Stock Markets
Buffett warns: bank failures aren’t over yet
Legendary investor Warren Buffett believes there may be more bank failures in the future. Therefore, the stock market, particularly the price of the S&P 500, may be in trouble.
“Bank failures are not over,” Berkshire Hathaway (NYSE:BRKb) (NYSE:BRKa) chairman and CEO told CNBC.
“The banks are failing,” Buffett said, though he noted that depositors will not be hurt and need not fear a crisis.
The collapse of SVB Financial Group (OTC: SIVBQ) and Signature Bank (OTC: SBNY) last month, the second and third largest bank failures in U.S. history, respectively, triggered emergency bailouts by regulators who backed deposits from failed lenders and provided additional funding mechanisms for troubled banks, CNBC noted.
“The Oracle of Omaha” notes that among the negative factors for the banks were mismatched assets and liabilities, as well as questionable accounting.
“The accounting procedures have forced some banks to do some things that have contributed a little bit to their current earnings and have caused a recurring temptation to get a little bit more spread on the balance sheets that is a little bit higher than their earnings,” Buffett noted.
Buffett, in fact, argues that a number of banks will continue to do so, putting shareholders of some institutions at risk.
However, Buffett also admits that there is unnecessary fear and panic among depositors, who are afraid of losing their money when the system is set up to protect deposits all over the country (we are talking about the United States).
The billionaire stressed the importance of banks maintaining customer confidence.
Buffett came to the rescue of Goldman Sachs (NYSE: GS) by injecting $5 billion in cash after the collapse of Lehman Brothers in 2008. In 2011, Buffett poured $5 billion into then troubled Bank of America (NYSE: BAC), CNBC noted.
We previously reported that Apple lost half of the PC market in record time.
Stock Markets
China’s overproduction of clean energy goods needs to be mitigated, Yellen says
By Andrea Shalal and David Lawder
WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen said on Tuesday that China’s massive investments in advanced manufacturing of clean energy goods have resulted in an unfair playing field that puts American workers and businesses at risk, and it needs to be mitigated.
Yellen told reporters on the sidelines of the International Monetary Fund and World Bank spring meetings that overproduction of electric vehicles, batteries, solar panels and other goods could put companies in the U.S. and other countries out of business while Chinese firms continue to receive support.
“So this isn’t a level playing field. And from a supply chain standpoint, I think it creates risks that we’re clearly seeking to mitigate and it’s also unfair to our workers and firms,” Yellen said as she prepared to start a new round of meetings with Chinese officials.
Yellen, who visited China earlier this month, said the ongoing dialogue with Chinese officials had already led to progress in areas of common interest, including combating money laundering and addressing climate change,
But U.S. officials had also engaged in important discussions with senior Chinese officials regarding China’s industrial policy practices and the negative spillovers that overcapacity could create for the global economy.
China’s Vice Minister of Finance Liao Min told Yellen that Beijing attached “great importance” to the Chinese delegation’s visit to Washington.
He read a statement from former Vice Premier He Lifeng, in which He thanked Yellen for “programmatic, in-depth and constructive” talks in China and said he hoped the two sides would continue to deepen their exchanges.
Stock Markets
EXPEDIA SUMMER TRAVEL OUTLOOK RELEASED: REVEALS HOW TO SAVE UP TO $265 ON SUMMER AIRFARE
The sweet spot for saving around 15% on flights to summer’s trending destinations is 21 to 60 days out
SEATTLE, April 16, 2024 /PRNewswire/ — Spring is in the air, but the clock is ticking for travelers to lock in summer travel plans. According to the Expedia (NASDAQ:) ® Summer Travel Outlook, released today, searches for summer trips are up year-over-year for flights and lodging,1 and the window is open now to save on summer airfare. Top destinations tempting U.S. travelers include major cities like New York and London, as well as beach destinations like Cancun and Honolulu.
France is also a summer hotspot as Paris and surrounding areas prepare to host a major global sports event in late July. Expedia’s data reveals a massive surge in searches for accommodations during these dates in cities including Yvelines (+520%), Lyon (+310%) and Marseille (+200%).2
To help travelers plan for what’s shaping up to be a busy summer travel season, Expedia’s Summer Travel Outlook uncovers crucial tips, including:
- Book summer flights 21 to 60 days out. Last year, travelers booking during this window saved around 15% for domestic and international travel.3 That means the window to save on Memorial Day Weekend travel will close by May 2.
- Depart on a Monday (international flights) or Tuesday (domestic flights). Travelers (NYSE:) saved around 15% compared to those that departed on Thursday and Friday.3
- Fly during mid-to-late August. It’s less busy and can yield savings of up to $265 on roundtrip tickets compared to the last week of June when average fares peak.3
- The Fourth of July is on Thursday, and the week leading up to the holiday is expected to be the busiest time to fly this summer.3
“The sweet spot for booking your summer trip is right around the corner, but there’s still a bit of time to figure out your vacation plans and lock in those flights at a great rate,” says Melanie Fish, head of Expedia Group Brands public relations. “The cheat sheet is easy this year ” book one to two months out and save around 15%, whether you’re taking the family to the beach in Florida or summering in Paris.”
Read the full Expedia Summer Travel Outlook here, which includes top destinations and tips for saving on airfare and hotels.
About Expedia
Expedia ®¯is one of the world’s leading full-service travel brands. By providing everything you need to go all in one place, our mission is to ensure you’re getting the most out of every trip and feel supported every step of the way. ¯
Our commitment to insights matched with our unprecedented scale allows us to understand our travelers better than anyone else, delivering exactly what they need, when they need it. Our personalized experiences, backed by incredible technology, enable us to deliver the widest selection of product offerings across accommodations, transportation, activities and experiences that help you get the most out of your journey. ¯
Use our mobile app¯or visit www.expedia.com to plan your journey with us. ¯
One Key™ is our comprehensive loyalty program that unifies Expedia, Hotels.com and Vrbo into one simple, flexible travel rewards experience. To enroll in One Key, download Expedia, Hotels.com and Vrbo mobile apps for free on iOS and Android devices. One Key is currently available in the U.S. and will become available globally soon.
© 2024 Expedia, Inc., an Expedia Group company. All rights reserved. Expedia and the Expedia logo are trademarks of Expedia, Inc. in the U.S. and/or other countries. All other trademarks are the property of their respective owners. CST# 2029030-50.
Follow Expedia on¯Instagram,¯TikTok,¯Pinterest (NYSE:),¯Twitter¯and¯YouTube. Stay up to date on Expedia news and announcements by visiting our Newsroom.
Data Sources:
1 Based on Expedia.com flight or lodging searches for travel during the weeks of May 20 “ September 6, 2024, as of March 4, 2024, compared to the same time period in 2023.
2 Based on Expedia.com lodging searches for travel during July 26 “ August 11, 2024, compared to same dates in 2023.
3 Based on Expedia flight demand for travel during May, June, July, August and September 2023 compared to the same time frame in 2022.
Stock Markets
Powell says recent inflation data point to need to keep rates higher for longer
Investing.com — Federal Reserve chairman Jerome Powell said Tuesday the recent inflation data have not given the Fed greater confidence to begin cutting rates and indicate that rates will likely need to be higher for longer.
“The recent data have clearly not given us greater confidence, and instead indicate that it’s likely to take longer than expected to achieve that confidence,” Powell said Wednesday to the Wilson Center’s Washington Forum on the Canadian Economy.
The Fed has previously flagged the need for greater confidence, led by incoming economic data, that inflation is on sustainable path lower. The Fed chief, however, added that policy is “well positioned to handle the risks that we face,” easing some fears, albeit still nascent, that the central bank may be forced to consider the prospect of higher interest rates.
There is a growing risk that the Fed could raise rates to as high as 6.5% next year as U.S. economic growth and sticky remains sticky, Strategist at UBS highlighted in note recently, though said that this hawkish outcome wasn’t its base case scenario.
In another sign that rates are likely to higher longer, Powell said that the recent inflation data suggest that it would be appropriate to allow restrictive policy to work overtime and return inflation sustainably to the 2% target.
“Inflation declined quite significantly over the last year over the typically in the second half, but 12 months core PCE inflation, which is one of the most important things, is estimated to have been little change in March,” Powell added.
The labor market, meanwhile, continues to normalize as strong demand for workers has been offset by a jump in the pool of available workers and immigration.
Strong demand for workers “has been met by a substantial increase in the workforce due both to rising labour force participation and a substantial increase in immigration,” Powell said. Despite this strength, “our labour market has been moving into better balance over the past year,” he added.
The Fed chief, however, also said that given the current level of rates, there was space to ease should the labor market deteriorate, significantly.
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