finance

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School

California State University, Northridge *

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Course

420

Subject

Economics

Date

Feb 20, 2024

Type

docx

Pages

2

Uploaded by peivandm1360

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1. Who is the host of the show? What is a bit of his background? Michael Mckee. Michael McKee is the Chief International Economist for Bloomberg TV and Radio, responsible for providing real-time analysis on developments in global economics, fiscal and monetary policy for a financial services audience. In particular, he is Bloomberg TV's lead analyst on economic data releases, the Federal Reserve and international trade policy. He also provides analysis on politics and elections in the US and around the world. His coverage regularly moves markets and his contacts among US and international policymakers are unparalleled. He previously anchored "Surveillance" (Bloomberg's flagship morning program) and "Money and Politics" (the company's prime TV show on US politics), was the International Economics Editor and has served as Bloomberg's White House, Treasury, and Federal Reserve correspondent. He has written for Bloomberg Businessweek, Bloomberg Markets, and Bloomberg.com. Prior to joining Bloomberg, Michael covered US politics as a reporter. 2. Who are the 3 guests and what is a bit of their backgrounds? Mohamed El-Erian, Rick Rieder 3. What is the major issue they are discussing? The major is about, The rates of changing effect on the economy recaition. 4. Why is this issue important to you? To the business world? Economic Stability: Recession refers to a significant decline in economic activity across multiple sectors, resulting in reduced production, employment, and income levels. It is a matter of concern because it affects the overall stability and health of an economy. Stability is crucial for businesses to thrive and for individuals to maintain their livelihoods. Business Performance: During a recession, businesses face challenges such as decreased consumer spending, reduced demand for goods and services, tighter credit availability, and increased competition. Understanding and addressing the recession issue becomes vital for businesses to adapt their strategies, manage their resources effectively, and find ways to survive or even thrive in a challenging economic environment. Financial Markets: Recessions often have a significant impact on financial markets. Stock markets may experience declines, investors may become more risk-averse, and asset values may decrease. These market fluctuations can affect businesses through changes in investment levels, access to capital, and overall market sentiment. 5. What is the relationship of this issue among the economy/business, you, and the stock market? The relationship between the issue of recession, the economy/business, and the stock market is interconnected and can have significant implications for each other. Here's a breakdown of their relationship: Recession and the Economy/Business:
Recession is a period of economic contraction characterized by declining economic activity, reduced production, decreased consumer spending, and increased unemployment. During a recession, businesses may face challenges such as decreased demand for their products or services, reduced sales, and financial difficulties. Economic indicators, such as GDP (Gross Domestic Product), business investment, and consumer confidence, are closely tied to the performance of the economy and the business sector. The severity and duration of a recession can vary, and the impact on businesses can be significant, ranging from mild slowdowns to severe contractions and bankruptcies. Recession and the Stock Market: The stock market is a reflection of investor sentiment and expectations about the future performance of businesses and the overall economy. During a recession, the stock market generally experiences increased volatility, and stock prices may decline. Investor confidence is crucial in determining stock market movements. During a recession, investor sentiment tends to be negative, leading to a decrease in demand for stocks and potential sell-offs. Companies' stock prices are influenced by their financial performance, profitability, and growth prospects, which can be adversely affected during a recession. However, it's worth noting that the stock market's performance doesn't always mirror the state of the economy or immediate business conditions, as it can also be influenced by other factors such as investor speculation, market sentiment, and global events. The Impact of the Economy/Business and the Stock Market on You: The state of the economy and the performance of businesses can have a direct impact on individuals in various ways: 6. What was the major economic report today, what did it say and what does that mean for the economy? 7. What is the FED? 8. What are they doing about this issue? 9. Why do we care? 10. One guest in particular discusses the bank situation and lists 4 phases of this issue. List the 4 phases and define one of them.
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