Goldman Sachs expects more China real estate defaults, switches to bear case

Real estate and related industries account for more than a quarter of China’s economy, according to Moody’s estimates. CFOTO | Future Publishing | Getty Images BEIJING — Chinese real estate defaults have increased so much that Goldman Sachs analysts have shifted to their worst-case scenario for the riskiest part of the market. Twenty-two China high-yield … Read more

U.S.-China tariffs, oil and currencies

SINGAPORE — Markets in Asia-Pacific were subdued in early trade on Tuesday, as investors weighed a possible thawing of U.S.-China trade relations as U.S. President Joe Biden floated the idea of tariff cuts on Chinese goods. In Japan, the Nikkei 225 was down 0.4% in early trading, while the Topix was lower by 0.2%. South … Read more

Why China will likely recover more slowly from the latest Covid shock

As Shanghai tries to reopen businesses, one downtown district over the weekend banned residents from leaving their apartment complexes again for mass virus testing. Pictured here, in another district on May 21, 2022, is a line outside a shopping mall. Xu Kaikia | Visual China Group | Getty Images BEIJING — China’s economy won’t be … Read more

Stock futures fall after Dow’s 600 point comeback

Stock futures fell in overnight trading on Monday as the markets struggled to sustain a comeback rally following weeks of losses. Futures on the Dow Jones Industrial Average fell 110 points, or 0.36%. S&P 500 futures dipped 0.76% and Nasdaq 100 futures dropped 1.3%. Zoom Video shares popped 6% in extended trading after sharing strong … Read more

SpaceX president Gwynne Shotwell defends Elon Musk over sex misconduct allegations

SpaceX CEO Elon Musk participates in a postlaunch news conference inside the Press Site auditorium at NASA’s Kennedy Space Center in Florida on May 30, 2020, following the launch of the agency’s SpaceX Demo-2 mission to the International Space Station. NASA/Kim Shiflett SpaceX President and COO Gwynne Shotwell defended Elon Musk in an email to … Read more

Sit Out the Next Few Months, Say These Analysts. A Recession Is Unavoidable.

Text size American flags outside the New York Stock Exchange in New York. Michael Nagle/Bloomberg The S&P 500 came close to finishing Friday’s session in a bear market, adding fuel to a rapidly intensifying debate over whether the market has bottomed out, or if it’s just preparing for hibernation as recession fears heighten. At its … Read more

Bank balances surged during Covid even as pandemic-era stimulus ended, BofA CEO says

Bank of America’s account holders saw strong growth in their balances during Covid and have yet to spend down their pandemic-era stimulus money, CEO Brian Moynihan told CNBC. In an interview on “Squawk Box” from The World Economic Forum in Davos, Switzerland, BofA’s chairman said customers who had between $1,000 to $2,000 before the pandemic, … Read more

Here’s the next shoe to drop that will hit this market, Jefferies says

The depth of this year’s pullback has caught a lot of Wall Street strategists and analysts off guard, and it might not stop until they catch up. In a note to clients on Monday, Jefferies strategist Sean Darby highlighted the recent wave of price target cuts from Wall Street analysts. “If we are travelling at … Read more

Klarna to lay off 10% of its workforce

Buy now, pay later products like Klarna’s became wildly popular in the Covid pandemic. Noam Galai | Getty Images Klarna plans to lay off about 10% of its global workforce, making the buy now, pay later firm the latest major tech company to announce job cuts. Sebastian Siemiatkowski, Klarna’s CEO and co-founder, made the announcement … Read more

JPMorgan Chase, Gap, VMWare & more

People pass the JP Morgan Chase & Co. Corporate headquarters in the Manhattan borough of New York City. Mike Segar | Reuters Check out the companies making headlines in midday trading. JPMorgan Chase – JPMorgan rose 7% after the bank said it expects to reach key return targets sooner than planned thanks to rising interest rates giving … Read more