Latest News
See the latest news and get GPT analysis of articles
Panasonic Q1 profit rises 42%, in line with market expectations 2023-07-31 - TOKYO, July 31 (Reuters) - Japan's Panasonic Holdings (6752.T) on Monday posted a 42% rise in first-quarter profit to 90.37 billion yen ($636 million), largely matching analysts' estimates. Operating profit for the three months to end-June compared with an average estimate of 91.18 billion yen in a poll of 11 analysts by Refinitiv and a 63.7 billion yen operating profit in the same period a year earlier. ($1 = 142.0400 yen) Reporting by Daniel Leussink; editing by David Dolan Our Standards: The Thomson Reuters Trust Principles.
Words only go so far: Investors want property fixed before buying China 2023-07-31 - HONG KONG/NEW YORK, July 31 (Reuters) - For all the excitement whipped up in China's markets by the Politburo last week, foreign investors say policymakers' words will have to be matched by substantive action to clean up an ailing property sector before confidence recovers. The sector accounts for a quarter of China's economy, yet developers' debts are sliding deeper into distressed territory, with repayment problems mounting while sales crumble. When the Politburo signalled that there would be changes to real estate policy, along with other measures to boost an economy, it ignited the biggest one-day buying spree in China's stock markets since 2021. The July 25 rally was enough to lift the benchmark index (.CSI300) into positive territory for the year, but a sustained upturn would depend on policymakers making good on their - so far vague - promises. "Foreign investors may have started buying more Chinese equities in the hopes that the Politburo was going to herald big, meaningful stimulus, but we would wait until we see more specific measures," said Tara Hariharan, managing director at global macro hedge fund NWI Management LP. "The question is what resources they will deploy, because China is still very focused on de-leveraging and preventing financial risks." The sorry state of developers' balance sheets sits right at the top of the risk list. "Is real estate worth rescuing under China’s current economic model? Absolutely, and urgently," said Qi Wang, the chief investment officer (CIO) of MegaTrust Investment (HK), a boutique China fund manager specializing in domestic Chinese A-shares. But investors should be cautious and patient, said Wang, noting the lack of detail from Politburo last week. China “requires more drastic measures than what we have today," Wang wrote on his Substack. Finding a way to restore the property sector's health would have greater impact on the economy, than tax cuts or growth in the technology sector would deliver. It would unlock consumer spending by homeowners who have lost faith in a housing market, where they have stored their wealth. Mark Dong, general manager of Minority Asset Management, based in Hong Kong, has reduced his exposure to the property sector. "The sentiment is bottoming, but there is lack of catalyst. It seems that there are no substantive measures yet to help developers, such as bailing out the troubled developers. " A national-level loosening, such as cutting loan down-payment ratios, is the sort of big gesture necessary, said Bo Zhuang, a senior analyst on the macro strategies group at Loomis Sayles Investments Asia. 'SOMEWHAT CHALLENGING' Jingjing Weng, head of Chinese equities research at Eastspring Investments in Shanghai said last week's rally was largely driven by short-covering. "The key is when and what specific measures will be followed," said Weng. "Investors are still more on a 'wait and see' approach as they need to see a more sustainable rally in the Chinese equity markets before going back in." Foreigners' net stock purchases of 19 billion yuan ($2.7 billion) on July 25 were the largest one-day rush in a year and a half. For the year, however, net buying sits around 230 billion yuan, having more or less stalled after net inflow of 186 billion yuan in the first quarter as economy lost its post-pandemic bounce. Rob Hinchliffe, portfolio manager portfolio manager and head of global sector cluster research at PineBridge Investments, based in New York said their exposure to China is lower than a year ago. Investing, Hinchliffe said, is "somewhat challenging in China, given some of the top-down decisions that are made. We are underweight China overall now.” Wai Mei Leong, fixed income lead portfolio manager at Eastspring Investments, says her fund only picks property firms owned or affiliated to the government and the sector's recovery will drag on for 2 to 3 years. NO CONFIDENCE Anxiety over the debts that developers were carrying had festered for much of the past decade. The crunch came three years ago, when worried authorities restricted developers' borrowing and upended a business model that depended on loans and pre-sales to fund construction. China Evergrande Group, the most indebted developer, collapsed and unfinished projects dotting cities froze the market. As the relaxation of COVID-controls failed to bring a sustained rebound in sales, even the more stable developers such as Country Garden (2007.HK) started to struggle with cash flow. Speculators brave enough to put money in developers' stocks and bonds last year were rewarded by the rally sparked by the Politburo's assurances. But larger players say that is no basis for longer-term investing given the fundamental problems developers are facing. "No one's got confidence on how these companies are going to survive," said one fund manager looking after an emerging market credit portfolio for a U.S. asset manager, who declined to be named as they are not authorised to speak publicly. "Without asset sales or selling of houses - which is declining - how are they going to come up with the cash?" he said. The safest bets in the sector, he said, had come down to state-owned companies such as China Resources Land (1109.HK) and Poly Property (0119.HK). ($1 = 7.1640 Chinese yuan renminbi) Additional reporting by Xie Yu and Georgina Lee in Hong Kong, Shen Yiming and Jason Xue in Shanghai and Ankur Banerjee in Singapore Writing by Tom Westbrook, Editing by Vidya Ranganathan and Simon Cameron-Moore Our Standards: The Thomson Reuters Trust Principles.
Toyota to boost EV development and technology in China 2023-07-31 - TOKYO, July 31 (Reuters) - Toyota (7203.T) will strengthen development of electric vehicle technology in China, the automaker said on Monday, as it looks to catch up with increasingly tough domestic competition in the world's largest auto market. The move is the latest from the world's top-selling carmaker to show a sharper pivot to electric vehicles. It recently detailed an ambitious new EV strategy that includes an overhaul of its supply chain and the development of long-range batteries. China was once regarded by foreign automakers as an opportunity for almost boundless growth. Now they worry about diminishing market share thanks to the fast rise of local competitors and cut-throat prices. Toyota is to accelerate powertrain development with suppliers Denso (6902.T) and Aisin (7259.T) as well as local design and development of "smart cockpits" that meet the needs of the Chinese market, it said in a statement. It said it would strengthen development of its full suite of electrified cars, not just battery-powered ones. Unlike some other automakers, Toyota is betting that hybrids and plug-in hybrids will continue to see robust demand. It is also investing in the development of hydrogen fuel-cell cars. It sees this "multi-pathway" approach of different kinds of electrified cars as a better fit for markets that aren't ready for only battery electrics. The automaker will also have engineers from three joint ventures - with FAW Group, Guangzhou Automobile Group (GAC) and BYD - work together on a project basis at its biggest research and development facility in China. It did not say how many engineers that would involve, although a spokesperson said their focus would be on electrification and intelligence. Toyota, which has seen its China sales including of its luxury Lexus brand slip 2.8% to about 879,000 units in the first half of the year, said it would aim to significantly reduce manufacturing costs, including through developing a local supplier base, to become more competitive. Toyota has also slowed production at a joint-venture plant that makes its bZ4X EV and laid off 1,000 contract workers earlier this month. The move to step up electric technology development comes after some of the leading global automakers recently tweaked the way they are developing cars in China. German luxury brand BMW earlier this month boosted investment in product development in China with a new R&D hub in Shanghai that will develop EVs to be sold globally. Volkswagen (VOWG_p.DE) unveiled a partnership with China's Xpeng Inc (9868.HK) to make two new models from 2026 featuring Xpeng's software, and plans to jointly develop Audi models and a new platform with its Chinese partner SAIC (600104.SS). Reporting by Daniel Leussink and Maki Shiraki; Editing by David Dolan, Christian Schmollinger and Conor Humphries Our Standards: The Thomson Reuters Trust Principles.
Dwindling excess savings could scupper markets' soft-landing hopes 2023-07-31 - [1/2] Shoppers walk past sale signs on Oxford Street, as Britain struggles with the highest inflation rate among the world's big rich economies, London, Britain, 17 July 2023. REUTERS/Rachel Adams/File Photo Summary Companies Consumer weakening in China, Europe too Investors may be forced to rethink soft-landing view LONDON, July 31 (Reuters) - Markets have high hopes for a soft landing for the economy, with bonds and equities rallying. Yet a sharp drawdown in the excess savings created by COVID-19 could be a curve ball that slams into bullish sentiment. The cash piles households built up during the lockdowns and government stimulus of 2020-2021 have long been touted by analysts and central bankers as a reason economies could avoid a deep recession. But sky-high inflation and rapidly rising interest rates in response are shrinking this savings cushion fast. U.S. excess savings have fallen to around $500 billion from around $2.1 trillion in August 2021, the San Francisco Federal Reserve estimates. In Europe, Deutsche Bank reckons excess savings in Sweden, struggling to contain a property slump, have dwindled. British households withdrew money from outright savings at a record pace in May, while the government's Office for Budget Responsibility forecasts a savings ratio of zero by year-end from almost 25% in 2020. The end of savings won't cause a recession with jobs markets tight. Still, a spending downturn may hasten a typical economic pain spiral of falling business investment then high unemployment. Government bonds will shine in a recession, investors said, while dwindling savings make consumer stocks and high-yield credit assets to avoid. "Domestic consumption is a huge part of the economies," in Britain, the United States and the euro zone, said Janus Henderson multi-asset portfolio manager Oliver Blackbourn. "As soon as that starts to fall apart these economies can become very, very fragile very quickly." Reuters Graphics RUNNING OUT Definitions for excess savings differ, but economists generally agree that this means savings that went beyond trend levels during the pandemic. Cardano chief economist Shweta Singh said U.S. pandemic excess savings are likely to be depleted by year-end. This comes just as the end of U.S. pandemic-era student loan repayment relief creates more pain for consumers. In Europe, excess savings have not been spent to the same degree. Euro zone consumers stashed away an extra 1 trillion euros ($1.10 trillion) during the pandemic but a strong savings culture would likely prevent them spending this on clothes or holidays, economists said. "Europe is a little bit further behind, but I suspect the same dynamic is playing out there and that has been about as good as it's going to get for discretional spending," said Zurich Insurance Group chief market strategist Guy Miller. CAUTION Business activity data suggests the recently-resilient services sector is weakening. European airline Ryanair (RYA.I) warns of low demand for winter holidays and JPMorgan (JPM.N) boss Jamie Dimon notes U.S. "consumers are slowly using up their cash buffers." Ben & Jerry's ice cream maker Unilever (ULVR.L), in February flagged $1.5-$2 trillion in excess household savings in China that it believed could help boost sales. It now sees a "very cautious" Chinese consumer. Eren Osman, managing director of wealth management at Arbuthnot Latham, was cautious both on shares in the consumer discretionary sector - businesses such as car makers - and businesses selling consumer staples like cleaning products and food. "If we do see a continuation of consumer savings wearing down with that pinch on disposable incomes," he said, "that's going to have an impact" on consumer businesses' profit margins. Janus Henderson's Blackbourn said he was cautious on smaller stock indices more exposed to domestic consumers such as the U.S. Russell-2000 and London's FTSE-250. The Russell index tends to underperform the larger S&P 500 during downturns, according to Goldman Sachs. "The concern is the same," with the FTSE 250, said Blackbourn, noting this index was dominated by UK banks, consumer discretionary and industrial stocks. Zurich's Miller noted that U.S. and European high-yield credit indices have a 35% and 31% direct exposure to consumer cyclical and consumer non-cyclical names respectively. BUY GOVVIES Expecting the savings drain to hasten recessions, investors favour safe-haven government bonds. Legal & General fixed-income manager Simon Bell said dwindling consumer savings influenced his preference for government bonds of countries like Britain and Australia, where shorter mortgage terms made households rate sensitive. Higher housing costs plus weaker consumer spending could persuade central banks to "believe they've done enough" sooner rather than later, he said. Britain's savings are expected to run down just as fixed-rate mortgage costs jump, as households refinance loans taken out in low interest rate years with more expensive debt. The Bank of England forecasts mortgage repayment increases of at least 500 pounds ($641.25) for 1 million households by 2026. Investors trying to time recession are mostly focused on jobs markets, which remained hot in developed economies, said Aviva Investors multi-asset portfolio manager Guilluame Paillat. Still, weaker consumer spending may cool inflation. "So we do like duration," Paillat said, referring to taking interest rate risk on longer term bonds. ($1 = 0.7797 pounds) ($1 = 0.9127 euros) Reporting by Naomi Rovnick and Dhara Ranasinghe; Editing by Sharon Singleton Our Standards: The Thomson Reuters Trust Principles.
Palantir Technologies and Tupperware Brands shares continue to rise 2023-07-31 - Here are some of the biggest movers of the day: Stock gainers: Palantir Technologies stock PLTR, +10.28% rose 6%, after gaining 10% on Friday when Wedbush started coverage of the software maker with an outperform rating and $25 price target. Tupperware Brands TUP, +3.70% shares added 6%, continuing its meteoric rise. The stock has climbed 277% this month. Stock decliners:
Heineken shares slide after cutting 2023 guidance on soft Asia-Pacific sales 2023-07-31 - Heineken HEIA, -6.03% on Monday cut its full-year outlook after reporting a fall in key earnings for the first half, largely due to lower volumes in the profitable Asia Pacific region. The Dutch brewer now expects adjusted operating profit growth between zero and a mid-single digit this year. It previously guided for a mid- to high-single-digit rise. The change in guidance sent shares of the world’s second largest brewer down as much as 7.5% in early trade. Shares at 0824 GMT were down 5.1% at EUR91.94 having fallen to a low of EUR90.66 earlier in the session. For the half year Heineken made an operating profit before exceptional items and amortization of acquisition-related intangible assets–one of its preferred metrics–of 1.94 billion euros ($2.14 billion), compared with EUR2.155 billion for the same period a year earlier. This was a fall of 8.8% on an organic basis. Within this, Asia Pacific adjusted operating profit fell 34% to EUR400 million. “Demand in APAC was considerably softer than foreseen, due to an economic slowdown and our own underperformance in Vietnam,” the company said. However, the company said it expects a strong turnaround in the second half of the year. Net profit for the period was EUR1.16 billion compared with EUR1.27 billion a year earlier and a forecast of EUR1.31 billion, taken from Factset and based on one analyst’s estimate. Overall volume fell by 5.6%. Revenue for the period rose to EUR17.44 billion from EUR13.49 billion, beating consensus forecasts of EUR14.91 billion, based on four analysts’ estimates taken from FactSet. “The revenue growth and improvements in productivity were more than offset by the significant inflationary pressures in our input and energy costs and the front-loaded incremental investments to grow the power of our brands, digitalization, capability and sustainability agendas,” the company said. Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
Three ways we could convince homeowners to sell their homes—by paying them 2023-07-31 - This article is reprinted by permission from NerdWallet. A frustrating thing about today’s housing market is the paltry number of homes for sale. Would-be buyers outnumber sellers, even as high mortgage rates strain affordability. So here’s an idea: What if the government paid people to sell their houses? After all, the government paid people to buy houses after the 2008 financial crisis, when there weren’t enough buyers. Now, it could pay people to sell houses when there aren’t enough sellers. We’re not talking about something as direct as the feds cutting checks. Payments would be handled through the tax code. The notion has drawn support in the U.S. House, where a bill to double the capital gains exclusion on primary residences has 15 co-sponsors from both parties. That’s not the only way Congress could tweak the tax code to pay home sellers: The National Association of Realtors commissioned a study that came up with two more ideas, although neither has been drafted into legislation. Read: So you want to buy a house? Expect to pay more than 30% of your income. Why inventory is low Not enough homes are for sale in large part because homeowners don’t want to give up their low mortgage rates. “The primary reason why inventory is low is because about 80% of homeowners have an interest rate that’s lower than 5%,” Sherry Chen, a Realtor with Kappel Realty Group in San Diego said in an email. “Even if a homeowner thinks their house is too small, too old, etc., they cannot afford to sell and purchase a bigger/better property at a rate that may be double than what their current rate is.” Chen expects more homes to come to market “once rates come down to the 5% range.” Meanwhile, the government could use tax incentives to prod people into selling homes even when mortgage rates are high. Related: As mortgage rates hit 7%, what exact interest rate will convince homeowners to sell — and boost house sales? Option 1: Double the capital gains exclusion When you sell a house for more than you paid, the profit is a capital gain. You’re taxed on that capital gain if it’s over $250,000 for single tax filers or $500,000 for joint filers. A bill to double those amounts was introduced into the House in March by Reps. Jimmy Panetta, D-Calif., and Mike Kelly, R-Pa. Dubbed the More Homes on the Market Act, H.R. 1321 hasn’t had a hearing yet. In a news release, Panetta said he has met people in his district “who want to sell their homes, but can’t afford to due to the financial hit they’ll incur.” Doubling the capital gains exclusion “would allow homeowners to downsize, sell their homes, and keep their nest egg intact.” His reasoning goes like this: A lot of older homeowners flutter in big empty nests, and they would prefer to sell their homes and buy something smaller. But under current tax law, they would pay capital gains tax. Many keep the home until they die, so their heirs will benefit from gentler tax treatment. Homeownership has become an older person’s game: 56% of homeowners are older than 55, compared with 48% a decade ago. “As older owners stay in their homes longer than usual, their homes do not turn over to a younger generation, thus limiting an important and traditional source of supply,” according to the NAR-commissioned report, “Tax Policy and Single-Family Home Supply: How Targeting Tenure, Capital Gains, and Investor-Owners Would Change the Market.” The study was written by Andrew Hanson, an associate professor of real estate at the University of Illinois Chicago, and Ike Brannon, president of Capital Policy Analytics, a think tank in Washington, D.C. Hanson and Brannon estimated that increasing the capital gains exemption would result in 159,000 to 344,000 more homes being put on the market in the first year. Don’t miss:The dilemma for many retirees who have paid off their mortgage: sell or stay? Option 2: $25,000 credit for 20-year homeowners Hanson and Brannon analyzed another proposal: giving a $25,000 tax credit to homeowners who sell their primary home after living there for at least 20 years. The authors estimate that it would spur 296,000 to 640,000 owners to list their homes for sale. This would be a more generous tax credit than the ones that were handed out to home buyers from 2008 to 2010. Those credits were intended to boost home sales, and they were modestly successful. Option 3: Cut capital gains tax on small landlords Another proposal discussed by Hanson and Brannon: a limited-time, 50% reduction in the capital gains tax rate for small-time landlords who sell single-family rental properties to first-time home buyers. This measure would increase the supply of homes for sale by 67,000 to 146,000, they estimate. Why give tax breaks to small-time landlords, defined as those who own five or fewer properties? Because they own half of the single-family rentals nationwide. See: ‘We’ve become a renting nation’: Landlords benefit from high house prices, but millions of renters find themselves trapped Make the incentives limited-time offers Hanson and Brannon recommend that two of their proposals — the 20-year tax credit and the landlords capital gains tax cut — should last for “a short time window” and then expire. Setting a selling deadline would force property owners to act quickly to ease the shortage of homes for sale now, while there’s a shortage, and not later. The same tactic worked with tax breaks in 2009 and 2010 when there were spikes in home sales in the months before those tax credits expired. As for doubling the capital gains exclusion on sales of primary homes, the authors recommend against allowing the exclusion to rise with future inflation. Such a policy would encourage homeowners “to move their home on the market with expediency.” The More Homes on the Market bill, however, would allow the exclusion to increase annually to keep pace with the inflation rate. Also on MarketWatch: Remember the tiny house movement? How’s that working out? But resales alone won’t do enough The tax-related proposals would be short-term fixes. They wouldn’t increase the number of houses overall, points out Lisa Sturtevant, chief economist for Bright MLS, a multiple-listing service in the mid-Atlantic region. “Talking about those types of policies misses the bigger picture,” Sturtevant says. “And the biggest thing government can do is to make sure it’s easy to build more housing, to increase the overall supply.” But she’s not talking about the federal government, which has little power to compel homebuilding. Cities and counties are where land-use decisions are made, so progress has to be made from the bottom up, not the top down. That’s another frustrating thing about today’s housing market. More From NerdWallet Holden Lewis writes for NerdWallet. Email: hlewis@nerdwallet.com. Twitter: @HoldenL.
Are movie theaters back? ‘Barbie’ success breathed some life into dwindling attendance. 2023-07-31 - This article is reprinted by permission from NerdWallet. What does it take to lure people away from streaming and back into long-vacant movie theater seats? It turns out bubble-gum pink nostalgia, several dozen retail collaborations and omnipresent marketing will do the trick. In the opening weekend of “Barbie,” the highly anticipated film directed by Greta Gerwig brought in $162 million. That’s the highest-grossing opening weekend ever for a film directed by a woman and the 20th highest-grossing film opening weekend of all time, according to Box Office Mojo by IMDB Pro, a site that tracks box office revenue. In recent years, the theater-going experience seemed kaput. Dwindling attendance was largely due to a combination of pandemic closures and the proliferation of streaming services offering more film entertainment than you could consume in a lifetime. Box office declines led to closures: 2,165 screens in the U.S. closed from 2019 to 2022 — about 5.3% — according to a March report by the Cinema Foundation. Theaters endeavored to make the movie-going experience enticing again through renovations and expanded food and alcohol options. Still, revenue remained lower than before the pandemic: $7.4 billion total gross in 2022, compared with $11.4 billion in 2019, according to Box Office Mojo. Also see: AMC illegally shared customers’ information with Facebook, lawsuit claims: report The dire state of theater attendance is what makes “Barbie” so remarkable. When compared with the all-time top opening weekends for summer movies, “Barbie” came in at No. 10, according to Box Office Mojo. For context, while “Barbie” brought in $162 million, the highest-grossing opening weekend ever was for “Jurassic World” (2015), with $208.8 million. “Barbie” did outearn franchise follow-ups “Jurassic World: Fallen Kingdom” and “Jurassic World Dominion,” as well as the “Dark Knight” and “Spider-Man” movies. The hype machine fueled Barbie’s success “Barbie” tells the story of Barbie, played by Margot Robbie, who lives in Barbie Land with many other Barbies and Kens. An existential crisis leads her and Ken, played by Ryan Gosling, to travel to the real world in search of purpose. Unlike the doll’s typical audience, “Barbie” isn’t meant for small children — and neither is the marketing. The collaborations for “Barbie” achieved ubiquity in the weeks before the film’s release, through Barbie apparel, Barbie home decor, Barbie pool floats, Barbie candles, Barbie jewelry, Barbie cosmetics, Barbie dog clothes, Barbie hair products, Barbie fast food and much more. Meanwhile, the stars’ public relations tour included Robbie giving a Barbie dream house tour for Architectural Digest magazine and re-creating classic Barbie looks on the red carpet. Gosling showcased his affection for Ken (dubbed “Kenergy”) in interviews. The rest of the PR tour was halted by the SAG-AFTRA strike, which has brought Hollywood productions virtually to a standstill. The release of “Barbie” was timed well for very-online consumers. The film’s opening on July 21 landed on the same day as the release of Christopher Nolan’s “Oppenheimer” — a biographical thriller about J. Robert Oppenheimer’s work on the Manhattan Project that led to the first nuclear bombs. The bizarre juxtaposition of the two very different films by critically acclaimed directors quickly led to a social media phenomenon: Barbenheimer. The Barbenheimer sensation fed film discourse for months leading up to the films’ releases, sparking bootleg merchandise and birthing memes blending the plastic blonde bombshell with Oppenheimer, portrayed in the film by Cillian Murphy, and a mushroom cloud. A popular meme is the real Oppenheimer’s most notorious quote, originally from the Hindu scripture Bhagavad Gita, “Now I am become death, destroyer of worlds,” but styled in Barbie typeface and a hot pink hue. Movie fans flocked to theaters for the release of “Barbie” and “Oppenheimer,” with some seeing the films back-to-back. Hollywood is hoping the summer blockbuster odd couple can give a boost to the box office. Photo: Siemond Chan/The Wall Street Journal The social media fervor challenged moviegoers to see both films in succession, spurring theaters to market double-feature ticket packages. The theater giant AMC AMC, +2.65% reported that 87,000 members of its loyalty program AMC Stubs booked tickets to see both films on the same day. “Oppenheimer” cashed in on Barbenheimer, too, bringing in $80.5 million in its first weekend, according to Box Office Mojo. It’s the first time that two movies amassed $80 million or more on the same opening weekend, and it was the fourth highest-grossing box office weekend ever, according to multiple reports. Can ‘Barbie’ success be replicated? A summer of blockbusters might remind people just what they’re missing while they’re scrolling at home. In addition to “Barbie” and “Oppenheimer,” the action movie “Mission Impossible: Dead Reckoning, Part One” was released on July 12 and set a five-day opening record for the franchise with $80 million. See: ‘Barbenheimer’ may have sparked euphoria, but ‘cash is very tight’ for AMC, CEO warns There are more upcoming opportunities to draw in audiences: 40% more wide movie releases are expected in 2023 compared with 2022, according to the National Cinema Foundation. It’s possible “Barbie” could start a trend among studios to spend big bucks on marketing in order to keep bringing people back into theaters. Then again, a big budget doesn’t necessarily work if the movie isn’t ultimately well-received. Another Gosling-led film, “Blade Runner 2049,” which was released in 2017, had an estimated $130 million marketing budget but still flopped at the box office. Don’t miss: The ‘Barbie’ film is a huge success, but what about the ‘holy grail’ of Barbie dolls? Mattel MAT, -2.40% is banking on Barbie’s profits as a signal that consumers want more nostalgic toy-related content. The company launched a film division in 2018 and has plans for an entire Mattel cinematic universe, including a reported 45 films in development based on other classic toys like American Girl, Polly Pocket, Hot Wheels, Masters of the Universe, Rock ‘Em Sock ‘Em Robots, the card game Uno and even the Magic 8 Ball. Will any of those films be nearly as successful as “Barbie”? To quote that Magic 8 Ball: Ask again later. More From NerdWallet Anna Helhoski writes for NerdWallet. Email: anna@nerdwallet.com. Twitter: @AnnaHelhoski.
Look for these 6 nutrients in your diet to help ward off dementia and keep your brain sharp 2023-07-31 - This article is reprinted by permission from NextAvenue.org. You misplace your keys, can’t recall why you walked into a room, or forget the name of someone you just met. Blame it on your shrinking brain. The brain is packed with highly specialized cells called neurons that help you think, learn and remember, as well as billions of other support cells. Brain cell loss is a natural part of aging but can result in cognitive decline and memory issues. While many factors influence brain health, a nutritious diet that includes these six nutrients can help slow the effects of time. Make room for magnesium Pumpkin seeds are a great source of magnesium. istock “The brain’s defense mechanism relies on a just-right dose of magnesium,” according to Annie Fenn, M.D., author of “The Brain Health Kitchen: Preventing Alzheimer’s Through Food.” She says, “Magnesium deficiency has been associated with neurodegenerative disease, such as Alzheimer’s and Parkinson’s.” A 2023 study of men and women 40 to 73 years old found that more magnesium was linked to a greater brain volume. Though it’s unclear exactly how magnesium contributed to preserving cognition in this study, the mineral is known for deflecting cell damage and inflammation. Experts suggest women consume 320 milligrams of magnesium daily and that men should get 420 mg. Unfortunately, older adults tend to have lower magnesium intake. To make matters worse, the body absorbs less magnesium and loses more with age. In addition, certain medications that treat reflux disease and elevated blood pressure can deplete magnesium levels in the body. Ask your doctor if your medications affect your magnesium status. Related: Having friends isn’t just good for your social life At 156 mg of magnesium per ounce, pumpkin seeds are among the best magnesium foods. Almonds, spinach, peanut butter, black beans and yogurt are good or excellent sources. Though it’s preferable to get magnesium in your diet, the amount of a regular multivitamin can help bridge small gaps in food intake. Pump up protein The body uses the amino acids in food proteins to produce brain cells, neurotransmitters and other compounds that support brain health. For example, one study that followed more than 77,000 men and women for over 20 years found that more protein was associated with less cognitive decline later in life. Legumes, fish and lean poultry proved superior in protecting brain function, while processed meat products, including hot dogs, were related to poorer cognition. In another 2023 study involving more than 6,900 people without cognitive impairment or dementia at the start, a greater protein intake protected the brain over time. “Regularly consuming complete proteins — foods with all of the amino acids your body can’t make is a good strategy for your brain,” says Barbie Boules, owner of Barbie Boules Longevity Wellness. “All animal foods have complete protein and certain plant foods, including soy, quinoa and buckwheat do, too,” Boules adds. Pistachios also offer complete protein. Protein needs are based on body weight. Generally speaking, three ounces of cooked fish, poultry or lean meat supplies about 20 grams of protein, six ounces of Greek yogurt contains 17 grams, and one whole egg has six grams. Meeting protein needs can be challenging when you have a small appetite. Further, protein requirements may increase with age. Experts argue that while the suggested protein intake prevents deficiencies, it may underestimate the needs of older adults who don’t process protein as efficiently. Be sure to include lean and low-fat protein foods at every meal. Plus: Two breakthroughs on dementia — one that’s useful right now Count on choline Eggs and other high-protein foods are a good way to get choline. istock Choline helps shore up brain cell membranes, most notably neurons. In that regard, choline wards off cell damage. Choline also serves as the raw material for acetylcholine, one of dozens of neurotransmitters, which are compounds that allow neurons to communicate with each other. One observational study found that in people over 60, consuming between 187 and 400 mg of choline daily from foods and supplements reduced the risk of low cognitive function by about 50% compared with getting less than 188 mg daily. The National Institute of Medicine suggests 550 mg of choline daily for men and 425 mg daily for women. Choline is concentrated in high-protein foods: one large whole egg contains 147 mg of choline, three ounces of cooked chicken breast has 72 mg, and 1/4 cup of roasted soybeans supply 53 mg. Other plant foods have lesser amounts of choline. People who avoid animal foods or eat small portions may need more choline. Choline is not found in significant amounts in multivitamins. Consider a separate choline supplement if you aren’t getting enough choline through food. Also see: Depression diagnosed in early or mid-adulthood linked to dementia: study Focus on fiber While most people think of fiber as something to keep the gut moving, Fenn says it also plays a crucial role in keeping your brain healthy. Research conducted with more than 3,700 men and women 40 to 64 years old who were followed for 20 years found that higher levels of fiber, particularly the soluble kind, were associated with less dementia. The low-risk group in the study consumed 20 grams of fiber on average every day, and those with the most significant risk averaged just eight grams of fiber a day. Oats and nuts contain soluble fiber, which ultimately can help promote better blood flow to the brain. istock Dietary fiber may reduce risk factors associated with cognitive dysfunction, including obesity and elevated blood pressure. “Fiber benefits the brain indirectly by improving metabolic health, specifically blood glucose and lipids,” says Boules. Fiber is found naturally only in plant foods. Both types of dietary fiber support brain health in different ways. The soluble fiber in foods such as oats, nuts and legumes promotes normal levels of cholesterol and glucose in the blood, which helps protect the integrity of blood vessels and promotes better blood flow to the brain. Insoluble fiber, predominant in whole grain bread, cereals and brown rice, keeps you fuller for longer and can aid weight control. Many foods contain both types of fiber — the recommended intake is 28 grams daily on a 2,000-calorie diet. Most Americans consume just 15 grams of fiber daily, however. So include at least five servings of fruits and vegetables and three servings of whole grain foods daily to help satisfy fiber needs. You might like: No more ‘good’ vs. ‘bad’ foods: 10 healthy eating ‘patterns’ to prevent heart disease and death Fish for the win According to the American Heart Association, omega-3 fats defend against cell destruction and protect arteries that nourish the brain by discouraging blockages and lowering blood pressure. Not all omega-3 fats are created equal. Docosahexaenoic acid (D.H.A.) and eicosapentaenoic acid (E.P.A.) are the primary preformed omega-3 fats associated with brain health. Certain plant foods, such as walnuts, flax and chia seeds, contain alpha-linolenic acid, an omega-3 fat that the body can turn into D.H.A. and E.P.A., although the conversion rate is low. Brain cells are particularly rich in D.H.A. Researchers have observed that higher levels of D.H.A. in the blood delayed the onset of Alzheimer’s disease by nearly five years in people aged 65 and older without dementia. To meet omega-3 needs, the Dietary Guidelines for Americans recommends eating eight ounces of fish, which is rich in D.H.A. and E.P.A., weekly. If you avoid fish or eat small amounts, you may benefit from a supplement with about 1,000 milligrams of E.P.A. and D.H.A. combined. Omega-3 supplements can interact with the medication you take, however. “Always check with your medical provider before starting a supplement,” Boules suggests. Also read: Walking can help you lose weight and get fit — if you do it right. Here’s how to reap rewards from your rambles. Value vitamin B12 Vitamin B12 helps maintain myelin, which coats some parts of neurons and ensures swift and accurate communication. However, researchers believe that myelin shrinks with age, slowing down processing and reducing cognitive function between all aspects of the brain. “Vitamin B12 deficiency is a known cause of cognitive decline,” Fenn says. “In fact, it’s important to rule out B12 deficiency in anyone with cognitive changes, including early dementia, as it may be reversible.” An estimated 3% to 43% of older adults in the U.S. have a vitamin B12 deficiency. People with inadequate vitamin B12 intake or regularly taking certain medications for reflux disease or diabetes are at greater risk for low vitamin B12 levels. Aging also limits the body’s ability to absorb natural vitamin B12 because older people produce less stomach acid required to process it. Vitamin B12 is found naturally only in animal foods. After age 50, rely on synthetic B12, found in dietary supplements and fortified foods, to meet vitamin B12 needs — 2.4 micrograms daily. For example, one serving of fortified cereal can provide 25% of the suggested daily intake. Synthetic B12 is processed without stomach acid, making it available to the body. Elizabeth M. Ward is a registered dietitian nutritionist (RDN), writer, and award-winning nutrition communicator. Her work has appeared in WebMD, Men’s Health, and EatThis.com. Ward is the author or co-author of eight nutrition, food, and health books. Her most recent book is “The Menopause Diet Plan, A Natural Guide to Hormones, Health, and Happiness” (co-author). She lives in the Boston area. This article is reprinted by permission from NextAvenue.org, ©2023 Twin Cities Public Television, Inc. All rights reserved. More from Next Avenue:
Wholesale used car prices dropped again—what that means for bargain shoppers 2023-07-31 - Car dealers paid about 1% less for used cars at auction in the first half of July than they did in June. That’s news, mainly because wholesale prices were already down more than 10% in June from where they stood a year ago. The numbers come from the Manheim Used Vehicle Value Index, a product of Kelley Blue Book parent company Cox Automotive. The index tells us dealers are now paying 11.1% less for used cars than a year ago.
American drivers are falling out of love with the latest car designs and tech, study finds 2023-07-31 - “The decline in consecutive years might look small, but it’s an indicator that larger issues may lie under the surface.” That’s how Frank Hanley, senior director of auto benchmarking at J.D. Power, introduces the results of the research giant’s latest study of how Americans are responding to automakers’ latest vehicle designs and performance. J.D. Power’s U.S. Automotive Performance, Execution, and Layout (APEAL) Study measures “owners’ emotional attachment and level of excitement with their new vehicle.” Researchers poll new car owners on “37 attributes, ranging from the sense of comfort they feel when climbing into the driver’s seat to their exhilaration when they step on the accelerator.” For the first time in the study’s 28-year history, overall scores have declined two years in a row. Americans are growing less enamored of new cars. Overall satisfaction scored a middling B grade – 845 on a 1,000-point scale. Plus: The deadliest—and least deadly—cars, trucks and SUVs Infotainment system complexity Complex entertainment and information technologies continue to frustrate buyers, the study finds. Less than half of owners prefer to use their car’s own built-in technologies to navigate, use voice recognition, and make calls. Most preferred to use their phone in the car (are you listening, GM? GM ). Only 56% of owners use their car’s own systems to play music – falling quickly from 70% in 2020. But, in a new development, buyers are growing less fond of how new cars look. Satisfaction with exterior design fell further than any other factor measured — 888 from 894. Check out: 18 new EVs to watch for in 2024 No difference between best luxury, non-luxury scores The winners among luxury cars and mainstream cars tied. Among premium buyers, Jaguar owners were the most in love with their new cars. But new Dodge owners rated their cars just as well. Acura scored last among luxury brands. Chrysler took the last spot among mainstream cars. Perhaps more surprisingly, Toyota TM – the world’s largest automaker – barely stayed out of last place. Genesis, Hyundai, Kia win more matchups Having a particularly large lineup gives an automaker more chances to succeed and to fail. Hyundai Motor Group (Genesis, Hyundai, and Kia KR:000270 ) didn’t place any of its brands in the top three of either list. But the company had more models ranking highest in their segments than any other. The Genesis GV60, Hyundai Santa Cruz, Kia Carnival, Kia EV6, Kia Forte, Kia K5, Kia Rio, Kia Stinger, and Kia Telluride all led their categories. No other manufacturer won in more than five. Plus: The 2023 Kia Sorento Hybrid offers great fuel economy with plenty of safety features and lively performance Luxury automaker scores Brand Score (on a 1,000-point scale) Jaguar 887 Land Rover 883 Porsche POAHY 883 BMW XE:BMW 878 Genesis 877 Mercedes-Benz 876 Lincoln 873 Segment Average 871 Cadillac 865 Lexus 864 Alfa Romeo 859 Volvo VLVLY 856 Audi 855 Infiniti 854 Acura 853 Tesla TSLA and Polestar PSNY are not ranked because they do not allow J.D. Power to access owner information where permission is required by law. Based on the limited data available from states that don’t require company authorization, J.D. Power says, Tesla would have scored 878, and Polestar 865. Also read: What do car dealers have to be worried about? Plenty, survey says. Mainstream automaker scores Brand Score (on a 1,000-point scale) Dodge 887 Ram 873 GMC 858 Mini 856 Kia 851 Chevrolet 846 Hyundai 844 Nissan NSANY 843 Buick 841 Ford F 838 Segment Average 837 Honda HMC 835 Jeep 831 Mitsubishi MSBHF 831 Mazda MZDAY 828 Volkswagen VWAGY 827 Subaru FUJHY 824 Toyota 824 Chrysler 810 This story originally ran on KBB.com.
AerCap Likely To Post Higher Q2 Earnings; Here's A Look At Recent Price Target Changes By The Most Accurate Analysts - AerCap Holdings (NYSE:AER) 2023-07-31 - AerCap Holdings N.V. AER is expected to report its second-quarter financial results, before the opening bell on July 31, 2023. Analysts expect the company to post quarterly earnings at $2.06 per share, up from year-ago earnings of $1.91 per share. The company’s revenue might come in at $1.82 billion. AerCap shares rose 3.1% to close at $65.85 on Friday. Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables. Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period. JP Morgan analyst Jamie Baker maintained an Overweight rating and raised the price target from $74 to $77 on June 8, 2023. This analyst has an accuracy rate of 65%. Read This Next: Insiders Buying Texas Capital Bancshares And 3 Other Stocks
ON Semiconductor, Western Digital And 3 Stocks To Watch Heading Into Monday - Naas Technology (NASDAQ:NAAS), HomeStreet (NASDAQ:HMST) 2023-07-31 - With U.S. stock futures trading slightly lower this morning on Monday, some of the stocks that may grab investor focus today are as follows: Check out our premarket coverage here Read This Next: Top 4 Real Estate Stocks That May Implode This Month
Uber Backup Driver Admits Guilt In 1st-Ever Autonomous Car Death — But Defense Feels Blame Should Be Shared - Uber Technologies (NYSE:UBER) 2023-07-31 - Rafaela Vasquez, the backup driver of an Uber Technologies UBER self-driving vehicle involved in a fatal collision in 2018, pled guilty to endangerment. The landmark case marked the first fatality with a fully autonomous car, raising questions about responsibility in such accidents. What Happened: Maricopa County Superior Court Judge David Garbarino, who accepted the plea agreement, sentenced Vasquez, 49, to three years of supervised probation for the crash that killed 49-year-old Elaine Herzberg. Vasquez told police that Herzberg "came out of nowhere" and that she didn't see Herzberg before the March 18, 2018, collision on a darkened Tempe street. The crash involved an Uber test car, a Volvo XC90 SUV, and Vasquez was allegedly looking at her phone as it struck Herzberg, who was crossing the street with her bicycle. Defense attorney Albert Jaynes Morrison told Garbarino that Uber should share some blame for the collision as he asked the judge to sentence Vasquez to six months of unsupervised probation, as reported by Associated Press. "There were steps that Uber failed to take," he said. By putting Vasquez in the vehicle without a second employee, he said, "It was not a question of if but when it was going to happen." See Also: How to Buy Uber Stock Why It Matters: Prosecutors previously declined to file criminal charges against Uber, as a corporation. The National Transportation Safety Board concluded Vasquez's failure to monitor the road was the main cause of the crash. The death reverberated throughout the auto industry and Silicon Valley and forced other companies to slow what had been a fast march toward autonomous ride-hailing services. Vasquez had previously spent more than four years in prison for two felony convictions — making false statements when obtaining unemployment benefits and attempted armed robbery — before starting work as an Uber driver, according to court records. The tragic incident had far-reaching implications, leading Uber to withdraw self-driving cars from Arizona, and the state to halt tests of self-driving vehicles. Uber later sold its self-driving unit to Aurora Innovation in 2020. However, in May 2023, Waymo announced a multi-year partnership with Uber that will help users hail an autonomous Waymo ride via the Uber app in Phoenix starting later this year. Check out more of Benzinga’s Future Of Mobility coverage by following this link. Read More: Elon Musk’s SpaceX Pulls Off Stellar Feat: Hits 250 Successful Missions, Thanks To Falcon Heavy Photo by Sean Leonard on Shutterstock
Threads Has A Desktop Version And DMs In The Pipeline As More Than Half Users Leave The App - Meta Platforms (NASDAQ:META) 2023-07-31 - With initial euphoria around Meta Platforms Inc.'s META Threads app waning, Mark Zuckerberg and Instagram head Adam Mosseri have said new hooks like a desktop version and direct messages are in the pipeline for the next phase of the X (earlier Twitter) clone. What Happened: Meta's Threads app has a few new features in the pipeline as Mosseri and his team put the anchor down as the X clone looks to stabilize and achieve feature parity after the rapid user addition in the first two weeks of its launch. See Also: Best Video Editing Apps For iPhone Among these features are a desktop version of Threads and the ability to search posts and replies, said Zuckerberg in an internal company town hall, according to Reuters. Instagram head Mosseri, too, is gearing up for the next phase of Threads, showing that the company is serious about competing with X. In an interview with The Washington Post, Mosseri said a slew of new features are in the pipeline, including the ability to send direct messages. Some of the priorities for the Threads team are "helping users build their lists of people to follow, improving the algorithms that decide what users see, giving users a way to see posts only from people they follow, and figuring out how to let people message each other," Mosseri said. Users Leaving Threads Is ‘Normal': Zuckerberg also revealed for the first time that more than half the users have left Threads. The X clone hit the 100 million users milestone within five days of its launch on July 10, making it the fastest-growing consumer app in history. However, according to a tracker, in the 21 days since then, it has added only 19 million users. This significant drop off in growth is "normal", Zuckerberg said in the town hall to reassure Meta staff. Check out more of Benzinga’s Consumer Tech coverage by following this link. Read Next: Apple’s iPhone 15 To Have Biggest Upgrade In 3 Years, Says Gurman: Light Bezel, USB-C Port, Camera Upgrades And More
Elon Musk's X Could Soon Silence Replies From Blocked Users 2023-07-31 - Twitter’s rebranding as ‘X’ under Elon Musk’s leadership has already created a significant buzz, and now the platform plans to bring a new feature to silence replies from blocked accounts. What Happened: Twitter’s recent rebranding as ‘X’ after Musk’s acquisition for $44 billion has left users speculating about the platform’s future. The latest development with the Twitterverse abuzz is potentially introducing a game-changing feature that can help users keep blocked users at one arm’s length. See Also: From ‘Twitter’ To ‘X’ — Musk Reveals Reasoning Behind The Bold Rebranding Move The idea stemmed from a Twitter user’s complaint about the annoyance caused by blocked users still being able to respond to their posts. Responding to the user’s frustration, Twitter designer Andrea Conway confirmed they were working on a solution. “Not for long,” she wrote, assuring users that the issue had been flagged and would soon be addressed. If implemented, this new feature would grant users greater control over their interactions, ending unwanted engagement from those they have blocked. It could be a significant step toward curating a safer and more enjoyable Twitter experience for millions of users. While specific details and the official release date remain under wraps, anticipation is building among users eager to witness the transformation that ‘X’ has in store for the social media giant. Why It’s Important: For the unversed, the iconic blue bird logo that had symbolized Twitter for over a decade was replaced with a new emblem earlier this month. According to Musk, the decision was not merely a superficial makeover but a strategic step toward realizing his vision for the platform. Image Credits – Shutterstock Check out more of Benzinga’s Consumer Tech coverage by following this link. Read Next: Elon Musk’s Massive’ X’ Logo Atop Twitter’s San Francisco Headquarters Prompts Investigation And Controversy
Elon Musk's Strobing 'X' Logo Atop Twitter San Francisco HQ Irks Neighbors And Sparks Local Probe 2023-07-31 - Twitter owner Elon Musk installed a massive “X” logo atop Twitter’s San Francisco headquarters, sparking an investigation by local authorities and stirring public debate. The incident was captured and shared by journalist Christopher J. Beale on his Twitter account. What Happened: Musk’s decision to install the “X” logo on Twitter’s headquarters, now known as X Corp, has been met with mixed reactions. The city officials have initiated an investigation into the installation, citing that it was not done with proper permission. Beale took to Twitter to show short clips of the X logo with a strobing effect. “Imagine no more. This is my life now,” wrote Beale. See Also: Is Elon Musk’s Success a Result of Deception? Facebook Co-Founder Challenges True Impact of Tesla, SpaceX Why It Matters: The installation of the “X” logo is part of Musk’s rebranding of Twitter to X Corp. This move has led to mixed reactions from users and analysts alike. Over the weekend, Musk reacted to the controversy by posting a video of the X headquarters with the new logo on top of the building, while saying that San Francisco was in a “doom spiral.” He reiterated X’s commitment to Golden Gate City and said that the company would not be moving out. Read Next: Elon Musk Unconcerned by Falling Tesla Values, Could Drive Buyers to Ford and GM: “It Will Affect Them” Image by rafapress on Shutterstock
Saudi Arabia's economic growth slows as oil cuts, price drops bite into revenues 2023-07-31 - Saudi Arabia's economy slowed in the second quarter, as crude output cuts and a drop in oil prices reined in one of the fastest growing nations of the G20. Riyadh's GDP expanded by an annual 1.1% in the second quarter, the Saudi General Authority for Statistics said Monday, down from 3.8% in the previous quarter and 11.2% in the same period of 2022. The non-oil sector — where Saudi Arabia is directing its socioeconomic reforms under Crown Prince Mohammed bin Salman's Vision 2030 economic diversification program — grew by 5.5% in the second quarter. But hydrocarbon-reliant Riyadh logged a 4.2% loss in non-oil GDP in the second quarter, bearing the brunt of lower global crude prices and voluntary oil production cuts. Oil prices spiked last year, as Moscow's full-scale invasion of Ukraine and ensuing international sanctions decoupled many Western consumers from Russian crude supplies. The world's top oil exporter benefitted doubly at the time, from both the boost in flat prices and from bolstered demand for Saudi Arabia's own crude, which is qualitatively comparative to Russia's mainstay supply. Commodities offered less support to the Saudi economy in the first half of this year, with oil prices lingering below $80 per barrel amid macroeconomic concerns, a recessionary dip in demand and China's protracted exit from spartan Covid-19 restrictions. The expiring Brent futures contract with September delivery were trading at $84.89 per barrel at 9:10 a.m. London time, down by 10 cents per barrel from the Friday settlement. Saudi Arabia is also shouldering the lion's share of additional voluntary crude production cuts agreed by some members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+. Some OPEC+ nations are carrying out 1.66 million barrels per day of declines until the end of 2024, with Saudi Arabia lowering output by a further 1 million barrels per day in July and August. Fellow heavyweight and petropolitics ally Russia is likewise curtailing its crude exports by 500,000 barrels per day next month. The International Monetary Fund had dubbed Riyadh the fastest growing G20 economy of 2022, with an overall expansion of 8.7% last year. The fund foreshadowed the Saudi slowdown last week, when it cut GDP growth projections for Riyadh from 8.7% in 2022 to 1.9% in 2023 in its July 25 issue of its World Economic Outlook. "The downgrade for Saudi Arabia for 2023 reflects production cuts announced in April and June in line with an agreement through OPEC+," it said, stressing that "private investment, including from 'giga-project' implementation, continues to support strong non-oil GDP growth." The Saudi slowdown is set to ripple into overall performance in the Middle East and Central Asian region, where the IMF now expects growth of just 2.5% this year, from 5.4% in 2022.
Euro zone economy shows resilience as second-quarter GDP beats expectation, inflation slips 2023-07-31 - Euro zone inflation fell in July, and new growth figures showed economic activity picking up in the second quarter of this year — but economists still fear a recession could be in the cards. Headline inflation in the euro area was 5.3% in July, according to preliminary data released Monday, lower than the 5.5% registered in June. This remains well above the European Central Bank's 2% target for the bloc. Core inflation — which excludes volatile food and energy prices — remained unchanged at 5.5% in July, which Andrew Kenningham, chief Europe economist at Capital Economics, said would be a "disappointment for policymakers." The euro area has been battling high inflation for the past year, leading the ECB to undergo a full year of consecutive rate hikes in an effort to bring prices down. Last week, the central bank rose rates by a quarter percentage point once again, bringing its main interest rate to 3.75%. Initially, much of the price pressures in the euro area were coming from high energy costs, but in recent months food prices have contributed the most. This month, food, alcohol and tobacco once again drove inflation — prices rose by 10.8% in July, in a hike that was nevertheless lower than in previous months.
Bank of Japan needs to move sooner to a new normal as current policy is 'very harmful', says strategist 2023-07-31 - Japan needs to transition sooner to a "new normal" as the country's current ultra low interest rate policy regime has been "inappropriate" and "very harmful" for the economy, according to a strategist. Central banks around the world have raised rates aggressively to rein in inflation, but Japan has kept its benchmark rate at -0.1% since 2016. The sooner the BOJ moves to a "more normal structure and let bond markets, equity markets do their work that they need to do," the better it will be for financial markets, Kevin Hebner, global investment strategist at TD Epoch, told CNBC's "Squawk Box Asia" on Monday. On Friday, the Bank of Japan kept its ultra low interest rates unchanged but shocked financial markets by loosening its yield curve control — or YCC. The central bank said it would offer to buy 10-year Japanese government bonds at 1.0% in fixed-rate operations, instead of the previous rate of 0.5%. This effectively expands its tolerance by a further 50 basis points, signaling the BOJ would let the 10-year yield rise to as much as 1.0%. "The type of policy they've had in place for a while now, it made sense in the mid 90s, late 90s," Hebner said. "It's been an inappropriate policy for the last 20 years. Japan hasn't had the same cyclical issues," he noted. "And when you have zero interest rates, it creates all sorts of distortions and dislocations that I think are very harmful." Moving away from negative interest rates would have far-reaching effects on the Japanese economy, from corporate investment to household savings. "Most importantly for equity investors the cost of capital is no longer zero," noted Hebner. "If you want to have companies creating value for the medium and longer term, you need the cost of capital to be realistic, and that hasn't been the case for 20 years."