CNBC’s ‘Mad Money’ host Jim Cramer has discussed potential signs of an impending economic slowdown and its potential impact on the financial markets. Cramer highlighted decelerating growth in economic indicators such as jobs and wages, as well as concerns about the housing market.
A report by Scotiabank Economics warns that Canada’s economy would suffer a greater impact than the United States if Donald Trump wins the upcoming presidential election and imposes promised tax cuts and tariffs on all U.S. imports. The report says that Canada’s GDP would likely fall by 3.6% by 2027 relative to current forecasts, while inflation and interest rates would also rise. The report warns that Canada needs to urgently address its issues with lagging productivity to make itself less vulnerable to economic shocks from trade policy changes in the U.S. and abroad.
Stocks rallied broadly on Tuesday, extending Monday’s rebound, as lower-than-expected economic data fueled expectations of a potential Federal Reserve rate cut by summer’s end. Market participants parsed the S&P Global’s Purchasing Managers’ Index (PMI) for April, which pointed to a slowdown in private sector growth and eased inflationary pressures. The probability of a Fed rate cut by September jumped to 72%, prompting optimism in the markets. Corporate earnings have also largely exceeded estimates, with investors awaiting results from Visa and Tesla after market close. By midday, the S&P 500 had gained 1.2%, on track for its best performance in over a month. The Nasdaq 100 outpaced the broader market with a 1.5% rise, while the Dow Jones Industrial Average advanced by a more modest 0.6%.
Leon Cooperman, Omega Family Office Chairman and CEO, shared his insights on various economic and social issues during an interview on ‘Squawk Box’. He discussed the latest market trends, the current state of the economy, the ongoing federal deficit problem, and the Federal Reserve’s inflation fight. Cooperman also shared his top stock picks and commented on the protests on college campuses over the Israel-Hamas war, as well as the rise of antisemitism.
In the realm of cryptocurrency, Bitcoin ETFs have experienced a significant net inflow of $35 million on their first post-halving trading day. Ark Invest predicts a remarkable potential rally for Bitcoin, projecting a surge of over 3,000% within the next 12 months. Standard Chartered analysts anticipate Bitcoin’s value to double to $150,000 by year-end. Meanwhile, crypto analysts foresee a rise in Bitcoin’s value post-halving. Turning to politics, Biden has convened a meeting withAOC, Sanders, and other lawmakers amid disputes over Israel policy. Trump allegedly breached a gag order multiple times, raising questions about potential leniency from the judge in contempt charges. Trump has reversed his stance on TikTok, accusing Biden of favoring Meta. In economic news, Calix reports mixed results, joining other major stocks in a downward trend. Investor optimism shows improvement, but the Fear & Greed Index remains in the ‘Fear’ zone. Analysts highlight General Motors, Tesla, and three other stocks to watch. The EU warns China over Russia ties and trade imbalance, emphasizing the need for self-assertion. Nvidia’s high-end chips find their way into Chinese hands despite US restrictions. Home equity investments emerge as a growing asset class, surpassing $32 trillion in the US market. In the world of technology, Microsoft unveils a new AI model rivaling GPT-3.5, while Apple plans to make Quest OS the Android of mixed reality. Apple and Nvidia’s chip supplier face ongoing stock woes. Soccer broadcasting rights become a target for Apple after the success of Major League Soccer rights. Microsoft strengthens its AI capabilities with the acquisition of a former Meta executive. Tesla CEO Musk criticizes Waymo, suggesting Cybertruck’s potential for robotaxis amid vandalism concerns. Analysts express cautious optimism about Tesla’s Q1 earnings, seeking answers about robotaxis and Model 2. Adient, a seating maker, plans to cut jobs in Europe. Telecommunications company Calix faces a downturn, while ‘China’s Netflix’ targets the aging population with AI content. Analyst predicts TikTok’s shutdown in the US ahead of a Senate vote. LGBT dating app Grindr faces legal action for allegedly disclosing users’ HIV status. Boeing anticipates slower 787 production due to supplier shortages, but it will deliver Q1 earnings despite the ongoing air safety scandal. UBS Group considers westward expansion with a new office in Menlo Park. Visa’s Q2 earnings are expected to rise, based on recent analyst forecasts. California achieves a milestone in energy storage, surpassing gas and renewables for the first time. Musk labels Social Security as a Ponzi scheme, while SpaceX’s injury rates remain a concern.
Pakistan’s Finance Minister Muhammad Aurangzeb has expressed optimism about the country’s economic outlook, stating that foreign exchange reserves are expected to reach $10 billion by June this year. He emphasized the need for energy sector reforms and privatization to address the country’s financial challenges. Pakistan has requested a new bailout package from the IMF, which the Finance Minister believes is crucial for economic stability. Despite the government’s efforts to control inflation and reduce deficits, the IMF has noted that Pakistan’s external buffers have deteriorated. The minister also highlighted the growth in tax collection and the improvement in the agriculture sector.
Pakistan hopes to reach a staff-level agreement with the International Monetary Fund (IMF) by June or early July, Finance Minister Muhammad Aurangzeb said. The current $3 billion agreement expires in late April, and Pakistan seeks a larger loan to support macroeconomic stability and structural reforms.
India is projected to become the world’s second-largest economy by 2075, surpassing the United States. According to a Goldman Sachs report, India’s GDP will reach $52.5 trillion, just behind China’s $57 trillion and above the US’s $51.5 trillion. This growth is primarily driven by India’s labor force, technological advancements, and increasing capital investment. Despite some challenges, India’s economic potential is significant due to its low per capita income and growing innovation and technology sector.
Zhao Xiaowei’s decision to leave Beijing for his hometown in northeast China reflects a growing trend of reverse migration in the country. As the cost of living in major cities skyrockets, young professionals are seeking better futures in smaller cities where they can open their own businesses and have a better quality of life.
Canadian industrial producer prices saw a 0.8% monthly increase in March, continuing a two-month trend of growth. However, on a yearly basis, producer prices fell by 0.5%, following a revised 1.4% decrease in February.
