Volkswagen warns of rising costs as car market faces deep recession

The January effect was in full effect for the first month of 2019. After a punishing December, stocks rebounded in the first few weeks of January as signs of progress in the U.S.-China trade war appeared, the Federal Reserve adopted a more dovish tone on interest rates, and earnings season revealed that some companies and sectors have more-positive outlooks than expected. It was a month to remember: The S&P 500, up 7.8%, had its best January performance since 1987, and its biggest monthly gain since October 2015. The DJIA rose 7.17% in January, its largest one-month rise since 2015 and biggest January gain in 30 years. Crude oil prices had their best month on record, surging more than 19% after three straight months of losses. Output cuts and the chaos in Venezuela, had a lot to do with that performance. The U.S. added 304,000 jobs in January, blowing out expectations despite the shutdown. While stocks have rebounded, notably for U.S. companies and indexes, risks … [Read more...] about What to Expect for the Markets in February

Share to Twitter Share to Linkedin Topline Existing home sales fell for the sixth-straight month in July as rising affordability concerns sideline potential home buyers—and prices are finally starting to edge down from record highs amid the cooling demand, as experts project the next few months could be critical for the housing market. Key Facts Existing home sales slid 5.9% from June to a seasonally adjusted annual rate of 4.8 million in July, down from more than 6 million one year ago after widespread declines across the U.S., according to data released Thursday by the National Association of Realtors. In a statement, NAR chief economist Lawrence Yun said the ongoing decline in recent months reflects the impact of rising mortgage rates, which peaked at 6% in June and have driven up the cost of monthly payments on new mortgages by an average of hundreds of dollars each month. Amid the falling demand, the median existing home price fell … [Read more...] about Plunging Home Sales Push Prices Down From Record Highs—Here’s What Experts Predict As Housing Market Turmoil Continues

Share to Twitter Share to Linkedin Topline Despite falling mortgage rates providing some relief to potential home buyers, mortgage applications fell to the lowest level since the turn of the century last week—providing fresh evidence that the housing market downturn may have room to run as some experts worry about how the collapse will damage the broader economy. Key Facts Mortgage applications fell 2.3% from one week earlier, according to the latest data from the Mortgage Bankers Association, pushing overall applications to the lowest level since 2000 even as rates on the popular 30-year fixed mortgage slipped to a two-month low of less than 5.5%. In a statement, MBA’s Joel Kan said home buying applications continue to suffer from “rapidly drying up” demand as mortgage rates remain about two percentage points higher than one year ago—driving up the cost of monthly mortgage payments and making homes the least affordable they’ve been in 33 … [Read more...] about Mortgage Demand Falls To New 22-Year Low As Housing Market Fuels Recession Fears

Dogs Trust, which currently has 692 dogs needing homes in 21 centres across the country, said the last time it had seen anything like this was in the wake of the 2008 financial crash. (Representative image) Standing on her hind legs to greet any prospective owner who might approach her glass-doored kennel, Harriet is a black English cocker spaniel abandoned as a deepening cost-of-living crisis pushes growing numbers of Britons to part with their pets. She was found running along a busy road in London after witnesses saw her pushed out of a car and is one of 206 dogs and 164 cats currently being looked after at rehoming centres run by the Battersea animal charity. It is a similar story at other centres across the country – with some seeing record inquiries for dog and cat returns – as the tightest squeeze on living standards since at least the 1960s forces many owners to decide the additional cost of food plus hundreds of pounds in vet bills is no longer manageable. "We … [Read more...] about Cash-strapped Britons give up pets as country faces a long recession

Share to Twitter Share to Linkedin Topline Apple reportedly laid off 100 jobs Tuesday, making it the latest major U.S. company to shed workers this summer as CEOs fear soaring inflation could tip the economy into a recession. Timeline Aug. 16, 2022 Philadelphia-based Audacy , the second biggest radio company in the United States, cut 5% of its workforce (estimated to be roughly 250 employees), Inside Radio reported, with CEO David Field saying the cuts come “in light of current macroeconomic headwinds.” Aug. 16, 2022 Apple , the world’s most valuable company, laid off 100 contracted recruiters amid a hiring slowdown, Bloomberg reported (Apple did not respond immediately to an inquiry from Forbes ). Aug. 15, 2022 HBO Max cut 70 jobs (14% of its workforce) in a cost-cutting effort that comes four months after Discovery’s $43 billion acquisition of HBO Max parent company WarnerMedia, and a week after the company announced … [Read more...] about Apple Reportedly Laying Off 100 Employees—Here Are The Major U.S. Job Cuts As Recession Fears Grow

Share to Twitter Share to Linkedin Topline Consumer price inflation in the U.K. soared past 10% in July—the highest it has been in 40 years—the U.K.’s statistics office reported on Wednesday, a figure the nation’s central bank expects will rise further later this year and deepen economic pain for households. Key Facts According to the Office of National Statistics (ONS), the U.K.’s consumer prices index (CPI) rose 10.1% in the year to July 2022, up from 9.4% in June, which is the highest it has been since the current statistical model went into effect in 1997. Estimates by the ONS suggest the last time the country’s CPI rate was higher was back in 1982. Rising costs of energy and fuel remain the largest contributor to the rise in the annual inflation rate according to the report as Europe continues to reel from Russia’s reduction in energy supply to the continent. The ONS also noted that rising food prices were the biggest factor … [Read more...] about U.K. Inflation Hits 40-Year High Of 10% As It Bucks G7 Trend—And It’s Expected To Get Worse

This article first appeared in Forum, The Edge Malaysia Weekly, on August 15, 2022 - August 21, 2022. - A + A Global foreign direct investments (FDI) recovered to pre-pandemic levels in 2021, reaching nearly US$1.6 trillion, according to the World Investment Report 2022 by the United Nations Conference on Trade and Development (Unctad). The report indicated that developing Asia, which receives 40% of global FDI, saw flows rise in 2021 for the third straight year to an “all-time high” of US$619 billion, growing 21% in China and 44% in Southeast Asia respectively. These findings corroborate the strong investment flows witnessed in Malaysia in 2021. The country’s economy, despite being affected by a pandemic-induced recession, benefitted tremendously from a record level of approved investments totalling RM306.5 billion, of which 68.1% was from FDI in the manufacturing, electrical and electronics (E&E), services and primary sectors, particularly mining. … [Read more...] about Growing Champions: Digital economy agreements can boost FDI