Search Results for 'inflation'

Wall Street holds steady at Wednesday's open after a bad Tuesday for the S&P 500 and Dow

• Wall Street is holding steadier Wednesday after the bond market relaxed its vise a bit on the stock market
• The Dow Jones Industrial Average added 51 points, or 0.2%, a day after wiping out its gains for the year so far
• The high yields undercut stock prices by pulling investment dollars away from stocks and into bonds
• On Wall Street currently, the hope is for a cooling job market because that may mean less upward pressure on inflation
• Benchmark U.S. crude fell 2.9% to $86.68 per barrel
• It’s been pulling back since topping $93 last week
• Asian stocks tumbled more, coming off the prior day’s sharp losses from Wall Street
• Tokyo’s Nikkei 225 index sank 2.3%, South Korea’s Kospi dropped 2.4% and Hong Kong’s Hang Seng skidded 0.8%.

WNC: 2 Auto Stocks to Buy, 1 to Hold in October

• After enduring some challenging times, the auto industry rebounded strongly this year as supply-related issues eased and inflation cooled significantly
• Considering these factors, buying fundamentally strong auto stocks Wabash National Corporation (WNC) and Blue Bird Corporation (BLBD) could be wise
• WNC designs, manufactures, and distributes connected solutions for the transportation, logistics, and distribution industries
• On September 18, 2023, WNC announced a multi-year agreement with Rockland Flooring for laminated wood trailer flooring
• August 25, 2023, WNC hosted a ribbon-cutting event for its advanced dry van trailer manufacturing facility in Lafayette, Indiana
• The strategic capacity expansion, announced in July 2021, will help produce an additional 10,000 dry van trailers annually
• Within the B-rated Auto & Vehicle Manufacturers industry, it is ranked #17 out of 53 stocks
• Year-to-date, WNC has declined -5.74%, versus a 11.72% rise in the benchmark S&P 500 index during the same period.

Shekel tumbles to 7-year-low of 3.87 against the dollar

• The weakening Israeli shekel took a further dive on Wednesday, dropping to 3.87 against the US dollar, its lowest rate in seven years
• The dollar had been trading at NIS 3.81 on Sunday
• The new rate marked a 1.5 percent jump since the beginning of the week
• The currency’s devaluation increases inflation and could lead to further interest rate hikes by the central bank
• “This government is leading us to complete economic chaos
• It’s time for a different leadership that is responsible and professional
• Last month, leading US financial institution JPMorgan Chase & Co. warned that the recent weakening of the Israeli shekel may be a sign of long-term trends for the currency
• Foreign investment in Israel dived by 60% in the first quarter of this year, according to a report published by the Finance Ministry in September.

Thai c.bank chief's opinions on economy 'different' than new PM's

• BANGKOK, Oct 4 (Reuters) - Thailand's central bank chief said on Wednesday some of his opinions on the economy differed from those of new Prime Minister Srettha Thavisin, who has promised stimulus for an economy struggling with weak exports and tourism spending
• Bank of Thailand (BOT)
• Governor Sethaput Suthiwartnarueput's remarks came a week after the central bank unexpectedly raised key interest rates to 2.50%, the highest in 10 years, in a move that seemed to clash with the government's plan to inject 560 billion baht ($15.06 billion) into the economy through a digital wallet handout."We
• had some different opinions, but there is no conflict," Sethaput said, describing a meeting with the prime minister earlier this week after the surprise rate hike."We had a frank discussion and listened to each other," he told reporters on the sidelines of a business forum
• The BOT last week cut its 2023 gross domestic product (GDP) growth forecast to 2.8% from 3.6% projected earlier, though it lifted its 2024 projection to 4.4% from 3.8%
• Last year, the economy grew by 2.6%.Fiscal spending should be limited because it would impact the economy, Sethaput said at the business forum, instead urging an improvement in the ease of business and reducing regulations to draw more investment
• "The country's capacity for long-term growth needs to be examined," he said
• Thailand's economic recovery is intact and overall the financial system is stable enough to withstand external shocks Sethaput said, but he warned there were inflation risks from higher wages and food and energy prices as well as future government policies.

UK PM Rishi Sunak's leadership on rocky ground as party rebellion mounts

• MANCHESTER, England — U.K. Prime Minster Rishi Sunak appears a leader on rocky ground as growing disunity from within his Conservative government is giving rise to more radical factions, even as the party gears up for a general election next year
• Members of Parliament, including Liz Truss, Britain's shortest-serving prime minister, voiced their disapproval of Sunak's leadership — or perceived lack thereof — while faction leaders have urged donors to defund the party until major reforms are made
• The rising discord from within the party is also reflected in public sentiment, with many Britons expressing their dissatisfaction with the Tories' 13-year stronghold
• Recent opinion polls show Labour with a 20-point lead over the Conservatives, only a slight narrowing from July
• "The Conservative brand is struggling," Gideon Skinner, head of politics research in public affairs at market research firm Ipsos, said Monday
• "Two-thirds [of voters] think it's time for a change, and that's the real struggle that the Conservative Party has to turn around."
• Nearly three-quarters (73%), meanwhile, see Sunak, Britain's richest prime minister in modern history, as out of touch
• It comes as Britain struggles with still high inflation and falling living standards, which have led to ongoing industrial action over working conditions and pay.

'Hindi mo masisi ang tao': Marcos Jr reacts to drop in approval ratings

• MANILA — President Ferdinand Marcos, Jr. on Wednesday said "it was not surprising" that his approval rating fell, saying he could not blame Filipinos as they were having a hard time due to rising inflation
• usapan kapag bigas, it is different from any other agricultural product
• "Kaya hindi mo masisi ang tao
• Talagang naghihirap sila, eh
• Approval for Marcos Jr.'s work declined in the country as a whole to 65 percent in September from 80 percent in June
• His approval rating was also down in all areas and classes (-14 to -15 percentage points and -12 to -29 percentage points, respectively), Pulse Asia noted
• The Pulse Asia survey also revealed 74 percent of respondents said inflation is the most urgent concern for Filipinos
• Other key developments during this time included Chinese incursions into the West Philippine Sea and an increase in the prices of rice and vegetables.

The 3 Best Defensive Stocks to Buy as Inflation Stays Higher, Longer

Canadians are facing a ‘financial storm,’ and experts say it’s time to plan ahead - National | Globalnews.ca

• Canadians are continuing to feel the pinch on their wallets with inflation, interest rates and cost of living creating an “intensifying financial stress storm,” according to a survey by the National Payroll Institute
• ”“There’s a financial storm that’s brewing
• and it’s really gained a lot of strength in the past year,” he said in an interview
• For some Canadians, the added worry over their finances is having an isolating social impact
• “They’re feeling it in the household, but they’re also bringing it to work with them
• And they’re spending, on average, 30 minutes a day worrying or thinking about or dealing with their financial situation,” Tzanetakis said
• ”Meanwhile, new research from employment agency Robert Half shows among managers wanting to hire, 92 per cent surveyed say they’re facing challenges finding and attracting skilled talent
• The survey took into account the responses of more than 1,300 hiring managers and 1,700 workers earlier this year.

Canadian Yields Won’t Stop Ripping Higher & Mortgages Are Following

• Canada’s fast-rising bond yields just hit hyperdrive and they’re now rising even faster
• Government of Canada (GoC) bond yields surged across the board on Tuesday
• The move will drive mortgage costs higher, especially 5 year fixed rates with the corresponding government bond hitting the highest rates since 2007
• Today borrowers may not be so lucky, as central banks tell the market to prepare for rates to go higher for longer
• Canadian 5 Year Bond Yield Growth Is Accelerating, Not Slowing DownCanada’s GoC 5-year bond yield ripped higher today, touching a multi-year high
• They’re also close to the overnight rate (5.0%), impacting variable rate mortgages
• Now with elevated inflation and higher domestic yields overseas, the shift is reversing
• That was also the cheap cash providing cheap mortgages.

In rare interview, J&J CEO Joaquin Duato opens up about Baby Powder cancer lawsuits and the future of Kenvue

• Johnson & Johnson initially rejected current Chairman and CEO Joaquin Duato when he applied shortly after finishing graduate school
• Joaquin Duato:
• Working in different geographies, in different sectors, in different functions
• So, we’re all people who like working in Johnson & Johnson and stay longer in Johnson & Johnson
• The entire management team of Kenvue, including the new CEO, comes from Johnson & Johnson
• Joaquin Duato: Absolutely
• Joaquin Duato:
• The recent legislation that you’re referring to, I’m assuming you’re referring to the Inflation Reduction Act, right?

Dow Turns Negative for the Year

• The Dow Jones Industrial Average has given back all of its gains for the year after job openings rose more than expected in August, suggesting the Federal Reserve has more work to do
• The Dow dropped 333 points, or 1%, on Tuesday, while the S&P 500 fell 1.2%, and the Nasdaq Composite was off 1.5%.The last time the Dow closed in negative territory this year was June 1, according to Dow Jones Market Data
• Fed futures have penciled in a 34.9% chance of a rate hike at the November meeting, up from 27.2% on Monday, according to the CME FedWatch Tool.“Any
• wonder why the Fed expects to raise interest rates again?” wrote Greg McBride, chief financial analyst at Bankrate
• “With 1.5 job openings for every unemployed worker, there is little evidence of substantial easing in labor market demand, a risk to getting inflation lower.”

If the bond markets aren’t scaring you yet, they should be

• Bond markets, famously, can scare everyone
• And if you aren’t scared by what’s happening with them yet, maybe you should be paying more attention
• In less than three months, long-term interest rates have risen nearly a full percentage point in the U.S., dragging up borrowing costs for governments, companies and households around the world
• And they don’t show any sign of stopping yet
• Markets now see another Fed hike as more likely than not before year-end
• Normally, rising long-term rates (expressed by government bond yields) go hand-in-hand with stronger economic growth and expectations of future inflation
• What goes around comes aroundThis is the long-anticipated economic hangover from the pandemic
• “The US post-COVID party has become a European hangover, another instalment of America’s exorbitant privilege.”

Constant price hikes are making inflation worse, Bank of Canada deputy says in speech | News

• Bank of Canada deputy governor Nicolas Vincent says businesses raising their prices more frequently than they did before the pandemic is contributing to higher-than-expected inflation
• believe that this behaviour by firms — both here and abroad — is intimately linked to the stronger-than-expected inflation we've seen," Vincent said
• "Under these conditions, we may expect firms to have larger and more frequent price adjustments," Vincent said
• Recent research from the central bank shows price increases have closely mirrored the cost increases businesses have faced
• However, Vincent notes that even stable profit margins would mean customers are carrying the entire burden of higher prices
• The deputy governor says these recent discoveries about the effect pricing behaviour may be having on inflation is leading the Bank of Canada to rethink its assumptions about what drives inflation
• The deputy governor said higher labour and financing costs could continue to push prices up
• "Perhaps the biggest risk of all is the idea that recent pricing behaviour could become self-perpetuating," Vincent told the business audience.

Drugmakers agree to participate in Medicare price negotiations

• Major drugmakers including Eli Lilly and Co (NYSE:LLY), Johnson & Johnson (NYSE:JNJ) and Merck & Co Inc (NYSE:MRK) have agreed to participate in the Inflation Reduction Act’s (IRA's) Medicare Drug Price Negotiation Program, the Biden administration said on Tuesday
• The Inflation Reduction Act of 2022 granted the ability for Medicare to negotiate drug prices directly with manufacturers with the aim of reducing the costs of medications for seniors and other Medicare beneficiaries
• It aims to reduce costs for drugs used to treat conditions such as heart failure diabetes, arthritis, cancers, and blood clots, among other ailments
• Boehringer Ingelheim and Eli Lilly's Jardiance for diabetes and heart failure• J&J's Xarelto for the prevention and treatment of blood clots•
• Despite all drugmakers tapped for the initial round of price negotiations agreeing to participate, numerous drugmakers and industry groups have filed legal challenges against the price negotiations
• “Novartis has signed the Medicare Drug Price Negotiation Program agreement for 2026 because this was our only viable option
• If we had not signed the agreement, Novartis would face excessive and crippling fines,” Novartis told Bloomberg Law
• A J&J spokesperson also told the publication: “We continue to believe the IRA’s drug price setting provisions are damaging to the innovation ecosystem that delivers transformative therapies and cures to patients.”

Older millennials are in 'a constant perpetuating state of playing catch up,' making them the most financially stressed of any age group

• A full 80% report feeling stressed out by their financial situations
• But inflation doesn’t explain everything
• Financial advisors says it makes sense that older millennials are the most financially anxious, as they have come up against some famously challenging economic circumstances
• “Some lost everything, others lost a lot,” Herzog says
• Coupled with staggering student debt, a lot of childcare bills, and soaring housing prices, they can’t seem to catch a break
• “If not careful, someone can be in a constant perpetuating state of playing catch up
• But the financial advisors say on the whole, these are the issues their older millennial clients are seeking advice about
• Women are also less comfortable than men, with 38% of women feeling financially well compared to 48% of men.

More evidence that the US job market remains hot after US job openings rise unexpectedly in August

• WASHINGTON -- U.S. job openings unexpectedly rose in August, another sign the U.S. labor market remains strong despite higher interest rates — perhaps too strong for the inflation fighters at the Federal Reserve
• American employers posted 9.6 million job openings in August, up from 8.9 million in July and the first uptick in three months, the Labor Department said Tuesday
• Economists had expected only another 8.9 million vacancies
• ""Yes, the job market is still retaining a lot of heat,'' he said, "but it hasn't gone back on the boil
• ''The Federal Reserve wants to see the red-hot U.S. job market cool off, reducing pressure on businesses to raise pay, which can feed into higher prices
• The central bank has raised its benchmark rate 11 times since March 2022 to combat inflation
• The strong jobs data sent a ripple through U.S. markets with many investors seeing increased odds of more aggressive actions by the Fed
• Openings and quits are down from their 2022 peaks, while the unemployment rate (at 3.8% in August) remains near a half-century low.

Energy needs of EV battery plant will keep coal plant online

• An electric battery factory in Kansas may use so much energy that a local power plant might not be able to stop burning coal as quickly as planned, according to multiple reports
• Panasonic, a Japanese technology company, is building a massive electric vehicle (EV) battery plant in De Soto, Kansas, that could consume enough energy to power a small city, according to Cowboy State Daily
• Panasonic plant could eventually net $6.8 billion from the federal government via the Inflation Reduction Act, President Joe Biden’s signature climate bill, according to Cowboy State Daily
• The factory itself is estimated to cost about $4 billion to build, according to Fox 4 Kansas City
• ”Evergy, the KCC, the Department of Energy and the White House all did not respond immediately to requests for comment
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Thai Central Bank Vows to Curb Baht Volatility as PM Sees Gains - Bloomberg

• (Bloomberg) -- The Bank of Thailand said it stands ready to tamp down on excessive baht volatility as it headed to an 11-month low, hours after the country’s leader said a weakening currency will benefit its tourism and exports
• He acknowledged that the BOT is in charge of managing and monitoring the baht
• The central bank issued a statement later in the day, saying it “may consider taking care of the baht if it fluctuates abnormally,” impacting companies
• Srettha’s remarks on the baht come after his meeting with BOT Governor Sethaput Suthiwartnarueput on Monday, the first of their monthly discussions to reconcile any differences between fiscal and monetary policy directions
• Sethaput had been vocal about his concerns on how Srettha government’s stimulus measures could stoke inflation
• The baht has lost 5.5% against the dollar in the past month, the worst performance among the 12 Asian currencies tracked by Bloomberg
• Separately on Tuesday, the BOT appointed two new members to the Monetary Policy Committee while extending the terms of Paiboon Kittisrikangwan and Rapee Sucharitakul for three more years
• Outgoing Siam Cement Pcl Chief Executive Roongrote Rangsiyopash and economist Santitarn Sathirathai will join the monetary panel from Nov. 1, according to the BOT.

Avoid Retail Stocks After Theft Was Up 20% in 2022

• The weakening economy and rising inflation are hurting many people
• For those in despair, retail theft rose in 2022 by nearly 20%.The National Retail Federation said that retail sales firms lost $112.1 billion from shrink (or retail theft)
• Target (TGT) plans to close nine stores in major U.S. cities
• Pharmacies like Walgreens (WBA) and CVS Health (CVS) are closing store locations in places where theft levels are high
• CVS even locks up products like toothpaste behind transparent casings to prevent theft
• Investors should avoid most retail stocks
• Their stock rebounded recently
• Conversely, Home Depot (HD), Best Buy (BBY), Ulta Beauty (ULTA).

New York Real Estate In Q3 2023: A Wild Ride For Buyers And Sellers

• New York City real estate’s third quarter has taken both buyers and sellers on a wild ride
• In the first week of June, Olshan reported 31 transactions; in June’s fourth week there were 29
• And the week of September 11 saw 10 deals made, while last week, starting September 18th, saw 8
• This increase, which reflects the Federal Reserve’s ongoing effort to tame inflation, impacts real estate markets in multiple ways
• Many first time buyers simply cannot afford the huge incremental cost
• While low inventory usually drives home prices up, that has not been the case here in New York City
• Still, ordinary people moving to New York must contend with a triple threat
• And after all, New York is always the one and only New York.

Hourly Wage Growth for Small Business Workers Continues to Cool, Consistent with Overall Inflation Trend

• The Small Business Jobs Index — which measures the rate of small business job growth in the U.S. — shows 98.89 in September, a -0.21% change from August
• This press release features multimedia
• View the full release here: https://www.businesswire.com/news/home/20231003561785/en/“Wage inflation continues to cool, and the jobs index dips below 99 for September,” said James Diffley, chief regional economist, S&P Global Market Intelligence
• data indicates a continued stable macroeconomic environment for small businesses, which are adding workers at a sustained but modest rate,” said John Gibson, Paychex president and CEO
• At 3.44% in September, weekly earnings growth has steadily decreased since early 2023
• At 0.42%, Miami remains the only metro with positive weekly hours worked growth
• Construction ranks second among sectors in hourly earnings growth (4.27%) and first in both weekly earnings growth (4.15%) and weekly hours worked growth (0.07%)
• S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI).

Hourly Wage Growth for Small Business Workers Continues to Cool, Consistent with Overall Inflation Trend

• According to the Paychex | IHS Markit Small Business Employment Watch, hourly earnings growth has slowed to 3.79% in September 2023, a pace not seen since September 2021 (3.77%)
• The Small Business Jobs Index — which measures the rate of small business job growth in the U.S. — shows 98.89 in September, a -0.21% change from August
• This press release features multimedia
• View the full release here: https://www.businesswire.com/news/home/20231003561785/en/According to the latest Paychex data, small businesses are adding workers at a sustained, modest rate
• (Graphic: Business Wire)“Wage inflation continues to cool, and the jobs index dips below 99 for September,” said James Diffley, chief regional economist, S&P Global Market Intelligence
• At 3.44% in September, weekly earnings growth has steadily decreased since early 2023
• Construction ranks second among sectors in hourly earnings growth (4.27%) and first in both weekly earnings growth (4.15%) and weekly hours worked growth (0.07%)
• S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI).

Hourly Wage Growth for Small Business Workers Continues to Cool, Consistent with Overall Inflation Trend

• ROCHESTER, N.Y.--(BUSINESS WIRE)--According to the Paychex | IHS Markit Small Business Employment Watch, hourly earnings growth has slowed to 3.79% in September 2023, a pace not seen since September 2021 (3.77%)
• The Small Business Jobs Index — which measures the rate of small business job growth in the U.S. — shows 98.89 in September, a -0.21% change from August
• Wage inflation continues to cool, and the jobs index dips below 99 for September,” said James Diffley, chief regional economist, S&P Global Market Intelligence
• At 3.44% in September, weekly earnings growth has steadily decreased since early 2023
• They are also the only two metros with weekly earnings growth below two percent.•
• At 0.42%, Miami remains the only metro with positive weekly hours worked growth
• Construction ranks second among sectors in hourly earnings growth (4.27%) and first in both weekly earnings growth (4.15%) and weekly hours worked growth (0.07%)
• S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI).

Navigating Retirement: Balancing Immediate Needs and Future Gains

• Those are just a few of the recent findings in Schroders annual US Retirement Survey
• It is not irrational to opt for higher consumption if the perceived immediate benefits outweigh the uncertain benefits of higher consumption in the future
• aptly cautions that one shouldn't overlook the tax implications of early benefits, particularly if full retirement hasn't been attained
• This, he postulates, could be due to heightened uncertainty about future consumption benefits stemming from delayed payouts
• M. Jones, CFS, CFP, president of Jones Fiduciary Wealth, adds a deeper layer of understanding to the elements influencing retirement choices
• And this calculus doesn't even factor in the potential impact of inflation, further bolstering the appeal of immediate income
• With proper information, Kumar urges individuals to conduct meticulous analyses of the costs and benefits of initiating benefits early
• Tax considerations must also be considered, especially for those not contemplating full retirement.

Orezone and WAF Sign MOU to Investigate Synergies and Reduce Costs

• Orezone Gold Corporation (Orezone) and West African Resources (WAF) have jointly announced their intention to establish a memorandum of understanding (MOU) aimed at exploring potential synergies across their respective trio of mining projects
• This collaboration holds the potential to unlock substantial value for all stakeholders involved
• Both companies have reached an agreement to explore the possibility of extending the grid power spur line from Bomboré to Sanbrado
• Such an extension has the potential to significantly reduce the processing expenses at the Sanbrado site.•
• The companies will collaborate on CSR, training, employment, and Livelihood Restoration Programs to maximize benefits for local communities
• The ongoing discussions between WAF and Orezone reflect a commonsense approach to reduce costs and optimize invested capital
• “This MOU represents an effective way to generate long-term value from each of our assets in Burkina Faso with the active participation of our neighboring communities
• With the broader industry continuing to face cost inflation, this MOU represents an important opportunity to further improve our cost structure and create further value for our shareholders.