The daily business briefing: November 8, 2023
1. EV makers offer rebates to boost weak demand
Electric vehicle makers and dealers have slashed prices and offered rebates this fall as sales growth slowed, The Wall Street Journal reported Tuesday. Hyundai is offering cash rebates as high as $7,500. Ford is offering a $7,500 rebate on some F-150 Lightning pickup trucks. That's on top of the federal tax credit for EV buyers. Volkswagen is offering an EV lease on its ID.4 electric SUV with no down payment. EV buyers got $2,000 in discounts in September, after paying a $1,500 premium a year earlier, according to car shopping website Edmunds. The cuts are hurting already struggling EV startups. "Is it sustainable forever? Absolutely not," said Jeff Dyke, president of Sonic Automotive. The Wall Street Journal
2. Citibank tells customers to go paperless or lose digital access
Citibank has told retail banking and credit card customers to switch to digital records and drop paper statements or they will lose online access. The bank said, however, that anyone who makes the switch can go back to paper if they don't like digital statements. Citibank and other financial firms have been nudging customers to drop paper statements for years, saying it is better for the environment, saves space and helps businesses cut costs. Citibank said it would invest some of the money it saves to expand digital services like its new Card on File capabilities, USA Today reported. USA Today
3. Credit card balances soar
U.S. credit card balances jumped to $1.08 trillion in the third quarter, the latest in a series of high marks, the Federal Reserve Bank of New York said Tuesday in its Quarterly Report on Household Debt and Credit. That was $48 billion more than the prior quarter, and a record $154 billion increase from the same period last year. The borrowing pushed an increasing number of people to the brink of financial trouble. Household debt climbed by 1.3% to $17.29 trillion, with the rate of delinquency rising to the highest level since late 2011. CNN
4. IMF warns European policymakers not to lower rates too soon
The International Monetary Fund on Wednesday warned the European Central Bank and European central banks to keep interest rates high even as inflation declines from its peak. The Washington-based IMF said "premature celebration" of victory over inflation could lead to disaster if policymakers reduce rates before they are sure prices are under control. If central banks cut borrowing costs and inflation remains elevated, policymakers might have to impose another series of painful rate hikes that could cost a full percentage point of economic output. "A prolonged restrictive stance is still necessary to ensure that inflation moves back to target," the IMF said in its twice-yearly regional economic outlook. The Associated Press
5. Stock futures mixed after indexes extend winning streaks
U.S. stock futures were little changed early Wednesday after the S&P 500 and the Nasdaq extended their winning streaks. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.1% at 6:45 a.m. ET. The tech-heavy Nasdaq was flat. The Dow and the S&P 500 gained 0.2% and 0.3%, respectively, on Tuesday. The Nasdaq rose 0.9%. The S&P 500 and the Nasdaq have now risen for seven and eight straight trading days, respectively, their longest winning streaks in about two years. The Dow has also risen for seven consecutive days. The recent rally has been fueled by strong corporate earnings. About 80% of S&P 500 companies have reported better-than-expected earnings this season. CNBC
