The Fed could cut rates faster if inflation falls
The annual rotation on the U.S. Federal Reserve’s interest-rate-setting committee makes its 2024 voting members somewhat more hawkish than the 2023 group. Many analysts argue that if inflation falls faster than projected, Fed policymakers will want to cut rates even more than the three-quarters-percentage point reflected in last week’s estimates. The personal consumption expenditures price…
Recession won’t be problems in 2024 for US economic
Economists believe a US recession won’t occur in 2024 due to weak consumer demand. Companies, investors, and others are still expecting a slowdown, with leading corporations being more cautious in planning for the year. Goldman Sachs, Morgan Stanley, UBS, and Barclays expect higher interest rates, oil prices, and a weaker China to limit global growth…
Honda recalling its unit due to fuel pump failure
Honda Motors is recalling 2.54 million US vehicles due to fuel pump failure, its first such recall. The recall covers the 2018–2020 Honda Accord, Civic, CR-V, HR-V, Insight, Ridgeline, Odyssey, Passport, and Acura ILX, MDX, RDX, RLX, TLX, and NSX. Honda claims higher density and clearance in replacement parts.
Credit ratings will have a downgrade due to many factors
2024 may be a significant year for sovereign credit ratings due to record debts, increasing borrowing rates, sputtering GDP, and multiple wars. The US and China are facing downgrade warnings, with the US potentially losing its triple-A rating. Fitch and S&P Global are also monitoring the November presidential election. Turkey may receive its first upgrade…
Housing project and rental vacancy rate rose in US
US single-family homebuilding reached a 1-1/2-year high in November, with single-family home permits reaching a record high since May 2022. The rise is likely due to a scarcity of housing units relative to demand, with the Census Bureau reporting an 18.0% increase in single-family housing starts. The Federal Reserve maintained interest rates unchanged and suggested…
Nippon Steel plans to increases its production in US
Nippon Steel has won an auction to buy 122-year-old U.S. Steel for $14.9 billion in cash, defeating Cleveland-Cliffs and ArcellorMittal. The purchase price of $55 per share is 142% higher than Aug. 11, the penultimate trading day before Cleveland-Cliffs’ $35 cash-and-stock bid. The decision hurts ArcelorMittal, which coveted U.S. Steel. Nippon and ArcelorMittal’s Alabama operation…
UBS CEO not convinced inflation is under control
UBS CEO Sergio Ermotti expressed doubts about central banks controlling inflation, despite recent Federal Reserve Chair Jerome Powell’s suggestion of US interest-rate rises ending and lower rates coming. The European Central Bank will wait for data before making a dovish stance, similar to the Fed. Ermotti also announced that UBS will remove 3,000 Swiss positions…
US SEC decline Coinbase Global’s requests
The SEC refused Coinbase Global’s request for new digital asset sector guidelines, which the exchange challenged in court. The panel voted 3-2 against proposing new rules, disagreeing with Coinbase’s claim that current crypto restrictions are “unworkable.” Coinbase filed a court petition to review the SEC’s judgment, which is the latest in a ongoing battle between…