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    In this article RACE RACE-IT MC-FR CPRI A pedestrian carries a Louis Vuitton shopping bag, from a store operated by LVMH Moet Hennessy Louis Vuitton SE, on New Bond Street in London, U.K., on Wednesday, Oct. 21, 2020.Hollie Adams | Bloomberg | Getty ImagesPrices for food, gas and travel have soared over the past year –  but the rich appear to be shrugging it off and are still fueling sales at luxury companies, where sneakers can go for $1,200 and sports cars easily top $300,000. Companies that cater to the ultra-rich, including Ferrari and the parent companies of Dior, Louis Vuitton and Versace, are reporting strong sales or hiking their profit forecasts. The upbeat results come even as recessionary fears hang over the economy, with Walmart, Best Buy, Gap and others slashing their financial outlooks, citing a pullback in spending among lower-income consumers squeezed by inflation. The unflagging strength in the luxury category is in line with past economic slowdowns, experts say, with the rich often being the last to feel the effects because of the cushion their extreme...
    (CNN)Consumer sentiment in August continued to rebound from its June trough, but Americans' feelings about the economy remain profoundly depressed from a year earlier, weighed down by uncertainty about inflation and the job market.The nation's collective outlook rose marginally this month, according to the latest University of Michigan Surveys of Consumers released Friday. The benchmark sentiment index rose to 55.1, up from 51.5 in July, after plummeting to a record low of 50 in June, when consumers were feeling buffeted by soaring inflation and $5-a-gallon gas.Gas prices have retreated and a robust labor market added more than half a million jobs last month, but survey respondents' outlook regarding current economic conditions nonetheless slumped to 55.5 from 58.1 in July. How does inflation affect my standard of living?Experts in personal finance and consumer behavior say this is unsurprising, given that much of our attitudes about money are subjective and shaped by emotions. "We're asking people how they feel and asking them to predict the future, [and] we're terrible at predicting the future when we feel bad," said Brent Weiss, co-founder of...
    Many on social media took Biden to task for claiming that inflation was zero percent based on the monthly inflation figure that completely ignored the year-over-year figure that remained historically high. While Biden may believe his policies are working, the voters do not. Polls have shown that Americans are hurting from high inflation and they blame the high spending policies of the Biden administration far more than other contributors, such as the war on Ukraine and the pandemic lockdown. Here are Biden's comments on the inflation fiasco: Biden Says There Was 'Zero Inflation' in July www.youtube.com
    Core inflation is expected to rise in the consumer price index report set for release Wednesday, even as falling gas prices are forecast to bring down overall inflation. Core inflation, referring to the pace of inflation when the volatile categories of food and energy are stripped out, is thought to be the more forward-looking gauge than the headline inflation number. Wednesday’s CPI report is highly anticipated for signs of whether the Federal Reserve's aggressive monetary tightening cycle is succeeding in bringing down prices. Annual inflation ticked up to a blistering 9.1% in June, and the consensus is that the headline figure will decline to an explosive 8.7%. The likely decline in headline inflation will be largely led by declining gas prices, which, while they remain higher than a year ago, have decreased precipitously since June. The average price for a gallon of gas nationwide is now $4.03, according to AAA. That is down by more than a dollar in a matter of just a couple of months. Core inflation, however, is expected to tick up to...
    White House Press Secretary Karine Jean-Pierre cheered the renamed Inflation Reduction Act as 'historic' Friday and brushed off a new analysis that showed its impact on prices would be 'statistically indistinguishable from zero.' She called the deal, struck between West Virginia Democratic Sen. Joe Manchin and Majority Leader Charles Schumer 'historic legislation this is going to be a game changer for so many Americans.' It has the potential to hand President Biden a major win after prolonged negotiations, and would invest billions in climate programs while meeting his pledge to establish a 15 per cent minimum tax. Jean-Pierre also blasted Republicans who are lining up against it.  White House press secretary Karine Jean-Pierre speak blasted Republican 'false rage' as she touted the 'Inflation Reduction Act' on Friday 'We have a plan to fight inflation. We are we are ready to help middle class families and not and Republicans who are opposing that. They're opposing that because of false rage,' she said.  The bill got renamed as Manchin lopped off numerous programs after raising concerns about inflation, and appearing to back...
    Growth in the euro zone economy accelerated in the second quarter of the year, but the region's prospects could be hit as Russia continues to reduce gas supplies. The 19-member bloc registered a gross domestic product rate of 0.7% in the second quarter, according to Eurostat, Europe's statistics office, beating expectations of 0.2% growth. The euro zone posted GDP of 0.5% in the first quarter of the year. The numbers contrast sharply with the negative readings out of the United States for both the first and second quarter, as the euro zone continues to benefit from the reopening of its economy after the pandemic. However, a growing number of economists are expecting the euro zone to slide into a recession next year, with Nomura, for example, forecasting an annual contraction of 1.2% and Berenberg pointing to a 1% slowdown. Even the European Commission, the executive arm of the EU, has admitted that a recession could be on the cards — and as early as this year if Russia completely cuts off the region's gas supplies. Officials in Europe have become...
    (CNN Business)While the latest GDP report showed the US economy contracted again in the second quarter, Treasury Secretary Janet Yellen said there's no fear that America is currently in a recession."That is not what we're seeing right now when you look at the economy," she said. "Job creation is continuing, household finances remain strong, consumers are spending and businesses are growing."The second-quarter reading of the change in gross domestic product showed a decline of 0.9% from the previous quarter, when the economy shrank by 1.6%. That indicates an economy that is transitioning to more "steady, sustainable growth," Yellen said. Such a slowdown is expected, considering the strong economic recovery that has occurred since the depths of the pandemic, she said. "Our economy remains resilient" in its rebound from the pandemic, Yellen added.However, "unacceptably high" levels of inflation -- something not seen at this level since the 1970s and early '80s -- is taking a toll on Americans and their finances, Yellen said. Read More"I think that the discomfort that households feel, it's not because of the labor market," she said....
    VIDEO13:3413:34Treasury Secretary Janet Yellen on the state of the economyThe Exchange Treasury Secretary Janet Yellen said Thursday the U.S. economy is in a state of transition, not recession, despite two consecutive quarters of negative growth. Recession, Yellen insisted, is a "broad-based weakening of our economy" that includes substantial layoffs, business closures, strains in household finances and a slowdown in private sector activity. "That is not what we are seeing right now," she said during an afternoon news conference at the Treasury. "When you look at the economy, job creation is continuing, household finances remain strong, consumers are spending and businesses are growing." Those comments, though, came on the same day that the Commerce Department's Bureau of Economic Analysis reported that gross domestic product, the broadest measure of economic activity, fell 0.9% in the second quarter. Coming on the heels of a 1.6% contraction in the first quarter, the two straight declines meet a commonly used definition of recession. The National Bureau of Economic Research, however, is the official arbiter of recessions, and likely won't rule for months. Yellen started her...
    DETROIT (AP) — Ford Motor Co.’s net income rose 19% in the second quarter as the company pulled together enough computer chips to boost factory output and sales. The Dearborn, Michigan, automaker said Wednesday it made $667 million from April through June, compared with $561 million a year earlier. READ MORE: 3 Men Granted New Trials In 2007 Killing Of Flint-Area TeenThe company stuck with its full-year outlook for pretax earnings of $11.5 billion to $12.5 billion and it still expects 10% to 15% growth in vehicle sales to dealers for the full year. It also boosted its dividend from 10 cents per share to 15 cents per share starting in the third quarter, the level it was before the pandemic. But Chief Financial Officer John Lawler said the automaker is modeling several scenarios in case the economy slips into a recession. He says Ford is better prepared for a downturn than in the past thanks to lower expenses and a stronger model lineup. It’s also in the midst of a major transformation of the business that will include white-collar...
    To combat the consumer price index growth of 9.1% seen in June, Chairman Powell is predicted to announce a significant three-quarter-point interest rate hike this month. He will also potentially announce another in September, as well as provide information regarding when the increases will be paused. While the Fed continues to set expectations of growing interest rates throughout the year, the question remains to what extent they will be raised and when the rate hikes will stop. The U.S. Federal Reserve isn't the only central bank making these moves. Central banks worldwide are enacting similar rate hikes to tackle inflation, including the European Central Bank and the Bank of Canada.
    TOKYO (AP) — Asian shares were mixed Thursday as optimism over earnings was tempered by persistent concerns about inflation and the Chinese economy, despite an overnight rally on Wall Street. Shares rose in Tokyo, Sydney and Seoul, but declined in China. Eyes were on the Bank of Japan, which wrapped up a two-day policy meeting, without any major policy changes, as was widely expected. The BOJ has not indicated it will follow the lead of other central banks, including the U.S. Federal Reserve, in raising interest rates to curb inflation. Japan has suffered years of stagnation, when deflation or falling prices was a major problem. “After the strong showing in Wall Street over the past two days, particularly so for tech stocks, markets may take somewhat of a breather. Lingering caution persists for Chinese equities amid both virus and property sector risks,” Yeap Jun Rong, market strategist at IG in Singapore, said in a commentary. Tokyo’s benchmark Nikkei 225 edged up 0.4% in afternoon trading to 27,803.00. Australia’s S&P/ASX 200 advanced 0.4% to 6,784.00. South Korea’s Kospi...
    INFLATION may be causing prices to rise, but some products have actually become cheaper. The Consumer Price Index (CPI) rose to 9.1% in June, with shelter, gasoline, and food contributing the most to higher prices. 1As inflation rises, not every sector is seeing increased prices The CPI recorded that the cost of shelter rose 5.6% over the past year while food prices have increased by 10.4%. Though many goods have increased, some household items have gone down in price. Below are just a few items you can find at lower prices. 1. Televisions According to the CPI report, televisions have dropped in price. Read More on InflationTROUBLING TIMES When will inflation go down?INTEREST-ING What is inflation and what is the latest US rate? While other electronics were recorded to come down in price, televisions fell the most. The report saw a 9.5% decrease in price from 2021 to 2022. 2. Computer software and accessories Computers and accessories like mice and software fell by 0.6% from June 2021 to June 2022. Most read in MoneyEASY MONEY I turned $21 into $108...
    In this article AAPLCustomers look at the iPhone13 smartphones at apple's flagship store in Shanghai, China.Xing Yun | Future Publishing | Getty ImagesShipments of Apple's iPhone remain strong despite regional uncertainty and economic headwinds that dragged global phone shipments down 9% year over year in the second quarter, according to new data from research firm Canalys. Apple had a 17% share of global phone shipments in Q2, up from 14% in the year-earlier quarter, Canalys said, noting that the iPhone 13 remains in high demand. Samsung has the largest share with 21% of the market, according to Canalys, but that was largely on the strength of sales of its low-end A series phones that cost less than the iPhone 13. Apple is set to report earnings on July 28. The company's chief financial officer, Luca Maestri, warned in April of challenges the company is facing this quarter, including supply constraints that could hit total sales by up to $8 billion. But the steady appetite for the iPhone 13 suggests phone revenues may be strong despite Maestri's warning. Canalys analyst...
    Centrist Sen. Joe Manchin (D-WV) has thrown cold water on top Democrats' hopes to use a budget reconciliation bill to address issues including climate change and unwinding key parts of the GOP’s landmark tax reform bill. However, Democratic lawmakers hope a narrower bill can be enacted ahead of a tough election year. And that might just help the Democrats politically, rather than a broader, social spending measure that is popular with the party's left-wing activist base but looks questionable to much of the voting public, considering that inflation is the highest in 40 years. Top members of the party had been praising renewed talks between the West Virginia centrist Democrat and Senate Majority Leader Chuck Schumer (D-NY) on a budget reconciliation bill that would allow the party to bypass the filibuster in the Senate after Manchin killed a broader social spending bill that progressives supported late last year. WORSENING INFLATION A NEW HEADACHE FOR DEMOCRATS TRYING TO AVOID MIDTERM DISASTER But the news that inflation numbers had hit 9.1%, a 40-year high, has led to the...
    A pedestrian carries a shopping bag while walking through Union Square on May 17, 2022 in San Francisco, California.Justin Sullivan | Getty Images Consumer spending held up during June's inflation surge, with retail sales rising slightly more than expected for the month amid rising prices across most categories, the Commerce Department reported Friday. Advance retail sales increased 1% for the month, better than the Dow Jones estimate of a 0.9% increase. That marked a big jump from the 0.1% decline in May, a number that was revised higher from the initial report of a 0.3% decline. Unlike many other government numbers, the retail figures are not adjusted for inflation, which rose 1.3% during the month, indicating that real sales were slightly negative. Rising costs for food and gasoline in particular helped propel the increase, which was nonetheless broad-based against the various metrics in the report. Excluding autos, the monthly increase also was 1%, topping the 0.7% estimate. Markets rallied on the news, with stock futures pointing to a sharply higher open on Wall Street. Government bond yields moved lower. Gasoline...
    The United States is not expecting Saudi Arabia to immediately boost oil production to ease soaring inflation that is hitting Americans in the pocket. Instead it is eyeing the outcome of the next OPEC+ meeting on Aug 3, a US official said today.  The comments come hours before US President Joe Biden is set to land in Jeddah on a trip that is designed to reset the US relationship with the kingdom and during which energy supply, human rights and security cooperation are on the agenda with Saudi Crown Prince Mohammed Bin Salman. High demand for gas, driven in large part by the global economic recovery from the Covid pandemic and Russia's invasion of Ukraine squeezing supply, has contributed towards inflation running rampant.  Saudi Arabia, alongside the United Arab Emirates, holds the bulk of spare capacity within the OPEC+ group, an alliance between the Organization of Petroleum Exporting Countries (OPEC) and other exporters most notably Russia.  Biden is expected to have direct meetings with Saudi and UAE heads of state during his trip.  But the kingdom has repeatedly indicated it...
    President Joe Biden made his way to Ohio on Wednesday and longtime U.S. Representative Marcy Kaptur (D-OH-09) still hasn’t shied away from embracing his agenda, even as other Democrats in tough elections are beginning to distance themselves from the liberal Biden agenda that has resulted in massive inflation and higher gas prices. America Rising PAC Press Secretary Kristen Bennett said to The Ohio Star, “Marcy Kaptur’s decision to stand by Joe Biden today, puts on full display her decision to be a rubber stamp for the Biden agenda that caused the runaway inflation crisis plaguing Ohioans.” Kaptur continued to stand by Biden’s side while he promotes the American Rescue Plan, with both glossing over the fact that those policies have caused record-setting inflation. Kaptur’s support doesn’t end with the American Rescue Plan. She has repeatedly given her stamp of approval to Biden’s $3.5 trillion Build Back Better, which experts say would have only compounded the economic woes that the United States is currently facing. Other Democrats in tight November races, including Tim Ryan, are distancing themselves from Joe Biden because...
    VIDEO2:3002:30The Fed is winning against inflation despite red-hot June CPI number, Jim Cramer saysMad Money with Jim Cramer CNBC's Jim Cramer on Wednesday said that while consumer prices rose sharper in June than Wall Street expected, the Federal Reserve is close to beating inflation. "I think we have a real shot at putting in … a short term bottom here given that the Federal Reserve can probably put through one more big rate hike and then declare victory," the "Mad Money" host said. "I know it sounds crazy to say we're winning the war against inflation when the CPI, consumer price index, was up 9.1% last month, but you know what, I believe it," he added. The consumer price index, which measures prices of everyday U.S. goods and services, climbed 9.1% in June from a year earlier, according to the Bureau of Labor Statistics. The major indices closed down slightly on Wednesday after teetering during the trading session. Cramer said that he believes inflation has peaked despite the red-hot inflation report due to recent declines in oil and other commodities....
    The Biden administration continues promoting a nearly $2 trillion spending bill passed with zero Republican support despite criticism that the legislation played a big role in fueling inflation. President Joe Biden spoke in Cleveland on Wednesday about how funds from the American Rescue Plan will shore up multiemployer pension plans. But the bill has become sharply divisive in economic circles, with some saying it contributed up to half of today's 8.6% inflation. PUBLIC WANTS BIDEN TO PRIORITIZE INFLATION OVER RUSSIA: POLL "The American Rescue Plan massively overstimulated the economy and caused inflation," said Douglas Holtz-Eakin, president of the conservative think tank American Action Forum. "It was a major fiscal policy error. One of the worst in my lifetime." While it might be expected that conservatives would bash the bill — the Biden administration's only bill passed on a partisan basis via reconciliation — criticisms have emerged from Democrats as well. Larry Summers, who served in the Clinton and Obama administrations, blasted the bill as the "least responsible" economic policy he'd seen in 40 years...
    WASHINGTON (AP) — U.S. employers likely downshifted their pace of hiring in June, but to a level that remains solid despite fears that the economy faces the growing risk of a recession. On Friday, the Labor Department is expected to report that the nation gained 275,000 jobs last month, according to economists surveyed by the data provider FactSet. That would be the lowest monthly gain of the past year, during which the job market has sustained a vigorous recovery from the pandemic recession. Before the pandemic struck in early 2020, monthly hiring that large would have been seen as a robust gain. The unemployment rate in June is thought to have remained at 3.6% for a fourth straight month, just above a 50-year low reached in 2019. If the projections prove accurate, it will underscore the U.S. economy’s unusual and seemingly contradictory circumstances. Growth has been negative for two straight quarters, consumers are slowing their spending with inflation at a four-decade high and home sales have fallen as the Federal Reserve has jacked up borrowing costs. ...
    White House Press Secretary Karine Jean-Pierre defended the performance of the U.S. economy Thursday when she was pressed on a new poll showing an overwhelming majority of Americans think the country is on the 'wrong track.' She was asked about a bleak Monmouth University poll that came out Tuesday, showing a stunning 88 per cent of Americans who say the nation is on the 'wrong track' – and just 10 per cent saying it is going in the right direction.     'I don't think it's that our plan is not popular with the American people. We know that the American people are feeling the high cost. We understand what they are feeling,' she told Fox News correspondent Peter Doocy. 'Because when we look at inflation, we look at where we are economically – and we are in a strong, we are stronger economically than we have been in history. You look at the unemployment numbers at 3.6%. When you look at the jobs numbers, more than 8.7 million new jobs created. That is important. But we understand that gas prices are...
    by Bethany Blankley   There’s a silver lining to some of the hardship Florida citrus producers have faced over the past several years. Their projected crop production is an estimated 2 million box increase from the previous month, the cost for consumers to purchase Florida orange juice is lower than other food despite inflation, and their congressional delegation is advancing a bill to reform FDA standards to help growers. Florida’s orange production is expected to surpass more than 40 million boxes in the 2021-2022 season, according to a USDA May production forecast, an increase of 2 million boxes from its April forecast. Florida Grapefruit production is projected to decrease slightly to 3.4 million boxes; Florida Specialty Citrus is expected to remain at 800,000 boxes, according to the forecast. “Given everything this industry has been through over the past several years, particularly with the weather, 40 million boxes of oranges is something to be proud of,” Shannon Shepp, executive director of the Florida Department of Citrus, said in a statement. “We are nowhere near where we once were, but it...
    In this article NKENike Air Jordan shoes are seen in the store in Krakow, Poland on August 26, 2021.Jakub Porzycki | Nurphoto | Getty ImagesNike on Monday topped Wall Street's earnings and sales expectations for the fiscal fourth-quarter, as the sneaker giant overcame a Covid lockdown in China and tougher climate for consumers in the U.S. Shares rose about 2% in aftermarket trading. Here's how Nike did in its fiscal fourth quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv: Earnings per share: 90 cents vs. 81 cents expected Revenue: $12.23 billion vs. $12.06 billion expected The company reported net income for the three-month period ended May 31 of $1.44 billion, or 90 cents per share, compared with $1.51 billion, or 93 cents per share, a year earlier. Sales dropped to $12.23 billion from $12.34 billion a year earlier. Shares of Nike closed on Monday at $110.50, down 2.13%. As of Monday's close, Nike shares are down about 34% so far this year. It's underperformed the S&P 500, which is down about...
    TOKYO (AP) — Asian shares declined Wednesday as markets shrugged off a Wall Street rally and awaited congressional testimony by Federal Reserve Chair Jerome Powell. Japan’s benchmark Nikkei 225 shed 0.4% to finish at 26,149.55. Australia’s S&P/ASX 200 lost 0.2% to 6,508.50. South Korea’s Kospi tumbled 2.7% to 2,342.81. Hong Kong’s Hang Seng dropped nearly 2.0% to 21,132.42, while the Shanghai Composite sank 1.1% to 3,269.63. Stocks have been mostly sliding in recent weeks as investors adjust to higher interest rates that the Federal Reserve and other central banks are increasingly doling out to temper record-high inflation. Investors are worried that the Fed risks slowing economic growth too much and bringing on a recession. The overnight rally on Wall Street “will be taken with a pinch of salt as elevated inflation and risks to growth persist,” Venkateswaran Lavanya at Mizuho Bank said. The Wall Street rally that started the holiday-shortened week came as investors look ahead to what Jerome Powell will tell Congress on Wednesday, the first of two days of testimony as part of the central...
    MILAN (AP) — Neither inflation nor the war in Ukraine are threatening to take a bite out of the luxury fashion market, according to a study published Tuesday. While much of the world is fretting over higher fuel and energy prices, the study by Bain & Company consultancy indicated that the global luxury market remains set for growth, largely due to the continued resiliency of the world’s wealthiest people. The global luxury market grew by nearly one-third to 288 billion euros ($198 billion) last year, rebounding from its worst recorded dip due to the 2020 pandemic lockdowns, according to the study commissioned by Italy’s Altagamma association of high-end producers. Sales of personal luxury goods including apparel, accessories and footwear posted high double-digit growth in the first quarter of this year, despite the first signs of economic uncertainty tied to the Russian invasion of Ukraine, Bain said. In its most pessimistic outlook, assuming global inflationary pressure, Bain forecasts growth in the sales of high-end personal goods this year to grow by 5% to around 305 billion euros. But...
    The White House defended President Joe Biden's economic record on Monday as the nation experienced historic inflation, gas prices over $5 a galloon and the stock market dropping. White House press secretary Karine Jean-Pierre argued President Biden actually made historic economic gains, which would help the American people go through these economic 'challenges.' She blamed inflation - prices in May were 8.6% higher than a year earlier - the greatest increase since 1981 - on the covid pandemic and on Russian President Vladimir Putin's war in the Ukraine.  'You know, with this price, high inflation coming, coming out every once in a generation, global pandemic, all of those things play a factor,' Jean-Pierre said. But, she argued, that America would bounce back under Biden.  'The American people are well positioned to face these challenges because of the economic historic gains that we have made under this president in the last six months,' she noted. The White House defended President Joe Biden's economic record as the nation experienced historic inflation, gas prices over $5 a galloon and the stock market dropping...
    In this article NFLXIn this photo illustration, the OnlyFans logo is displayed on a smartphone.Sheldon Cooper | SOPA Images | LightRocket via Getty ImagesAMSTERDAM — OnlyFans is not experiencing a slowdown in subscribers like Netflix even as people grapple with rising prices, executives at the company said Tuesday. "We're not experiencing that slowdown," Keily Blair, OnlyFans' chief strategy and operations officer, told reporters at the Money 20/20 fintech conference in Amsterdam. In April, Netflix said subscriber numbers dropped by 200,000 in the first quarter, marking the first time the streaming platform has reported a decline in paid users in more than a decade. Netflix is facing a slew of challenges — not least the reopening of economies after two years of Covid lockdowns. Inflation also poses a key risk to the business, as people are having to balance their budgets to deal with rising costs. OnlyFans has a "completely different business model" to Netflix, said Lee Taylor, the firm's chief financial officer. Netflix is "competing in a very saturated market," he added, including large tech firms like Amazon and traditional...
    President Joe Biden is grappling with low approval ratings and high consumer costs as Democrats fight to keep their razor-thin majority in Congress President Joe Biden said Monday that he's presiding over the economy's 'most robust recovery' in modern history - as gas prices reach more than double what they were when he took office for the second day in a row. 'At the time I took office about 16 months ago, the economy had stalled and COVID was out of control,' the president wrote on Twitter. 'Today, thanks to the economic plan and the vaccination plan that my Administration put into action, America has achieved the most robust recovery in modern history.' But Biden's confidence isn't shared by the majority of Americans, a new survey suggests - more than eight out of every 10 respondents said the economy was either 'poor' or 'not so good.' Thirty-five percent of people who participated in the Wall Street Journal-NORC Poll said they were not satisfied with their financial situation at all, which the Journal notes is the highest level recorded since the question was...
    New York (CNN Business)America's employers are expected to have added hundreds of thousands of jobs in May, even in the face of high inflation, a potential recession and a new phase in the pandemic economy.The closely watched monthly employment report from the Bureau of Labor Statistics is due to be released Friday morning. The consensus among economists polled by Refinitiv is that 350,000 jobs were added last month, with an unemployment rate of 3.5%. That would be a new pandemic-era low. The labor market has nearly recovered to its pre-pandemic strength, with the US just 1.2 million jobs short of where it was before the shutdowns began and unemployment a hair above the pre-pandemic level of 3.5% as of April. With more job growth expected for May, this is set to improve further.Now, the focus has shifted from the "Great Reopening" to whether the Federal Reserve's attempt at a "soft landing" by raising interest rates to tame inflation will inadvertently plunge the economy into recession.In the first quarter of 2022, the US economy shrank, as measured by gross domestic product,...
    ISTANBUL (AP) — Turkey’s central bank kept its main interest rate unchanged for a fifth month running on Thursday despite an annual inflation rate of nearly 70%. The bank said it would keep its policy rate “constant” at 14%, arguing inflation was driven by geopolitical developments and the “temporary effects of pricing formations.” The bank set its expectation for disinflation to begin following measures for price stability and the resolution of an ongoing regional conflict, an apparent reference to Russia’s war in Ukraine. The decision was in line with President Recep Tayyip Erdogan’s opposition to high borrowing costs in a bid to boost growth, investment and exports. The Turkish leader insists that high borrowing costs cause inflation — a position that contradicts established economic thinking. Turkey’s central bank has cut rates by five percentage points since September — down to 14% —despite high inflation rates before pausing them since January. The series of rate cuts last year triggered a currency crisis and rising prices which have been aggravated by Russia’s invasion of Ukraine and rising energy price rises. ...
    President Joe Biden hailed the latest jobs report as evidence his economic policies were working amid a faltering stock market and rampant inflation. The Department of Labor reported that new unemployment claims slightly rose to 218,000 in the previous week, yet continuing claims, which measure the number of people out of the workforce for an extended period of time, dropped to 1.37 million, the lowest point since late 1969. "America is back to work. The number of Americans who are forced to rely on unemployment insurance programs for their support fell to its lowest level in over 52 years," the president wrote in a statement Thursday morning. "When I took office, there were nearly 20 million Americans on unemployment insurance to feed their families and keep a roof over their heads. Today, that number is about 1.3 million. That’s millions of families moving from government support to earning a paycheck." BIDEN'S INFLATION ATTACK PLAN POURING 'GASOLINE ON THE FIRE,' EXPERTS SAY Elevated prices across all commercial goods remain the single most important topic for midterm voters and a major liability...
    Shares advanced in Asia on Tuesday after another wobbly day extended a losing streak on Wall Street. Hong Kong advanced 2.5% and other regional benchmarks were moderately higher. Oil prices slipped. Signs of progress in China’s effort to bring outbreaks of coronavirus under control appeared to be outweighing concern over weaker than expected Chinese economic data for April. Investors also are watching for comments by Federal Reserve officials that might provide insight into the U.S. economic outlook and future policy moves. “Markets remain in fight or flight mode while rolling the dice on recession odds,” Stephen Innes of SPI Asset Management said in a report. He added that, “traders seem to be in the mood to stay bearish until proven otherwise. However, there is still a lingering risk- on tone despite horrific Chinese data.” Hong Kong’s Hang Seng gained 500 points to 20,450.95 while the Nikkei 225 in Tokyo climbed 0.4% to 26,659.75. In Seoul, the Kospi rose 0.8% to 2,618.37. Australia’s S&P/ASX 200 added 0.3% to 7,115.40 while the Shanghai Composite index was 0.4%...
    Representative Rashida Tlaib (D-MI) joins activists in a demonstration outside an entrance to the White House calling for the cancellation of student debt in Washington, U.S., April 27, 2022.Evelyn Hockstein | Reuters Even with rampant inflation and rapidly accelerating interest rates, household borrowing climbed to start 2022 and hit a new record, the Federal Reserve reported Tuesday. Consumer debt and credit rose 1.7% in the first quarter to $15.84 trillion. The rise in total household credit was propelled largely by a $250 billion increase in mortgage debt, which now stands at $11.18 trillion, an increase of 10% from the first quarter in 2021. Credit card balances actually fell during the three-month period by $15 billion but still remained $71 billion, or about 9%, higher than they were for the same period a year ago. Auto loan originations declined in the first quarter after what the New York Fed described as "a historically brisk 2021," in which used vehicle prices soared by nearly 27%. Student loan debt climbed by $14 billion in the first quarter, bringing the annual increase to 6.5%....
    WASHINGTON (AP) — America’s employers added 428,000 jobs in April, extending a streak of solid hiring that has defied punishing inflation, chronic supply shortages, the Russian war against Ukraine and much higher borrowing costs. Friday’s jobs report from the Labor Department showed that last month’s hiring kept the unemployment rate at 3.6%, just above the lowest level in a half-century. The economy’s hiring gains have been strikingly consistent in the face of the worst inflation in four decades. Employers have added at least 400,000 jobs for 12 straight months. At the same time, the April job growth, along with steady wage gains, will fuel consumer spending and likely keep the Federal Reserve on track to raise borrowing rates sharply to fight inflation. The U.S. stock market slumped again Friday on concern that the strength of the job market will keep wages and inflation high and lead to increasingly heavy borrowing costs for consumers and businesses. Higher loan rates could, in turn, weigh down corporate profits. “With labor market conditions still this strong — including very rapid wage growth — we...
    The U.S. added 428,000 jobs in April and the unemployment remained at 3.6%, according to Bureau of Labor Statistics released on Friday. The latest numbers beat economists and are good news for President Biden with inflation still at record highs. The jobs numbers were released with Biden heading to Cincinnati, Ohio, to announce that five major U.S. manufacturers have made commitments to boost their reliance on small and medium American firms for 3D printing. The White House said GE Aviation, Honeywell, Lockheed Martin, Raytheon and Siemens Energy have agreed to take part in the program, which Biden will highlight during a visit to United Performance Metals in Hamilton, Ohio. The program is being unveiled by the White House as Biden heads to the industrial Midwest to press Congress to approve a stalled competition and innovation bill that the Democratic president says is critical to bolstering domestic manufacturing and helping solve a semiconductor shortage that has delayed production of life-saving medical devices, smartphones, video game consoles, laptops and other modern conveniences. 'I´m determined to make sure the United States holds the...
    WASHINGTON (AP) — US added 428,000 jobs in April despite surging inflation and interest rates as unemployment remains a low 3.6%. Copyright © 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.
    WASHINGTON -- For the past year, America's job market has run like a well-engineered machine, adding an impressive average of 540,000 workers a month despite a punishing inflation rate, Russia's ruinous war against Ukraine, a still-risky pandemic, jittery financial markets and the prospect of much higher borrowing costs.Hiring gains have topped 400,000 every month since May 2021.And most economists think the winning streak has continued: According to a survey by the data firm FactSet, they expect Friday's jobs report for April to show that employers added 400,000 more jobs last month. They have also forecast that the unemployment rate remained at 3.6%, a notch above a half-century low that was reached shortly before the pandemic struck two years ago.The resilience of the job market is particularly striking when set against the backdrop of galloping price increases, rising borrowing costs and widespread fear that the Federal Reserve's sharp interest rate hikes will eventually trigger a recession."The labor market remains in solid shape as the spring quarter begins,'' said Stuart Hoffman, senior economic adviser at PNC Financial. "Demand for labor is very...
    “Bubble Watch” digs into trends that may indicate economic and/or housing market troubles ahead. Buzz: California optimism hit a 10-month high in April despite a host of worries from the war in Ukraine and a cooling-yet-inflating economy at home. Source: The Conference Board polls shoppers monthly, creating various consumer confidence indexes, including one for California. The Trend The overall statewide index was 125.9 in April — up from a revised 122.4 a month earlier and up from 118 a year ago. That’s a 3% one-month gain and a 7% gain over 12 months. California confidence averaged 113 in the five years before the pandemic. Now let’s look at two measures inside the statewide index … Current conditions: California consumers’ view improved, with the index at 161.9 for the month — up from 151.7 a month earlier and above 111.9 a year earlier. This measure averaged 141 in 2015-19. Outlook: Shoppers are skittish, with the index at 101.9 for the month — down from 102.9 the previous month and down from 122.1 a year earlier. This measure averaged...
    VIDEO3:0103:01White House economic advisor Brian Deese: We're seeing continued strength in labor market recoverySquawk on the Street The White House sees more risks to U.S. economic activity in the months ahead thanks to rising prices and Russia's invasion of Ukraine, but still expects healthy GDP growth in 2022. A senior administration official told CNBC that the recent rise in energy and food prices — caused in large part by Moscow's attack on its neighbor — and ongoing supply chain hiccups are two of few "additional" risks to U.S. GDP growth this year. But despite the inflationary concerns, most economic data points to another strong year for the U.S. economy as measured by job gains, household savings and real income, the official said. "We are facing real risks and some challenges," the person said. "One risk is the war that Putin has started in Ukraine. That has real effects on the U.S. economy, largely through energy prices and food." But "when you put it all together, the U.S. economy is in a strong position, even as we face some additional risks...
    In this article BACVIDEO1:5901:59'Don't fight the U.S. consumer' — Bank of America CEO says spending is healthy despite roaring inflationMad Money with Jim CramerBank of America CEO Brian Moynihan told CNBC's Jim Cramer on Tuesday that Americans are spending heartily, even as inflation continues to roil the economy. "In the month of March '22 versus March '21, the consumer … spent about 13% more than they did last year," Moynihan said Tuesday in an interview on "Mad Money."  "But importantly, in the first couple weeks in April, that number's moved back to 18%, indicating faster spending in consumers," he added. Consumer prices increased 8.5% year-over-year in March, revealing price jumps for everyday items not seen since the 1970s and early '80s. The producer price index showed an 11.2% increase in March from the year prior. Moynihan said that consumers have bulked up their bank accounts since pre-pandemic times, driving their increased spending. He added that while some investors might take on an approach of 'don't fight the Fed,' he has a different take. "Don't fight the U.S. consumer. They are...
    INFLATION is hitting American consumers everywhere from the gas pump to the grocery store. The April inflation report showed prices rose an average of 8.5% from March 2021 to March 2022, including an 8.8% spike in food costs. 1Aldi's CEO stressed the brand's commitment to offering real savings in a letter to shoppersCredit: Alamy Many stores have had to hike prices to combat rising costs, but one major grocer pledged to continue to offer low prices and savings. Following the inflation announcement, Aldi's CEO Jason Hart sent a letter to customers entitled "Our Price Promise." Mr Hart reiterated Aldi's organizational commitment to offering affordable prices regardless of the circumstances. "No matter what happens in the world around us, Aldi will always be the low-price leader in every community we serve," Hart said. READ MORE ON GROCERY SAVINGSBAG A BARGAIN I’m a former Aldi worker - there’s a day of the week to get the BEST dealsAISLE HAVE THAT Seven costly mistakes Americans make at the grocery store - how to avoid "Whether you’re feeling the pinch at the...
    A record number of homebuyers are departing from coastal cities like Los Angeles and San Francisco for states like Florida as inflation surges and the housing market shows early signs of a slowdown.  Redfin, a real-estate brokerage, released a report showing that 32.3 percent of users were looking to move to a different metropolitan area in the first quarter of 2022, up from 31.5 percent a year ago and 26 percent in 2019.  The company blames factors like skyrocketing home prices, rising mortgage rates and inflation - which rocketed to a 41-year-high 8.5 percent in March - as families look to find a more affordable place to live. They also note that the ability to work remotely has given people more freedom to move.  The analysis is based on a sample of about two million Redfin users who searched for homes across more than 100 metro areas in the first quarter, singling out what they deemed were serious buyers. The top cities people are looking to leave, according to their data, are San Francisco, Los Angeles, New York, Washington DC...
    New York (CNN Business)Americans are feeling slightly better about the economy again, in part because they believe the worst of the latest surge in gas prices is behind them, consumer sentiment data showed Thursday.After an initial jump in energy costs in response to the military conflict in Ukraine was felt at US pumps in March, there has been some respite.Consumer price inflation hit a new 40-year high in March"Retail gas prices have fallen since the March peak, and that fact was immediately recognized by consumers," said Richard Curtin, chief economist at the University of Michigan's Surveys of Consumers.In early April, survey participants expected gas prices would only increase by 0.4 cents per gallon in the year ahead, a welcome retreat from the March surge of 49.6 cents. On Thursday, the national average gas price was $4.07 per gallon, according to AAA, compared with the peak of $4.33 on March 11.Read MoreOverall, the preliminary April data from the University of Michigan's consumer sentiment survey beat economists' predictions of a flat reading and edged higher.Consumer expectations improved, both in terms of the...
    NEW YORK (AP) — Americans kept spending in March even amid higher prices for food, gasoline and other basics, worsened by Russia’s escalating war with Ukraine. Retail sales increased 0.5% after registering a revised O.8% jump from January to February. Spending has been fueled by wage gains, solid hiring and more money in banking accounts. January’s increase of 4.9% was the biggest jump in spending since March 2021, when American households received a final federal stimulus check of $1,400. The Commerce Department reported Thursday that general merchandise stores saw business up 5.4%, while sales at clothing stores rose 2.6%. Online sales rose 6.4% Restaurant sales rose 1%. Retailers are closely monitoring Russia’s war with Ukraine and how it could weigh on shoppers’ confidence but also worsen inflation. The conflict has already limited supplies of wheat, vegetable oils, and electronic components like chips. It’s also pushed up fertilizer prices that were already high, made scarce supplies even harder to find and squeezed farmers, especially those in the developing world. In addition to the Russian invasion, rising COVID-19 cases and renewed restrictions...
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