how are you? (October 9-15)
blistering inflation
Thursday’s new inflation data dashed any remaining hopes that the Federal Reserve may soon ease its plans to continue aggressive rate hikes. The Consumer Price Index showed that overall inflation rose 8.2% in his year to September. Core inflation, which excludes volatile food and fuel costs, accelerated notably and remains at 6.6%. Persisting inflation in the face of Federal Reserve policy moves may be frustrating, but not entirely surprising. Most economists had expected the process of curbing price rises and cooling the economy to be slow, but even small signs of progress are beginning to appear not to be where they should be. are concerned that as inflation becomes more entrenched, it could lead to an upward spiral in wage prices.
Some relief for retirees
Rising prices can be especially painful for retirees. Retirees often have a fixed income and are unable to look for a new job because inflation is impacting their income. Shortly after September’s inflation figures were released on Thursday, the Social Security Administration announced the biggest cost of living adjustment (COLA) in more than 40 years, raising benefits by 8.7% from next year. 52.5 million People aged 65 and over and about 12 million people with disabilities, especially those collecting Social Security, are helping their incomes keep up with inflation. Many retirees rely almost entirely on Social Security checks to pay their bills.
Banks preparing for economic slowdown
The word ‘recession’ may be on many people’s minds, but executives at the nation’s largest bank say they’re not panicking just yet. Reported on JPMorgan Chase & Co.’s third-quarter earnings, chief executive Jamie Dimon said consumers remained “healthy” and that a strong job market and household savings cushion helped boost credit card spending. He pointed out that spending is being maintained. Wells Fargo chief executive Charles Scharf said his bank customers were still in “strong financial position”. We are taking steps to prepare for what we warned there would be “headwinds.” Citigroup, JPMorgan Chase and Wells Fargo all reported lower earnings compared to the third quarter of last year and said they were poised to protect against future credit losses. says.
what’s next? (October 16-22)
slowing housing market
The housing market is another area where Fed policymakers look for evidence of a slowdown. New data out this Thursday will likely point to a continued recession. The analyst expects existing home sales to fall for his eighth straight month, reflecting a series of declines during the housing market crash that triggered the 2008 financial crisis. Also on Thursday, mortgage finance giant Freddie Mac is due to report that interest rates on his 30-year mortgage have surpassed his 7%. This is another data point not seen since 2008. It also contributes greatly to the economy. Many homebuyers may be uneasy about factors such as recent hiring freezes at big companies and stubborn inflation, not to mention the sticker shock in home prices.
The uncertain path of grocery store transactions
The road ahead for a deal to combine the country’s two largest grocery chains is likely to be bumpy, subject to intense scrutiny from regulators and strong opposition from consumer advocates. I have. On Friday, Kroger announced plans to acquire Albertsons, valuing the company at $24.6 billion including debt, betting that one supermarket chain could compete better with Walmart and Amazon. It said it plans to sell some of its stores to competitors and consider turning up to 375 stores into separate, independent companies. But those plans may do little to convince the Federal Trade Commission. The Federal Trade Commission, under Lina Khan’s leadership, has made curbing corporate consolidation a top priority. Investors seemed to be anticipating a difficult trade, with him selling shares in both Kroger and Albertsons on Friday.
are you still watching?
In July, Netflix reassured shareholders it would add 1 million subscribers in the third quarter in hopes of making up for this year’s painful losses. In the first quarter, the streaming giant lost his 200,000 subscribers. Next quarter, it will be about 970,000. On Tuesday, in its latest earnings report, Netflix will share whether it met its targets. If not, the company may point to plans to roll out cheaper ad-supported options next month. is $19.99) and 4-5 minutes of advertising is shown to viewers for every hour they watch the stream. It is hoped to bring in new customers, especially younger viewers, and persuade people who might use their friends and family’s passwords to buy their own subscriptions.
what else?
In a bid to calm markets, UK Prime Minister Liz Truss said she would reinstate a planned corporate tax hike and ousted her finance minister. Google allows former President Donald J. Trump’s social media app Truth Social to appear in the Google Play Store. Gannett, the country’s largest newspaper, has announced drastic cost-cutting measures for its newsrooms, citing a worsening economic outlook.