Amazon is facing an existing FTC problem that escalated last week. On Tuesday, the Federal Trade Commission and 17 state attorney generals filed a lawsuit against Amazon for anti-competitive practices in its online marketplace. According to the press release, The complaint alleges that Amazon violates the law not because it is big, but because it engages in […]
The Treasury bond yield curve has a near-perfect track record for predicting recessions. Inverted yield curves, when the yields on short-maturity bonds are greater than long-maturity bonds, are precursors to recessions. Yield curve inversions, however, are poor timing tools. The last four recessions started after an inverted yield curve un-inverted back to its normal positive […]
In a $28 billion all-cash deal, Cisco (CSCO) is acquiring Splunk (SPLK). Splunk helps companies monitor and reduce cybersecurity risks. They also help companies resolve hack-related technical issues quickly. Cisco has acquired four other cybersecurity firms this year as they grow their footprint in the high-demand cybersecurity industry. Cybersecurity products complement Cisco’s software business lines […]
Jerome Powell and the Fed have been pounding the “higher for longer” table to prepare the markets for a sustained period of high interest rates. Powell did not waiver from the stance at yesterday’s post-FOMC press conference. Until the last few months, the Fed Funds futures market didn’t agree with the Fed’s higher-for-longer mantra. However, […]
Higher mortgage rates are resulting in a shortage of inventory of used homes and a surge in new homebuilding. Recent data shows a third of all homes for sale are new homes. That is almost three times the average ratio. While homebuilders have been taking advantage of the low inventory situation by offering home buyers […]
Nick Timiraos of the Wall Street Journal published an article entitled Why A Soft Landing Could Prove Elusive. His lead sentence and the graph below speak volumes about the accuracy of headlines about soft landings. He starts: “On the eve of recessions in 1990, 2001, and 2007, many Wall Street economists proclaimed the U.S. was […]
The travel and leisure sector is one of the hottest industries driving job growth. Since the pandemic, the travel and leisure industry added one million jobs, equating to 6% growth, about double the labor market’s growth over the same period. While the industry has greatly benefited from the resumption of regular travel and leisure activities, […]
“Based on its current assessment, the Governing Council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to target.” And with that statement, the European Central Bank (ECB) appears to have halted its rate hiking cycle. […]
Ford, GM, and Stellantis (Chrysler), aka the “Big 3,” are in around-the-clock negotiations with the UAW as they approach a deadline at midnight tonight. Without an agreement by midnight, the UAW will order its members to strike. At risk, potentially 100,000 fewer cars would be produced per week, and nearly 150k workers would be temporarily […]