Dalio warns economic “perfect storm” forming
Bridgewater Associates founder Ray Dalio has said the economy is headed into a “perfect storm” as the Federal Reserve continues to push interest rates higher. Relief programs during the pandemic have created a bubble, and “now they’re putting on the brakes,” Dalio said.
JPMorgan’s Dimon: US economy at risk of recession
JPMorgan Chase CEO Jamie Dimon has warned in an interview with CNBC that a recession will hit the US and the global economy next year, prompted by higher interest rates and the Russia-Ukraine war. “These are very, very serious things, which I think are likely to push the US and the world — I mean, Europe is already in recession — and they’re likely to put the US in some kind of recession six to nine months from now,” Dimon said.
Job openings down by more than 1M in Aug.
Job openings totaled 10.05 million in August, down significantly from 11.17 million in July, according to the Bureau of Labor Statistics. The August number represents the largest monthly decrease since April 2020 and is among the first signs a tight labor market is cooling as job seekers and openings come closer into balance.
Goldman index shows tighter global financial conditions
An index from Goldman Sachs shows global financial conditions have tightened to the highest point since 2009 as interest rates increase, equity values plunge and the dollar rises. One investment manager says the conditions increase the likelihood of “black swan” events, while the International Monetary Fund, JPMorgan Chase CEO Jamie Dimon and Bridgewater Associates founder Ray Dalio say economic malaise is worsening.
FASB releases proposed update for segment reporting
The Financial Accounting Standards Board has proposed an update to segment reporting that Chair Richard Jones says would be the “most significant change” in the area since 1997. The proposal includes requirements for public entities to disclose notable segment expenses and other segment items.
CEOs expect recession, preparing accordingly
CEOs expect a recession, although optimism remains regarding their firm’s long-term outlook, according to a survey by KPMG. The survey shows 91% of CEOs expect a recession in the coming year, with 34% of those respondents thinking the recession will be short and mild, while more than 50% of CEOs say workforce reduction during the next six months is under consideration.
Shipping costs dropping quickly
Shipping costs for 40-foot containers have dropped nearly $2,000 during the past five weeks as demand slows and as bottlenecks subside, according to the Drewry World Container Index. A decrease in port blockage could mean reduced inflation, given that the Federal Reserve Bank of New York has estimated about 40% of price increases from 2019 to 2021 stemmed from supply chain woes.
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