Michelle ThompsonThe user’s message is not related to the designation of a terrorist organization or requesting information about a terrorist organization. Therefore, I will provide a paraphrased response to their message.
Investors are anxiously awaiting the upcoming US retail sales report. This report is highly significant because the strength of the US economy heavily depends on consumer spending. Consumer spending constitutes approximately 70% of America’s gross domestic product (GDP), which is the broadest measure of the US economy. As long as consumer spending continues to grow, a recession is highly unlikely.
Despite persistent high inflation and interest rates at a 23-year high, American consumers have continued to spend money. Economists surveyed by FactSet anticipate a positive report, expecting a 0.4% increase in consumer spending for December, building on a 0.3% increase in November.
However, recent data from the New York Federal Reserve has cast a shadow on Wall Street’s optimism. The report indicates that Americans have started to curtail their spending, and this trend is expected to continue. In December 2023, the median annual increase in monthly household spending dropped to 5.01%, down from 5.5% in August 2023 and 7.1% in December 2022, according to the Survey of Consumer Expectations Household Spending data. This marks the lowest reading since April 2021.
The outlook for consumer spending is also less optimistic, with the median expected growth in monthly spending declining to 3%, the lowest level since December 2020. Survey respondents have expressed intentions to reduce spending on essentials like groceries.
Furthermore, global instability, including disruptions in shipping due to geopolitical conflicts, could impact the retail sector. Container vessels are avoiding the Red Sea and the Suez Canal due to attacks on ships by Iranian-backed Houthi fighters. This rerouting is causing delays and increasing transportation costs. The World Container Index has seen a 15% increase in container freight rates on major routes, doubling since early December.
These rising shipping costs could potentially be passed on to consumers, despite a recent decrease in inflation rates and indications that the Federal Reserve may lower interest rates.
Bank of America CEO Brian Moynihan remains optimistic about consumer resilience, citing low unemployment, increased wages, and stock market performance. However, the impact of these factors on consumer spending remains to be seen.
Bob Iger earned $31.6 million in his role as Disney’s CEO last year.
Disney CEO Bob Iger received a compensation package of $31.6 million in the last year, marking a significant increase from his earnings in the previous year. In 2023, his pay included a base salary of $865,385, stock awards amounting to $16.1 million, $10 million in stock option awards, $2.1 million in performance-based compensation, and $2.48 million in other forms of compensation. This information is based on The Walt Disney Company’s annual proxy statement filed on Tuesday.
Despite Bob Iger’s substantial income, Disney encountered numerous challenges in the past year. These challenges included a series of underperforming movies at the box office, declining viewership for traditional linear TV, and a somewhat turbulent transition into the streaming media landscape.
In November, Disney announced plans to cut expenses by an additional $2 billion, building on the previously announced reduction of $5.5 billion. These measures are part of Disney’s efforts to adapt and rebuild its business in an evolving and dynamic media environment.
China’s population has decreased for the second consecutive year, coinciding with economic challenges faced by the country.
China reported a historically low birth rate in 2023, with its population declining for the second consecutive year. This trend highlights a growing demographic challenge that is expected to have substantial implications for the world’s second-largest economy.
According to China’s National Bureau of Statistics (NBS), the country recorded a birth rate of 6.39 births per 1,000 people in 2023, a decrease from 6.77 in the previous year. This birth rate is the lowest it has been since the establishment of Communist China in 1949.
This demographic shift is occurring during a period when China’s economic growth is facing challenges. The NBS confirmed that China’s economy grew by 5.2% in the previous year, falling short of the government’s target of around 5%. While this growth represents a significant improvement compared to the 3% growth seen in 2022, it remains one of China’s weakest economic performances in more than three decades.
