Economic Overview - The term "boomcession" describes the disconnect between strong economic indicators and negative consumer sentiment, highlighting that many Americans feel financially strained despite overall economic growth [1][2][4] - Economic output and stock market performance are strong, yet consumer debt is at an all-time high, with many Americans believing the economy is in a slowdown [2][10] Inflation and Consumer Impact - Inflation rates vary significantly across income classes and geographical locations, with lower-income consumers experiencing higher inflation rates, particularly in essential categories like groceries and shelter [6][7][8] - The inflationary gap has widened as overall price growth has exceeded the Federal Reserve's target of 2%, impacting lower-income households disproportionately [7][8] Labor Market Dynamics - The current labor market is characterized as a "jobless boom" or "hiring recession," with job openings at their lowest since 2020 despite stock market gains [12][13] - High-income individuals benefit from stock market performance, while lower-income households face tightening labor conditions and increased anxiety [13][14] Consumer Sentiment and Economic Perception - A significant portion of Americans, nearly three-fifths, believe the economy is in a recession, reflecting a growing skepticism towards government economic data [18][20] - Surveys indicate that financial instability is particularly pronounced among lower-income individuals, with 54% of those earning below $50,000 describing their financial situation as unstable [19]

Core Insights - The article discusses the potential economic shift driven by artificial intelligence (AI) in manufacturing, emphasizing that low labor costs may not be the primary advantage in the future [1][2] - Intrinsic, a robotics company under Alphabet, aims to enhance industrial robotics through AI, making them smarter and more accessible [2] Company Overview - Intrinsic was launched five years ago from Google X, focusing on developing advanced robotics software [2] - Wendy Tan White serves as the founding CEO, overseeing the acceleration of the company's efforts amid the current AI wave [2] Strategic Initiatives - Intrinsic has formed a joint venture with Foxconn to create "the factory of the future," which will integrate intelligent robotics for more versatile manufacturing processes [3] - The company aims to enable the production of a diverse range of products on a single production line, rather than just optimizing existing processes [3] Market Implications - The integration of AI in manufacturing could unlock approximately $2.9 trillion in economic value in the U.S. by 2030, contingent on organizations redesigning workflows to facilitate collaboration between humans and robots [2] - Intrinsic's approach may allow smaller businesses and regions with higher labor costs to enhance their manufacturing capabilities [3][4] Future Outlook - The company is exploring reshoring manufacturing, leveraging software-as-a-service robotics solutions to enable production in various locations, potentially reducing costs [4]

Walmart CEO John Furner, left, and Target CEO Michael Fiddelke.Walmart (L) | Getty Images (R)When Walmart and Target report holiday earnings this quarter, investors may quickly brush off those results. Instead, they will likely focus more on the two big-box retailers' futures under new CEOs and the outlook for U.S. consumers in 2026. Both companies had leadership changes this month: Walmart CEO John Furner and Target CEO Michael Fiddelke, both longtime company insiders, took on their roles on Feb. 1.The riv ...

In this articleARMNVDAGOOGLMETAAMZNMSFTNOKIA-FITSMThe replica of the ARM is an electronic chip board during a collaborative ceremony launching a partnership between Malaysia and ARM Holdings in Kuala Lumpur, Malaysia, on March 5, 2025. Hari Anggara | Nurphoto | Getty ImagesNew York-listed shares of British semiconductor firm Arm ticked 1.4% higher in premarket trading on Wednesday, after documents showed Nvidia sold its stake in the company it once wanted to buy. At the end of the third quarter, Nvidia held ...

BAE Systems attracted record orders in 2025, and now the UK defense staple is setting its sights on years of growth amid a global ramp-up in spending.Its shares rose 3.6% on Wednesday after its full-year earnings report showed sales soared 10% last year to reach a record £30.7 billion ($41.7 billion).That helped push operating profits to £2.93 billion, a 9% year-on-year increase, as revenues grew 8% to £28.3 billion.The FTSE 100-listed company, which manufactures a range of aircraft, weapons, munitions and ...

Company Developments - Bayer's stock fell by 7.3% in early trading after its Monsanto Unit proposed a $7.25 billion settlement for lawsuits alleging that its weed killer Roundup causes cancer [2] - Bayer anticipates an increase in provisions and litigation liabilities from €7.8 billion ($9.24 billion) to €11.8 billion, with approximately €5 billion in litigation-related payments expected in 2026 [3] Economic Indicators - The UK inflation rate decreased to 3% in January, down from 3.4% in December, indicating a potential shift in inflation trends compared to the US and eurozone [4] - Analysts predict that UK inflation could drop to 2% by the end of the year, which may lead to further interest rate cuts by the Bank of England [5] Market Reactions - European stocks opened higher, with the pan-European Stoxx 600 up by approximately 0.5%, while the UK's FTSE 100 and France's CAC 40 rose by 0.3%, and Germany's DAX increased by 0.4% [1] - The British Pound remained stable against the dollar at $1.3562, and British government bond yields held steady following the inflation data [8] Global Market Context - Asian stocks experienced gains in a holiday-thinned trade, with several markets closed for Lunar New Year [9] - U.S. stock futures were near flat, with traders awaiting the Federal Reserve minutes from the January meeting [9] - The upcoming personal consumption expenditures price index reading is expected to provide further insights into the economic state [10]

Core Viewpoint - Japan has pledged to invest nearly $36 billion in oil, gas, and critical mineral projects in the U.S., marking the first tranche of a larger $550 billion investment deal following a trade agreement with the U.S. [1][2] Group 1: Investment Details - The investment includes a significant natural gas facility in Ohio, expected to generate 9.2 gigawatts of power, valued at $33 billion, making it the largest natural gas generation facility in history [4]. - The projects are part of a Strategic Investment Initiative aimed at promoting mutual benefits and enhancing economic security between Japan and the U.S. [3]. Group 2: Trade Agreement Context - The trade deal includes a reduction of tariffs on most Japanese imports to 15%, which is seen as a crucial factor enabling these large-scale investments [2]. - Japanese Prime Minister Sanae Takaichi emphasized that these initiatives will strengthen the Japan-U.S. alliance and promote economic growth [3].

One basis point is equal to 0.01%, and yields and prices move in opposite directions.At 2:48 a.m. ET, the 10-year Treasury yield rose over 2 basis points to 4.075%, and the 30-year Treasury bond yield was up 1 basis point to 4.7%. The 2-year Treasury note yield was 1 basis point higher at 3.453%.U.S. Treasury yields edged higher on Wednesday as investors anticipated the Federal Reserve's meeting minutes and key inflation data.Investors will be keeping an eye out for the FOMC meeting minutes, which will be r ...

Core Insights - More than 50% of current enterprise software could potentially be replaced by AI, raising investor concerns over software stocks [1][2][4] - Major software stocks, including those in the SaaS sector, have experienced significant declines, with the iShares Expanded Tech-Software Sector ETF down over 20% this year [3] AI Impact on Software - The CEO of Mistral AI indicated that a shift from SaaS to AI is underway, with enterprises able to develop software rapidly using AI [4][6] - There is a "replatforming" trend where businesses are looking to replace outdated IT systems with AI solutions, which are seen as more efficient and cost-effective [7][8] Market Dynamics - Mistral AI is experiencing increased interest from over 100 enterprise customers looking to replatform their IT systems [7] - Workflow software is expected to face significant disruption from AI, while systems of record that support data management will remain essential [9] Expansion Plans - Mistral AI plans to open its first office in India, targeting both public and private sector customers [10] - The company aims to partner with existing firms in India to leverage local infrastructure, aligning with the Indian government's push for domestic data storage [11]

In this articleWHDISFUNEXPEHTSLAIHG-GBHLTMARBKNGCQQQCMCSAGOOGL1698-HK9988-HK1179-HKBILI9626-HK700-HKThis report is from this week's CNBC's The China Connection newsletter, which brings you insights and analysis on what's driving the world's second-largest economy. You can subscribe here.The big storyThere's nothing quite like the holiday rush in China for the Lunar New Year. The Beijing city streets start emptying out several days in advance as the majority of residents return to their hometowns or travel e ...