US, China Have Stabilized Relations Over Past Year, Yellen Says
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US Treasury Secretary Janet Yellen stated that the United States and China have stabilized their relations over the past year. Yellen made this statement during a virtual event hosted by the National Committee on US-China Relations. She also mentioned that the two countries have been able to cooperate on issues such as climate change and the COVID-19 pandemic. Yellen's remarks come amid ongoing tensions between the US and China on various fronts, including trade and human rights. The virtual event took place on April 7, 2024.
CIBC CEO Dodig says multiple rate cuts this year are unlikely
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CIBC CEO Victor Dodig does not expect multiple rate cuts this year. He believes that economic conditions will soon merit action by the Bank of Canada and other central banks, but their reductions are unlikely to be particularly aggressive. Dodig predicts that the back half of this year is likely to see a rate cut, possibly two, in major developed economies like Europe, Canada, and the United States. His predictions differ from the median estimate of economists who expect 100 basis points of cuts by the Bank of Canada's December meeting. CIBC, heavily exposed to Canada's mortgage market, has seen its clients take action to address negative amortization on their mortgages.
#Cibc #VictorDodig #BankOfCanada #InterestRates #Economy
US, Allies to Conduct Maritime Drills in Philippines on April 7
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The US, Australia, Japan, and the Philippines will hold joint military drills in the South China Sea on April 7. The drills aim to strengthen interoperability and will take place within the Philippines' exclusive economic zone. The decision comes amid heightened tension between Manila and Beijing in the disputed waters.
#Us #Australia #Japan #Philippines #SouthChinaSea #MilitaryDrills
South Korean Party Pledges Access to US Bitcoin ETFs in Race for Votes
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South Korean People Power Party pledges to delay a digital-asset tax and the opposition Democratic Party promises to lift curbs on exchange-traded funds (ETFs), including US products, that directly hold tokens. The parliamentary election in South Korea is scheduled for April 10, 2024.
#SouthKorea #ParliamentaryElection #BitcoinEtfs
Live: Analysis of US Jobs Report for March
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US payrolls jump 303,000; unemployment rate drops. Labor participation rate rises more than expected. Job gains remain fairly broadly spread. S&P 500 Falls 1% as Oil Jump Spurs Flight to Bonds. Apple Explores Home Robotics as Potential ‘Next Big Thing’ After Car Fizzles. Zimbabwe Replaces Battered Dollar With New Gold-Backed Currency Called ZiG. Elon Musk’s X Has a Porn Problem. Stocks Rise as Jobs Data Show US Is Powering Ahead.
https://www.bloomberg.com/news/live-blog/2024-04-05/us-employment-report-for-march
Yellen Starts China Tour With Warning on Factory ‘Overcapacity’
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Janet Yellen, Treasury Secretary, chided China for 'unfair' treatment of American and other foreign companies and warned that its factories risk producing more than the world can easily absorb. Yellen made these remarks during a four-day visit to China, where she intends to raise these issues in meetings. She specifically mentioned China's 'unfair economic practices' and 'coercive actions against American companies', including imposing barriers to access for foreign firms.
#JanetYellen #China #UsFirms #FactoryOvercapacity #EconomicPractices
Powell’s Insistence on Three Fed Cuts Limits Bond Declines
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Federal Reserve Chairman Jerome Powell's announcement of three interest-rate cuts limits bond declines. The article discusses the impact of Powell's statement on the bond market.
Gold's Stealthy Bull Market Confuses Even Its Fans
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Gold has reached a string of fresh record highs, but its rise has been met with indifference. The article discusses the confusion surrounding the bull market in gold and questions who has been buying the metal. The author mentions a new column by Merryn Somerset Webb that explores how investors can navigate an era dominated by a few large tech stocks.
https://www.bloomberg.com/news/newsletters/2024-04-04/gold-at-record-high-confusing-even-its-fans
Why the US Job Market Isn’t So Hot After All
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The US economy grew over 3% last year and sustained sub-4% unemployment despite aggressive Federal Reserve monetary tightening. However, inflation has slowed. The article discusses the factors contributing to the US job market's performance.
The Fed Is Wrong About How Low Interest Rates Will Go
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The federal funds rate will probably stay higher than projected. Financial markets and the US Federal Reserve are in disagreement on how low interest rates will go.
The Fed Is Wrong About How Low Interest Rates Will Go
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The federal funds rate will probably stay higher than projected. Financial markets and the US Federal Reserve are in disagreement on how low interest rates will go.
Europe’s Biggest Asset Manager Is Looking to Buy Dips After Missing Out on Stocks Rally
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Amundi SA, Europe's biggest asset manager with over $2.1 trillion under management, is upgrading its view on equities to neutral and is looking to buy stocks in developed markets after sitting out on a rally of more than 30%. The money manager is waiting for valuations to drop before increasing its exposure further. Easing monetary policy and strong corporate earnings growth would be catalysts to increase allocation. Amundi remains selective on stocks and sees any correction in the markets as a buy opportunity. The S&P 500 Index is trading at nearly 21-times forward earnings, well above the long-term average of 16. Amundi has a balanced stance toward the US market and likes defensive stocks.
#Amundi #AssetManager #Equities #StockRally #Valuations #CorporateEarnings #S&p500 #UsMarket
Long Shadow of the Fed Shows Limits of ECB Talk of Independence
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The European Central Bank (ECB) insists it won't take cues from the US Federal Reserve on when to start cutting interest rates, but its subsequent policy path may be shaped by what happens in the US. Economic trends in the US have a quick impact on other regions, affecting financing conditions and inflation, trade, and other metrics. Policymakers in the euro-area can't escape the Fed's gravitational pull when assessing the fate of their own economies.
#Ecb #UsFederalReserve #EuroareaEconomy
India’s Early Rate-Cut Hopes Dim as Inflation Threat Lingers
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India's central bank is expected to keep interest rates unchanged at 6.5% for a seventh straight policy meeting. The government's warning of a coming inflation threat and the faster-than-expected growth of the economy have diminished hopes for an early rate cut. While some economists see a chance for the central bank to signal rate cuts in the future, most expect it to maintain its hawkish stance.
#India #InterestRates #Inflation #Economy #MonetaryPolicy
India’s Takeoff Has to Start on the Factory Floor
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India's working-age population swells by eight million a month. Prime Minister Narendra Modi promised to vastly expand employment opportunities. Only export-led manufacturing can provide the millions of jobs the country needs.
#India #Employment #Manufacturing #NarendraModi
Why the US Immigration System Is a Big Election Issue
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Immigration has become a major issue in the 2024 campaign, with a recent poll finding it second only to the economy as voters' top concern. Courts are overwhelmed with unprecedented levels of immigration cases, and border towns are struggling to handle the influx of migrants. Governors in Texas, Florida, and Arizona are busing migrants to cities in northern states, exacerbating the burden. The current immigration system is outdated and unpopular, and the presidential election is bringing attention to the issue.
Dollar Weakens as US Data Points to Easing Inflation Pressure
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The Bloomberg Dollar Spot Index fell as much as 0.4% on Wednesday as price pressures in the US services industry eased and Federal Reserve Chair Jerome Powell said he wants to see inflation move sustainably to the US central bank’s 2% goal before starting to lower interest rates. Growth in the US services sector eased last month while a gauge of input costs decreased to a four-year low, according to a report by the Institute for Supply Management. Traders are now predicting less than three rate cuts this year, following earlier expectations of as many as six rate reductions in 2024. The Norwegian krone and Swedish krona gained about 1% against the greenback, while the Australian dollar climbed 0.7%. The Japanese yen was the only currency in the group that fell.
#Dollar #UsData #InflationPressure #FederalReserve #JeromePowell #UsServicesIndustry #InterestRates #UsEconomy
Why the Idea of US Exceptionalism Is Overdone
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The United States economy has outperformed other G-10 economies over the past year and that growth spurt looks like it will continue. The outperformance of the US economy and US equities has been front and center in 2024. The question is whether there is something unique and enduring about the US that can keep this state of affairs going. The US leverage to the technology sector is seen as a double-edged sword.
https://www.bloomberg.com/news/newsletters/2024-04-03/why-the-idea-of-us-exceptionalism-is-overdone
Why the Idea of US Exceptionalism Is Overdone
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The United States economy has outperformed other G-10 economies over the past year and that growth spurt looks like it will continue. The outperformance of the US economy and US equities has been front and center in 2024. The question is whether there is something unique and enduring about the US that can keep this state of affairs going. The US leverage to the technology sector is seen as a double-edged sword.
https://www.bloomberg.com/news/newsletters/2024-04-03/why-the-idea-of-us-exceptionalism-is-overdone
US Retirement Worries Subside as Wealth Rises
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The era of gold-plated pension plans is long gone. Worries over Social Security's eventual insolvency and under-invested Americans outliving their nest eggs persist. However, US retirement worries are subsiding as wealth rises. The article discusses the implications of flush US retirement accounts. The author mentions that the era of gold-plated pension plans has been replaced by concerns about Social Security's solvency and many Americans not having enough savings. Despite these concerns, retirement worries are diminishing as wealth increases.
https://www.bloomberg.com/news/newsletters/2024-04-03/us-retirement-worries-subside-as-wealth-rises