(Bloomberg) — One of Wall Street’s biggest bears is turning even more pessimistic on the outlook for US earnings against the backdrop of a slowdown in economic growth. Morgan Stanley strategist Michael J. Wilson cut his expectations for earnings-per-share growth for the year, saying that a slowing economy is now likely to be a bigger […]
Read More(Bloomberg) — The US economy shrank for a second straight quarter, raising chances of a recession, as decades-high inflation undercut consumer spending and Federal Reserve interest-rate hikes stymied business investment and housing demand. Gross domestic product fell at a 0.9% annualized rate after a 1.6% decline in the first three months of the year, the […]
Read More(Bloomberg) — The US economy is firmly in the middle of a slowdown that’s turning out to be worse than expected amid the war in Ukraine and China’s Covid Zero policy, according to Morgan Stanley strategists. With a recent dip in bond yields, investors are betting the Federal Reserve may turn less hawkish if inflation […]
Read More(Bloomberg) — Tesla Inc. investors have a lot to parse after the July 4 holiday: a disappointing quarter of deliveries, a record month of production, and now several weeks of downtime at multiple plants. The electric-car maker will halt most production on its Model Y assembly line in Shanghai for the first two weeks of […]
Read More(Bloomberg) — Investment bankers in the US and Europe are bracing for potentially billions of dollars in total losses on big-ticket leveraged buyouts as they struggle to offload risky corporate debt that’s plunging in value amid a sweeping market selloff. The biggest hit, which could amount to about $1 billion, may come from the take-private […]
Read More(Bloomberg) — Citigroup Inc. Chief Executive Officer Jane Fraser said the US will have difficulty avoiding a recession, though a severe downturn is not the bank’s “base-case” scenario. “Europe definitely felt more likely to be heading into a recession than you see in the US,” Fraser, who just returned from a trip to Europe and […]
Read More(Bloomberg) — Corporate America has suddenly and drastically changed its tune on the US economy. Executives from Jamie Dimon and Elon Musk to Gary Friedman, the head of furniture retailer RH, all cautioned investors this week to be wary of an economic downturn. After months of strong consumer spending and supply-chain improvements, some of the […]
Read More(Bloomberg) — A top Goldman Sachs Group Inc. executive echoed Jamie Dimon’s pessimistic tone, warning of tougher times ahead amid a string of shocks rattling the global economy. “This is among — if not the most — complex, dynamic environments I’ve ever seen in my career,” Goldman President John Waldron said at an investor conference […]
Read More(Bloomberg) — High-profile warnings over a possible US recession has investors bracing for a slowdown. Short interest in the $352 billion SPDR S&P 500 ETF Trust (ticker SPY) as a percentage of shares outstanding is above 7%, close to the highest since March 2020, IHS Markit Ltd. data show. Meanwhile, bets against the $19.5 billion […]
Read More(Bloomberg) — The U.S. economy unexpectedly shrank last quarter for the first time since 2020 as the trade deficit ballooned, adding to political headaches for President Joe Biden but unlikely to sway the Federal Reserve from hiking interest rates aggressively to combat inflation. Gross domestic product fell at a 1.4% annualized rate as surging imports […]
Read More(Bloomberg) — The great bond selloff may have eased this week at long last, but a Treasury fear gauge is sending a clear message: Not since the global financial crisis have two-year Treasuries been laced with volatility risk like this. In a week marked by haven demand on Russia-Ukraine tensions and easing bets on an […]
Read More(Bloomberg) — The U.S. Department of Agriculture said it’s maintaining a ban on avocados from Mexico for now, adding to concern that supply of the popular fruit may run low at some restaurants and grocery stores. The USDA halted avocado imports from Michoacán, a coastal state west of Mexico City, on Feb. 11 after a […]
Read More“Uncertainty” is a good way to describe market conditions since the start of the new year. Massive spikes in COVID infections late in 2021 from the omicron variant have also given way to big increases in hospitalizations, which means that pressure on our medical system continues to strain healthcare workers and first responders to their […]
Read MoreFiguratively speaking, starting a new year generally means not only turning the page, but also closing the book on the year before. From a practical standpoint, as investors that can be a little bit difficult, because the questions that have to be answered about the past year include not only profit and loss, but also […]
Read More(Bloomberg) — The firebreak between mounting economic threats and a continuation in the global recovery: an imposing concrete and glass structure in the heart of Beijing’s financial district, elephant statues guarding the door, the Chinese flag flying above. That’s the headquarters of the People’s Bank of China which, in contrast with the U.S. Federal Reserve, […]
Read More