Economic events
Citigroup downgrades U.S. equities, says get defensive because of ‘deflating bubble’
It’s time to get defensive on U.S. equities amid “significantly” rising recession risks, according to Citigroup. The global asset allocation team downgraded U.S. equities to neutral amid troubling signs — including disquieting signs in the stock market and hawkish guidance from the Federal Reserve chair — despite not technically holding a recession in its base […]
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Stock futures are little changed with S&P 500 on track for winning week
Traders on the floor of the NYSE, May 17, 2022. Source: NYSE Stock futures were little changed in overnight trading as the S&P 500 attempted to snap a seven-week losing streak. Futures on the Dow Jones Industrial Average shed about 25 points. S&P 500 futures were flat and Nasdaq 100 futures were marginally higher. Retail […]
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The Indo-Pacific Economic Framework: What it is — and why it matters
U.S. President Joe Biden formally introduced the Indo-Pacific Economic Framework, or IPEF, this week during his first Asia tour, revealing Washington’s long-awaited Asia-Pacific economic strategy. It comes five years after the U.S. unilaterally withdrew from the Trans-Pacific Partnership, a trade deal signed by 12 countries in Asia-Pacific, North America and South America. With the U.S. […]
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Here’s why major cities may still be worth their high cost of living
Many renters believe that a cost-of-living crisis is brewing in America’s major cities. New York City is showing up as a hotspot of rent inflation. The average rent for 1-bedroom apartments in Manhattan rose to $3,995 a month in May 2022 — a 41% increase from one year ago, according to Zumper. Sudden, double-digit rent […]
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Why China will likely recover more slowly from the latest Covid shock
As Shanghai tries to reopen businesses, one downtown district over the weekend banned residents from leaving their apartment complexes again for mass virus testing. Pictured here, in another district on May 21, 2022, is a line outside a shopping mall. Xu Kaikia | Visual China Group | Getty Images BEIJING — China’s economy won’t be […]
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Breaking down the market’s tumble into a bear market — and what comes next
The relentless sell-off in stocks started marking some grim milestones this past week. The S & P 500 briefly dipped on Friday into bear market territory, trading more than 20% below its January intraday record. There’s no official definition for a bear market, so investors will debate whether we are in one officially now or […]
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Recession is ‘likely,’ former SEC chief economist says. Here’s his advice for how to prepare
Larry Harris Source: Larry Harris To tame the recent inflationary spike, the Federal Reserve signaled it will continue to raise interest rates. When rates are high, consumers get a better return on the money they stash in a bank account and must shell out more to get a loan, which can trigger them to borrow […]
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UK retail sales jump unexpectedly, but big picture bleak
A shopper wearing a face mask in Regent Street, London, after the second national lockdown ended and England has a strengthened tiered system of coronavirus restrictions. Victoria Jones – PA Images | PA Images | Getty Images British retail sales jumped unexpectedly in April as shoppers loaded up on alcohol and tobacco, likely a blip […]
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The sell-off has entered ‘a new phase,’ Allianz’s El-Erian says. How investors can deal with it
Wednesday marked a new chapter in the market sell-off, as investors fled stocks and sought safety in bonds, according to Allianz chief economic advisor Mohamed El-Erian. “Today’s a new phase as opposed to just a continuation of what we’ve seen,” he said on CNBC’s ” Closing Bell ” on Wednesday. “Initially this was a sell-off […]
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As inflation slows and the ruble rallies, Russia is hoping to avoid a financial crisis
Russian President Vladimir Putin. Pool | Reuters Russia believes it has swerved a financial crisis as its currency rallies and economic data improves, but strategists say the numbers mask some ugly truths for Moscow. Although inflation in the country is running hot, there are signs that price rises are slowing and will continue to do […]
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