how are you? (August 21-27)
Peloton Crisis
As consumer whims continue to evolve in the recovery from the pandemic, many companies that once enjoyed high prices are feeling the pain of low prices. That’s especially true for exercise bike company Peloton, which on Thursday he reported a $1.2 billion quarterly loss, its sixth straight quarter of losses. After the pandemic boom, Peloton is now one of many retailers struggling to sell excess inventory. But the company’s exercise bike, which he priced at $1,445 and is currently available on Amazon, may still sell poorly. Other earnings reports this week, including Dollar General and Dollar Tree, show more cautious consumer spending. The two, his chain of 100-yen shops, the largest in the country, posted higher sales and profits in the latest quarter as inflation weighed on Americans’ budgets. The majority of new customers who shopped at Dollar Tree in the past year were making at least $80,000 a year, according to the company’s chief executive officer.
Biden Law on Student Debt
After extending the student loan suspension several times, President Biden announced this week that the federal government would cancel $10,000 in federal student loans for millions. Only individuals who are single and whose income is less than $125,000 are eligible for $10,000 of debt forgiveness. Those who meet these income requirements and receive a Pell-Her Grant may qualify for an additional $10,000 in cancellation fees. (He also extended the moratorium on student loan payments until at least January.) The move, which was applauded by labor advocates and the president’s progressive supporters, has already been controversial in Congress. ing. It’s unfair that some people have to pay off their student debt while others cancel. Also, as this is by executive order, the policy may face legal issues.
The Big Meeting of the Federal Reserve Board
Federal Reserve Chairman Jerome H. Powell didn’t have words of comfort for investors on Friday. said it needed to keep raising interest rates to contain rapidly rising prices and prevent the economy from sustaining itself more permanently. He warned that the Fed’s campaign could “bring some pain to households and businesses”. Powell said he would look at future economic data to decide whether to raise rates by three-fourths of a percentage point. On the same day as Mr. Powell’s speech, the Fed’s favorite measure of inflation, consumer spending, showed prices fell on a monthly basis in July.
what’s next? (August 28th to September 3rd)
Somewhat uncertain job report
Last month’s employment figures shocked many. The economy he added 528,000 jobs in July, more than double his general expectations. The numbers have complicated the narrative that the Fed has begun to succeed in its efforts to cool the economy. There is also growing uncertainty about what the August employment data will show. Forecasters expect a significant slowdown with about 270,000 jobs added. Economists say job growth will have to slow at some point given the Fed’s big rate hike and other signs of an economic slowdown. Still, it is becoming more and more common to receive mixed messages about the direction of the economy. Example: Gross Domestic Product (GDP) has decreased in the last two quarters. This is one of the common indicators of recession. However, gross domestic income increased.
A difficult time to sell household goods
These are turbulent times for Bed Bath & Beyond. The retailer was recently at the center of another memetic stock trading frenzy, with its stock jumping 360% from early August to mid-month. The company’s stock immediately plummeted after it said it was a shareholder five months ago. And this will not affect sales of Bed Bath & Beyond, which has been in a prolonged slump. This week, the company will host an investor conference call to discuss strategic updates to the business. At that time, the leader will announce that he has taken out a multi-million dollar loan and used the Bye Bye Baby His unit, which has become the company’s primary growth driver. , as collateral for credit facilities. Like Peloton, Bed Bath & Beyond was a big winner at the height of the pandemic, but struggled as Covid restrictions eased.
Latest Inflation Data for the Eurozone
This week’s euro zone consumer price index will be watched. The final reading showed inflation hitting a record 8.9%, marking the third straight month of rising prices, and rising energy costs across Europe are fueling a ferocious pace. No one knows if last month’s rise was at its peak. However, many expect eurozone economic growth to slow in the coming months as the European Central Bank continues to raise interest rates. What could follow, however, is a possible recession.
what else?
Electric car makers are encouraged by a new California mandate to phase out gasoline vehicles in the state by 2035, but they also see the challenges ahead. Federal labor regulators have accused Starbucks of discriminating against union members by refusing to pay wage and benefit increases promised to non-union members. It said it would shut down Amazon Care just a month after it acquired rival One Medical.