantial financial windfall due to a wedding, or any other scenario, here's the best place to stash your potential down payment cash. "If a client of mine walked in with $30,000 of wedding money, I would say, 'Let's buy you a bond,'" he says.
Persons: Homebuying, Douglas Boneparth, Mark La Spisa, let's Organizations: Bone, U.S Locations: Zola, New York City, Vermilion
Tourists visit an ancient city gate in Beijing, China ahead of National Day. The stock market may be in the midst of one of its most remarkable turnarounds, but economists say reversing China’s economic downturn will require much more work. “Stimulating the stock market doesn’t really do much for the real economy in China. Very few people invest in the stock market compared to other major markets,” said Logan Wright, director of China markets research at Rhodium Group. Property woesThe outlook for the real estate industry, which makes up about a quarter of the Chinese economy and 70% of household wealth, remains dim.
Persons: Japan’s “, Xi Jinping, Xi, Xu Tianchen, Hong, David Tepper, , Logan Wright, Wright, There’s, ” Wright, , hasn’t, Alfred Wu, Lee Organizations: Hong Kong CNN, Economist Intelligence Unit, Reuters, Shenzhen bourses, Securities Times, Tourists, Management, CNBC, Barclays, Communist Party, Lee Kuan Yew, of Public, National University of Singapore Locations: Hong Kong, China, People’s Republic, United States, Beijing, Shanghai, Shenzhen, Guangzhou, China’s, Xi’s
Only six cities are now at elevated or high risk, down from 16 last year. Miami and Los Angeles are the two US cities most at risk of a housing bubble, the report said. AdvertisementUBS released its 2024 Global Real-Estate Bubble Index report last week, and it showed bubble risks have generally declined over the last 12 months. While 16 cities worldwide were considered to be at elevated or high risk of a real-estate bubble last year, just six cities fit that description today, the report said. Cities with a score above 1.0 are considered to be at an elevated risk, and those with a score above 1.5 are considered high risk.
Persons: , Claudio Saputelli, Matthias Holzhey Organizations: Miami, Service, UBS Locations: Los Angeles, Frankfurt, Munich, Stockholm, Hong Kong, Paris
The central bank of the People's Republic of China is responsible for formulating and implementing monetary policies, preventing and defusing financial risks and maintaining financial stability. The People's Bank of China on Sunday told commercial banks to start lowering interest rates on all existing housing loans, in a sweeping move to help lighten the mortgage burden on households hit by a slowing economy. All commercial banks must, in batches, reduce interest rates on existing mortgages by Oct. 31 to no less than 30 basis points below the PBOC's Loan Prime Rate, the central bank's benchmark rate for mortgages, according to a statement released by the PBOC.
Organizations: People's Bank of China, Sunday, PBOC's Locations: People's Republic of China
David Tuckett, an uncertainty researcher, told BI that dismissing doubt eventually "leads over a cliff." He said the success of elite investors like Warren Buffett may be largely down to luck, not skill. AdvertisementEven the smartest minds in finance and tech don't know for sure what the future holds, and even the most successful investors may have gotten lucky, one expert says. Elon Musk responded on X that "Buffett is already preparing for this outcome," ostensibly suggesting Warren Buffett will offload stocks too if Donald Trump secures a second term. AdvertisementThat applies to even the best investors like Warren Buffett, he told BI.
Persons: it's Elon Musk, John Paulson, David Tuckett, Warren Buffett, , John Paulson —, Kamala Harris, Elon Musk, Buffett, Donald Trump, Paulson, Musk, David Tuckett Lucking, Tuckett Organizations: Service, Centre, University College London, HSBC Locations: Berkshire, Tuckett
Angela Weiss | AFP | Getty ImagesAs she unveiled her most detailed economic plan yet this week, Democratic presidential nominee Kamala Harris pledged to fight price gouging in order to rein in voters' grocery costs. Although Harris released more detail Wednesday as part of her 82-page economic plan, it's still unclear what price hikes her administration would see as illegal "price gouging." Generally, Republicans support fewer economic regulations, although Trump has suggested limiting food imports as a way to lower grocery prices. What is price gouging? Thirty-seven U.S. states already have laws that forbid price gouging in emergencies.
Persons: Kamala Harris, Doug Emhoff, Angela Weiss, Donald Trump, Harris, it's, Walz, Trump, YouGov, Rakeen Mabud, Mabud, Mario Tama, markups, , Jerome Powell —, Sarah Gallo, Brian Cornell, Jharonne Martis, Brandon Bell, Kroger, Arun Sundaram, Sundaram, JBS, Joe Raedle Organizations: Democratic, AFP, Getty, Trump, Bureau of Labor Statistics, Voters, Federal Reserve Bank of Kansas, Consumer Brands Association, Federal Trade, Department of, Kroger, Procter, Gamble, Albertsons, Federal Trade Commission, CFRA Research, Pilgrim's Pride Corporation Locations: Coraopolis , Pennsylvania, Los Angeles , California, Federal Reserve Bank of Kansas City, Houston , Texas, Miami , Florida
Some of it had to do with the old joke being that Best Buy was nothing but an Amazon showroom. CEO Corie Barry is a no-nonsense heavyweight who mastered the supply chain for Best Buy during the pandemic. As the JPMorgan recent upgrade on Best Buy said, most investors don't realize how awful this period has been for Best Buy. It doesn't hurt, of course that Best Buy has a substantial dividend — 3.68%, down from 4% and 5% when we were buying it. We have watched Eaton and Dover go higher and that was without the rate cycle, just with the data center.
Persons: Stanley Black, Decker, , couldn't, Corie Barry, Barry, don't, It's, Stanley, Trump, Helene, Hock Tan, Marc Benioff, Mike Sievert, Blackwell, Jim Cramer's, Jim Cramer, Jim, Melissa Repko Organizations: Empire, Circuit, Intel, HP Inc, HP, JPMorgan, Williams, Dick's Sporting Goods, Abercrombie, Fitch, Depot, Procter, Gamble, Linde, Honeywell, Quantum Computing, Tech, Broadcom, VMWare, Elon, Mobile, Nvidia, Jim Cramer's Charitable, CNBC, Microsoft Locations: Sonoma, Covid, China, Lowe's, Eaton, Dover, San Francisco, Secaucus, N.J
Homebuyers can also now put less money down on their purchases — an attempt to breathe life into China's moribund property market. Since the pandemic, China's leader, Xi Jinping, has done little to stop the bleeding in the country's property market or to get China's ailing consumers to start spending money again. Xi's Beijing lacks the will and the power to turn China's economy around. At the heart of its problems is a lack of consumer demand and a property market going through a deep, slow-moving correction. Plus, there's Xi, who seems fairly uninterested in restructuring the property market.
Persons: Gongsheng, Wall, Xi Jinping, China —, Goldman Sachs, , Sam Altman, Genéralé, Michael Pettis, Xi doesn't, Friedrich Hayek, Xi Organizations: Beijing, People's Bank of China, People's Bank, Shanghai, Chinese Communist Party, Nasdaq, CCP, Peking University, Carnegie Endowment, European Union Locations: China's, China, Beijing, Austrian
It comes after China greenlit international adoption in 1992, leading to roughly 160,000 Chinese children being adopted to other countries, with half going to the U.S. The slowed international adoption coincides with a 2016 reversal of China’s one-child policy, which limited each Chinese family to one child in order to control population growth. With the door closed on international adoption, Newton emphasized that in order for those currently in Chinese social welfare institutes to thrive in their birth country, they also need more support. “The situation truly is a little bit more complicated for these kids with intense disabilities, especially with the rising costs of living in China,” Newton said. Newton said adoptees are often seen as “perpetual children” whose points of view don’t need to be considered.
Persons: Maze Felix, ” Felix, they’re, Grace Newton, ” Newton, Newton, , ’ ”, Mao Ning, , it’s, Monaco, adoptees, ” Monaco, didn’t, Katelyn Monaco, Felix, there’s, There’s Organizations: China, NBC News, Foreign, U.S, Research, Katelyn, Monaco, Locations: China, Cleveland, Beijing, Katelyn Monaco, Quincy , Massachusetts, Monaco, Los Angeles, Yangzhou,
It was obvious to me that I wanted to do the inverse and build an all-female hacker house that created the same dynamic but with women." Cantillon, who has lived in several hacker houses over the years, saw a need for a space dedicated exclusively to women. That's why she co-founded HackHer House, the first all-female hacker house in the San Francisco Bay Area. Hacker houses aren't new to the Bay Area or cities like New York and London. In a city renowned for tech advancements, hacker houses are viewed as critical for driving the next wave of innovation.
Persons: Molly Cantillon, Cantillon, Jennifer Li, Andreessen Horowitz, Zoya Garg, Anna Monaco, Anne Brandes, Li Organizations: HackHer, Stanford University, . Venture, U.S Locations: San Francisco Bay, Silicon, North Beach, Bay, New York, London
This week — the week of September 29 through October 5 — is the best time to buy a home, according to Realtor.com. Mortgage rates are the lowest they've been in two yearsMortgage rates have dropped rapidly in the last few months. Average 30-year mortgage rates are now down to 6.08%, according to Freddie Mac — the lowest they've been since September 2022. Should you buy during the 'best week to buy'? So, should you take advantage of the best week to buy?
Persons: , Realtor.com, you'll, there's, Danielle Hale, Freddie Mac, Hale, that's Organizations: Service, Realtor.com
The basic income myth: cash discourages work
  + stars: | 2024-09-28 | by ( Allie Kelly | ) www.businessinsider.com   time to read: +10 min
Critics of guaranteed basic income often suggest that cash payments discourage work. Guaranteed basic income programs are gaining momentum across the US as an approach to poverty reduction. Related storiesBasic income critics say cash discourages workBillionaires, politicians, and financial leaders have criticized basic income programs, saying that cash payments could encourage laziness among participants. AdvertisementStill, guaranteed basic income programs reflect short-term results. Harper began teaching shortly after enrolling in a Georgia-based guaranteed basic income program, In Her Hands.
Persons: , Taniquewa Brewster, Brewster, America's, John Gillette, Sam Altman, Samra, aren't, Cepia Harper, Harper, I've, Asya Howlette, Howlette, Brewster — Organizations: Service, Texans, Business, Austin, Rep, Mayors, Orleans Mayor's, Youth Locations: Arizona, Illinois, Texas, Stockton and Baltimore, Denver, Georgia, Orleans
The US will see construction completed on a record number of apartments this year. The Sun Belt region in particular is seeing this dynamic play out. The US will see construction on a record number of apartments completed this year. They're now seeing rent prices fall, or at least remain stagnant as the rest of the nation lags behind. That means the market will eventually balance itself in the next few years, which will lead rent prices to once again rise, she said.
Persons: , Laurie Goodman, Goodman, Austin, Chen Zhao, Zhao Organizations: Service, Housing Finance, Center, Urban Institute, Sun, metros, Dallas, Harvard Locations: Dallas, New York, Austin
But the past week's stimulus blitz did not offer fiscal support to China's discouraged consumers. AdvertisementChina's latest stimulus blitz offers everything but one key fix: new incentives to revive consumers. While Tuesday's stimulus package didn't address fiscal support, Chinese officials appear to be getting around to it. Even if China commits to bigger fiscal support in the near term, it could be too late to change things this year, Huang said. For instance, Chinese consumers are staying away from new housing projects even as China has introduced looser mortgage rates and downpayment rules.
Persons: , Liz Young Thomas, Tianlei Huang, Huang Organizations: Service, JPMorgan, Investment, Peterson Institute for International Economics, Reuters, Communist, Barclays, Bank of America Locations: China, Beijing
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