Stock Markets

Strong US consumer inflation readings seen delaying Fed rate cut

Published

1 month ago

April 11, 2024

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. consumer prices increased more than expected in March as Americans continued to pay more for gasoline and rental housing, leading financial markets to anticipate that the Federal Reserve would delay cutting interest rates until September.

The third straight month of strong consumer price readings reported by the Labor Department on Wednesday also suggested that the pick up in inflation in January and February could not be solely attributed to businesses raising prices at the start of the year as most economists had argued.

The report followed news last week that job growth accelerated in March, with the unemployment rate slipping to 3.8% from 3.9% in February. Fed Chair Jerome Powell has repeatedly said the U.S. central bank is in no rush to start lowering borrowing costs.

The stubbornly higher cost of living looms large over the Nov. 5 U.S. presidential election. Still, there were some silver linings in the report, with food prices at the supermarket unchanged and the cost of motor vehicles declining, leading to the return of goods deflation.

“The data does not completely remove the possibility of Fed action this year, but it certainly lessens the chances the Fed is cutting the overnight rate in the next couple months,” said Phillip Neuhart, director of market and economic research at First Citizens.

The consumer price index rose 0.4% last month after advancing by the same margin in February, the Labor Department’s Bureau of Labor Statistics said. Gasoline prices climbed 1.7% after increasing 3.8% in February. Shelter costs, which include rents, rose 0.4%, matching February’s gain.

Gasoline and shelter accounted for more than half of the increase in the CPI. Food prices rose 0.1%, though grocery food inflation was unchanged amid declines in the costs of butter as well as cereals and bakery products, which recorded their largest monthly decrease since 1989.

But prices for meats and eggs rose. There was a modest increase in the prices of fruits and vegetables.

In the 12 months through March, the CPI increased 3.5%, the most since September. The CPI was also boosted by last year’s low reading dropping out of the calculation. It rose 3.2% in February. Economists polled by Reuters had forecast the CPI gaining 0.3% on the month and advancing 3.4% year-on-year.

Though the annual increase in consumer prices has declined from a peak of 9.1% in June 2022, the disinflationary trend has virtually stalled in recent months.

The Fed has a 2% inflation target. The measures it tracks for monetary policy are running considerably below the CPI rate.

President Joe Biden urged “corporations including grocery retailers to use record profits to reduce prices.” Biden who will face former President Donald Trump in a rematch in November also said he had plan to lower housing costs by building and renovating more than two million homes.

A government watchdog, Accountable.US, slammed what it called corporate greed for the persistently high inflation.

Shortly after the data, financial markets pushed back their expectations for the first rate cut to September from June, according to CME’s FedWatch Tool. They now expect only two rate cuts instead of the three envisaged by Fed officials last month. A minority of economists see the window for rate cuts closing.

The central bank has kept its policy rate in the 5.25%-5.50% range since July. It has raised the benchmark overnight interest rate by 525 basis points since March 2022.

Stocks on Wall Street were trading lower. The dollar rallied against a basket of currencies. U.S. Treasury yields rose.

NOT OUT OF CONTROL

Excluding the volatile food and energy components, the CPI gained 0.4% last month after a similar rise in February and January. Before rounding, the so-called CPI increased 0.359%, which economists said indicated that inflation was not running out of control. The monthly core CPI was boosted by rents.

Owners’ equivalent rent (OER), a measure of the amount homeowners would pay to rent or would earn from renting their property climbed 0.4% after a similar rise in February.

Motor vehicle insurance was another driver, surging 2.6%. That was the largest rise since July 2020 and followed a 0.9% gain in February. The cost of motor vehicle repairs jumped 3.1%, the most since August 2022. Healthcare costs rose 0.5%.

There were also increases in the prices of apparel and personal care, like haircuts. But prices for used cars and trucks, recreation and new vehicles fell. Airline tickets cost less and the price of hotel and motel rooms was unchanged.

Goods prices edged up 0.1%, but declined 0.2% excluding food and energy after climbing 0.1% in February. The cost of services increased a solid 0.5%. Excluding rent of shelter, services shot up 0.8% after advancing 0.6% in February.

In the 12 months through March, the core CPI rose 3.8%, matching February’s increase. It increased at a 4.2% annualized rate in the first quarter, accelerating from the October-December quarter’s 3.4%. Some economists were, however, unfazed.

“The first quarter’s stronger outturn reflects the often-choppy nature of monthly price measurement and that the pickup is likely to be a ‘bump’ on the road back toward the Fed’s inflation target rather than a sign that slowing inflation is reversing course,” said Sarah House, a senior economist at Wells Fargo in Charlotte, North Carolina.

Some of the drivers of the core CPI, including motor vehicle insurance, do not feed into the personal consumption expenditures price indexes, the inflation measures tracked by the Fed for its inflation target.

Based on the data, economists estimated that core PCE inflation rose 0.3% in March after a similar gain in February, lowering the year-on-year increase to 2.7% from 2.8% in February. March’s producer price data on Thursday could change these forecasts.

Stock Markets

Dillard’s, Inc. Announces $0.25 Cash Dividend

Published

14 hours ago

May 19, 2024

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Stock Markets

MODULAR ATP Study of the mCRM™ System Meets Primary Safety and Efficacy Endpoints

Published

14 hours ago

May 19, 2024

Additional data from APPRAISE ATP trial reinforce modular therapy approach with EMBLEM™ Subcutaneous Implantable Defibrillator and EMPOWER™ Leadless Pacemaker

MARLBOROUGH, Mass., May 18, 2024 /PRNewswire/ — Boston Scientific Corporation (NYSE: NYSE:) today announced positive six-month results from the ongoing pivotal MODULAR ATP clinical trial of the mCRM™ System, the first modular cardiac rhythm management (CRM) system that consists of the EMBLEM™ Subcutaneous Implantable Defibrillator (S-ICD) System and the EMPOWER™ Leadless Pacemaker (LP). As components of the mCRM System, the devices are designed to work together wirelessly to coordinate painless intracardiac anti-tachycardia pacing (ATP) therapy, provide rate-responsive bradycardia pacing support and to prevent sudden cardiac death without the risk of leads in the heart or under the sternum. Findings were presented at Heart Rhythm 2024, the annual meeting of the Heart Rhythm Society, and simultaneously published in The New England Journal of Medicine.

In addition to evaluating the safety and performance of the EMPOWER LP as a standalone pacemaker, the trial evaluated the ability of the EMBLEM S-ICD System to successfully communicate a wireless request to the LP to deliver ATP therapy. Findings from the trial met all pre-specified six-month safety and effectiveness endpoints, and demonstrated:

A major complication-free rate of 97.5% after implantation of the EMPOWER LP.¹
A communication success rate of 98.8% from the EMBLEM S-ICD System to the EMPOWER LP.²
An ATP success rate of 61.3%,³ and no patient requests for deactivation of ATP or bradycardia pacing due to pain or discomfort.
Pacing capture thresholds, which indicate stable device fixation within the heart, of ‰¤ 2.0 V at 0.4 ms in 97.4% of patients.

“We saw excellent overall clinical performance of the mCRM System in this study, including a high rate of communication success from the S-ICD to the leadless pacemaker, and a low rate of major leadless pacemaker complications,” said Prof. Reinoud Knops, M.D., Ph.D., Department of Cardiology and Electrophysiology, Amsterdam UMC, Amsterdam, Netherlands. “These findings are noteworthy, as high percentages of communication success and pain-free termination of spontaneous arrhythmia episodes indicate a potential upgrade pathway for patients currently implanted with an S-ICD who develop a need for ATP or pacing.”

Also presented at Heart Rhythm 2024 were results from the APPRAISE ATP clinical trial “ a prospective, randomized, multicenter study evaluating ATP as a primary strategy for terminating ventricular tachycardias in primary prevention (PP) patients (i.e., those without a history of spontaneous sustained ventricular arrhythmias). The trial enrolled 2,626 PP patients indicated to receive an ICD at 134 centers globally and is the largest head-to-head trial of ATP in this patient group. In the study, patients were randomized 1:1 to standard transvenous-ICD therapy “ ATP plus an ICD-delivered shock to terminate a ventricular tachycardia “ versus shock only. Across five years of follow up, data demonstrated a statistically significant, but small absolute first all-cause shock reduction in only 1% of patients per year. Shock burden, or the number of shocks experienced by a patient, was not significantly different between the two arms, and the vast majority of patients in the ATP-plus-shock arm did not require ATP therapy.

“Together, data from the MODULAR ATP and APPRAISE ATP trials reinforce the promise of the groundbreaking mCRM System, illustrating a clear path forward for physicians to offer therapies that prevent sudden cardiac death and deliver ATP for the small number of patients who benefit from it,” said Kenneth Stein, M.D., senior vice president and global chief medical officer, Boston Scientific. “Instead of subjecting all patients to the risks of more invasive approaches, such as placing leads in the heart or tunneling them under the sternum to provide therapies they might not require, these data indicate physicians may have the opportunity to tailor therapy to the patient’s individual needs and health.”

The company anticipates U.S. Food and Drug Administration approval of the mCRM System in 2025. For more information on the mCRM System and MODULAR ATP trial, visit www.bostonscientific.com/mcrm. To learn more about the EMBLEM MRI S-ICD System, visit www.sicdsystem.com.

The EMPOWER LP is an investigational device and limited by U.S. law to investigational use only. It is not available for sale. Some device references are for informational purposes only and are pending CE Mark. Not available in the European Economic Area.

Dr. Reinoud Knops is a paid consultant of Boston Scientific Corporation. He has not been compensated in connection with this press release.

About Boston Scientific
Boston Scientific transforms lives through innovative medical technologies that improve the health of patients around the world. As a global medical technology leader for more than 40 years, we advance science for life by providing a broad range of high-performance solutions that address unmet patient needs and reduce the cost of healthcare. Our portfolio of devices and therapies helps physicians diagnose and treat complex cardiovascular, respiratory, digestive, oncological, neurological and urological diseases and conditions. Learn more at www.bostonscientific.com and connect on LinkedIn and X, formerly Twitter.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like “anticipate,” “expect,” “project,” “believe,” “plan,” “estimate,” “intend” and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding our business plans and product performance and impact, and new and anticipated product approvals and launches. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements.

Factors that may cause such differences include, among other things: future economic, competitive, reimbursement and regulatory conditions; manufacturing, distribution and supply chain disruptions and cost increases; variations in outcomes of ongoing and future clinical trials and market studies; new product introductions; demographic trends; intellectual property; litigation; financial market conditions; and future business decisions made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A “ Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A “ Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements, except as required by law. This cautionary statement is applicable to all forward-looking statements contained in this document.

CONTACTS:Steve Bailey
Media Relations
(651) 582-4343 (office)
Steve.Bailey@bsci.com

Jon Monson
Investor Relations
(508) 683-5450
BSXInvestorRelations@bsci.com

¹ Major complications defined as any complication related to the EMPOWER LP or its implantation procedure that results in system revision, permanent loss of LP function, hospitalization, or death.
² During communication tests, the S-ICD attempted to command the LP to deliver pacing at a rate approximately 10 beats per minute faster than the patient’s intrinsic rhythm.
³ ATP success rate defined as terminating ventricular arrhythmia.

Stock Markets

Adidas plans cheaper versions of popular shoes

Published

14 hours ago

May 19, 2024

(Corrects May 16 story to reflect error in live translation, Adidas (OTC:) is making cheaper versions for Deichmann and Intersport, not Foot Locker (NYSE:))

By Linda Pasquini

(Reuters) -Adidas is launching cheaper versions of its three-striped shoes like the white and black suede Samba as it aims to spread the trend, CEO Bjorn Gulden said on Thursday at the company’s annual shareholders’ meeting in Germany.

“It’s important to understand that not everyone can afford to buy a shoe for 120 or 150 [dollars], but everyone wants to take part in the same trends,” Gulden told investors in a presentation in Furth, near Adidas’ headquarters in Herzogenaurach.

Adidas will offer similar versions of the Samba and other shoes for $60 to $80, more affordable entry points than the $100 to $150 price tag for the main shoe lines, according to a presentation slide shown by Gulden.

“What we do at the top, 100 [dollars] and higher, we’re bringing that down,” Gulden said. The cheaper models are aimed at retailers like Deichmann and Intersport, he added.