Lawmakers eye down a federal spending bill deadline at the end of the month, raising the likelihood of a government shutdown if legislative negotiations aren't successful. Jeannette Lowe, Strategas Securities Managing Director of Policy Research, examines the stalemate between House Democrats and Republicans, and the economic implications of a government shutdown. "Our current odds are very high as well — 75% chance as of today that we do have a government shutdown on October 1," Lowe states. "One of the problems with having [lawmakers] pass a continuing budget resolution — which they have done many times in the past — is that the House conservatives are currently asking for other policy provisions to be attached to it."
Lawmakers eye down a federal spending bill deadline at the end of the month, raising the likelihood of a government shutdown if legislative negotiations aren't successful. Jeannette Lowe, Strategas Securities Managing Director of Policy Research, examines the stalemate between House Democrats and Republicans, and the economic implications of a government shutdown.
"Our current odds are very high as well — 75% chance as of today that we do have a government shutdown on October 1," Lowe states. "One of the problems with having [lawmakers] pass a continuing budget resolution — which they have done many times in the past — is that the House conservatives are currently asking for other policy provisions to be attached to it."
Bloomberg
(Bloomberg) -- After staving off recession for longer than many thought possible, the US consumer is finally about to crack, according to Bloomberg’s latest Markets Live Pulse survey. Most Read from BloombergTrudeau Is Stuck in India With Faulty Aircraft After Hearing Criticism From ModiThe Mighty American Consumer Is About to Hit a Wall, Investors SayTesla and China Risk Leaving Volkswagen on a Road to NowhereTech Giants Power Stock Gains as Tesla Jumps 10%: Markets WrapMorgan Stanley Sees Dojo
Bloomberg
(Bloomberg) -- Ukraine probably has just 30 to 45 days of “fighting weather” left for its counteroffensive this year before conditions worsen, said General Mark Milley, chairman of the US Joint Chiefs of Staff. His comments to the BBC came as Ukraine’s southern commander pointed to further advances in the Zaporizhzhia region. US Secretary of State Antony Blinken said it was Ukraine’s call on how to use weapons, including potential long-range missile systems, being provided by allies. “In terms o
Bloomberg
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Bloomberg
(Bloomberg) -- China’s credit demand improved, deflationary pressures eased and the yuan rallied, adding to a recent trickle of signs that the economy and financial markets may be stabilizing after a sharp downturn.Most Read from BloombergTrudeau Is Stuck in India With Faulty Aircraft After Hearing Criticism From ModiThe Mighty American Consumer Is About to Hit a Wall, Investors SayMeloni Tells China That Italy Plans to Exit Belt and RoadIndia’s G-20 Win Shows US Learning How to Counter China Ri
The Wall Street Journal
The energy sector is the best performer among the S&P 500’s 11 segments this quarter, up 11%, while the benchmark index has added 0.8%. For the year so far, the energy sector is up 2.9%, still far off the S&P’s 17% gain. The gains mark a contrast from earlier in the spring when the sector was the biggest laggard, down about 13% year-to-date through mid-March, dragged down by concerns about a slowing global economy and energy demand hurting oil prices.
Bloomberg
(Bloomberg) -- Malaysia plans to ban exports of rare earth raw materials, according to Prime Minister Anwar Ibrahim, becoming the latest country seeking to restrict shipments of materials that are in high demand for the green energy transition.Most Read from BloombergTrudeau Is Stuck in India With Faulty Aircraft After Hearing Criticism From ModiThe Mighty American Consumer Is About to Hit a Wall, Investors SayTesla and China Risk Leaving Volkswagen on a Road to NowhereTech Giants Power Stock Ga
The Wall Street Journal
Based on initial assessments, Ukrainian officials now believe that with American training expected to begin this month or next, a handful of Ukrainian fighter pilots could be ready to go as early as February, Ukrainian and U.S. officials said. Neither Russia nor Ukraine has achieved air superiority because each side has enough surface-to-air missiles to thwart the other’s jets. The addition of the American F-16s, older but relatively sophisticated jet fighters, could give the Ukrainians more effective capability to fight Russian jets and attack targets on the ground.
Bloomberg
(Bloomberg) -- Rural America is booming, but the population growth that’s boosting local economies is also putting a strain on everything from schools to housing and roads.Most Read from BloombergTrudeau Is Stuck in India With Faulty Aircraft After Hearing Criticism From ModiThe Mighty American Consumer Is About to Hit a Wall, Investors SayMeloni Tells China That Italy Plans to Exit Belt and RoadTesla and China Risk Leaving Volkswagen on a Road to NowhereIndia’s G-20 Win Shows US Learning How to
AP Finance
The European Union has lowered its forecast for economic growth this year and next, saying inflation is taking a heavy toll on people's willingness to spend in shops — while higher interest rates are sharply restricting the credit needed for investment and purchases. The revised forecast Monday from the European Commission, the EU’s executive arm, comes as fears of recession grow and as the European Central Bank faces a key decision this week on whether to keep raising rates, which are aimed at getting inflation under control. "Weakness in domestic demand, in particular consumption, shows that high and still increasing consumer prices for most goods and services are taking a heavier toll than expected," a commission statement said.
Reuters
Reversing a significant rise in inequality in the United States over the last four decades is essential to boosting overall economic growth, Deputy Treasury Secretary Wally Adeyemo will tell top business leaders in New York City on Monday. Adeyemo, in remarks prepared for an Economic Club of New York luncheon, said President Joe Biden's economic policies had helped the U.S. economy weather the COVID-19 pandemic and Russia's invasion of Ukraine better than any other advanced economy, with lower rates of inflation. He said the administration remained focused on driving down inflation and was using targeted investments to "unlock the unrealized potential of our economy" by revitalizing communities in rural areas and communities of color that had been "left behind or left out for too long."
Reuters
Morgan Stanley equity strategists said on Monday that markets are in a "late cycle" environment, with healthcare stocks poised to benefit because they have both defensive and growth properties. "We view this year as an extension of the late cycle period often experienced when the (Federal Reserve) is expected to pause or reverse its hawkish policy stance," strategists led by Michael Wilson said in a research note. Morgan Stanley noted that healthcare has underperformed; the S&P 500 health sector is down 2.5% year-to-date versus a 16.5% rise for the overall index.
AP Finance
India’s Prime Minister Narendra Modi touted his country as well-placed to bridge gaps in the Group of 20 top economies and solve global problems, but many were skeptical ahead of the weekend's summit given grave divisions within the bloc over the Russia’s war in Ukraine. British Prime Minister Rishi Sunak said the group agreed to a “very strong” message. German Chancellor Olaf Scholz called it a “success of Indian diplomacy,” adding “many did not think that would be possible beforehand.”
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