* US officials working with private sector to rescue First Republic Bank
* Eurozone economy continued to stagnate in Q1
* China raises pressure on foreign companies, posing new risks for Western firms
* Pending US home sales fell in March, first decline since November
* US jobless claims fell last week, staying low despite softer economic growth
* US growth slows more than expected in Q1 as consumer spending ramps up:
There’s no shortage of things to worry about in the months ahead, but you wouldn’t know by reviewing year-to-date returns for the leading equity sectors. Tech and communications services are still red-hot this year, leaving the rest of the field – the stock market overall – in the dust, based on a set of ETFs through yesterday’s close (Apr. 26).
* House Republicans pass debt-ceiling and spending-cuts plan, but…
* The GOP debt-ceiling bill is expected to be dead on arrival in the Senate
* Weak tax collections suggest US may default on its debt as soon as early June
* US and S. Korea unveil landmark deal to counter N. Korean nuclear threat.
* The risk from ‘shadow banks’ has increased in wake of SVB collapse
* US durable goods orders rebound sharply but business investment falls again
* Atlanta Fed’s GDPNow model sharply downgrades Q1 growth estimate:
Big-cap growth is back. After taking a back seat to various flavors of small-cap and value factors earlier in 2023, the large-company growth risk factor is again leading the horse race, based on year-to-date returns for a set of ETF proxies through yesterday’s close (Apr. 25).
* Uncertainty persists for House Speaker McCarthy’s debt-ceiling bill
* US debt default would trigger ‘economic catastrophe’, warns Treasury Sec. Yellen
* First Republic Bank’s stock falls 50% as depositors flee
* The troubles in the banking industry expected to weigh on economic growth
* US consumer confidence eased in April, near recent low
* US home prices rose in February–first monthly increase since June
* US money supply’s 1-year decline continues to deepen through April 3:
Forecasts of recession seem to be flowing from all corners these days, but this week’s initial estimate of economic activity for the first quarter (Apr. 27) is expected to show that growth prevails.
* GOP works to secure support for this week’s vote on debt ceiling package
* Commercial property faces harsh climate amid rising rates and remote work
* Deflation risk is rising in China
* Chile set to nationalize its lithium industry, which controls 30% of global supply
* First Republic, a troubled regional bank, says deposits fell 41% in Q1
* “Crypto is dead in America,” predicts longtime bitcoin bull
* Texas factory activity is flat in April after modest growth in March
* US economic activity was below trend in March, but recession risk is still low:
US-listed real estate investment trusts (REITs) posted the strongest gain for the major asset classes in last week’s mostly quiet trading, based on a set of ETF proxies. A solid gain is welcome news for REITs, which have been sliding for more than a year, but it’s debatable if the rally signals an end for the sector’s bear market.
* High-stakes vote this week on debt ceiling puts House Speaker on hot seat
* Wall Street wakes up to debt-ceiling threat
* Some Democrats in Congress want to restart Biden-McCarthy debt-ceiling talks
* US asks S. Korea not to fill gap in China if Beijing bans chips from Micron
* More countries pushing for lesser reliance on US dollar for trade
* Big tech earnings reports in focus this week
* Hedge funds place huge short bet on Treasuries
* US economic activity picks up in April, according to PMI survey data:
Brett Christophers
Summary via publisher (Verso)
Banks have taken a backseat since the global financial crisis over a decade ago. Today, our new financial masters are asset managers, like Blackstone and BlackRock. And they don’t just own financial assets. In this eye-opening follow-up to Rentier Capitalism, Brett Christophers peels back the veil on “asset manager society.” Asset managers, he shows, are unlike traditional owners of housing and other essential infrastructure. Buying and selling these life-supporting assets at a dizzying pace, the crux of their business model is not long-term investment and careful custodianship but making quick profits for themselves and the investors that back them.
