Monthly Archives: August 2022

Capital One builds out its retail co-brand card reach with REI card

Capital One is pushing further into retail co-brands with a REI Co-op Mastercard. Retail portfolios are a popular co-brand category for issuers because they benefit from strong loyalty among shoppers.  Insider Intelligence publishes hundreds of insights, charts, and forecasts on the Payments & Commerce industry. Learn more about becoming a client. The news: Outdoor specialty retailer REI…

US economy still faces the risk of a severe recession despite the strong jobs report as bonds flash warnings, says El-Erian

Mohamed El-Erian. Getty Images The US is still in danger of a severe recession despite a strong July jobs report, Mohamed El-Erian said.  “I believe it is too early to declare the recession watch over,” the renowned economist wrote in the Financial Times.  Stocks aren’t pricing in the economic risks but government bonds are flashing…

US banks under pressure to prioritize sustainability while still supporting fossil fuels

Some state governments are penalizing big banks for not backing the fossil fuel industry. Banks face a Catch 22: highlighting their backing for fossil fuels to Republican politicians while also presenting themselves as making sustainability efforts. Insider Intelligence publishes hundreds of insights, charts, and forecasts on the Banking industry. Learn more about becoming a client….

The ‘lipstick index’ says people buy more makeup when times get tough. Here’s where it comes from — and whether it can really predict a recession.

Klaus Vedfelt/Getty Images The lipstick index is the theory that sales of “affordable luxuries” rise during economic downturns. The phrase was coined in the early 2000s by Leonard Lauder, heir to Estée Lauder cosmetics. It played out during the 2008 recession and the pandemic, and it seems to be happening now too. Conventional wisdom would…

200,000 student-loan borrowers get a ‘grand slam’ after a federal judge moves them closer to $6 billion in debt cancellation

College graduation Getty Images A federal judge granted preliminary approval of a settlement that will give relief to 200,000 defrauded borrowers. This follows Biden’s Education Department agreeing to the debt relief in June. Biden has taken steps to clear up the backlog of claims from defrauded borrowers under Trump. Thousands of student-loan borrowers defrauded by…

Some of America’s biggest companies are hinting the labor shortage is ending for them

A sign for Walmart’s home office. Gilles Mingasson/Getty Images Over the last year, companies have complained about labor shortages and difficulty hiring. With fears that the economy is cooling off, firms are cutting costs — for some that means cutting workers. Some companies see those reductions as permanent, a far cry from labor shortages of…

Warren Buffett’s Berkshire Hathaway plowed $6 billion into stocks, pared its buybacks, and paid nearly $900 million to its next CEO last quarter. Here are the key takeaways

Warren Buffett. REUTERS/Rick Wilking Warren Buffett’s Berkshire Hathaway reported second-quarter earnings on Saturday. Berkshire slowed its stock purchases and buybacks, but posted higher revenue and operating profits. Berkshire paid nearly $900 million to a top executive for his 1% stake in Berkshire Hathaway Energy. Warren Buffett’s Berkshire Hathaway was a net buyer of stocks, cut back…

Ford hiked the price of its electric F-150 Lightning by up to $8,500 due to ‘significant material cost increases’

The 2022 Ford F-150 Lightning Lariat. Ford Ford announced pricing for the 2023 F-150 Lightning.  The automaker raised prices for the electric truck by thousands.  It said the hikes were due to “significant” increases in the cost of materials.  Aspiring electric-truck owners, rejoice: Ford is gearing up to start accepting new orders for its smash-hit…

Investors are still stressing over inflation and about half say that it hasn’t peaked yet, State Street survey says

Reuters / Brendan McDermid Nearly half of investors surveyed by State Street say inflation hasn’t peaked yet.  Investors also say that rising prices are a source of stress and anxiety.  In June, CPI clocked in at 9.1%, the fastest rate of inflation in 41 years.  Nearly half of investors say they’re stressed out over inflation…