DID YOU KNOW?
Top Headlines: Delivered by Leonard Steinberg
September 22, 2023
01 Invitation Homes , which owns about 83,000 houses, has been selling properties that have appreciated to the point that they are yielding less than 4% and putting the proceeds in the bank, where the cash is earning more than 5%.
02 Sharply higher interest rates are wreaking havoc on small businesses globally. With roughly $300 trillion in global debt, the consequences could be meaningful. Sadly, these higher rates that cost business more to service are usually passed on to the consumer.....ie: they cause more inflation than they cure!
03 Top economists from the largest U.S. banks expect higher borrowing costs to slow gross domestic product to 1.2% in 2024 from this year’s estimated 2%. They are also more optimistic that the Federal Reserve can achieve a “soft landing” and slow inflation without triggering a recession. 8 months ago, those same economists predicted that growth would flatline in 2023 and bring the U.S. closer to a recession.
04 Singapore’s home sales fell last month to the lowest since January as demand slowed amid a lack of big launches. Purchases of new private apartments dropped to 394 units in August, figures from the Urban Redevelopment Authority. That’s down 72% from the previous month, when transactions climbed to a more than one-year high of 1,412 on the back of several major launches. Extremes are often followed by extremes.
05 Jet fuel has risen the most, its price soaring more than 50% on the Gulf Coast since early May. Chinese demand has ballooned as Beijing has relaxed pandemic-era travel restrictions, pushing its August jet fuel consumption back toward its pre pandemic level from below 60% a year earlier. Higher gasoline prices accounted for more than half of August’s 0.6% increase in U.S. goods and services prices from July (US Labor Department). Expect delivery costs of all things to rise..... and travel!
06 UK inflation dipped to 6.7%, below expectations, mostly related to food prices coming down.