China’s worst annual growth in decades
Chinese manufacturing activity declined in July due to falling export orders, putting pressure on the ruling Communist Party to reverse an economic slowdown. The purchasing managers’ index rose to 49.3, but remained below the 50-point level, indicating activity contraction. Policymakers are encouraging entrepreneurs to boost the economy, but have not announced large-scale stimulus or tax…
Supply tightness on oil , price is going to hike
Crude has experienced its longest weekly gain streak in over a year due to tightening global oil supplies and Fed tightening predictions. West Texas Intermediate reached $80 a barrel, marking a rebound from last year’s losses. Saudi Arabia and Russia are limiting shipments, and Standard Chartered and UBS expect global balances to tighten in the…
The International Monetary Fund (IMF) has announced its intention to provide Argentina with a loan of up to $10.8 billion throughout the current fiscal year.
The International Monetary Fund (IMF) has agreed to lend Argentina up to $10.8 billion for the rest of the year as part of a refinancing agreement. The first payment of $7.5 billion will be made in August, after executive board approval. The money won’t be accessible before the Aug. 13 primary election or to return…
Market Still Troubled by Bank Liquidity
The disparity between borrowers at the top and bottom percentiles of the daily fed funds distribution has reached its biggest since September 2019. The Fed has raised interest rates and decreased its balance sheet, forcing depositors to move money out of banks and into higher-yielding money-market funds. This has led to four regional US banks…
The Kansas banking industry is unaffected on banking failure
A Kansas bank failed, becoming the fourth to be seized by regulators and the fifth to fail. Heartland Tri-State Bank, a four-branch bank, failed in 2023. The Federal Deposit Insurance Corporation reported $139 million in assets, with other failing banks having assets over $100 billion. The Kansas banking industry remains strong, with banks like JPMorgan…
General Electric Company is a good case studies to survived any economy threat
GE, a 125-year-old industrial powerhouse, is nearing a multiyear recovery plan to turn it into an aerospace-focused corporation. The stock has recently hit 52-week highs due to management’s focus on cash flow, cleaning up the balance sheet, selling off assets, and paying down debt. The stock is up 100% year-to-date and 72% since 2023. GE…
US banks lost almost $472 billion in deposit on 1st Q
The Federal Reserve’s inflation-lowering campaign has led to banks struggling to retain depositors, with deposits rising 34% to $18 trillion in the two years starting in March 2020. The Federal Deposit Insurance Corporation reported that US banks lost $472 billion in deposits in the first quarter, the highest loss since 1984. Regional banks had the…
Regional banks need deposit more than giant banks
In the second quarter, midsize regional banks did not experience the largest deposit reductions, while industry giants like JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo lost $262 billion in deposits. However, regional banks regained deposits, and investors rewarded them by raising their stocks. This reversal was due to regional banks needing deposits more…