Here are the most important news that investors need to start their trading day:
1. Stock futures in red
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, June 30, 2022.
Brendan McDermid | Reuters
US stock futures fell on TuesdayInvestors are concerned about simmering geopolitical tensions between Beijing and Washington ahead of House Speaker Nancy Pelosi’s expected visit to Taiwan. Treasury returns As Tuesday slippedwith the standard 10-year treasury bonds It is trading as low as 2.516% as investors flock to perceived US government debt. Stocks in China and Hong Kong Tuesday stumbled, too, and the yenWhich is considered a safe haven currency, strengthened further. On Monday, Wall Street’s major stock indexes closed in the red, breaking their three-day losing streak.
2. It is said that Chinese warplanes are flying close to the dividing line of the Taiwan Strait
Photo of House Speaker Nancy Pelosi holding her weekly press conference on Capitol Hill on Friday, July 29, 2022 in Washington, DC. US House Speaker Nancy Pelosi is expected to arrive in Taipei later on Tuesday, a source familiar with the matter told Reuters, as several Chinese warplanes flew near the line dividing the Taiwan Strait.
Kent Nishimura | Los Angeles Times | Getty Images
Chinese warplanes Flying close to the center line in the Taiwan StraitReuters reported on Tuesday, citing a source. Beijing has warned Pelosi against visiting Taiwan, an autonomous island claimed by China. Pelosi is touring the region, but her expected visit to Taiwan has not been officially announced. Tensions between China and Taiwan was increasing In the last years.
3. Uber Reported Another Big Loss, But Stocks Soared
Uber CEO Dara Khosrowshahi speaks at a product launch event in San Francisco, California on September 26, 2019.
Philip Pacheco | AFP via Getty Images
shares Uber Technologies Jumped on Tuesday after the delivery and food company reported Quarterly revenue better than expected. Uber’s second-quarter sales came in at $8.07 billion, well above analysts' forecasts of $7.39 billion, according to Refinitiv. However, Uber reported a net loss of $2.6 billion for the quarter, including $1.7 billion as a result of a revaluation of its investments in Grab Aurora and Zomato. Total losses from operations for the quarter ended June 30 were $713 million, but the company reported positive free cash flow of $382 million. In May, CEO Dara Khosrowshahi told employees in a note that cash-flow positivity had become an important near-term goal.
4. Oil companies boost dividends
The BP logo is photographed in London on May 12, 2021. The International Energy Agency recently reported that 2021 saw energy-related carbon dioxide emissions rise to their highest level in history.
Glenn Kirk | Afp | Getty Images
British oil giant BP US shale producer Devon Energy reported strong quarterly earnings and increased dividends, as higher crude oil prices this year helped companies boost their capital return programs. bb that on tuesday Reported second-quarter profit of $8.5 billion, raised its quarterly dividend 10% to 6,006 cents per common share. Devon Energy, which turned on Monday Q2 results are better than expected Above and below, reports a 22% increase in dividend payouts. Using a fixed plus variable dividend strategy, Devon’s quarterly payout is now $1.55 per share, up from $1.27.
5. Pinterest jumps. An activist company says it is the largest shareholder
Online photo board banner Pinterest Inc. Hanging from the New York Stock Exchange (NYSE) on the morning of Pinterest’s initial public offering on April 18, 2019 in New York City.
Coal prices are on the rise, and global coal consumption is expected to return to the record levels it reached in nearly 10 years as the global energy supply crisis continues.
Analysts say that while investors in coal stocks spend a field day thanks to rising coal prices, restrictions on carbon emissions are easing as markets and governments scramble to hoard conventional energy supplies amid bottlenecks caused by the Ukraine war.
Worse, slowing investments in new coal-fired power facilities has further curtailed coal supplies, Shaw and Partners senior analyst Peter O’Connor told CNBC.Squawk Box Asia" Friday.
"Who would have thought dirty coal would be the best performing stock last fiscal year," O’Connor said. "So far this fiscal year is the best performing sector."
“Looking ahead next year during the northern winter with gas prices in Europe and the availability of gas supplies, countries are going back to coal.
And the show [of coal] narrow. why? Because no one will be left on capacity building and markets are tight given the weather and Covid. So this market will remain higher for a longer period, possibly in 2023.
At the heart of the ongoing rise in coal demand is a gas shortage as the European Union moves to reduce Russian gas use – without a gas ban – while Russia responds by cutting off supplies to the continent.
Doalker 44 | E + | Getty Images
The price of thermal coal used for power generation has risen about 170% since late last year, and has risen sharply after the start of the Ukraine war.
In contrast, the other mainly traded coal, the steelmaking component coke, is trading lower. driven by different dynamics, Silent economic growth in China Steel production and, consequently, the demand for coke is cooled.
The International Energy Agency released a new report on Wednesday warning that global coal consumption is set to rise 0.7% in 2022 to match the record set set in 2013, assuming the Chinese economy recovers as expected in the second half of the year.
"The global total will match the annual record set in 2013, and demand for coal next year is likely to increase to a new all-time high," said the International Energy Agency’s coal market report.
"This sharp rise has contributed significantly to the largest-ever annual increase in global energy-related carbon dioxide emissions in absolute terms, placing it at the highest level in history," the IEA said.
Worldwide coal consumption has already rebounded by about 6% in 2021 when the global economy recovered from the initial shock of the Covid pandemic, the International Energy Agency said.
At the heart of the ongoing rise in coal demand is a gas shortage as the European Union moves to reduce Russian gas use – without a gas ban – while Russia responds by cutting off supplies to the continent.
So coal consumption in the European Union is expected to rise by 7% in 2022 on top of last year’s jump of 14%, according to the International Energy Agency.
"This is driven by demand from the electricity sector as coal is increasingly being used to replace gas that is in short supply and has seen significant price hikes in the wake of the Russian invasion of Ukraine," she added.
"Many EU countries are working to extend the life of coal plants due to close, reopen closed plants or raise the cap on their working hours to reduce gas consumption."
Meanwhile, the Russian coal boycott will add more upward pressure on coal prices, the agency said.
“Europe’s worst fears materialized this week after Russia reduced flows through the Nord Stream pipeline to 20% of capacity. Gas stocks may not reach levels. High enough to get through the winterANZ Research commodity analysts Daniel Hines and Sony Kumari said in a note on Friday.
"Because Europe’s spare import capacity is limited, it is likely to compete aggressively for LNG cargoes."
The global gas market, including the Asia Pacific region, is feeling the pain.
Japan’s Nippon Steel on Wednesday signed an agreement with mining and trading giant Glencore to supply thermal coal at $375 a ton, the highest price a Japanese company has ever paid for the commodity, according to Bloomberg.
Washington (AFP) – A bill that would boost health care and disability benefits for millions of veterans who suffered toxic burns hit a snag in the Senate last week, angering advocates such as comedian Jon Stewart who said aid from the government is long overdue.
Lawmakers have been increasingly hearing from voters with respiratory illnesses and cancers they attribute to serving near burns in Iraq and Afghanistan. The military used pits to dispose of things like chemicals, cans, tires, plastic, and medical and human waste.
Veterans' groups say military veterans have waited long enough for enhanced health benefits, and lawmakers largely agree. The Senate is eventually expected to send the measure to President Joe Biden’s desk. It’s just a matter of when.
People also read…
How will the bill help veterans in Iraq and Afghanistan?
First, veterans who served near burn pits will receive 10 years of health care coverage through the Department of Veterans Affairs when separated from the military instead of five.
Second, the legislation directs the VA to assume that certain respiratory illnesses and cancers were associated with burn pit exposure. This removes the burden of proof on the veteran, allowing him to receive disability payments to compensate for his injury without having to prove that the illness was a result of their service.
Nearly 70% of disability claims related to burn pit exposure have been denied by the Department of Veterans Affairs due to a lack of evidence, scientific data, and information from the Department of Defense.
Is there help for other vegetarians? yes. For example, hundreds of thousands of Vietnam War-era veterans and survivors will also benefit. The bill adds hypertension, or high blood pressure, as a putative disease linked to exposure to Agent Orange. The Congressional Budget Office projected that about 600,000 of the 1.6 million veterinarians living in Vietnam would be eligible for increased compensation, although only about half of them would have diagnoses severe enough to warrant having one.
Also, veterans who served in Thailand, Cambodia, Laos, Guam, American Samoa, and Johnston Atoll are presumed to have been exposed to Agent Orange. The CBO projected that 50,000 veterans and survivors of deceased veterans would be compensated for illnesses presumed to have resulted from their exposure to the herbicide.
How much will the bill cost?
The bill is expected to increase the federal deficit by about $277 billion over 10 years, the Central Bank of Oman said. Lawmakers haven’t included the formula for spending cuts or tax increases to help pay off spending.
Where do things stand in Congress? Both the House and Senate approved the bill by an overwhelming majority. The Senate did so in June, but the bill included a revenue clause that would have to arise in the House, and would require a reappointment for a technical overhaul.
The House of Representatives approved the fixed bill by 342 votes to 88. So, the measure is now back in the Senate, where the previous iteration passed by 84 votes to 14. Biden says he will sign it.
So why hasn’t the Senate approved this yet?
When the CBO scored the bill, it predicted that nearly $400 billion to be spent on health services would move from discretionary spending to mandatory spending, which is often shielded from the painful battles that occur each year over where the money in appropriations bills is spent.
The Committee on Responsible Federal Budget, a nonpartisan financial watchdog, said reclassifying nearly $400 billion from discretionary to mandatory would "reduce pressure to keep those costs under control and make it easier for financiers to spend more elsewhere in the budget without compensation." ."
Those dynamics also applied to the bill when the Senate approved it in June. However, senators voted in favor of the measure by an overwhelming majority.
But, last week, more than two dozen Republicans voted for the bill in June against introducing it this time around. They sided with Republican Senator Pat Toomey of Pennsylvania, who is seeking a vote on an amendment that he says would not reduce spending on veterans but would prevent increased spending on other non-defense programs in the future.
Senate Majority Leader Chuck Schumer offered to allow the Senate to vote on the Tommy Amendment with the 60 votes needed to pass it, the same number needed to advance the bill itself.
It’s unclear how the delay will be resolved, though Senate Republican Leader Mitch McConnell on Monday predicted that the bill would pass this week.
Veterans Defense groups, a major voting bloc in the upcoming midterm elections, are outraged and are increasing political pressure on lawmakers to act. At a news conference on Capitol Hill the day after last week’s procedural vote, speakers used terms like "bad guys" and "reprehensible" to describe Republican senators who voted against advancing the measure last week but voted for nearly the same bill in June.
"Veterans are angry and confused at the sudden change of those who thought they had their backs," said Cory Titus of the American Military Officers Association.
"You screwed up veterans yesterday, and now we’re going to hold them accountable," added Tom Porter of the US Veterans Group for Iraq and Afghanistan.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Stay up-to-date on local and national government and political topics with our newsletter.
Voters angered President Biden because of World War II state of the economy probably Leads to another epic "Bombing" For Democrats in November’s midterm elections — which could cost them more than 40 seats in Congress and control of both houses, according to a new study.
That reading would rival the level that followed the Great Recession of 2008, according to Bloomberg, which said the index serves as a leading indicator of election outcomes.
In the 2010 midterm elections, Democrats lost 63 House seats and six Senate seats.
Voters' reaction led then-President Barack Obama to admit that the "modest" results were "bombing," adding later: "It feels bad."
The November elections are shaping up against the backdrop of growing disapproval of Biden’s job performance, at 59 percent Give him a thumbs down last week and hit a record low rating for any recent president.
Historical patterns suggest that Republicans can expect to win 30 to 40 House seats and a few Senate seats, according to Bloomberg.
Democrats now have a slim majority of between 220 and 211 in the House of Representatives, where there are four vacant seats.
After inflation Set a record in 40 years From 9.1% in June, only one state — New Hampshire — has a misery index below 10%, according to Bloomberg.
"The reason the misery index is so important is because it’s really real misery for a lot of Americans," Republican pollster Frank Luntz told Bloomberg.
“Food and fuel inflation is very high and very comprehensive, and it affects every voter in every community in every state.”
"When everyone is affected, the electoral impact is multiplied," Luntz added.
In the swing state of Nevada — where there is an unexpected Democratic Senate election and several tight races for the House of Representatives — Sierra Farley, a single mother of two, said she will have to move out of her Summerlin home, outside Las Vegas, because rent will rise $450 a month. in September.
"I just got a raise and I still can’t afford my rent," Farley, 31, told Bloomberg.
The Bloomberg report follows the Federal Reserve’s decision last week Raising the reference rate by 0.75%, marking the second largest consecutive rise since the early 1980s as the Biden administration attempts to lower rates by increasing the cost of borrowing.
Buenos Air – Markets are welcoming Sergio Massa as Argentina’s third economy minister in less than a month, but analysts warn that more details are needed about his plans to pull the South American country out of its dire economic strain.
The local currency, the peso, strengthened strongly in the financial market on Friday while government bonds saw gains a day after the government of President Alberto Fernandez announced the appointment of Massa as an economic "super minister" bringing together the existing ministries of Economy, Productive Development and Agriculture. .
The increases recorded, Friday, continue the trend that began earlier this week amid rumors that Massa, the speaker of the House of Representatives of Congress, the House of Representatives, will join the administration.
“The market reaction reflects relief that someone with political skills and a strong party constituency has played this key role,” said Benjamin Gaidan, acting director of the Latin America Program at the Wilson Center in Washington. "He’s someone who can’t be easily dismissed, and the idea is that there will be some consistency in policy."
Massa’s appointment came just over three weeks after a left-leaning Sylvina Batakis was named to replace the more moderate Martin Guzmán, who abruptly resigned amid complaints he did not have the full support of a ruling coalition that had split between factions loyal to him. President on one hand and Vice President Cristina Fernandez de Kirchner, the former president who still enjoys a strong support base.
The naming of Patakis was followed by a sharp depreciation of the peso amid strict capital controls, reflecting uncertainty over whether it has the power to impose the kinds of reforms needed to transform an economy that suffers from one of the world’s highest inflation rates. which operates at more than 60% annually.
"Argentina has an urgent need to restore confidence in the economy, and the hilarious round of finance ministers is having the opposite effect," Gaidan said.
Fernandez tacitly acknowledged on Friday the need for a strong figure to lead the government’s economic programme.
"What we have experienced as a state and society over the past few months, and especially the last few weeks, forces us to better coordinate," Fernandez wrote on Twitter.
Massa, a former mayor who has always had presidential ambitions and enjoys good relations with the country’s business elite, has his own political support base, so he is seen as someone who is supposed to be able to impose his own agenda.
Fausto Spotorno, chief economist at Orlando J. Ferrers: "He’s not pro-market, he’s pro-capitalist" & Associates, a consulting firm in Buenos Aires. "He’s not a leftist."
Massa told reporters on Friday that he will appoint his team on Monday and unveil new economic measures on Wednesday. He still had to formally resign his seat in Congress before he could officially take up the cabinet position.
Despite the lack of concrete steps, market analysts feel confident they know in which direction Massa will go, given that his team has been talking to key players all week.
“The measures they discussed are very reasonable,” Spotorno said.
But for now, "the optimism seems somewhat exaggerated," Gedan cautioned. "It is true that Martin Guzmán was living outside the country and did not necessarily have the ability to navigate the snake pit of this alliance, but the underlying problems are difficult to solve and politically treacherous."
One of the main questions the country is asking is about the future of the country’s recent deal with the International Monetary Fund to restructure $44 billion in debt.
Cristina Fernandez and her left-leaning coalition allies publicly opposed the deal, claiming that it required a level of austerity that would hurt workers and the poor while also stifling growth.
Patakis was replaced the same day she returned from a brisk tour of Washington, where she met investors and officials at the International Monetary Fund, the World Bank and the United States Treasury.
Although the market seems to welcome Massa with open arms, it’s not clear that Argentines as a whole feel the same way.
“What the market needs and what public opinion needs are two completely different things,” said Jorge Giacopi, a political analyst who runs local Giacobi polls. & Associated. "They’re both angry, yes, but Massa makes it to this new role with only 9% positive and 70% negative."
When people were asked to describe Massa in one word, Jacobi said, they chose the word "pie," a word used colloquially to describe someone who frequently changes opinions.
Giacobbi added that the low approval rating means that Massa is "a man who has nothing to lose."
Massa was prime minister for about a year during the first term of Cristina Fernandez’s 2007-2015 presidency. He then became highly critical of his former boss as he pursued his presidential ambitions only to later join the coalition that ended up electing Alberto Fernandez, another former ally of Cristina Fernandez who later became a critic.
Some argue that handing too much power to someone who has demonstrated a willingness to change alliances quickly reflects the desperation of the administration.
"This is the government’s last bullet," Spotorno said. "If Massa leaves, who is left? There is no one."
New York (AFP) – Gas, food and rent prices are on the rise. The Federal Reserve raises interest rates to its highest level since 2018. The US economy has contracted for two consecutive quarters.
Economists are divided over whether a recession is on the horizon. What is clear is that economic uncertainty is not going away any time soon. But there are steps you can take now to be prepared for whatever is to come.
Yiming MaD., an assistant professor at Columbia University, says the question is not whether a recession will happen but when it will happen. She said people should prepare but not panic.
“Historically, the economy has always been in an ups and downs,” Ma said. "It’s something that just happens, it’s a bit like catching a cold."
But it does suggest that some people’s immune systems are better able to recover than others. It’s the same with finances. If you think an economic recession could destabilize you, here are a few things you can do to prepare.
Know your expenses and create a budget
Knowing how much you spend each month is key. Ma recommends sitting down and writing how much you spend day in and day out. This will help you know what will happen, what will happen, and unnecessary expenses that you may be able to cut.
"By understanding the money you’re getting and what you’re spending, you may be able to make changes to help you through tough times," advises the FDIC. smart moneyFinancial education programme.
Budgets often reveal expenses that can be eliminated entirely or impulsive spending that can be avoided by planning.
The more nonessential expenses you can cut, the more you can save.
It’s not possible for everyone, but Jane Natalie, co-founder of Troutwood, an app that helps people create financial plans, says it’s ideal to budget to save enough to cover basic necessities for three to six months.
Programs like America savesa not-for-profit campaign by the Consumers Federation of America, could help create a roadmap.
Ma said, if you have a savings account, it is important to check if your bank gives you a good interest rate and to shop if not.
Her advice is to watch monthly fee Or service charges that may eat up your savings. But don’t limit your options. Online banks sometimes offer better rates than traditional banks.
Collect your loans and don’t take any more
With interest rates rising, experts recommend consolidating your loans for a single fixed rate loan and, if possible, paying off as much of your debt as possible.
“Job security tends to be worse when the recession comes, and this is not a great time to build up debt,” Ma said.
With interest rates rising, it’s also not a great time to get new loans for big expenses like cars, although experts recommend that if you need durable items like vacuum cleaners, stoves or dishwashers, you can buy them as soon as possible to avoid increases prices in the future.
Visit second hand stores and yard sales
Allen Galleon, a home care provider in California, has been affected for months by the soaring prices of household staples like groceries, paper towels, and gas on his commute.
Hi-C’s son’s favorite orange juice, which was $1.99 for a six-pack, is now $2.50.
Since the beginning of the pandemic, when Galleon stopped caring for multiple families for one client to reduce health risks, his family has dealt with financial instability.
One of the choices he made was to buy items like clothes or electronics Used whenever possible, whether from Goodwill, Pawn Shops or Craigslist. And Craigslist lets you search by area, for less driving — which means less gas and hassle.
Negotiate your monthly bills
Since the pandemic, many companies have updated their relief policies and become more flexible with users, according to Kia McAllister Young, principal. America saves.
McCallister Young said that calling monthly providers to negotiate bills — whether it’s utilities, phone or cable service, internet or car insurance — can lead to meaningful savings. Individuals can request the best rate or any available discounts, discounts or vouchers that can result in a reduced monthly fee. She added that if the service provider is competitive with other companies, there is a better chance of getting a discount.
"If you tell them, 'I’m thinking of a change' or you’re shopping, it helps – if they know you’re thinking of leaving, they’ll give you the best rate, and the goal now is to find as much cash flow as possible."
“A lot of stores have price matching, so if you show them that a competitor is selling the same product at a lower price, they will match,” McAllister Young said. "You also want to look at the stores closest to you, so you’re not spending the extra money you might save on gas."
An alternative way to save money on groceries is to check out food sharing apps like oleo, that connects people around their community to share extra groceries, and very good to go, Where customers can buy corporate surplus food at a discount.
Look at government assistance programs
Even with these saving and spending practices, a month’s wage is not always enough to cover important expenses. If this is your case, programs across the country are available to help you.
"Sometimes there just isn’t enough 'end of the month' at the end of the month," said Michael Best, an attorney at the National Consumer Law Center who works on financial services cases.
If you are food or housing insecure, find nonprofit or community organizations around you. From housing support And the food pantry to me Utility helpNon-profit organizations across the country can help. National organizations such as Feeding America It hosts food banks in all 50 states.
Her organization provides housing, food, and emergency cash assistance to people in the community. Between January and June, she said, her group distributed more than $150,000 in emergency cash assistance to survivors who had the most trouble turning out the lights and putting food on the table. This is more than last year.
The Associated Press receives support from the Charles Schwab Foundation for educational and interpretive reporting to improve financial literacy. The independent foundation is separate from the Charles Schwab & Co. Foundation. The Associated Press is solely responsible for its press.
TOKYO (AP) – Asian stocks rose mostly on Friday after a broad rally on Wall Street, but the main index in Hong Kong fell more than 2%.
Investors seem to have become more convinced that The Federal Reserve may ease Sharp interest rate increases are aimed at curbing inflation after the Commerce Department reported US economy shrinking at a rate of 0.9% annually in the most recent quarter. This followed a 1.6% year-over-year decline in the first quarter.
Investors have been cautiously eyeing regional tensions over China’s stance on Taiwan after President Zhou Biden and China, Xi Jinping Talk for more than two hours on Thursday. China left no doubt that it blamed the United States for the worsening relationship, but the White House said the point of the call was to "manage our differences responsibly and work together where our interests coincide."
The announcement came after a planning meeting of the ruling Communist Party on Thursday that Beijing will try to support sagging consumer demand but will stick to tough anti-COVID-19 tactics that have disrupted manufacturing and trade. highlights The high cost of the Xi government is willing to bear To stem the virus in a politically sensitive year as he is widely expected to try to extend his term in power.
Japan’s Nikkei 225 lost 0.3% to 27750.17, while Australia’s S&P/ASX 200 rose 0.8% to 6947.30. South Korea’s Kospi rose 0.4% to 2,446.22 points.
Japanese government data showed that factory production in June jumped 8.9% from the previous month, marking the first rise in three months. The last dilution of Pandemic lockdowns In China to promote Japanese production.
“On the economic data front, the easing of Chinese restrictions also resulted in stronger-than-expected June production for Japan, as the reopening of China is likely to have a positive impact across the region in the second half of the year,” Yip said. Jun Rong, Market Strategist at IG in Singapore.
The rise in the number of COVID-19 infections to record levels in many parts of Japan has raised alarm. But Robert Carnell, ING’s regional head of research for Asia Pacific, thinks Japan’s second-quarter gross domestic product, or gross domestic product, will rebound marginally from the first-quarter contraction.
On Thursday, the S&P 500 rose 1.2% to 4072.43, while the Dow Jones added 1% to close at 32,529.63. The Nasdaq rose 1.1% to 12162.59. The Russell 2000 Index rose 1.3% to 1873.03.
Consecutive quarters of lower GDP are an unofficial, if not definitive, indicator of what economists call a technical recession.
The GDP report indicated weakness across the economy. Consumer spending slowed as Americans bought fewer goods. Business investment declined. Inventories fell as companies slowed to restock shelves, lagging 2 percentage points of GDP.
The Federal Reserve has made a slowing US economy to tame the highest inflation in 40 years its goal by raising interest rates, most recently on Wednesday. The latest GDP report, along with recent weak economic data, may give some investors confidence that the central bank will be able to cushion the scale of any further rate hike.
In a research note Thursday, Jonathan Golub, chief US equity strategist at Credit Suisse Securities, said, “Whether or not we are in a recession will be debated by academics in the coming months. However, today’s report unequivocally reflects significant weakness in activity." economy, and increases the likelihood that the Fed will turn pacifist.”
The central bank raised its key short-term interest rate by 0.75 percentage points on Wednesday, taking it to the highest level since 2018. The move sparked a broad market recovery led by technology shares that helped give the Nasdaq its biggest gain in more than two years. . All major indexes are now on track for weekly gains, extending Wall Street’s strong rally in July.
In a week packed with corporate earnings reports, investors focused on what companies are saying about inflation and the impact of higher interest rates on their businesses and customers.
Technology stocks, retailers, restaurant chains and other companies that rely on direct consumer spending helped lift the S&P 500 index on Thursday. Microsoft shares rose 2.9 percent, Target added 3.1 percent, and McDonald’s rose 1.8 percent.
Telecom services stocks were the only lagging behind. Meta Platforms fell 5.2% after the social media giant said its revenue fell last quarter for the first time ever, weighed down by a drop in ad spend.
Shares of Spirit Airlines rose 5.6 percent after JetBlue It agreed to buy the low-cost airline for $3.8 billion Creation of the fifth largest airline in the country. The day before, Spirit’s attempt to merge with Frontier Airlines had collapsed. Frontier Airlines jumped 20.5%.
In energy trading, benchmark US crude rose 25 cents to $97.28 a barrel in electronic trading on the New York Mercantile Exchange. It lost 84 cents to $96.42 on Thursday.
Brent crude, the international pricing standard, rose 3 cents to $101.86 a barrel.
In currency trading, the US dollar fell to 133.24 Japanese yen from 134.27 yen late Thursday. The price of the euro came to $ 1.0220, a slight increase from $ 1.0199.
By Chris Mejerian and Zeke Miller, The Associated Press
A senior US administration official said after the two leaders spent more than two hours on Thursday talking about the future of their complicated relationship, with tension over the future of their complicated relationship. Taiwan It reappears as a flash point.
Biden made the phone call from the Oval Office, where he was joined by his top aides, including Secretary of State Anthony Blinken. The official declined to be identified to speak about the private conversation.
When Biden was vice president, he spent many hours with Xi in the United States and China, an experience he often remembers as he talks about the two countries' opportunities for conflict and cooperation. However, they have not met in person since Biden became president last year.
Xi left mainland China only once, To visit Hong KongSince the start of the COVID-19 pandemic. However, it has been Officially invited to Indonesia In November for the upcoming G20 summit of the world’s leading economies, making the conference a potential location for a meeting with Biden.
The latest pressure on Taiwan is the possible visit of House Speaker Nancy Pelosi to the island, which has ruled itself for decades but China maintains as part of its territory.
Xi confirmed the allegations during his call with Biden, according to China’s Ministry of Foreign Affairs.
"He who plays with fire will perish with it," the ministry said. Hopefully, the US will be clear in his eyes about this. "
The White House released its own description of the conversation on Taiwan, saying that Biden "emphasized that US policy has not changed and that the United States firmly opposes unilateral efforts to change the status quo or undermine peace and stability across the Taiwan Strait."
The White House said the goal of the call, which began at 8:33 a.m. EST and ended at 10:50 a.m. EDT, was to "manage our differences responsibly and work together where our interests align."
As usual, China leaves no doubt that it blames the United States for the deterioration of relations between the two countries.
“President Xi stressed that dealing with and defining Sino-US relations in terms of strategic competition and viewing China as the primary competitor and that the most serious long-term challenge would be to misunderstand Sino-US relations and misread China’s development, and would mislead the people of the two countries and the international community, The Ministry of Foreign Affairs said.
Yun Sun, director of the China program at the Stimson Research Center, said that while Beijing’s warning not to play with fire on Taiwan on Thursday drew attention, it did not represent an escalation of its usual diplomatic rhetoric.
Sun noted that both the United States and China said the conversation covered a wide range of topics, from the epidemic to climate change. She described it as "more positive than the two leaders telling each other, well, we’ll stick to our positions on Taiwan."
"They cannot afford to rupture the relationship with the United States," she said.
The call with Xi took place as Biden aims to find new ways to work with China and contain its influence around the world. Differing views on global health, economic policy and human rights have long tested the relationship — with China refusing to condemn it Russian invasion of Ukraine Add more pressure.
The last pressure point was House Speaker Nancy Pelosi Possible visit to Taiwan, which has a democratic government and receives unofficial defense support from the United States, but which China considers part of its territory. Beijing said it would view such a trip as a provocation, a threat US officials are taking increasingly seriously in light of Russia’s incursion into Ukraine.
"If the United States insists on going its own way and challenging China’s net profit, it will certainly be met with strong responses," Zhao Lijian, a Chinese foreign ministry spokesman, told reporters earlier this week. "All consequences of this will be borne by the United States."
Pelosi will be the highest-ranking elected US official to travel to Taiwan since then Republican Newt Gingrich visited the island in 1997 When he was Speaker of Parliament. Biden told reporters last week that US military officials believe the spokesman’s visit to the island "is not a good idea" at the moment.
John Kirby, a US national security spokesman, said Wednesday that it is important for Biden and Xi to touch the base regularly.
"The president wants to make sure that the lines of communication with President Xi remain open because they need to," Kirby told reporters at a White House briefing. "There are issues on which we can cooperate with China, and there are issues that there are obviously frictions and tensions."
“This is one of the most important bilateral relationships in the world today, and it has ramifications that go beyond both individual countries,” Kirby said.
Biden moved to shift US dependence on Chinese manufacturing, including Final congressional approval Thursday Legislation to encourage semiconductor companies to build more high-tech factories in the United States
He also wants to mobilize global democracies to support infrastructure investment in low- and middle-income countries as an alternative to China’s "Belt and Road Initiative", which aims to boost China’s trade with other global markets.
Biden has kept Trump-era tariffs on many goods manufactured in China in order to maintain influence over Beijing. But he is considering whether at least some of them should be loosened to reduce the impact of high inflation on American households.
US officials have also criticized China’s "COVID-free" policy of mass testing and lockdowns in an effort to contain the spread of COVID-19 in its territory, calling it misleading and worrying that it will further slow global economic growth.
Other points of tension include China’s treatment of Uyghur Muslims, which the United States has declared a genocide, the militarization of the South China Sea, and its global campaign of economic and political espionage.
Associated Press writers Ken Moritsugu and Joe MacDonald contributed from Beijing, and Ellen Nikmeyer contributed from Washington.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Subscribe now to get the latest coronavirus headlines and other important local and national news sent to your inbox daily.
Gross domestic product, a broad measure of economic activity, fell 0.9% year-on-year from April through June. This downturn represents a major symbolic limit to the more popular – albeit unofficial – definition of a recession as two consecutive quarters of negative economic growth.
The highly anticipated data release has gained in importance as investors, policy makers and ordinary Americans seek some clarity in the current turbulent economic environment.
The negative drop seen Thursday in the first reading of Q2 GDP activity – data that will be revised two more times – was mostly driven by lower inventory levels. Companies in recent quarters have tried to replenish stocks pulled during the pandemic — and in an effort to cope with supply chain disruptions, they have found themselves overwhelmed as consumers back off some purchases. Thus, investments in inventory during the second quarter were lower than in the first quarter.
“The general conclusion is that the economy is slowing down, and that is what is happening [Federal Reserve] "We’re not in a recession," said Ryan Sweet, who leads real-time economics at Moody’s Analytics.
Although Thursday’s initial estimate represented a sharp drop from the 6.7% expansion that the economy experienced in the second quarter of 2021, the White House was adamant that the world’s largest economy, despite being hit by decades of high inflation and a series of shocks Display, basically remains intact.
Even the administration took the unusual step of publishing an explanation of some sort, asserting that two consecutive quarters of economic downturn do not, in and of themselves, constitute a recession. The White House published a file Blog entry Last week he says that in addition to gross domestic product, data on the labor market, personal and business spending, production and income all enter into the official resolution of a recession.
Nonprofit National Bureau of Economic Research is the official arbiter of recessions, A ruling is unlikely any time soon. A group’s business cycle dating committee usually weighs a large number of stats over months before making a decision.
"They have a much stricter definition: It’s a widespread and persistent weakness in the economy," Sweet said. "And that’s not a broad base. It’s really focused on inventories and trade – trade was a huge drag on first-quarter GDP."
In addition, the job market is doing well. Monthly Job Gains Averaged more than 450,000 during the first six months of this year, according to the Bureau of Labor Statistics. However, while these gains are moderate, as expected, the past few weeks have also seen an increase in unemployment claims.
On Thursday, the latest weekly jobless claims data from the BLS showed that first-time claims for unemployment benefits were estimated at 256,000 for the week ending July 23. That total is 5,000 below the previous week’s level, which was revised up by 10,000 claims to 261,000.
"Unemployment claims have certainly risen from cyclical lows," Sweet said. "I think this is more of a reflection of an economy shifting into a lower gear."
Economists say the biggest reason it’s too early to call a recession based on Thursday’s numbers is becauseThat data can and may change. For example, subsequent revisions to the first-quarter GDP numbers changed from an initial decline of 1.4% to 1.6%, and Thursday’s numbers are only the first of three estimates.
Adjustments are the norm, not the exception, as the Ministry of Commerce frequently revises its accounts as new information becomes available. About a third of primary GDP releases are based on extrapolation and statistical assumptions in the absence of concrete data, according to Federal Reserve Bank of San Francisco.
"These are usually single points in time, snapshots. It’s almost like looking at the balance sheet versus the income statement for more than a quarter," said Eric Friedman, chief investment officer at US Bank Wealth Management.
"New information can emerge, and when that happens, those variables change the outcome," he said.
Sometimes, the differences between the estimates are significant. Revisions to GDP in the fourth quarter of 2008, for example, revealed that economic activity actually declined by -8.4% annually, indicating a much deeper recession than the initial estimate of -3.8% had predicted.
Currently, the biggest smear on the lens preventing economists from getting a clear picture is the buildup of stocks and the corresponding imbalance in the country’s normal trade flows.
"What I’m starting to see and hear a lot about at the moment is what’s going on with stocks … Inventories are a problem, both in terms of the mix of inventory that retailers hold as well as quantity," Friedman said.
The rush to load merchandise over the past two quarters has been a miscalculation for companies like supermarkets. Walmart And the Target both told investors they expect to cut prices for the transportation of products. But from a macroeconomic perspective, some experts believe these pitfalls imply that the economy in the first quarter was not as weak as the decline in GDP might suggest.
Anna Rathbone, chief investment officer at CBIZ Investment Consulting Services, noted that the 1.6% contraction in first-quarter GDP was artificially low because companies began hoarding inventory in the last quarter of last year. She said this pushed forward economic activity that would otherwise have occurred in the early months of this year.
“The fourth quarter, to me, was a little bloated,” Rathbone said. “Everyone was just stockpiling things.”
Additionally, when companies import more and export less, this dynamic affects GDP, said Jacob Kierkegaard, senior fellow at the Peterson Institute for International Economics.
“It’s the value of production within the physical borders of the United States, so if, hypothetically, you have constant exports and higher than imports, your trade deficit goes up. In that sense, the growing trade deficit subtracts from GDP," he said, particularly when combined with fluctuations severe in price.
“When you have high volatility in commodity prices, especially in periods of high inflation in general, it can be misleading and, in my opinion, paint a very negative view of where the economy is,” Kierkegaard said. "We should be careful when we say that the GDP number is the absolutely correct measure of the country’s economic well-being."
Federal Reserve Chairman Jerome Powell on Wednesday emphasized the importance of looking at various key economic actions as the central bank determines future interest rate movements. However, Powell said the first reading of the GDP report should be taken "with caution".
This story is part of a series of photographs that explore how the cost of living crisis is affecting people around the world.
Colombo, Sri Lanka – Mohamad Ragabdin’s yellow four-wheeled pickup truck, known locally as the Rhythm, parks at a street corner at Pettah Market in Colombo, one of the busiest and busiest shopping areas in the city. Opening on all three sides, the back of his car doubles as a kiosk, selling a mix of used and merchandise.
He points to a large gray toolbox sitting amid wrenches, wires and car jacks. "You see this?" Asked. “Earlier it was 5,000 Sri Lankan rupees or 6000 Sri Lankans ($14 or 17). Currently? It’s 10,000 Sri Lankans ($28). I got this months ago and it is still unsold.” Previously he could sell up to three per week.
Sri Lanka has been experiencing a severe economic crisis since March. Gasoline and diesel supplies are limited, and 1-kilometer-long fuel queues are common in the capital. Inflation affected consumer goods and food alike. Experts blame a variety of factors: ballooning debt, declining tourism and foreign remittances, and political mismanagement.
"Our country’s situation is very bad," says Rajabdin. No measures have been taken to control inflation. Like millions of others in the island nation, the 35-year-old’s life and business have been damaged. "How to manage?" he asks with a miserable shrug, in jeans and a black shirt with a sack with money slung around his waist. There are no easy answers.
Since he was a child, Rajabdin has worked intermittently with his father, whom he calls "the boss". The older man, 62, sits nearby in a T-shirt and sarong looking out at the table in front of her also piled high with merchandise, including sockets, locks, screwdrivers and pliers.
The market is relatively crowded, although it is nothing compared to what it was before the crisis. However, the rains have mostly stopped, and people are bustling around, shopping for electronics, fruits, clothes and other bric-a-brac. The duo come here almost daily to promote their wares. But sales have been low over the past several months.
"Customers don’t have money, they buy less," says Ragabdin, who finished his studies but did not go to university. As the eldest son of the family, he had to quickly enter the workforce to help support others.
Food: We should think twice
Food inflation hit 80 percent in June, and at least six million Sri Lankans are food insecure, according to the World Food Program. From salt to rice, Rajabdin says the prices of all staples are exorbitant. Everyday life has become a series of micro-calibrations, from dietary changes to lifestyle changes.
"Since the price of vegetables went up, we’ve reduced our cooking," he says. He no longer eats chicken daily. “Expensive meat. If we take a day off from work, we won’t be able to eat chicken that day.” The days of barbecue at home are gone too. “Now we have to think twice."
Ragabden no longer starts the day and ends with a glass of fresh milk like he used to. Because the price of 750ml of fresh milk has risen from 220 to 490 Sri Lankan rupees ($0.61 to $1.36), he says he is now drinking only 10 percent of the amount he once drank. Although most people abuse milk powder, Rajab al-Din doesn’t want any of those cliched things. He grew up with easy access to the finest milk, thanks to a relative who had a dairy farm, and he wouldn’t give it up entirely.
As a coffee drinker, he frowns when asked about tea, Sri Lanka’s number one export and second most consumed beverage in the world. "When you mix tea with milk, it’s not good."
Not only did what Rajabdin eat, but it also changed. Cooking gas supply is difficult to obtain; Queues of people sitting with gas cylinders have become a common sight. In his house, all food is cooked in an electric rice cooker – usually, as the name implies, it is used to make rice. Now it is more than a magical multi-purpose pot used for cooking different things. “Everyone does that, a lot of the time we make biryani,” he said with a laugh. “It’s one meal.”
Do you feel hungry sometimes? "Somehow we manage, we try to control our hunger. How to eat? Where is the money? Business has gone slow, right?" he answers. Items like biscuits and chocolate seem like luxury foods now and have been removed from the shopping list.
Although he’s not a big sweet eater, his kids do have a love of sweets, which he’s had few opportunities to indulge in lately. He points to the shop at a corner near the entrance to the market. "Do you see Bombay sweets?" Asked. Inside, behind the glass panes, sit squares and diamonds of white, cream, and green confetti arranged in metal trays. He continues, "Ask them, they know me." “I used to be their favorite customer. Every day I would buy something from there.” Ladoos bought, and pretty much anything, laughs. Now this indulgence feels elusive.
Black market fuel, rising electricity costs
The struggle for fuel is also daily and constant. Ragabdin faces the same challenges as his compatriots. "There is no proper infrastructure for fuel distribution," he says. The fuel costs between 450 to 550 Sri Lankan rupees ($1.25 to $1.53) and is nearly impossible to buy unless you spend days queuing. But today he is somewhat happy that he was finally able to refuel.
He bought several liters of diesel on the burgeoning black market, a market that has thrived since the skewed supply and demand dominated the country. A month ago, he paid 1,000 Sri Lankans for a liter ($2.78), but it has now increased to 3,000 Sri Lankans ($8.34). "We talked to a lot of people, and with great difficulty we got it," he says.
His father was skeptical at first when they bought the fuel, and he wasn’t sure about the quality of the fuel. They own two trucks, including the cadence used to work and three wheels. He used his last three wheels three months ago. From time to time he buys small amounts of fuel for this car, but not for actually riding it. "We just use it to keep the engine running, and to keep it running. We keep it in the same place," he says.
His father often sleeps in the market because they cannot push their rhythm home every day; Meanwhile, Ragabdine rides 10 kilometers back and forth in each direction.
Ragabden served spells in the railroad and textile sector, but he prefers to work with his father for the time being. He also has his own entrepreneurial ideas, although there are few resources at the moment to realize them. "This is not my life," he says. "I have big ideas and big plans."
It started to rain and Ragabden rushed to pull a plastic cover to protect his goods. Then he takes out the electric bill, tracing his finger through the inflated numbers. It was worth 835 Sri Lankan rupees ($2.32) for the past month, higher than the usual 500 Sri Lankan rupees ($1.39). Arrears also accumulate.
Although there are frequent blackouts, lasting up to four hours a day, managing electricity use is a challenge in itself. "We use the fan less and turn the fridge off at night," he says.
The crisis has also pushed Rajabdin’s wife – who is now a housewife – into the job market. "How to do it another way? How to manage?" Asked. Now you go to work in other people’s homes.
His son and two daughters haven’t been to school in weeks. The government has ordered the closure of schools in several areas during the crisis due to power cuts and a lack of fuel to transport children. "The children are so sad that the school is closed," he says.
The country is also facing an acute shortage of medicines. Ragabden takes tablets to control his diabetes, but this has become irregular recently. "how can I buy?" Asked. A combination of fuel shortages, poor drug supply in government hospitals, and scarcity of time led to him neglecting his health.
But his woes did not start this year with the economic crisis. COVID-19 has been a tough time, too, with lockdowns and weak business. His disdain goes back even further. In April 2019, militants bombed a chain of churches and hotels in and around Colombo. The Easter attacks, as they became known, killed 269 people. A wave of Islamophobia followed, fueled by the voices of the hardline Buddhist majority. We have encountered a lot of problems. [The majority] He campaigned and said don’t buy [Muslim community’s] Food, don’t buy our groceries, don’t come to our hotels,” Rajabdin recalls. The country’s population is about 9.7 percent Muslim and a majority 70 percent Buddhist.
What remains of the country’s future? "Dead," says Ragabdin. "But let’s hope for the best."
He used to be a movie buff once, he shares, often goes to the cinema to see movies, but he has other responsibilities now.
Thinking of the movies brings a smile to his face as he remembers a serendipitous event not so long ago. In April, as protests began on Galle Face Green in Colombo, Ragabden was in line with his yellow three-wheeler, a cart he had purchased in 1987. A member of the film crew discovered it from an upcoming sports biography and approached him. They asked if they could use it in photography.
Later on, Bergabaden also ended up getting a small cameo in the film, playing a soldier. He was showing off his green military hat, a staple from the group that he was able to take home. It was a rare and exciting opportunity, one that might not have come without the special circumstances of lining up for fuel. He smiles, "God gave me this opportunity."
This report was supported by the International Women’s Media Foundation.