Author: MD Editors

Bank of America CEO Brian Moynihan said although he is relieved lawmakers reached a resolution for the debt ceiling, it is “not good for the United States to go through this.” The resolution “provided momentary momentum in the markets and allows us to face the real economic issues and real debt level issues ahead of us,” Moynihan told CBS’ “Face the Nation” on Sunday. Getting rid of the debt ceiling altogether is a “political question,” Moynihan said. “At the end of the day, we need to have a serious discussion about how much debt we can have in this country,…

Many CEOs, investors and economists had penciled in 2023 as the year when a recession would hit the American economy. The thinking was that the US economy would grind to a halt because the Federal Reserve was effectively slamming the brakes to squash inflation. Businesses would lay off workers and inflation-weary Americans would slash spending. But the case for a 2023 US recession is crumbling for a simple reason: America’s jobs market is way too strong. Hiring unexpectedly accelerated again last month, with employers adding an impressive 339,000 jobs in May. Not only is that more than any major forecaster…

Oil prices rose Monday after Saudi Arabia said it would slash output by another one million barrels per day for at least a month starting in July as part of an effort by OPEC+ producers to shore up crude prices. At 5.30 a.m. ET, Brent crude, the global benchmark, was trading up 2.3% at nearly $78 a barrel, while WTI, the US benchmark, rose 2.4% to $73.50. Gasoline futures were up 1.5%, but the average US pump price for a gallon of regular unleaded gas was unchanged at $3.55. The Saudi production cut was its biggest in years and will…

Demand for lithium, a key component for electric vehicle batteries, is expected to surge, from 500,000 metric tons of lithium carbonate in 2021 to three million to four million metric tons in less than a decade, according to McKinsey & Co. Albemarle, the world’s top producer of this critical metal and the operator of mines in Australia, Chile and the U.S., says it plans to bring another domestic lithium mine online by 2027 — Kings Mountain in North Carolina. It already operates Silver Peak in Nevada. Albemarle is also building a $1.3 billion processing facility in South Carolina, where it…

The largest terminal operator at the Port of Long Beach, California told truckers Sunday it will close for both the day and night shifts on Monday, according to an email obtained by CNBC. Ports and workers are locked in an unofficial dispute over wages, as well as safety, automation and pension benefits. The notice was sent by Total Terminals International (TTI), the largest terminal in Long Beach and a unit of MSC. “Port of Long Beach cargo has been moving through the terminals and we do expect the commitment by the parties to continue and encourage the parties to put…

President Joe Biden on Friday evening gave his first address from the Oval Office to discuss a bill to lift the debt ceiling while capping federal spending, calling it a “critical” agreement. He signed the bill into law on Saturday. “No one got everything they wanted but the American people got what they needed. We averted an economic crisis and an economic collapse,” Biden said. The compromise debt ceiling bill passed the Senate by a 63-36 margin Thursday evening, winning enough support from both parties to overcome the chamber’s 60-vote threshold to avoid a filibuster. On Wednesday, it moved through…

In the unveiling of his new cabinet, Turkey’s President Recep Tayyip Erdogan named former economy chief Mehmet Simsek as his new treasury and economy minister, leading to some optimism that the country will now forge a new economic path. Simsek was known for his market friendly policies, and subsequently went on to become the country’s deputy prime minister from 2015 to 2018 after his stint as Turkey’s finance minister. Erdogan, whose victory in the 2023 presidential election means an extension of his rule into a third decade in power, has changed most of his cabinet members with exception of the…

Asia-Pacific markets are largely higher after U.S. President Joe Biden signed into law a debt ceiling bill that allowed the U.S. to avert defaulting on its financial obligations over the weekend. The compromise debt ceiling bill passed the Senate by a 63-36 margin Thursday evening, winning enough support from both parties to overcome the chamber’s 60-vote threshold to avoid a filibuster. On Wednesday, it moved through the House after about 72 hours, passing 314-117. In Japan, the Nikkei 225 surged 2.2% above the 32,000 mark for the first time since 1990 to close at 32,217.43. The Topix was 1.7% higher…

UBS expects to complete its takeover of Credit Suisse “as early as June 12”, which will create a giant Swiss bank with a balance sheet of $1.6 trillion following a government-backed rescue earlier this year. The deal’s completion is subject to the registration statement, which covers shares to be delivered, being declared effective by the U.S. Securities and Exchange Commission, and other remaining closing conditions, UBS said in a statement on Monday. “UBS expects to complete the acquisition of Credit Suisse as early as 12 June 2023. At that time, Credit Suisse Group AG will be merged into UBS Group…

The International Monetary Fund has yet to see enough banks pulling back on lending that would cause the U.S. Federal Reserve to change course with its rate-hiking cycle. “We don’t yet see a significant slowdown in lending. There is some, but not on the scale that would lead to the Fed stepping back,” the IMF’s Managing Director Kristalina Georgieva told CNBC’s Karen Tso Saturday in Dubrovnik, Croatia. The Federal Reserve in a May banks report warned that lenders are worried about conditions ahead, as trouble in mid-sized financial institutions in the U.S. caused banks to tighten lending standards for households…