What I Am Reading

Monday, May 13, 2024

Latest Morning Briefing

Are Consumers Cracking?

Today, we look at cracks in the story that consumers are cracking. Crack proponents expect consumers to start saving more and spending less because they’ve depleted their excess saving from the pandemic years. We expect personal saving rates to stay low and consumer spending to stay high as Baby Boomers, done with paying college tuitions and mortgage loans, spend their sizable nest eggs. (Many apparently are buying big-ticket items such as light trucks, for cash!) As long as consumers’ purchasing power keeps rising along with employment and real wages, our money is on the consumer. … While consumers remain in good financial shape, inflation has depressed consumer sentiment, particularly at the gas pump. … Dr. Ed reviews “We Were The Lucky Ones” (+ + +).

Markets

Investors Crowd Into Soft-Landing Trade Ahead of Crucial Inflation DataWall Street Journal
China Kicks off Ultralong Bond Sale Friday to Support EconomyWall Street Journal
Country Garden Avoids Further Default With Payments on Onshore BondsWall Street Journal

Global

Suddenly There Aren’t Enough Babies. The Whole World Is Alarmed.Wall Street Journal

US

China

China's commodity imports show prices beat economic narrativeReuters
Opinion | The Rise and Fall of China’s Economic ‘Miracle’New York Times

Industries & companies

Media:Media companies woo advertisers as spend shifts to digitalCNBC

Artificial Intelligence

German Companies Bet on AI But Payoff Could Be Years AwayWall Street Journal
Six Secrets For Using ChatGPT and Other AI Chatbots Like a ProWall Street Journal

Corporate finance

SoftBank Commits $5 Billion to AI After Three Years of LossesWall Street Journal
France Secures $16 Billion From Microsoft, Amazon and Others at Foreign Investment SummitWall Street Journal
NRF rejects Shein membership as retailer pursues U.S. IPOCNBC

Beyond markets

Every So Often Ben Bernanke Reminds Us Why Economists Are So DangerousFOX