The longstanding supremacy of the US stock market over international markets has often been viewed as a definitive indicator of a global investment landscape that consistently favors American equities. However, this year presents a noteworthy challenge to that conventional belief.
* President Biden and McCarthy are set to meet today for further debt-ceiling discussions
* Atlanta Fed President Raphael Bostic downgrades the likelihood of rate cuts in 2023
* US household debt hits a new high for the first quarter
* The United States will acquire 3 million barrels of oil to replenish its emergency reserve stockpile
* China’s industrial output and retail sales experienced a lower-than-expected rise in April
* German economic sentiment drops in May, marking the first negative print since December
* Argentina raises its interest rate to 97% to combat inflation
* The NY Fed Manufacturing Index significantly declined in May:
Global markets faced significant losses, with US stocks and bonds experiencing the least impact last week. This information comes from a range of ETFs representing the major asset classes. In contrast, commodities and real estate stocks outside the US suffered substantial declines during the trading week closed on May 12.
* Biden and GOP House leaders are scheduled to meet on Tuesday for debt-ceiling discussions
* A decline in tax revenue has intensified the looming debt-ceiling crisis
* Turkey’s presidential election will go to a runoff vote after the first round results
* Ukraine’s President Zelensky is in the UK for a surprise meeting with the prime minister
* Germany has committed to “unwavering” support for Ukraine during Zelensky’s visit
* Automakers are racing to enter mining as the electric vehicle market expands
* Vice Media has filed for bankruptcy after enduring financial challenges
* US consumer sentiment in May has fallen to its lowest level since November:
Author: Henry Grabar
Review via LA Times
In this insightful exploration, Grabar argues that the financial burden of parking mandates for new real estate development amounts to billions, ultimately impacting mortgage and rental costs. This dynamic, he suggests, exacerbates the housing crisis, rendering many vibrant urban areas inaccessible to younger populations while an increasing number resort to tent encampments in what is regarded as the world’s most affluent nation.
The April report on US consumer inflation was widely interpreted as delivering another piece of positive news. Yet, a closer examination of a wider array of inflation metrics indicates that progress towards disinflation might take longer than anticipated.
* US cities brace for a surge in migrants following a shift in immigration regulations
* The House passed a bill aimed at limiting immigrant flow into the US
* Fed’s Bowman has stated that additional rate hikes will be necessary if inflation and the job market remain robust
* The meeting on the debt ceiling involving Biden and congressional leaders has been postponed
* There remains uncertainty regarding when the Treasury will deplete its cash reserves
* Stocks of regional banks are volatile, especially with the sharp decline in PacWest Bancorp shares
* The corporate bond market may offer opportunities amid the debt-ceiling crisis
* Wholesale inflation in the US continues to decrease as of April
* Jobless claims in the US have risen to the highest level in one and a half years:
The gap between the US 10-year Treasury yield and the fair-value estimate provided by CapitalSpectator.com continues to shrink, albeit gradually. As highlighted in previous discussions, the model projects a lower market rate in the future. While the timing remains uncertain, the revised analytics available today support this forecast. Continue reading
* Treasury Secretary Yellen expresses doubt on the Biden administration’s ability to avoid default without Congressional action
* A wave of migrants from Mexico is surging as pandemic-era regulations come to an end
* G7 finance meetings are expected to focus on the debt-ceiling risks facing both China and the US
* Republican-led states are moving to restrict BlackRock’s ESG strategy
* Inflation in China has dropped to its slowest rate in two years
* SoftBank has reported a record $32 billion loss for its Vision Fund
* In April, US consumer inflation decreased to an annual rate of 4.9%:
Gold, often regarded as the world’s favorite precious metal, is experiencing a resurgence. With prices reaching record highs, its appeal is reigniting as various macroeconomic factors contribute positively. Continue reading
