Bailouts, Buybacks, and Job JoltsMarket Sizzle: Jobs Slow, Buyback Boost, Yen Bailout and a New Banking Crisis?
Hey there, Josh here from sunny Miami, FL! Would you rather be alone in the woods with a man or a bear? That's the burning question lighting up social media right now. Apparently, women overwhelmingly prefer the company of a bear over a man when it comes to forest companionship. So, guys, it’s your turn: a random man or a grizzly for a 48-hour woodland hangout—no weapons, no escape. What’s your pick? US Job Growth Slows: Unemployment Rises
US job growth slowed down last month, and the unemployment rate went up. Only 175,000 jobs were added, which is the smallest increase in six months. This shows the job market might be cooling off after a busy start to the year. Pay went up a little in April, but not by much. It grew by 3.9% from last year. That's the slowest rise since mid-2021. Some thought it would be more because of a new wage law in California. Also, businesses that provide services are not as busy as before. This drop could slow down the economy even more. The government thinks job growth needs to slow a bit to control inflation. Even though jobs in areas like health care are still growing, places like construction and restaurants are not doing as well. This change might lead to fewer people spending money, which affects the economy. But the people in charge of money policies are not in a hurry to change interest rates yet. They're watching how things go for now. Apple Bucks Sales Slump with Buyback Boost
Apple's sales dipped again, marking a decline in five of the last six quarters. The main drag? Slower iPhone sales, especially as Chinese brands like Huawei gain ground. Despite this downturn, Apple's stock surprisingly rose by 7% after they announced a massive $110 billion buyback. The company did better than expected this quarter, though sales and profits were down from last year. Apple is still hopeful, expecting slight revenue growth soon. In China, Apple's third-biggest market, sales dropped 19% as local brands surged. The Chinese government is even limiting iPhone use among officials, making competition tougher. Yet, Apple's services like the App Store are doing well, growing 14.2%. Looking forward, Apple is excited about new AI developments and potential partnerships. Investors are watching closely, hoping new tech will boost future iPhone sales. Yen Bailout Spurs Market Rally
Asian stocks hit a 15-month high on Friday. This includes tech and Hong Kong stocks. At the same time, the yen rose from very low levels. The yen got stronger after Japan might have spent a lot on it. They did this to stop the yen from falling too much. Now, the yen is not as weak as it was at the start of the week. Markets in Japan and China were closed on Friday. This made trading quiet. People are now waiting for new job data from the U.S. Hong Kong's stocks have been going up for nine days. This is the longest they've risen since 2018. Stocks in Europe look like they will also start higher. Meanwhile, the yen has been weak for years because Japan's interest rates are low. This makes people move their money to places with higher returns like the U.S. Even though the yen is still down this year, it did better this week. Some think Japan might act again to help the yen before more U.S. job data comes out. The Dawn of a New Banking Crisis?
Banks are teaming up with private lenders to handle loans differently. They are doing this to meet tough rules about how much money they need to keep safe. Barclays, for example, sold $1.1 billion of credit card debt to Blackstone. They still manage the loans but don't keep them. This lets them make money without holding onto risky assets. Other banks like KeyCorp are doing similar things. They partner with firms to fund parts of their business. This helps them avoid strict rules and keep serving customers. These deals are growing because banks face big challenges. They need to keep enough money on hand and still make profits. But these partnerships might lead to higher loan rates for people and businesses. Also, some worry that moving loans to private firms might dodge government rules. This could make banking riskier. The trend is changing how banks operate, and it's unclear how far it will go. Quick Sizzle's:
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