Morning Bid: Tech rout drives flight to value

Yahoo Finance
Jobless claims data show 'warning sign' for the US labor market
The number of continuing applications for unemployment benefits just hit its highest level in more than two years, concerning economists that the labor market's softening may accelerate.
Yahoo Finance
Stock market today: Stocks inch higher with key inflation print looming
A sell-off in Micron put a dent in the AI bullishness that has fueled the tech-driven rally, as investors eye fresh economic data.
The Telegraph
France’s hard-Right wants to cut the EU’s budget – Brussels should be worried
Jordan Bardella, the fresh-faced 28-year-old who could be the first French prime minister for Marine Le Pen’s hard-Right National Rally party, has designs on EU cash.
Reuters
Fed's Bostic says inflation moving in 'right direction,' sees one Q4 rate cut
Inflation in the U.S. "appears to be narrowing" and that should allow the Federal Reserve to cut interest rates later this year, Atlanta Fed President Raphael Bostic said in a policy essay released on Thursday. After concern that inflation might stall at an elevated level, Bostic said recent data point to renewed progress, including the fact that the share of goods and services increasing at a greater than 5% annual rate had dipped below 20% - more akin to where it was before the COVID-19 pandemic and similar to the share seen when inflation was slowing fast last year. "It's moving in the right direction," Bostic said of a metric he has singled out as one of his touchstones for the U.S. central bank's battle against inflation that spiked to a 40-year high in 2022.
Reuters
US inflation ebbs in May as goods prices fall
WASHINGTON (Reuters) -U.S. monthly inflation was unchanged in May as a modest increase in the cost of services was offset by the largest drop in goods prices in six months, drawing the Federal Reserve closer to start cutting interest rates later this year. The report from the Commerce Department on Friday also showed consumer spending rose marginally last month. Traders raised their bets for a Fed rate cut in September.
Yahoo Finance
New inflation reading offers hope for Fed rate cuts later this year
The Fed got another positive signal that inflation is easing after running hotter-than-expected in the first quarter, but the central bank still likely needs more time before cuts can begin in 2024.
CNN Business
It’s the economy, stupid. Here’s what you need to know about it for the presidential debate
Bill Clinton’s campaign was right on the money when it coined the famous “It’s the economy, stupid” slogan in 1992. That’s because the economy has consistently ranked among the top – if not the very top — voter issues in presidential election after presidential election.
USA TODAY
Ballooning U.S. budget deficit is killing the American dream
A soaring U.S. budget deficit will lead to lower incomes for Americans, economists say. That could kill the American dream for future generations.
The Telegraph
How the Tories’ 14-year tax raid is finally being laid bare
The number of pensioners paying income tax has risen by 42pc since the Tories came to power, as the true cost of the Government’s stealth tax raid is laid bare.
Associated Press Finance
US weekly jobless claims fall, but the total number collecting benefits is the most since 2021
Fewer people applied for unemployment benefits last week but the total number of Americans collecting jobless benefits rose to the highest level in more than two years. The Labor Department reported Thursday that jobless claims for the week ending June 22 fell by 6,000 to 233,000 from 239,000 the previous week. The Federal Reserve raised its benchmark borrowing rate 11 times beginning in March of 2022 in an attempt to extinguish the four-decade high inflation that shook the economy after it rebounded from the COVID-19 recession of 2020.
Reuters
US dollar eases after soft economic data; yen inches higher
NEW YORK (Reuters) -The U.S. dollar drifted lower against most currencies on Thursday, pressured by softening data in the world's largest economy that backs expectations the Federal Reserve will start cutting interest rates this year. The yen edged up from a 38-year low against the greenback following the U.S. numbers, even as traders remained on high alert for any signs of Japanese intervention to prop up the currency. At the same time, new orders for key U.S.-manufactured capital goods unexpectedly fell in May, suggesting business spending on equipment weakened in the second quarter.
The Fiscal Times
IMF Warns of ‘Pressing Need’ to Address U.S. Debt
The International Monetary Fund said in a report Thursday that the U.S. economy “has turned in a remarkable performance over the past few years,” but added that there is now “a pressing need to reverse the ongoing increase in public debt-GDP ratio.” “The U.S. is only the G-20 economy whose GDP level now exceeds the pre-pandemic level. This is good for the U.S. and it is good for the global economy,” IMF Managing Director Kristalina Georgieva told reporters at a news conference Thursday. She also
Reuters
Instant view: US inflation cools in May; consumer spending rises moderately
The flat reading in the personal consumption expenditures(PCE) price index last month followed an unrevised 0.3% gain inApril, the Commerce Department's Bureau of Economic Analysissaid on Friday. In the 12 months through May, the PCE priceindex increased 2.6% after advancing 2.7% in April. Economists polled by Reuters had forecast the PCE priceindex unchanged on the month and rising 2.6% year-on-year.
Barrons.com
China’s Third Plenum Will Showcase the Country’s Contradictions
A major upcoming policy meeting will set the course of China’s economy, Seong-Hyon Lee writes in a guest commentary.
The Telegraph
What to do now to shield your money from Labour taxes
With the countdown to the general election now in its final week, Labour has continued to do little to answer questions or quell concerns about its tax plans should it win power.
Associated Press
Federal Reserve's preferred inflation gauge shows price pressures easing further
A measure of prices that is closely tracked by the Federal Reserve suggests that inflation pressures in the U.S. economy are continuing to ease. Friday's Commerce Department report showed that consumer prices were flat from April to May, the mildest such performance in more than four years. Excluding volatile food and energy prices, so-called core inflation rose 0.1% from April to May, the smallest increase since the spring of 2020, when the pandemic erupted and shut down the economy.
INSIDER
A Nobel Prize-winning economist breaks down exactly how Trump's proposed policies could make inflation worse
Inflation has slowed but is above its ideal rate. Nobel Prize-winning economist Joseph Stiglitz broke down why Trump's policies could make it worse.
Associated Press
California Legislature approves budget that slashes spending to address $46.8 billion deficit
California lawmakers approved a budget on Wednesday that slashes spending and temporarily raises taxes on some businesses to close an estimated $46.8 billion budget deficit. It's the second year in a row the nation's most populous state has been forced to pare back or delay some of its progressive policies that had been fueled by record-breaking surpluses during the COVID-19 pandemic. It was just two years ago that Gov. Gavin Newsom and his fellow Democrats in the state Legislature were boasting about surpluses that totaled more than $100 billion, the product of hundreds of billions of dollars of federal COVID-19 aid and a progressive tax code that produced a windfall of revenue from the state's wealthiest residents.
BBC
UK economy grew more than first estimated in early 2024
Revised figures show the economy grew by 0.7% between January and March this year.
The Telegraph
The Netherlands stung savers with 100 per cent tax rates – and now owes them billions
The Netherlands is expected to pay billions of pounds in compensation to taxpayers after a divisive levy on investments and second homes was shot down by the Dutch Supreme Court.

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Morning Bid: Tech rout drives flight to value

Latest stories

Jobless claims data show 'warning sign' for the US labor market

Stock market today: Stocks inch higher with key inflation print looming

France’s hard-Right wants to cut the EU’s budget – Brussels should be worried

Fed's Bostic says inflation moving in 'right direction,' sees one Q4 rate cut

US inflation ebbs in May as goods prices fall

New inflation reading offers hope for Fed rate cuts later this year

It’s the economy, stupid. Here’s what you need to know about it for the presidential debate

Ballooning U.S. budget deficit is killing the American dream

How the Tories’ 14-year tax raid is finally being laid bare

US weekly jobless claims fall, but the total number collecting benefits is the most since 2021

US dollar eases after soft economic data; yen inches higher

IMF Warns of ‘Pressing Need’ to Address U.S. Debt

Instant view: US inflation cools in May; consumer spending rises moderately

China’s Third Plenum Will Showcase the Country’s Contradictions

What to do now to shield your money from Labour taxes

Federal Reserve's preferred inflation gauge shows price pressures easing further

A Nobel Prize-winning economist breaks down exactly how Trump's proposed policies could make inflation worse

California Legislature approves budget that slashes spending to address $46.8 billion deficit

UK economy grew more than first estimated in early 2024

The Netherlands stung savers with 100 per cent tax rates – and now owes them billions