Every Friday I recap “news you can use” from the week: a handful of quotes from major (and often expensive) news sources, so you can stay up to date on the news that affects your money without spending a dime and in less than a minute.
Here’s an overview of what happened this week.
China’s Covid Pivot Accelerates as Cities Ease Testing Rules (December 3, Bloomberg) Chinese authorities eased Covid testing requirements across major cities over the weekend as Beijing appears to be engineering a gradual shift away from its strict Covid Zero policy amid elevated cases and public protests.
OPEC+ Pauses as Russia Sanctions and China Covid Rules Roil Crude Markets (December 4, Bloomberg) OPEC+ responded to surging volatility and growing market uncertainty by keeping oil production unchanged.
On Monday, the EU will ban most seaborne imports of Russian crude and block anyone else from using the region’s shipping or insurance services for purchases of Russian oil, unless it’s done so below a $60-a-barrel price cap.
Investors Overseeing $5 Trillion Are Betting That an Economic Recession Can Be Avoided (December 5, Bloomberg) Professional investors are loading up on bets that an economic recession can be avoided despite all the warnings to the contrary. It’s a dangerous bet — for a variety of reasons.
In a Bank of America Corp. poll of fund managers last month, a net 77% expected a global recession over the next 12 months, the highest proportion since the immediate aftermath of the 2020 Covid crisis.
Wall Street Chorus Grows Louder Warning That 2023 Will Be Ugly (December 6, Bloomberg) From Goldman Sachs Group Inc.’s David Solomon caution that the economy faces “bumpy times ahead,” to JPMorgan Chase & Co.’s Jamie Dimon grimmer view that this would be a “mild to hard recession,” and Morgan Stanley Wealth Management’s Lisa Shalett, who told Bloomberg Television that corporations are facing a “rude awakening” on earnings, the messages have become increasingly dire.
The $42 Billion Question: Why Aren’t Americans Ditching Big Banks? (December 8, Wall Street Journal) In theory, savers could have earned $42 billion more in interest in the third quarter if they moved their money out of the five largest U.S. banks by deposits to the five highest-yield savings accounts—none of which are offered by the big banks…
Why haven’t savers moved more of their money? Opening a new bank account is time consuming…
The Federal Reserve Is Deflating Financial Bubbles, Without a Crash (December 8, Bloomberg) The cryptocurrency market — once valued at $3 trillion — has shrunk by more than two-thirds, investor-favored technology stocks have tumbled by more than 50% and red-hot housing prices are falling for the first time in 10 years.
Most importantly – and surprisingly – all this is occurring without upending the financial system.
Wholesale prices rose 0.3% in November, more than expected, despite hopes that inflation is cooling (December 9, CNBC) The producer index, a measure of what companies get for their products in the pipeline, increased 0.3% for the month and 7.4% from a year ago.
Markets now will turn their attention to the more closely watched consumer price index, which is due out Tuesday morning.
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About me
I founded Money Talks News in 1991. I’m a CPA, and I have also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.