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Every Friday I recap “news you can use” from the week: a handful of quotes from major (and often expensive) news sources, so you can stay up to date on the news that affects your money without spending a dime and in less than a minute.
Here’s some of what happened this week:
China Shocks With Rate Cut as Data Show ‘Alarming’ Slowdown (Aug. 15, Bloomberg):
China’s economic slowdown deepened in July due to a worsening property slump and continued coronavirus lockdowns, with an unexpected cut in interest rates unlikely to turn things around while those twin drags remain.
The data suggest a crisis of confidence among Chinese businesses and households, adding another threat to the world economy as global demand for everything from Apple iPhones to luxury goods take a knock.
JPMorgan Says the Stock Rally Has Legs. Morgan Stanley Disagrees (Aug. 15, Bloomberg):
Stanley strategists said in a note Monday that the sharp rally since June is just a pause in the bear market, predicting that share prices will slide in the second half of the year as profits weaken, interest rates keep rising and the economy slows. But rivals at JPMorgan Chase & Co. said the rally — which has pushed up the tech-heavy Nasdaq 100 index by over 20% — could run through the end of the year.
$3 gas could be around the corner (Aug. 15, CNN):
As students start to return to school, and the summer driving season comes to an end, the price of gas is likely to decline even further, said Tom Kloza, global head of energy analysis for OPIS, which tracks prices for AAA. He said it’s very possible that by September or October, the national average for regular could be back below the $3.53 a gallon mark where it stood when Russia invaded Ukraine in late February.
Biden signs Democrats’ $740 billion tax, climate and health care bill into law (Aug. 16, Axios):
Among other actions, the Inflation Reduction Act …
- Invests roughly $370 billion into initiatives to promote clean energy and reduce greenhouse gas emissions.
- Increases health care spending by $98 billion.
- Imposes a 15% minimum tax on corporations that earn more than $1 billion in annual profits.
- Allows the federal health secretary to negotiate the prices of certain expensive drugs for Medicare.
US Consumers Show Signs of Resilience Despite Raging Inflation (Aug. 17, Bloomberg):
Retail sales excluding a price-induced drop in gas station receipts and a drop in motor vehicle purchases rose a better-than-expected 0.7% in July, Commerce Department data showed Wednesday. Building-materials outlets, electronics and appliances stores and online merchants were among those with firm gains in receipts before adjusting for inflation.
It Now Costs $300,000 to Raise a Child (Aug. 19, Wall Street Journal):
A middle-income family might spend more than $18,000 a year on a child born in 2015, as inflation hits food, housing, haircuts and sports, according to a Brookings Institution analysis.
US Mortgage Lenders Are Starting to Go Broke (Aug. 19, Bloomberg):
The US mortgage industry is seeing its first lenders go out of business after a sudden spike in lending rates, and the wave of failures that’s coming could be the worst since the housing bubble burst about 15 years ago.
My take on the week
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About me
I founded Money Talks News in 1991. I’m a CPA, and I have also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.
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