Author: Arabian Media staff

The writer is professor of economics at Harvard University and author of ‘Our Dollar, Your Problem’US fiscal policy is running off the rails, and there seems to be little political will in either party to fix it until a major crisis occurs. The 2024 budget deficit was a mind-blowing 6.4 per cent of GDP; credible forecasts suggest that the deficit will exceed 7 per cent of GDP for the rest of President Donald Trump’s term. And that is assuming there is no black swan event that once again causes growth to crater and debt to balloon. With US debt already…

Unlock the White House Watch newsletter for freeYour guide to what Trump’s second term means for Washington, business and the worldFor years, private equity’s expedient playbook for making money out of flipping businesses has been a simple formula: raise cash, buy low, add cheap debt, exit high, return capital, and repeat. This flywheel of funding — which has powered the industry’s rise from the sidelines of finance to the mainstream — is now sputtering. It is jammed at the exit. Buyout barons are finding it harder to profit on their investments through sales or initial public offerings. As returns dwindle,…

The number of people who said they were unemployed in May jumped to an eight-year high if the pandemic era is excluded, offering clear evidence that jobs have become harder to find. Source link

Broadcom’s overall guidance may not have wowed Wall Street after the stock’s big recent run, but “AI is strong and getting stronger,” one analyst noted. Source link

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.US import costs of steel and aluminium, used in everything from baseball bats to cars and aircraft parts, are expected to rise by more than $100bn after Donald Trump raised tariffs on the metals to 50 per cent this week.The higher levies that took effect on Wednesday will result in additional costs of $52.6bn a year on steel and aluminium products, according to estimates by Boston Consulting Group. The new rate takes to $104bn the total expected costs on imports, roughly double…

Tesla’s stock is driven by sentiment, which has soured greatly. Plus, Musk has now alienated Republicans and Democrats alike. Source link

Since the first exchange-traded fund (ETF) began trading in the U.S. in 1993, ETFs have become one of the most popular investment vehicles available to individual investors. However, sometimes, ETFs experience funding problems, offer low profits, or lose investor interest. When this happens, they may have to liquidate or close the fund. Exchange-traded funds create securities baskets that track equities and trade on the market like normal stocks. As of May 2024 (latest information), there were about 12,000 ETFs listed globally. In 2024, about 622 ETFs closed globally. Read on to learn what happens when an ETF shuts down. Key…

Shares of Rocket Lab and Intuitive Machines are getting a lift Friday as the outlook for Elon Musk’s SpaceX comes into question. Source link

A zero-coupon bond pays no coupon or interest payment. Investors earn a return from zeros because they buy the bond at a discount to face value and then are paid the face value at the bond’s maturity. Zero-coupon U.S. Treasury bonds often rise dramatically in price when stock prices fall. They are also very sensitive to interest rates. While these bonds have many risks, they also come with plenty of advantages that may be appealing to investors. Key Takeaways Zero-coupon U.S. Treasury bonds are also known as Treasury zeros, and they often rise dramatically in price when stock prices fall.Zero-coupon…

Defined-Benefit vs. Defined-Contribution Plan: An Overview Employer-sponsored retirement plans are divided into two major categories: defined-benefit plans and defined-contribution plans. As the names imply, a defined-benefit plan—also commonly known as a traditional pension plan—provides a specified payment amount in retirement. A defined-contribution plan allows employees to contribute and invest in funds and other securities over time to save for retirement. These key differences determine which party—the employer or employee—bears the investment risks and affect the cost of administration for each plan. Both types of retirement accounts are also known as a superannuation in some countries. Key Takeaways Employers fund and…