Kellogg Breakup Puts Focus on Packaged-Food Conglomerates

Kellogg Co. K 2.06% ’s plan to spin off its cereal and plant-based foods businesses is renewing focus on corporate breakups in the U.S. food industry. Campbell Soup Co. CPB 0.92% , General Mills Inc. GIS 1.59% and other food makers for years have built out their baskets of brands, acquiring newer, trend-aligned products and … Read more

Jerome Powell Pressed Over How Fed Would Respond to Economic Slowdown

Lawmakers pressed Federal Reserve Chairman Jerome Powell over how the central bank would manage trade-offs it could confront if its interest rate increases slow the economy sharply but don’t reduce inflation quickly. Mr. Powell on Thursday said that in such a scenario, the Fed would be reluctant to shift from raising rates to cutting them … Read more

Fed Official Calls for Additional Significant Rate Rises

Fed governor Michelle Bowman said the central bank would need to raise interest rates aggressively this year in order to combat inflation. Source link

High Gas Prices Hit Demand as Drivers Cut Back at the Pump

In the first full week of June, gasoline sales at U.S. stations were down about 8.2% compared with the same week last year—the 14th consecutive week that sales have lagged behind 2021 levels, according to surveys by energy-data provider OPIS. In the week ended June 10, the Energy Information Administration’s measure of implied demand—an estimate … Read more

Pace of earnings downgrades picks up with cost inflation, demand slowdown

Mumbai: Analysts are slashing profit estimates of companies as the impact of the sharp run-up in raw material costs and demand slowdown in rural India are expected to reflect on earnings over the next couple of quarters. Downgrades in earnings estimates by analysts at leading brokerages have outnumbered upgrades in the past four weeks. Out … Read more

Labor Shortage Stymies Construction Work as $1 Trillion Infrastructure Spending Kicks In

WASHINGTON—Construction projects across the U.S. are running short on labor just as $1 trillion in federal infrastructure money starts to kick in, leading companies to get creative in their quest to attract and retain workers. In Southern states, contractors advertise sunny weather and 12 months of work on help-wanted websites in the frostier Northeast and … Read more

Small Businesses Fall Behind on Hiring as Inflation Takes a Toll

Small businesses are losing ground in the hiring game. Head counts at companies with fewer than 50 employees declined in three of the past four months, according to ADP payroll data, even as employment at larger firms continued to grow. Owners of many small companies say inflation has added to the pressures of an already … Read more

Economy Week Ahead: Housing Blues

Economists surveyed by The Wall Street Journal expect existing-home sales fell 3.6% in May. Photo: David Paul Morris/Bloomberg News A measure of home sales is the highlight of this week’s economic news. TUESDAY The once red-hot U.S. housing market has slowed drastically as rising mortgage rates kept many home buyers on the sidelines. That has … Read more

Recession Probability Soars as Inflation Worsens

Economists surveyed by The Wall Street Journal have dramatically raised the probability of recession, now putting it at 44% in the next 12 months, a level usually seen only on the brink of or during actual recessions. The likelihood of a recession has increased rapidly this year as inflationary pressures remained strong and the Federal … Read more

Central banks walk inflation-recession tightrope

Central banks have ramped up their battle against runaway inflation, a necessary remedy that could have the adverse side effect of tipping countries into recession, analysts say. Just this past week, the US Federal Reserve announced its biggest interest rate hike in almost 30 years, followed by the fifth straight increase by the Bank of … Read more