Wednesday, April 17, 2024

uk unemployment increases

 Although the UK government has been praising itself on its low unemployment rate, there are worrying patterns. There has been an increase in the number of working-age individuals quitting their jobs early because of health issues, childcare obligations, or other reasons. The fact that this inactivity rate has been declining since the COVID lockdowns makes it even more concerning.

Experts think that this increase in inactivity is the result of government actions. They consider a mental health crisis, benefit cuts, and government battles with healthcare unions as the main causes of the the departure from the workforce. Many families are also being forced to work fewer hours themselves due to the high cost of residential care and growing childcare expenses.



Investors increasingly expect 'no landing' for US economy


This article explains how investors are changing their outlook on the economy. In previous months people thought there would either be a "hard landing" where the US would enter a recession or a "soft landing" where the economy cools off and inflation rates and interest rates return to a regular level. However, now 36% of investors expect there to be "no landing" where the economy continues in the direction that it is going. One of the analyses said that the US economy does not enter recession for no reason, and right now there is no reason for demand to slow down leading to this no-landing scenario. 


https://finance.yahoo.com/news/investors-increasingly-expect-no-landing-for-us-economy-123944030.html

Tuesday, April 16, 2024

Charlotte saw nearly $80M economic impact from big 2023 sports events

The Charlotte Sports Foundation said $79.7 million was generated by the Jump man Invitational, the Duke’s Mayo Classic, the Ally Tipoff, and the Duke’s Mayo Bowl. In addition to the $79.7 million, CSF said $42.9 million was also generated in direct spending and $2.5 million in taxes. More than 70,000 hotel rooms were booked during those events and over 216,000 fans were in attendance. CEO of CRVA Steve Bagwell said, “Sporting events are a significant contributor to the region’s $7.3 billion visitor economy, with a large portion of the annual hotel room nights booked by the CRVA attributable to that market segment." He also continued, “Our partnership with the Charlotte Sports Foundation is tremendously important in creating positive economic activity for the community. Their industry connections and operational expertise are vital when we pursue and host strategic sporting events. The collaboration has been incredibly successful at drawing visitors, generating media exposure, and delivering fantastic experiences in the Queen City.” The Charlotte Sports Foundation said $2.7 million of the money generated was donated to charitable causes including Charlotte-Mecklenburg Schools.


link: Charlotte saw nearly $80M economic impact from big 2023 sports events - Yahoo Sports

Biden to forgive $7.4 billion more in student loan debt for 277,000 borrowers

 The Biden administration has already authorized the cancellation of $153 billion in student loan debt for nearly 4.3 million people across America. That's more than 9% of all outstanding federal student loan debt.  

The administration has been very on top of this topic as they’ve been making new announcements about debt relief monthly and they have another group of student debt relief proposals that could go into effect this fall. The Biden administration has made it easier to qualify for loan forgiveness for specific groups such as public sector workers. They have also launched a new plan to shorten the pathway to loan forgiveness for many low income borrowers, although the Republicans are pushing hard against this. They argue this cost is going to taxpayers who chose not to go to college or are already paying for it themselves.

$3.6 billion of this student debt relief will be delivered to people enrolled in the SAVE (Saving on a Valuable Education) program. Since it launched last year, almost 8 million borrowers enrolled and 360,000 people have seen their debt canceled. 

There were previously repayment plans within the government in other presidencies but SAVE requires way less time to receive the debt relief. In addition, unpaid interest does not accrue as long as monthly payments are made in SAVE. 

The Biden administration has canceled more student debt than any other President in history and it doesn’t look as if they’re done yet.


Cooper Meek

https://apple.news/A13tpyRA8T1OOCiXfG8SMnw

Sunday, April 14, 2024

Hong Kong Sovereignty Threatened

     The traditional picture of Hong Kong from a western perspective is as an international financial oasis within the hostile Chinese market as Hong Kong, with its semi-independence from China, has for the past few decades served as a gateway between China and the west. This status, however, has come under scrutiny recently, as many western investors have left Hong Kong in the past few years due to COVID, China's crackdown on pro-democracy protests, and Chinas trade war with the United States. In addition, China imposed a national security law on Hong Kong back in 2020, and there are rumblings of further laws to come. This has caused the number of global companies with regional headquarters in Hong Kong to fall by 8.4% since 2019, with a particular emphasis on firms within the United States which have fallen by a third in the last four years. Other eastern countries, such as Singapore, have benefited from the decrease in activity in the Hong Kong market, however, analysis are not counting Hong Kong out just yet, predicting that they will continue to serve as a gateway to China, just less with the west and more with other Asian countries. 


https://www.dw.com/en/hong-kongs-economy-feels-the-weight-of-chinas-crackdown/a-68453085



U.S. Monthly Mortgage Payments Hit New Record High Amid High Rates and Home Prices

 For the second week in a row, U.S. mortgage rates rose followed by higher-than-expected inflation and unemployment. The 30-year fixed mortgage rate increased and averaged 6.88%, which increased by 62 basis points since the previous year with an average of 6.27%. The 15-year mortgage rose to 6.16%, an increase of 10 basis points compared to last week's 6.06% and an increase of 73 basis points from the previous year's 5.54%. Sam Khater, chief economist at Freddie Mac stated, “Mortgage rates have been drifting higher for most of the year due to sustained inflation and the reevaluation of the Federal Reserve’s monetary policy path.” While this may be disheartening news for new and eager homebuyers, there's a glimmer of hope as new listing activating jumped by 15.5% in March.  Although higher rates erode housing affordability, the median monthly mortgage payment for a median-priced $378,250 home hit an all-time high of around $2800. Despite these challenges, there is optimism that the market might stabilize later in the year as mortgage rates and housing supplies adjust. 


https://apple.news/ALQZineSJTPeR90DqEE5PhQ


Wholesale prices rose 0.2% in March, less than expected

Title- Wholesale prices rose 0.2% in March, less than expected

link- https://www.cnbc.com/2024/04/11/ppi-inflation-report-march-2024-wholesale-prices-rose-0point2percent-in-march.html

In March, the producer price index (PPI) rose 0.2%, below expectations, suggesting less inflationary pressure. However, on a 12-month basis, the PPI increased by 2.1%, indicating ongoing inflation pressures. Excluding food and energy, the core PPI rose 0.2%. On the consumer side, the CPI rose 3.5% from a year ago in March, exceeding expectations. Market reaction was muted, with stock futures slightly higher and Treasury yields declining. Initial jobless claims fell to 211,000, below expectations, while continuing claims increased to 1.82 million. The market is now pricing in the possibility of two interest rate cuts this year, likely not starting until September.