Wall Street Today | US Budget Deficit Widens Rapidly, Threatening Debt-Limit Timeline
MACRO
Fed’s Williams Says Peak Rate Forecasts Still ‘Very Reasonable’
“That still seems a very reasonable view of what we’ll need to do this year in order to get supply and demand in balance and bring inflation down,” Federal Reserve Bank of New York President John Williams said on Wednesday during a moderated discussion with the Wall Street Journal in New York.
Williams said further increases of a quarter percentage point “seems like the right size.” But he said the pace of further hikes would depend on incoming data.“We still have our work cut out for us,” he said.
US Budget Deficit Widens Rapidly, Threatening Debt-Limit Timeline
The federal budget deficit is widening rapidly, according to the latest estimates by the Congressional Budget Office, raising the risk of the Treasury running out of cash earlier than expected amid a debt-ceiling standoff.
The excess of spending over receipts totaled $459 billion for the first four months of the fiscal year, which started Oct. 1, according to CBO estimates released on Wednesday. That’s a $200 billion increase over the same period a year earlier.
SECTORS
Biden’s Nod to Enduring Oil Demand Sets Stage for COP28
US President Joe Biden Tuesday night during his annual State of the Union address, acknowledging a reality that the White House had long sidestepped: Even under the most aggressive climate policy, demand for oil will remain strong for some time yet.
Biden said the world would need oil for “at least another decade,” an admission that lends weight to a shift in focus among consuming nations: The high prices of last year and the redrawing of global crude flows have elevated energy security to a policy priority — at the cost of efforts to fight climate change.
COMPANY
Disney to Cut 7,000 Jobs as Bob Iger Seeks $5.5 Billion in Savings
The reductions include plans to cut $3 billion from its budget for movies and TV shows and the rest in non-content related areas. About $1 billion of the savings are already underway, Iger said Wednesday on a conference call with investors.
Shares of $Disney (DIS.US)$ rose in extended trading after the announcement and the company’s report of better-than-expected quarterly sales and profit, led by the theme-parks division.
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Bed Bath & Beyond’s 30,000 Workers Were Key Factor in Last-Minute Deal
The threat of big job losses for its 30,000 employees raised the stakes, according to people on the Feb. 3 conference call, who declined to be named. Kikland & Ellis attorney Joshua Sussberg reminded lenders of the human cost should the firm crater before all capital-raising options were exhausted. $Bed Bath & Beyond Inc (BBBY.US)$
Tesla Expected to Announce Mexico Project Soon, Ebrard Says
$Tesla (TSLA.US)$ is expected to announce an investment in Mexico very soon as the country works to expand infrastructure and renewable energy supply to take advantage of a boom in companies relocating, Foreign Affairs Minister Marcelo Ebrard said.
The Mexican government has been working with the carmaker led by billionaire Elon Musk to help it find a location to set up a plant in the country and the company has seen several locations, Ebrard said, declining to give details of the project.
Netflix Starts Cracking Down on Password Sharing in Four Countries
$Netflix (NFLX.US)$ on Wednesday outlined its long-awaited password-sharing guidelines, starting first with users in Canada, New Zealand, Portugal and Spain, marking the latest step in the company's telegraphed crackdown.
SpaceX Prepares for A Massive Test This Week: Firing All 33 Starship Engines at Once
SpaceX on Thursday will attempt a “static fire,” simultaneously testing all 33 engines that sit at the base of Starship’s rocket booster. The company conducted a test firing of 14 of those engines in November, as it pushes to make an orbital launch attempt with a Starship prototype.
“Keep in mind, this first one is really a test flight ... and the real goal is to not blow up the launch pad, that is success,” SpaceX President Gwynne Shotwell said Wednesday.
Source: Bloomberg, CNBC
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InvestUncle : dovish again , am sure market will rally frenzily , again
mlgbb : I can't understand the Chinese title and English content expression
Seraphicall InvestUncle : Why dovish?
Will73 mlgbb : I'm looking at the English title here. You should have enabled automatic translation, you can turn it off
Cherry Cat mlgbb : Click the three dots in the upper right corner to select the translation function