This Morning: Is Inflation Really Slowing?

INTEREST RATES: Slowing Inflation?

Federal Reserve Chairman Jerome Powell recognized the recent signs of slowing inflation. However, he emphasized on Thursday that the central bank remains steadfast in adhering to its 2% target.

During a much-anticipated address to the Economic Club of New York, Powell did not specify any definitive policy direction, nor did he hint at favoring an increase in interest rates.

Following his remarks, futures market traders dismissed the likelihood of a rate increase in November and even reduced expectations for a potential move in December. Powell acknowledged the strides in curbing inflation but highlighted the importance of continued vigilance in achieving the central bank's objectives.

The address arises amidst speculations about the Fed's next steps following a series of interest rate increases intended to temper inflation.

Powell expressed his belief that the current rates aren't excessively high.

Officials from the Fed have employed interest rate increases to balance the disparity between supply and demand in the employment sector. Since March 2022, the Fed has increased rates on 11 occasions, accumulating a total increase of 5.25 percentage points. Starting from a near-zero base for the fed funds rate, this has elevated the benchmark rate to its peak in approximately 22 years.

The address arises amidst speculations about the Fed's next steps following a series of interest rate increases intended to temper inflation.

Powell expressed his belief that the current rates aren't excessively high.

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SHEIN: Prepares for IPO

Shein's aspirations for a public listing are well-known, but the fast-fashion giant faces numerous challenges before securing Wall Street's approval. They became a household name during the COVID-19 pandemic due to their affordable and trendy clothes. Valued at an estimated $66 billion, the company has enlisted former Bear Stearns investment banker Donald Tang as its executive chair and chief representative.

While Shein aims to transition from selling $5 T-shirts to rivaling established retail behemoths, the buzz has always suggested an IPO as its ultimate objective. However, as Shein aims to crown its remarkable ascent with a U.S. market introduction, its aspirations are clouded by its Chinese connections and growing claims of utilizing forced labor, infringing labor regulations, environmental damage, and appropriating designs from individual artists.

Shein is actively working to resolve these concerns, aiming to demonstrate to U.S. regulators and Congress that it can be deemed trustworthy to list publicly in the U.S., especially given the heightened focus on businesses originating from China in recent times.

CREDIT SUISSE: More Cuts Coming

According to Financial News, Credit Suisse is set to initiate another round of job reductions, aiming at approximately 10% of the auxiliary staff, potentially in departments like compliance, risk, and marketing.

The Swiss financial institution has notified its employees that the cutbacks will commence on Nov. 6, as mentioned by sources unidentified to the publication.

Earlier this year, UBS Group AG acquired its historic Swiss competitor in a government-facilitated agreement and is currently streamlining a joint workforce that has expanded to roughly 120,000. As Bloomberg News indicated, UBS plans to trim this figure by around 30% eventually. Prior reductions primarily affected management and professionals in revenue-generating sectors like banking and trading.

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A Billion Dollar Mistake?

This man sold his stake in Apple for only $800, but today, it would be worth over $300 billion. In 1976, Steve Jobs and Steve Wozniak walked into the house of Ronald Wayne, who was an engineer that they worked with at Atari. A couple of hours later, Apple officially became a company. Steve Jobs received 45%, Steve Wozniak received 45%, and Ronald Wayne became a 10% company owner. Wayne was the guy that would be the tiebreaker in the case of a disagreement between the two Steves. In other words, he was considered the grown-up in the room.

The two Steves were both in their 20s, while Wayne was in his 40s. After about 12 days, Wayne was starting to worry about the vision of Apple and his belief in Steve Jobs and Steve Wozniak.

On top of that, he said that Jobs and Wozniak “did not have a nickel to their name,” he was worried that if creditors came after them, they would eventually come after Wayne instead.

He considered the risk too big, especially when dealing with two young, inexperienced entrepreneurs. So, he sold his stake in Apple for just $800. Assuming he never sold his stake in Apple, his stock would be worth hundreds of billions today. Wayne says he has absolutely no regret and would have made the same decision again.

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The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.