The U.S. President has proposed an annual interest rate of no more than 10 percent on credit card loans. A senior executive at JPMorgan Chase considers the proposal a vain attempt to help low-income borrowers. The average market interest rate on credit card loans is 22%.— economist.com The Unregulated Credit Card Loan Market A 10% … Continue reading The Credit Card Loan Market
Author: EconEye Admin
Natural Gas Prices at Their Highest Level Since 2022
Meteorologists are warning of an extreme winter storm. As temperatures are expected to fall, U.S. residents will need more natural gas to heat their homes. Very low temperatures can also disrupt gas pipelines. A huge decrease in storage is expected. Natural gas prices are at their highest since 2022.—cnn.com
Vietnam’s Infrastructure Push to Drive Economic Growth
Vietnam’s President Lam has launched large-scale infrastructure megaprojects to achieve a high rate of economic growth. These projects include a large stadium, major road construction along the Red River, and a motorway linking Vietnam to Cambodia. Older projects, such as a new international airport, are near completion.— economist.com
Chip Makers and the Prices of Consumer Electronics
SK Hynix, Samsung, and Micron, the top three makers of memory chips used in smartphones and PCs (called DRAM), have switched from producing DRAM to producing the more profitable chips used in data centers (called HBM). Prices of DRAM have risen sharply. Adding new capacity to produce DRAM will take about two years.—economist.com
A Record Year for Airlines Is Not What It Seems
In 2025, airlines are expected to earn just $7.90 per passenger, yet total profits may reach $40 billion, according to IATA. As Boeing and Airbus struggled to raise production, airlines operated older aircrafts, increasing fuel and maintenance costs amidst rising demand.— economist.com
Warner Bros. Discovery Chooses Netflix Over Paramount
Warner Bros. Discovery (WBD) rejected Paramount’s bid and accepted Netflix’s offer for its streaming and studio assets. A key concern with Paramount’s proposal was the large amount of debt required. Antitrust authorities are expected to focus primarily on the paid streaming market when evaluating such mergers.—ft.com Market Data The U.S. paid streaming market shares (2025) … Continue reading Warner Bros. Discovery Chooses Netflix Over Paramount
Fairfield County and a K-Shaped Economy
A recent tax bill has increased income inequality in Fairfield County. Higher-income households, concentrated in towns like Greenwich, have seen rising after-tax incomes due to tax cuts. Lower-income households, concentrated in towns like Bridgeport, have experienced stagnant or declining incomes as eligibility for government benefits has been reduced.—ft.com
Decrease in Business Inventories Slow Investment Growth
Investment growth slowed sharply in the third quarter in several high-income technology exporters and ASEAN economies due to weaker external demand. The downturn was largely driven by falling business inventories.—Asian Development Outlook
Cheaper Walmart Thanksgiving Meal
Walmart’s Thanksgiving meal contains 15 products, six fewer than 2024’s. Items like pecan pie and sweet potato are out, and quantities have decreased—for example, one can of cream of mushroom soup versus two last years. Walmart store brands replace a large proportion of name brands. The meal is 25% cheaper.—cnn.com
The Fed and the ECB Expected to Head in Opposite Directions
Investors have increased bets that interest rates in the Eurozone could rise next year even as the U.S. continues to lower borrowing costs, weakening the dollar. The hawkish shift has raised bond yields in Europe.—ft.com