REUTERS
"Bank of America profit hurt by losses on credit cards, office loans"
By Saeed Azhar and Mehnaz Yasmin
April 16, 2024
NEW YORK, April 16 (Reuters) - Bank of America shares on Tuesday fell more than 3% after its first-quarter profits shrank and the bank set aside more money to cover souring loans from consumers whose finances are worsening.
U.S. lenders have cited resilient household finances as evidence that the economy remains on a solid footing, but cracks are starting to show for the lowest-income consumers.
While their spending remains robust despite rising borrowing costs, higher prices and shrinking savings, banks are preparing for more Americans to miss payments.
"The market has used Bank of America as the bellwether for consumer commentary," said David Wagner, a portfolio manager at Aptus Capital Advisors.
"The weakness in credit card delinquencies caught them offside."
BofA's net charge-offs, or debts that are unlikely to be recovered, rose to $1.5 billion in the first quarter from $807 million a year earlier, mainly from credit card losses.
The charge-offs are from delinquencies in the fourth quarter, but are beginning to stabilize, said Alastair Borthwick, chief financial officer.
"The main economic hangover for Bank of America as well as most other banks is that Federal Reserve interest rates may not decline as quickly as previously expected," said Michael Ashley Schulman, chief investment officer of California-based investment firm Running Point, which advises wealthy families.
"Therefore they may see an uptick in consumer and business delinquencies and defaults, especially from real estate."
"One good quarter from the bank is not going to allay these macro concerns."
Despite Tuesday's decline, BofA shares were up about 3% this year, lagging the S&P 500 bank index's 4.7% increase and a 6% gain for rival JPMorgan.
BofA's net interest income (NII) — the difference between what it earns on loans and pays for deposits — slid 3% to $14 billion as it paid more to customers to park their money while demand from borrowers stayed modest.
But it was turning more optimistic.
"We continue to expect that Q2 will be the low point for NII and we expect the back half of 2024 to grow," Borthwick told analysts on a conference call on Tuesday.
JPMorgan, the largest U.S. lender, slightly increased its estimate for NII, disappointing investors who hoped that the bank would reap even greater benefits from a prolonged period of higher interest rates.
BofA's CEO Brian Moynihan told analysts the bank had cut the workforce by more than 4,700 employees from the first quarter of 2023.
SHIFTING EXPECTATIONS
Excluding one-off items, Bank of America earned 83 cents a share in the first quarter, ahead of analysts' average estimate of 76 cents a share, according to LSEG data.
Still, shifting expectations for U.S. interest rate cuts and an uncertain economic outlook have made it more difficult to predict future profits, banking executives said last week.
If the Federal Reserve keeps rates higher for longer in the coming months, lenders that made bumper profits from rising interest rates in the last two years could build on their gains.
But their earnings could diminish if a potential economic slowdown deters borrowers from taking out loans.
"Generally speaking, higher for longer is probably better for banks," said Borthwick.
"Inflation is under control ... that appears to be the case."
"So that's obviously a good place."
A resilient U.S. economy, buoyant equities and a flurry of large deals have reignited hopes of a nascent recovery in dealmaking, although industry executives have expressed guarded optimism.
Investment banking fees jumped 35% to $1.6 billion from a year earlier, partially offsetting a decline in interest payments due to slow demand from borrowers.
Last month, Borthwick said he expected investment banking revenue to jump 10% to 15% in the first quarter.
Revenue from the segment also rose at rival JPMorgan and Citigroup in the first quarter, fueled by gains in debt and equity capital markets.
BofA's sales and trading revenue rose 2% to $5.2 billion with equities contributing a 15% jump and fixed income currencies and commodities posting a 4% decline.
COMMERCIAL REAL ESTATE
Bank of America set aside $1.3 billion in provisions for credit losses in the first quarter, up from $931 million a year earlier.
It also took more writedowns on office loans, which partly increased loan losses for its commercial division.
Still, its CFO said the lender had limited commercial real estate exposure and was reviewing ratings, property appraisals and sales.
Revenue from Bank of America's consumer unit sank 5% to $10 billion in the quarter, primarily due to lower deposit balances.
Bank of America also took a $700 million charge in the reported quarter to replenish a government deposit insurance fund, drained by $16 billion to cover depositors of two banks that collapsed in 2023.
Profit from BofA's Merrill wealth management division rose about 10% to $1 billion as rising equity values generated higher fees with record revenue and client balances.
The division grew assets under management to $1.4 trillion from $1.3 trillion in the fourth quarter.
Reporting by Saeed Azhar in New York and Mehnaz Yasmin in Bengaluru;additional reporting by Sinead Carew; Editing by Lananh Nguyen, Shinjini Ganguli and Nick Zieminski
https://www.reuters.com/business/financ ... 024-04-16/
POLITICS
Re: POLITICS
REUTERS
"US manufacturing output increases in March; February data revised higher"
By Reuters
April 16, 2024
WASHINGTON, April 16 (Reuters) - Production at U.S. factories increased solidly in March as output at motor vehicle assembly plants and elsewhere rose, suggesting that manufacturing was turning the corner after being constrained by higher borrowing costs.
Manufacturing output rose 0.5% last month after an upwardly revised 1.2% rebound in the prior month, the Federal Reserve said on Tuesday.
Factory output was previously reported to have rebounded 0.8% in February.
Economists polled by Reuters had forecast factory output rising 0.3%.
Production at factories increased 0.8% year-on-year in March.
It edged down at a 0.1% annualized rate in the first quarter after contracting at a 0.9% pace in the October-December quarter.
Manufacturing accounts for 10.4% of the economy.
A survey from the Institute for Supply Management early this month showed manufacturing grew for the first time in 1-1/2 years in March.
But with the Federal Reserve expected to delay an anticipated rate cut this year amid stubbornly high inflation, manufacturing is not out of the woods yet.
Motor vehicle and parts output increased 3.1% last month after advancing 3.4% in February.
Durable goods manufacturing production rose 0.3%.
There were significant increases in the output of aerospace and miscellaneous transportation equipment, and wood products.
But output of nonmetallic mineral products, furniture as well as primary metals declined.
Production of nondurable goods rose 0.7% as gains in the output of petroleum and coal products and chemicals offset declines food, beverage and tobacco products.
Mining output dropped 1.4% after rebounding 3.0% in February.
Utilities production rose 2.0% after decreasing 7.6% in February.
Overall industrial production rose 0.4% in March after rising by the same margin in February.
Industrial production was unchanged year-on-year in March.
It contracted at a 1.8% pace in the January-March quarter after shrinking at a 1.9% rate in the fourth quarter.
Capacity utilization for the industrial sector, a measure of how fully firms are using their resources, rose to 78.4% from 78.2% in February.
It is 1.2 percentage points below its 1972-2023 average.
The operating rate for the manufacturing sector increased 0.3 percentage point in March to 77.4%.
It is 0.8 percentage points below its long-run average.
Reporting by Lucia Mutikani; Editing by Andrea Ricci
https://www.reuters.com/markets/us/us-m ... 024-04-16/
"US manufacturing output increases in March; February data revised higher"
By Reuters
April 16, 2024
WASHINGTON, April 16 (Reuters) - Production at U.S. factories increased solidly in March as output at motor vehicle assembly plants and elsewhere rose, suggesting that manufacturing was turning the corner after being constrained by higher borrowing costs.
Manufacturing output rose 0.5% last month after an upwardly revised 1.2% rebound in the prior month, the Federal Reserve said on Tuesday.
Factory output was previously reported to have rebounded 0.8% in February.
Economists polled by Reuters had forecast factory output rising 0.3%.
Production at factories increased 0.8% year-on-year in March.
It edged down at a 0.1% annualized rate in the first quarter after contracting at a 0.9% pace in the October-December quarter.
Manufacturing accounts for 10.4% of the economy.
A survey from the Institute for Supply Management early this month showed manufacturing grew for the first time in 1-1/2 years in March.
But with the Federal Reserve expected to delay an anticipated rate cut this year amid stubbornly high inflation, manufacturing is not out of the woods yet.
Motor vehicle and parts output increased 3.1% last month after advancing 3.4% in February.
Durable goods manufacturing production rose 0.3%.
There were significant increases in the output of aerospace and miscellaneous transportation equipment, and wood products.
But output of nonmetallic mineral products, furniture as well as primary metals declined.
Production of nondurable goods rose 0.7% as gains in the output of petroleum and coal products and chemicals offset declines food, beverage and tobacco products.
Mining output dropped 1.4% after rebounding 3.0% in February.
Utilities production rose 2.0% after decreasing 7.6% in February.
Overall industrial production rose 0.4% in March after rising by the same margin in February.
Industrial production was unchanged year-on-year in March.
It contracted at a 1.8% pace in the January-March quarter after shrinking at a 1.9% rate in the fourth quarter.
Capacity utilization for the industrial sector, a measure of how fully firms are using their resources, rose to 78.4% from 78.2% in February.
It is 1.2 percentage points below its 1972-2023 average.
The operating rate for the manufacturing sector increased 0.3 percentage point in March to 77.4%.
It is 0.8 percentage points below its long-run average.
Reporting by Lucia Mutikani; Editing by Andrea Ricci
https://www.reuters.com/markets/us/us-m ... 024-04-16/
Re: POLITICS
REUTERS
"Fed could keep monetary policy tight for longer if needed, Jefferson says"
By Howard Schneider
April 16, 2024
WASHINGTON, April 16 (Reuters) - Federal Reserve Vice Chair Philip Jefferson, in remarks devoid of any mention of interest rate cuts, said on Tuesday "it will be appropriate to hold in place the current restrictive stance of policy for longer" if inflation fails to slow as expected.
"My baseline outlook continues to be that inflation will decline further, with the policy rate held steady at its current level, and that the labor market will remain strong, with labor demand and supply continuing to rebalance," Jefferson said in remarks prepared for a speech to a Fed research conference in Washington.
"Of course, the outlook is still quite uncertain, and if incoming data suggest that inflation is more persistent than I currently expect it to be, it will be appropriate to hold in place the current restrictive stance of policy for longer."
"I am fully committed to getting inflation back to 2%."
His comments did not include what has been a standard messaging point for Fed officials in recent months that rate cuts could begin once policymakers gained more confidence that inflation is still falling - a hurdle that's become steeper after inflation through the first quarter proved unexpectedly strong.
On Feb. 22, for example, Jefferson said "if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back our policy restraint later this year."
His remarks on Tuesday noted that while the baseline remained for inflation to slow, "inflation data over the past three months were above the low readings in the second half of last year," while job growth and retail spending remained stronger than expected.
"While we have seen considerable progress in lowering inflation, the job of sustainably restoring 2% inflation is not yet done," Jefferson said in his prepared remarks.
March, in fact, may prove another lost month for the Fed.
Jefferson said that staff estimates indicate the personal consumption expenditures price index, which the Fed uses to set its 2% inflation target, increased at a 2.7% annual rate in March, faster than in February.
The "core" rate excluding food and energy prices is estimated to have increased at a 2.8% rate, unchanged from the prior month.
The bulk of Jefferson's prepared remarks were devoted to a historical review of how policymakers deal with uncertainty, with just three paragraphs on the "current situation."
Fed Chair Jerome Powell is scheduled to field questions during an event in Washington at 1:15 p.m. EDT (1715 GMT) on Tuesday.
Reporting by Howard Schneider; Editing by Paul Simao
https://www.reuters.com/markets/us/fed- ... 024-04-16/
"Fed could keep monetary policy tight for longer if needed, Jefferson says"
By Howard Schneider
April 16, 2024
WASHINGTON, April 16 (Reuters) - Federal Reserve Vice Chair Philip Jefferson, in remarks devoid of any mention of interest rate cuts, said on Tuesday "it will be appropriate to hold in place the current restrictive stance of policy for longer" if inflation fails to slow as expected.
"My baseline outlook continues to be that inflation will decline further, with the policy rate held steady at its current level, and that the labor market will remain strong, with labor demand and supply continuing to rebalance," Jefferson said in remarks prepared for a speech to a Fed research conference in Washington.
"Of course, the outlook is still quite uncertain, and if incoming data suggest that inflation is more persistent than I currently expect it to be, it will be appropriate to hold in place the current restrictive stance of policy for longer."
"I am fully committed to getting inflation back to 2%."
His comments did not include what has been a standard messaging point for Fed officials in recent months that rate cuts could begin once policymakers gained more confidence that inflation is still falling - a hurdle that's become steeper after inflation through the first quarter proved unexpectedly strong.
On Feb. 22, for example, Jefferson said "if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back our policy restraint later this year."
His remarks on Tuesday noted that while the baseline remained for inflation to slow, "inflation data over the past three months were above the low readings in the second half of last year," while job growth and retail spending remained stronger than expected.
"While we have seen considerable progress in lowering inflation, the job of sustainably restoring 2% inflation is not yet done," Jefferson said in his prepared remarks.
March, in fact, may prove another lost month for the Fed.
Jefferson said that staff estimates indicate the personal consumption expenditures price index, which the Fed uses to set its 2% inflation target, increased at a 2.7% annual rate in March, faster than in February.
The "core" rate excluding food and energy prices is estimated to have increased at a 2.8% rate, unchanged from the prior month.
The bulk of Jefferson's prepared remarks were devoted to a historical review of how policymakers deal with uncertainty, with just three paragraphs on the "current situation."
Fed Chair Jerome Powell is scheduled to field questions during an event in Washington at 1:15 p.m. EDT (1715 GMT) on Tuesday.
Reporting by Howard Schneider; Editing by Paul Simao
https://www.reuters.com/markets/us/fed- ... 024-04-16/
Re: POLITICS
REUTERS
"Yellen says US working to mitigate risks to global economy"
By Andrea Shalal
April 16, 2024
WASHINGTON, April 16 (Reuters) - U.S. Treasury Secretary Janet Yellen on Tuesday said a stronger-than-expected U.S. economic growth had helped power the global economy, and Washington was working to mitigate remaining risks to the global outlook and ensure sustainable long-term growth.
In remarks prepared for a news conference, Yellen said the U.S. labor market was remarkably healthy and inflation was down significantly from its peak, although there was more work to do.
She said she expected the U.S. economy to continue to underpin the global economy, but acknowledged that the global recovery had been uneven and risks remained.
"From the start of the administration, President (Joe) Biden has made clear that American isolationism was over," Yellen said.
"So while we expect that America’s economic strength will continue to underpin global growth, we’ve also been engaging with the world to mitigate short-term risks and support sustainable long-term growth."
That work will continue at this week's spring meetings of the International Monetary Fund and World Bank, where Yellen will meet with officials from China, South Korea, Japan, Britain and many other countries.
Yellen said she raised concerns with Chinese officials during her visit to Guangzhou and Beijing earlier this month about the risks that its manufacturing overcapacity posed to the United States and the global economy.
This week, she said U.S. and Chinese officials will hold the fourth meetings of the Economic and Financial Working Groups, which will focus on anti-money laundering and balanced growth.
Yellen said she also planned to work with Brazil, current president of the Group of Twenty (G20) major economies, including on a review of the global climate finance architecture.
The United States would also keep pushing for reforms at the World Bank and other multilateral development banks (MDBs) to expand their lending capacity to help developing countries deal with climate change, pandemics and other challenges that posed risks to global growth.
"No one country can tackle these issue alone, nor is bilateral action sufficient, so we've pushed for decisive and coordinated action," she said.
Yellen said the World Bank and other MDBs had made significant progress, boosting lending capacity over the next decade by $200 billion from responsibly stretching balance sheets and another $50 billion from capital increases at the European Bank for Reconstruction and Development and the Inter-American Development Bank.
At the IMF, she said, the United States was focused on strengthening the global lender's ability to respond to crises and was pushing the IMF to structure loans with "robust policy conditionality" to enable countries to restore stability.
Reporting by Andrea Shalal; Editing by Chizu Nomiyama
https://www.reuters.com/markets/us/yell ... 024-04-16/
"Yellen says US working to mitigate risks to global economy"
By Andrea Shalal
April 16, 2024
WASHINGTON, April 16 (Reuters) - U.S. Treasury Secretary Janet Yellen on Tuesday said a stronger-than-expected U.S. economic growth had helped power the global economy, and Washington was working to mitigate remaining risks to the global outlook and ensure sustainable long-term growth.
In remarks prepared for a news conference, Yellen said the U.S. labor market was remarkably healthy and inflation was down significantly from its peak, although there was more work to do.
She said she expected the U.S. economy to continue to underpin the global economy, but acknowledged that the global recovery had been uneven and risks remained.
"From the start of the administration, President (Joe) Biden has made clear that American isolationism was over," Yellen said.
"So while we expect that America’s economic strength will continue to underpin global growth, we’ve also been engaging with the world to mitigate short-term risks and support sustainable long-term growth."
That work will continue at this week's spring meetings of the International Monetary Fund and World Bank, where Yellen will meet with officials from China, South Korea, Japan, Britain and many other countries.
Yellen said she raised concerns with Chinese officials during her visit to Guangzhou and Beijing earlier this month about the risks that its manufacturing overcapacity posed to the United States and the global economy.
This week, she said U.S. and Chinese officials will hold the fourth meetings of the Economic and Financial Working Groups, which will focus on anti-money laundering and balanced growth.
Yellen said she also planned to work with Brazil, current president of the Group of Twenty (G20) major economies, including on a review of the global climate finance architecture.
The United States would also keep pushing for reforms at the World Bank and other multilateral development banks (MDBs) to expand their lending capacity to help developing countries deal with climate change, pandemics and other challenges that posed risks to global growth.
"No one country can tackle these issue alone, nor is bilateral action sufficient, so we've pushed for decisive and coordinated action," she said.
Yellen said the World Bank and other MDBs had made significant progress, boosting lending capacity over the next decade by $200 billion from responsibly stretching balance sheets and another $50 billion from capital increases at the European Bank for Reconstruction and Development and the Inter-American Development Bank.
At the IMF, she said, the United States was focused on strengthening the global lender's ability to respond to crises and was pushing the IMF to structure loans with "robust policy conditionality" to enable countries to restore stability.
Reporting by Andrea Shalal; Editing by Chizu Nomiyama
https://www.reuters.com/markets/us/yell ... 024-04-16/
Re: POLITICS
REUTERS
"Smaller US manufacturers warm to Biden's big industrial plan, survey shows"
By Timothy Aeppel
April 16, 2024
April 16 (Reuters) - America’s small and mid-sized manufacturers may be warming up to the Biden administration’s push for an aggressive industrial policy.
In a survey of 150 producers, nearly 49% said they thought President Joe Biden "is more likely to bring about an American manufacturing renaissance," while just over 31% gave that accolade to Republican candidate Donald Trump.
About 15% favor an unnamed third-party candidate to revitalize the sector, according to the survey conducted by polling company John Zogby Strategies on behalf of Xometry, a Maryland-based company that provides digital sourcing services for industrial producers.
Biden’s industrial policy, headlined by legislation passed in 2022 that sparked a surge of factory construction, is aimed at boosting semiconductors, electric vehicles and green technologies, as well as other sectors.
The efforts so far have not produced many manufacturing jobs.
And so, as the presidential campaign shifts into higher gear ahead of November’s election, Biden is touring factories to tout his accomplishments, especially to voters in battleground states.
"This is the first time in a long time that we’ve had a deliberate industrial strategy being pushed by the executive branch - that’s unique," said Randy Altschuler, chief executive of Xometry.
Altschuler said federal investments have yet to filter down to smaller producers, with many of the most high-profile projects favoring giants like Intel and Samsung, which are both planning new semiconductor plants.
"You’re going to see a bigger benefit (for smaller companies) further down the road," said Altschuler, as those projects create demand for the underlying pipeline of goods and services needed to complete and supply those factories.
Altschuler, who ran for Congress in New York in 2010 and lost and remains a registered Republican, said the political divide over industrial policy - which was once opposed by many Republicans as picking winners and losers - has narrowed sharply in recent years.
Republican Senator Marco Rubio of Florida, for instance, recently penned an essay for the conservative policy journal National Affairs that argued the U.S. needs a strong industrial policy while faulting the Biden initiatives.
Still, manufacturers favor Republicans by one key measure.
The National Association of Manufacturers Political Action Committee has so far directed nearly three-quarters of its contributions to Republican candidates in this election cycle, according to the nonprofit research group OpenSecrets.
Reporting by Timothy Aeppel; Editing by Chizu Nomiyama
https://www.reuters.com/markets/us/smal ... 024-04-16/
"Smaller US manufacturers warm to Biden's big industrial plan, survey shows"
By Timothy Aeppel
April 16, 2024
April 16 (Reuters) - America’s small and mid-sized manufacturers may be warming up to the Biden administration’s push for an aggressive industrial policy.
In a survey of 150 producers, nearly 49% said they thought President Joe Biden "is more likely to bring about an American manufacturing renaissance," while just over 31% gave that accolade to Republican candidate Donald Trump.
About 15% favor an unnamed third-party candidate to revitalize the sector, according to the survey conducted by polling company John Zogby Strategies on behalf of Xometry, a Maryland-based company that provides digital sourcing services for industrial producers.
Biden’s industrial policy, headlined by legislation passed in 2022 that sparked a surge of factory construction, is aimed at boosting semiconductors, electric vehicles and green technologies, as well as other sectors.
The efforts so far have not produced many manufacturing jobs.
And so, as the presidential campaign shifts into higher gear ahead of November’s election, Biden is touring factories to tout his accomplishments, especially to voters in battleground states.
"This is the first time in a long time that we’ve had a deliberate industrial strategy being pushed by the executive branch - that’s unique," said Randy Altschuler, chief executive of Xometry.
Altschuler said federal investments have yet to filter down to smaller producers, with many of the most high-profile projects favoring giants like Intel and Samsung, which are both planning new semiconductor plants.
"You’re going to see a bigger benefit (for smaller companies) further down the road," said Altschuler, as those projects create demand for the underlying pipeline of goods and services needed to complete and supply those factories.
Altschuler, who ran for Congress in New York in 2010 and lost and remains a registered Republican, said the political divide over industrial policy - which was once opposed by many Republicans as picking winners and losers - has narrowed sharply in recent years.
Republican Senator Marco Rubio of Florida, for instance, recently penned an essay for the conservative policy journal National Affairs that argued the U.S. needs a strong industrial policy while faulting the Biden initiatives.
Still, manufacturers favor Republicans by one key measure.
The National Association of Manufacturers Political Action Committee has so far directed nearly three-quarters of its contributions to Republican candidates in this election cycle, according to the nonprofit research group OpenSecrets.
Reporting by Timothy Aeppel; Editing by Chizu Nomiyama
https://www.reuters.com/markets/us/smal ... 024-04-16/
Re: POLITICS
REUTERS
"US trade chief Tai says taking 'serious look' at tools to deal with China"
By David Lawder
April 16, 2024
WASHINGTON, April 16 (Reuters) - U.S. Trade Representative Katherine Tai will tell lawmakers on Tuesday that the Biden administration is "taking a serious look" at U.S. trade defense tools to deal with threats posed by China's trade and economic policies, including a review of Trump-era tariffs on Chinese imports.
In excerpts of testimony to the U.S. House of Representatives Ways and Means Committee released ahead of a hearing on Tuesday, Tai said that China's policies were causing "dependencies and vulnerabilities in multiple sectors, harming American workers and businesses and creating real risks for our supply chains."
"This is why we are taking a serious look at how our existing tools are addressing this problem, including through our four-year review of the China Section 301 tariffs," Tai said.
Tai's testimony on the Biden administration's 2024 trade agenda comes just a week after U.S. Treasury Secretary Janet Yellen issued a warning to Chinese leaders that their overinvestment in production capacity for electric vehicles, solar panels and other clean energy goods was threatening an unacceptable wave of exports that would hurt producers and workers in the United States and elsewhere.
Yellen on Tuesday will commence a new dialogue with Chinese officials on "balanced growth" at the Treasury, but China trade experts say her message to Beijing on excess capacity may be an initial step toward a new "Section 301" unfair trade practices investigation that could impose new tariffs on EVs, solar panels and other imports.
Former President Donald Trump used Section 301 of the Trade Act of 1974, to impose tariffs on hundreds of billions of dollars worth of Chinese imports in 2018.
The Biden administration is now nearing completion of a lengthy review of whether to renew those duties.
Tai also will tell lawmakers that she is closely reviewing a petition from five U.S. unions to open a new Section 301 investigation into China's allegedly unfair acts, policies and practices in the maritime logistics and shipbuilding sector.
"Our economic relationship with the PRC is complex, and as the President said, we want competition with China, not conflict," Tai said in her excerpts.
A major goal of the Biden administration's work on supply chains has been aimed at reducing dependence on China and diversifying sources of supply to avoid bottlenecks like those that occurred at the end of the COVID-19 pandemic, Tai said
"Reducing dependencies and vulnerabilities and strengthening supply chains is a major priority for USTR this year, which informs our work as part of the President’s Council on Supply Chain Resilience," Tai said.
The U.S. trade chief has put workers at the center of U.S. trade policy, seeking to build higher labor standards in trade negotiations with other countries.
She said this includes prioritizing strong labor commitments in negotiations with Kenya and Taiwan.
Reporting by David Lawder; Editing by Michael Perry
https://www.reuters.com/world/us-trade- ... 024-04-16/
"US trade chief Tai says taking 'serious look' at tools to deal with China"
By David Lawder
April 16, 2024
WASHINGTON, April 16 (Reuters) - U.S. Trade Representative Katherine Tai will tell lawmakers on Tuesday that the Biden administration is "taking a serious look" at U.S. trade defense tools to deal with threats posed by China's trade and economic policies, including a review of Trump-era tariffs on Chinese imports.
In excerpts of testimony to the U.S. House of Representatives Ways and Means Committee released ahead of a hearing on Tuesday, Tai said that China's policies were causing "dependencies and vulnerabilities in multiple sectors, harming American workers and businesses and creating real risks for our supply chains."
"This is why we are taking a serious look at how our existing tools are addressing this problem, including through our four-year review of the China Section 301 tariffs," Tai said.
Tai's testimony on the Biden administration's 2024 trade agenda comes just a week after U.S. Treasury Secretary Janet Yellen issued a warning to Chinese leaders that their overinvestment in production capacity for electric vehicles, solar panels and other clean energy goods was threatening an unacceptable wave of exports that would hurt producers and workers in the United States and elsewhere.
Yellen on Tuesday will commence a new dialogue with Chinese officials on "balanced growth" at the Treasury, but China trade experts say her message to Beijing on excess capacity may be an initial step toward a new "Section 301" unfair trade practices investigation that could impose new tariffs on EVs, solar panels and other imports.
Former President Donald Trump used Section 301 of the Trade Act of 1974, to impose tariffs on hundreds of billions of dollars worth of Chinese imports in 2018.
The Biden administration is now nearing completion of a lengthy review of whether to renew those duties.
Tai also will tell lawmakers that she is closely reviewing a petition from five U.S. unions to open a new Section 301 investigation into China's allegedly unfair acts, policies and practices in the maritime logistics and shipbuilding sector.
"Our economic relationship with the PRC is complex, and as the President said, we want competition with China, not conflict," Tai said in her excerpts.
A major goal of the Biden administration's work on supply chains has been aimed at reducing dependence on China and diversifying sources of supply to avoid bottlenecks like those that occurred at the end of the COVID-19 pandemic, Tai said
"Reducing dependencies and vulnerabilities and strengthening supply chains is a major priority for USTR this year, which informs our work as part of the President’s Council on Supply Chain Resilience," Tai said.
The U.S. trade chief has put workers at the center of U.S. trade policy, seeking to build higher labor standards in trade negotiations with other countries.
She said this includes prioritizing strong labor commitments in negotiations with Kenya and Taiwan.
Reporting by David Lawder; Editing by Michael Perry
https://www.reuters.com/world/us-trade- ... 024-04-16/
Re: POLITICS
REUTERS
"US economic activity expanded slightly in recent weeks, Fed says"
By Reuters
April 17, 2024
April 17 (Reuters) - U.S. economic activity expanded slightly from late February through early April and firms signaled they expect inflation pressures to hold steady, a Federal Reserve survey showed on Wednesday, continuing recent trends that have kept the central bank from being able to cut interest rates.
The U.S. central bank released its latest snapshot on the health of the economy a day after Fed Chair Jerome Powell ditched previous guidance on when its benchmark interest rate may be cut and instead said monetary policy needs to be restrictive for longer due to a string of stronger-than-expected inflation readings.
"Overall economic activity expanded slightly ..."
"Ten out of twelve Districts experienced either slight or modest economic growth," the Fed said in the survey known as the "Beige Book," which polled business contacts across the central bank's 12 districts through April 8.
"The economic outlook among contacts was cautiously optimistic, on balance."
Up until the turn of the year, Powell and his colleagues had been buoyed by data that showed inflation, which spiked to a 40-year high two years ago, drifting downwards toward the Fed's 2% target rate, even amid strong economic growth and a low unemployment rate.
However, that momentum has stalled and even reversed, calling into question whether the Fed, which in March provisionally penciled in three rate cuts this year, will be able to cut its policy rate in the coming months.
Investors now only expect a first cut in September and the odds of a second cut are dwindling.
INFLATION TO HOLD STEADY
In the Fed's survey, the pace of price increases was described overall by firms as modest on average, but six of the central bank's districts noted moderate increases in energy prices and contacts in a few of them, mostly manufacturers, saw upside risks in the near-term in both input and output prices.
"On balance, contacts expected that inflation would hold steady at a slow pace moving forward," the survey noted, even as firms frequently said their ability to pass cost increases on to consumers "had weakened considerably" in recent months.
The Fed is expected at the end of its April 30-May 1 policy meeting to leave its policy rate in the current 5.25%-5.50% range, where it has been since last July.
By the Fed's preferred measure, inflation in February ticked up to a 2.5% annual rate, while a gauge that strips out more volatile food and energy components, rose at a 2.8% annual rate.
Employment rose at a slight pace overall too, the Fed survey showed.
Despite more available workers, many Fed districts continued to see persistent shortages of qualified applicants for certain positions, but multiple districts said that annual wage growth rates had recently returned to historical averages.
One restaurateur, for instance, told the Cleveland Fed "we've seen wages stabilize and haven't had to escalate wages to hire good people."
Reporting by Lindsay Dunsmuir and Ann Saphir; Editing by Paul Simao
https://www.reuters.com/markets/us/us-e ... 024-04-17/
"US economic activity expanded slightly in recent weeks, Fed says"
By Reuters
April 17, 2024
April 17 (Reuters) - U.S. economic activity expanded slightly from late February through early April and firms signaled they expect inflation pressures to hold steady, a Federal Reserve survey showed on Wednesday, continuing recent trends that have kept the central bank from being able to cut interest rates.
The U.S. central bank released its latest snapshot on the health of the economy a day after Fed Chair Jerome Powell ditched previous guidance on when its benchmark interest rate may be cut and instead said monetary policy needs to be restrictive for longer due to a string of stronger-than-expected inflation readings.
"Overall economic activity expanded slightly ..."
"Ten out of twelve Districts experienced either slight or modest economic growth," the Fed said in the survey known as the "Beige Book," which polled business contacts across the central bank's 12 districts through April 8.
"The economic outlook among contacts was cautiously optimistic, on balance."
Up until the turn of the year, Powell and his colleagues had been buoyed by data that showed inflation, which spiked to a 40-year high two years ago, drifting downwards toward the Fed's 2% target rate, even amid strong economic growth and a low unemployment rate.
However, that momentum has stalled and even reversed, calling into question whether the Fed, which in March provisionally penciled in three rate cuts this year, will be able to cut its policy rate in the coming months.
Investors now only expect a first cut in September and the odds of a second cut are dwindling.
INFLATION TO HOLD STEADY
In the Fed's survey, the pace of price increases was described overall by firms as modest on average, but six of the central bank's districts noted moderate increases in energy prices and contacts in a few of them, mostly manufacturers, saw upside risks in the near-term in both input and output prices.
"On balance, contacts expected that inflation would hold steady at a slow pace moving forward," the survey noted, even as firms frequently said their ability to pass cost increases on to consumers "had weakened considerably" in recent months.
The Fed is expected at the end of its April 30-May 1 policy meeting to leave its policy rate in the current 5.25%-5.50% range, where it has been since last July.
By the Fed's preferred measure, inflation in February ticked up to a 2.5% annual rate, while a gauge that strips out more volatile food and energy components, rose at a 2.8% annual rate.
Employment rose at a slight pace overall too, the Fed survey showed.
Despite more available workers, many Fed districts continued to see persistent shortages of qualified applicants for certain positions, but multiple districts said that annual wage growth rates had recently returned to historical averages.
One restaurateur, for instance, told the Cleveland Fed "we've seen wages stabilize and haven't had to escalate wages to hire good people."
Reporting by Lindsay Dunsmuir and Ann Saphir; Editing by Paul Simao
https://www.reuters.com/markets/us/us-e ... 024-04-17/
Re: POLITICS
REUTERS
"US trade chief calls for 'decisive' action to shield EV sector from China"
By David Lawder
April 17, 2024
WASHINGTON, April 17 (Reuters) - The U.S. must take "decisive" action to protect electric vehicles (EVs) from subsidized Chinese competition, U.S. Trade Representative Katherine Tai said on Wednesday as she completes a review of Trump-era China tariffs and considers President Joe Biden's call for higher tariffs on imports of Chinese steel.
Tai told a U.S. Senate Finance Committee hearing that the U.S. needed to create a level playing field for U.S. workers and that Biden's call for higher "Section 301" tariffs on Chinese steel imports means that "we are in very, very advanced stages of our interagency work, and I expect that we will come to conclusion very soon."
She said that China's "anti-competitive practices," including "enormous amounts of state support," had fostered overproduction of solar panels a decade ago that devastated U.S. producers.
Tai said the U.S. was now facing a similar situation with EVs and the automotive sector, and leaving Chinese competition unchecked would cause the U.S. to lose the ability to produce those products.
"So we have to take early action, decisive action and we have to be really clear about why we're taking the action," she said.
"We are looking for a level playing field because the current playing field is not level, for all the talk about free trade."
Tai added that the current dynamics in the global EV industry is a significant factor in the Biden administration's examination of its trade tools.
USTR announced on Wednesday that it had opened a new unfair trade practices investigation into China's "acts, policies and practices" to dominate the maritime, logistics and shipbuilding sectors.
The probe, which accepts a petition from five U.S. labor unions, will be conducted under Section 301 of the Trade Act of 1974, the same statute used by former President Donald Trump to impose tariffs on hundreds of billions of dollars of Chinese imports in 2018.
Some senators have urged Tai to use the Section 301 tariff review, launched in September 2022, to take actions to impose higher tariffs on Chinese-made EVs.
Tai told the panel that the completion of the review and any adjustments would be presented as a "complete package" and that she had a high degree of confidence it would be completed soon.
Reporting by David Lawder; Editing by Franklin Paul and Paul Simao
https://www.reuters.com/business/autos- ... 024-04-17/
"US trade chief calls for 'decisive' action to shield EV sector from China"
By David Lawder
April 17, 2024
WASHINGTON, April 17 (Reuters) - The U.S. must take "decisive" action to protect electric vehicles (EVs) from subsidized Chinese competition, U.S. Trade Representative Katherine Tai said on Wednesday as she completes a review of Trump-era China tariffs and considers President Joe Biden's call for higher tariffs on imports of Chinese steel.
Tai told a U.S. Senate Finance Committee hearing that the U.S. needed to create a level playing field for U.S. workers and that Biden's call for higher "Section 301" tariffs on Chinese steel imports means that "we are in very, very advanced stages of our interagency work, and I expect that we will come to conclusion very soon."
She said that China's "anti-competitive practices," including "enormous amounts of state support," had fostered overproduction of solar panels a decade ago that devastated U.S. producers.
Tai said the U.S. was now facing a similar situation with EVs and the automotive sector, and leaving Chinese competition unchecked would cause the U.S. to lose the ability to produce those products.
"So we have to take early action, decisive action and we have to be really clear about why we're taking the action," she said.
"We are looking for a level playing field because the current playing field is not level, for all the talk about free trade."
Tai added that the current dynamics in the global EV industry is a significant factor in the Biden administration's examination of its trade tools.
USTR announced on Wednesday that it had opened a new unfair trade practices investigation into China's "acts, policies and practices" to dominate the maritime, logistics and shipbuilding sectors.
The probe, which accepts a petition from five U.S. labor unions, will be conducted under Section 301 of the Trade Act of 1974, the same statute used by former President Donald Trump to impose tariffs on hundreds of billions of dollars of Chinese imports in 2018.
Some senators have urged Tai to use the Section 301 tariff review, launched in September 2022, to take actions to impose higher tariffs on Chinese-made EVs.
Tai told the panel that the completion of the review and any adjustments would be presented as a "complete package" and that she had a high degree of confidence it would be completed soon.
Reporting by David Lawder; Editing by Franklin Paul and Paul Simao
https://www.reuters.com/business/autos- ... 024-04-17/
Re: POLITICS
REUTERS
"Tesla layoffs include 14% of Buffalo workers, WARN notice shows"
By Reuters
April 17, 2024
April 17 (Reuters) - Tesla will lay off 285 employees in Buffalo, New York, as part of its plans to trim 10% of its global workforce, the electric-vehicle maker said in a legally mandated notice on Wednesday.
Under pressure from falling sales and an intensifying price war for EVs, Tesla announced its latest round of jobs cuts on Monday in an internal memo that was seen by Reuters.
The notice on Wednesday, opens new tab was issued under the Worker Adjustment and Retraining Notification (WARN) Act which requires employers to provide a 60-day notice before layoffs.
It said the layoffs would start on July 15 and that they were due to "economic" reasons.
Tesla has a total of 2,032 employees across the two impacted sites in Buffalo, meaning that the cuts will affect about 14% of its workers there.
The plants in upstate New York were built to produce solar roof tiles.
Tesla also makes fast-charging equipment at the location, which hosts staff that label data for its Autopilot driver-assistance technology and is set to be the home of its Dojo supercomputer project.
The EV maker had in February last year let go 4% of the employees in the Autopilot labeling team in Buffalo as part of a performance review cycle conducted every six months.
The move had come just a day after the workers launched a campaign to form a union, but Tesla had said the affected staff were identified before the union campaign was announced.
Musk last announced a big round of job cuts in 2022, after telling executives he had a "super bad feeling" about the economy.
Still, Tesla's headcount has risen from around 100,000 in late 2021 to over 140,000 in late 2023, according to filings with U.S. regulators.
The layoffs follow an exclusive Reuters report on April 5 that Tesla had canceled a long-promised inexpensive car, expected to cost $25,000, that investors have been counting on to drive mass-market growth.
Tesla has been slow to refresh its aging models as high interest rates have sapped consumer appetite for big-ticket items, while rivals in China, the world's largest auto market, are rolling out cheaper models.
Reporting by Aditya Soni in Bengaluru; Editing by Maju Samuel
https://www.reuters.com/business/autos- ... 024-04-17/
"Tesla layoffs include 14% of Buffalo workers, WARN notice shows"
By Reuters
April 17, 2024
April 17 (Reuters) - Tesla will lay off 285 employees in Buffalo, New York, as part of its plans to trim 10% of its global workforce, the electric-vehicle maker said in a legally mandated notice on Wednesday.
Under pressure from falling sales and an intensifying price war for EVs, Tesla announced its latest round of jobs cuts on Monday in an internal memo that was seen by Reuters.
The notice on Wednesday, opens new tab was issued under the Worker Adjustment and Retraining Notification (WARN) Act which requires employers to provide a 60-day notice before layoffs.
It said the layoffs would start on July 15 and that they were due to "economic" reasons.
Tesla has a total of 2,032 employees across the two impacted sites in Buffalo, meaning that the cuts will affect about 14% of its workers there.
The plants in upstate New York were built to produce solar roof tiles.
Tesla also makes fast-charging equipment at the location, which hosts staff that label data for its Autopilot driver-assistance technology and is set to be the home of its Dojo supercomputer project.
The EV maker had in February last year let go 4% of the employees in the Autopilot labeling team in Buffalo as part of a performance review cycle conducted every six months.
The move had come just a day after the workers launched a campaign to form a union, but Tesla had said the affected staff were identified before the union campaign was announced.
Musk last announced a big round of job cuts in 2022, after telling executives he had a "super bad feeling" about the economy.
Still, Tesla's headcount has risen from around 100,000 in late 2021 to over 140,000 in late 2023, according to filings with U.S. regulators.
The layoffs follow an exclusive Reuters report on April 5 that Tesla had canceled a long-promised inexpensive car, expected to cost $25,000, that investors have been counting on to drive mass-market growth.
Tesla has been slow to refresh its aging models as high interest rates have sapped consumer appetite for big-ticket items, while rivals in China, the world's largest auto market, are rolling out cheaper models.
Reporting by Aditya Soni in Bengaluru; Editing by Maju Samuel
https://www.reuters.com/business/autos- ... 024-04-17/
Re: POLITICS
REUTERS
"US regional banks seen booking more commercial property losses, loan sales"
By Saeed Azhar and Matt Tracy
April 17, 2024
April 17 (Reuters) - U.S. regional banks are expected to set aside more money to cover potential commercial real estate (CRE) losses and sell more property loans as the sector remains under pressure a year after the collapse of Silicon Valley Bank and Signature Bank.
Most multifamily loans are made by regional banks, so when New York Community Bank posted a surprise fourth-quarter loss it intensified fears about the industry's exposure to commercial real estate.
Multifamily properties with more than five units are a major concern, especially since the bank had booked losses on its real estate portfolio.
Scrutiny of regional banks has increased after Silicon Valley Bank's collapse prompted by high borrowing costs that exceeded its income from low-rate loans following the Federal Reserve's aggressive rate hikes since March 2022.
Many banks have unrealized losses on securities portfolios, including mortgage-backed paper.
A slew of regional banks report first-quarter earnings starting April 16.
"I expect to see more of a reserve buildup," said Stephen Buschbom, research director at consultancy Trepp.
Buschbom said office loans remain the "biggest pain points" for banks, but he also expects stress in the multifamily sector especially construction loans.
Office loans have been hit as many employees still work from home after the pandemic, leaving vacancies that make it tougher for building owners to repay their mortgages.
Multifamily is also under pressure in cities like New York and San Francisco that, right before the pandemic, severely limited rent hikes on regulated apartments based on record low interest rates and inflation at the time.
Non-performing CRE loans as a percentage of U.S. banks' portfolios doubled to 0.81% by the end of 2023 from 0.4% a year earlier, the International Monetary Fund said in its semi-annual Global Financial Stability report.
Banks have continued to increase provisions for bad CRE loans, the IMF noted on Tuesday.
Several analysts and investors are predicting higher reserves.
Morgan Stanley forecast a 10- to 20-basis point increase in CRE reserve ratios for regional banks this year, said Manan Gosalia, an analyst at the Wall Street bank, in a research note.
Aggregate provisions are 20% above consensus, she added.
Stephen Biggar of Argus Research agreed, saying high office vacancies have reduced cash flows, and the Fed's stance on keeping interest rates higher for longer makes financing expensive.
CRE holdings are significant across the U.S. banking industry, comprising 13% of large banks' balance sheets and 44% for regional banks, an Ares Alternative Credit report showed.
Reflecting investor sentiment, the KBW regional bank index is down 13.5% year to date versus the S&P bank index's 6.8% rise.
S&P Global Ratings downgraded the outlook for five U.S. banks in March because of stress in CRE markets, which it said may hurt their asset quality and performance.
The banks cited, including M&T Bank and Valley National Bancorp, declined to comment.
"The CRE delinquency rate for banks is more benign than the commercial mortgage-backed securities market, but deteriorating," Stuart Plesser, managing director (at rating agency S&P Global Ratings, told Reuters, saying he sees some reserve increase for banks.
The delinquency rate at regional banks is 1.2% for loans 30 days due as of the end of the fourth quarter, according to S&P Global, below the 4% for CMBS.
Buschbom, however, said the level of support from potential buyers, including private equity investors, will help reduce some downside risks for banks.
Office loans are selling at deep discounts, while multifamily properties have smaller discounts, industry sources said.
"Numerous community and regional banks are exploring their options and, as a result, we are seeing more deal flow than we have since the global financial crisis," said David Aviram, co-founder of real estate investment firm Maverick Real Estate Partners.
A senior Wall Street banker who declined to be named discussing sensitive information said banks are expected to offload existing loans to private lenders and that those lenders would originate new loans.
Among such deals, regional lender PacWest last year sold construction loans with a $200 million discount, a regulatory filing showed.
In December Signature Bridge Bank, whose predecessor Signature Bank collapsed in 2023, sold 20% of its equity stake in a venture that held a $16.8 billion real estate loan portfolio to a Blackstone-led consortium for $1.2 billion.
The discount on the portfolio was nearly 30%, based on data from the announcement by Blackstone.
"We see banks taking a more conservative approach and anticipate additional write-offs in coming quarters," said Ran Eliasaf, founder and managing partner at Northwind Group, a private equity firm over $3 billion assets under management.
"There's a much more dramatic drop in values than what the market estimated in 2023."
Analysts, however, do not expect turmoil from the banking sector's exposure to commercial real estate.
"This is a slow wreck, not a high-speed crash," said Biggar of Argus Research.
Reporting by Saeed Azhar and Matt Tracy; editing by Megan Davies and Richard Chang
https://www.reuters.com/markets/us/us-r ... 024-04-17/
"US regional banks seen booking more commercial property losses, loan sales"
By Saeed Azhar and Matt Tracy
April 17, 2024
April 17 (Reuters) - U.S. regional banks are expected to set aside more money to cover potential commercial real estate (CRE) losses and sell more property loans as the sector remains under pressure a year after the collapse of Silicon Valley Bank and Signature Bank.
Most multifamily loans are made by regional banks, so when New York Community Bank posted a surprise fourth-quarter loss it intensified fears about the industry's exposure to commercial real estate.
Multifamily properties with more than five units are a major concern, especially since the bank had booked losses on its real estate portfolio.
Scrutiny of regional banks has increased after Silicon Valley Bank's collapse prompted by high borrowing costs that exceeded its income from low-rate loans following the Federal Reserve's aggressive rate hikes since March 2022.
Many banks have unrealized losses on securities portfolios, including mortgage-backed paper.
A slew of regional banks report first-quarter earnings starting April 16.
"I expect to see more of a reserve buildup," said Stephen Buschbom, research director at consultancy Trepp.
Buschbom said office loans remain the "biggest pain points" for banks, but he also expects stress in the multifamily sector especially construction loans.
Office loans have been hit as many employees still work from home after the pandemic, leaving vacancies that make it tougher for building owners to repay their mortgages.
Multifamily is also under pressure in cities like New York and San Francisco that, right before the pandemic, severely limited rent hikes on regulated apartments based on record low interest rates and inflation at the time.
Non-performing CRE loans as a percentage of U.S. banks' portfolios doubled to 0.81% by the end of 2023 from 0.4% a year earlier, the International Monetary Fund said in its semi-annual Global Financial Stability report.
Banks have continued to increase provisions for bad CRE loans, the IMF noted on Tuesday.
Several analysts and investors are predicting higher reserves.
Morgan Stanley forecast a 10- to 20-basis point increase in CRE reserve ratios for regional banks this year, said Manan Gosalia, an analyst at the Wall Street bank, in a research note.
Aggregate provisions are 20% above consensus, she added.
Stephen Biggar of Argus Research agreed, saying high office vacancies have reduced cash flows, and the Fed's stance on keeping interest rates higher for longer makes financing expensive.
CRE holdings are significant across the U.S. banking industry, comprising 13% of large banks' balance sheets and 44% for regional banks, an Ares Alternative Credit report showed.
Reflecting investor sentiment, the KBW regional bank index is down 13.5% year to date versus the S&P bank index's 6.8% rise.
S&P Global Ratings downgraded the outlook for five U.S. banks in March because of stress in CRE markets, which it said may hurt their asset quality and performance.
The banks cited, including M&T Bank and Valley National Bancorp, declined to comment.
"The CRE delinquency rate for banks is more benign than the commercial mortgage-backed securities market, but deteriorating," Stuart Plesser, managing director (at rating agency S&P Global Ratings, told Reuters, saying he sees some reserve increase for banks.
The delinquency rate at regional banks is 1.2% for loans 30 days due as of the end of the fourth quarter, according to S&P Global, below the 4% for CMBS.
Buschbom, however, said the level of support from potential buyers, including private equity investors, will help reduce some downside risks for banks.
Office loans are selling at deep discounts, while multifamily properties have smaller discounts, industry sources said.
"Numerous community and regional banks are exploring their options and, as a result, we are seeing more deal flow than we have since the global financial crisis," said David Aviram, co-founder of real estate investment firm Maverick Real Estate Partners.
A senior Wall Street banker who declined to be named discussing sensitive information said banks are expected to offload existing loans to private lenders and that those lenders would originate new loans.
Among such deals, regional lender PacWest last year sold construction loans with a $200 million discount, a regulatory filing showed.
In December Signature Bridge Bank, whose predecessor Signature Bank collapsed in 2023, sold 20% of its equity stake in a venture that held a $16.8 billion real estate loan portfolio to a Blackstone-led consortium for $1.2 billion.
The discount on the portfolio was nearly 30%, based on data from the announcement by Blackstone.
"We see banks taking a more conservative approach and anticipate additional write-offs in coming quarters," said Ran Eliasaf, founder and managing partner at Northwind Group, a private equity firm over $3 billion assets under management.
"There's a much more dramatic drop in values than what the market estimated in 2023."
Analysts, however, do not expect turmoil from the banking sector's exposure to commercial real estate.
"This is a slow wreck, not a high-speed crash," said Biggar of Argus Research.
Reporting by Saeed Azhar and Matt Tracy; editing by Megan Davies and Richard Chang
https://www.reuters.com/markets/us/us-r ... 024-04-17/