Joining other major bank CEOs warning about global economic health, Fraser said that conversations during her world tour with stops in Asia, Europe, and the Middle East focused predominantly on “the three Rs”. 

"It's rates, it's Russia and it's recession," Fraser said at an investor conference in New York, warning that, in Europe, "the energy side was really having an impact on a number of companies in certain industries that are not even competitive right now."

"Because of the cost of electricity and the cost of energy, some of them are shutting down operations. So Europe definitely felt more likely to be heading into a recession than you see in the US," Fraser added.

The Citigroup CEO said that, in the US, interest rates are a greater concern than a recession. 

"It's certainly not our base case that it will be, but it's not easy to avoid either.”

[ymal]

Applications for mortgages for home purchases dropped 1% last week compared with the previous week, according to data from the Mortgage Bankers Association (MBA). Volume was 14% lower than the same week of 2021. 

“Mortgage rates fell for the fourth time in five weeks, as concerns of weaker economic growth and the recent stock market sell-off drove Treasury yields lower,” commented Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Mortgage applications decreased to its lowest level since December 2018, as the purchase market continues to struggle with supply and affordability challenges.”

Rising interest rates in the US, as well as steep gains in house prices, are having a heavy impact on affordability. However, while prices continue to rise due to limited market supply, different types of property buyers are having very different experiences. 

“Demand is high at the upper end of the market, and the supply and affordability challenges are not as detrimental to these borrowers as they are to first-time buyers,” Kan explained.

At the beginning of the pandemic, Congress formed several new programmes to support the millions of people who lost their jobs due to the introduction of lockdowns and the onset of economic uncertainty. These programmes, which officially ended last September, worked together to increase weekly benefits, extend their duration, and make more people eligible to receive them. 

Over this period, the federal government issued nearly $873 billion in total unemployment payments, with the Labor Department also revealing that criminals were able to defraud the system due to programme weaknesses. 

“The unprecedented infusion of federal funds into the UI program during the pandemic gave individuals and organized criminal groups a high-value target to exploit. That, combined with easily attainable stolen personally identifiable information and continuing UI program weaknesses identified by the OIG over the last several years, created a perfect storm that allowed criminals to defraud the system,” the agency’s report said. 

“Applying the 18.71 percent to the estimated $872.5 billion in pandemic UI payments,36 at least $163 billion in pandemic UI benefits could have been paid improperly, with a significant portion attributable to fraud. Based on the OIG’s audit and investigative work, the improper payment rate for pandemic UI programs is likely higher than 18.71 percent.”

For example, those who suffer from injury, protracted illness, or congenital pathology of the body or mind often have difficulty finding a place in the job market. In addition, the simple capacity to get around can likewise be a challenge. These are the reasons for societal "safety nets" - to aid those who suffer from limited capacity, through no fault of their own, to navigate life without the crushing forces of poverty and isolation. This is where Social Security disability benefits come into play.

A History Of Social Security And Disability Benefits

What most people understand as Social Security, i.e., a participant-funded insurance program to be redeemed at the time of retirement, was made law by the United States Congress in 1935. Responsible for administering this vast program to assist the aged is the Social Security Administration (SSA). In addition to retired persons, SSA also partially provided - in partnership with states - for certain needy elderly individuals and those who have blindness.

Nearly 30 years after its inception, the SSA took full charge of these "adult categories" by instituting the Supplemental Security Income (SSI) program. Ensuing years saw tweaks to SSI relative to cost of living adjustments (COLAs) and work incentives. In addition, the Social Security Disability Insurance (SSDI) program provides benefits to those who have worked for a certain period, paying into Social Security while working.

Who Is Eligible Now For SSI?

The Social Security Administration applies a five-point test as an initial threshold for a disability to qualify for benefits:

• Is the applicant presently working? This question goes to the issue of substantial gainful activity (SGA). SGA demands a certain dollar amount of compensation, so the applicant will be rejected if the work is SGA. Some work, though, is not SGA.
• Is the disabling condition "severe," i.e., does it inhibit the capacity to perform rudimentary work-related tasks and executions? If the determination is made in the negative, the application is rejected.
• Does the condition appear on SSA's list of disabling maladies? If it does, the application moves forward. Otherwise, further evaluation is needed.
• Does the condition preclude doing anything the applicant had done previously? If not, a decision is made as to whether it is feasible to return to such income-producing activity.
• Is there any GSA work the applicant can perform?

Other factors may mitigate these broad questions, but they can indicate an application's success ahead of submission. It is best to let a social security lawyer review your case before you do anything. A specialised attorney will do their best to strengthen your case and ensure there is nothing about your application that might grant a denial. 

How To Apply For Disability Benefits

Step 1: Collect all documentation about the disabling condition

Nothing is trivial here, so if it is tangentially related to the condition, make a copy and include it with the application. These could include test results, hospital bills, nursing reports, social worker evaluations, etc.

Step 2: Compare the information against the Adult Disability Checklist

This checklist is a tool to ensure all the supporting documents are complete. It also assures every question the SSA has can be answered quickly and efficiently.

Step 3: Complete the application and submit it

The application can be presented online or mailed in as a hard copy document. Alternatively, the applicant can complete the paperwork on-site at a local SSA office.

Step 4: Get updates on the status of the application

Those who apply electronically have the option of opening a MySocialSecurity account. Through this portal, applicants can discover at what stage of evaluation the application sits. Otherwise, petitioners can call 1-800-772-1213 on weekdays. The final determination will be issued by mail.

Bottom Line

Filing for SSD benefits is challenging, and many claims get denied. The best course of action is to hire an attorney to help you prepare your case and maximise your chances. If your claim is denied, your lawyer will help you appeal the decision and go through all the motions to receive the benefits you need.

Mid-week, investors wiped nearly 25% off Target shares after its profit halved. Meanwhile, Walmart was down 1.3% on Thursday after already falling more than 17% in the two sessions after it announced poor results on Tuesday. 

Target’s earnings revealed consumers have been spending more on food and household essentials but cutting back on high-margin items. Meanwhile, Walmart’s earnings revealed consumers had moved to buy lower-margin basics. 

On Tuesday, Federal Reserve Chair Jerome Powell pledged the US central bank would rise interest rates as high as necessary to combat spiralling inflation.

"We think the developing impact on retail spending as inflation outpaces wages for even longer than people might have expected is a principal factor in causing the market sell-off today," commented Paul Christopher, head of global market strategy at Wells Fargo Investment Institute. "Retailers are starting to reveal the impact of eroding consumer purchasing power."

Scammers have reportedly been tricking consumers into paying significant sums through fraudulent online stores. They have been luring “desperate parents and caregivers” via fake social media profiles and websites with images of reputable formula brands. Consumers believe they’re purchasing from a brand’s official website, but the formula never arrives. 

“Scammers exploiting the high demand for baby formula have sunk to new lows,” the FTC writes. “If you suspect a scam, let us know about it at ReportFraud.ftc.gov. Your reports help the FTC and our law enforcement partners stop scammers.”

Since the beginning of the Covid-19 pandemic, there has been a significant shortage of baby formula across US stores. Current shortages have been largely caused by supply chain issues as well as a recent recall of certain baby formula products over contamination concerns. 

Last week, The White House announced it would make it easier to import baby formula from overseas and would also introduce other measures. 

“In fact, the administration tried hard to inject even more stimulus into an already over-heated, inflationary economy and only Manchin saved them from themselves,” Bezos Tweeted. “Inflation is a regressive tax that most hurts the least affluent. Misdirection doesn’t help the country.”

Bezos’ comments come in response to a thread in which President Biden claimed the US was on track for its largest yearly deficit decline ever, totalling $1.5 trillion. 

Bezos called the President out over a tweet that said taxing wealthy companies has the potential to bring down inflation and urged the Disinformation Board to review the President’s tweet. 

“Raising corp taxes is fine to discuss,” Bezos said on Friday. “Taming inflation is critical to discuss. Mushing them together is just misdirection.”

The fall marks its lowest point in two weeks as the demand outlook was pressured by increasing recession risks and Covid-19 lockdowns in China. Additionally, a strong US dollar made crude oil more costly for buyers purchasing in other currencies.

US West Texas Intermediate crude oil was down 3.2% to $99.76 a barrel, while Brent crude dropped 3.28% to $102.46 a barrel. 

Also on Tuesday, French President Emmanuel Macron and Hungarian Prime Minister Viktor Orban discussed energy security amid EU efforts to persuade Hungary to agree to proposed sanctions on oil imports from Russia.  

"These are volatile times, the daily price bars are outsized these days," commented John Kilduff, a partner at Again Capital LLC. "As the EU continues to dither over whether or not they are going to embargo Russian oil, that changes the calculus very much as well in both directions.”

On March 28, the bank disclosed that it had exceeded a US limit on sales of structured products. This triggered a loss and a potential restatement of Barclays’ 2021 accounts.

Barclays’ new CEO, C.S. Venkatakrishnan, has reportedly said that the bank found no evidence to date of deliberate misconduct relating to the blunder and that Barclays was cooperating with all relevant regulators. 

On Thursday, the bank said it planned to begin the $1.25 billion buyback “as soon as practicable” after resolving the situation with the US authorities. 

“Barclays believes that it is prudent to delay the commencement of the buyback programme until those discussions [with the SEC] have been concluded,” Barclays said. 

“Barclays remains committed to the share buyback programme and the intention would be to launch it as soon as practicable following resolution of filing requirements being reached with the SEC and the appropriate 20-F filings having been made.”

Powell’s statements meet market expectations that the Federal Reserve will move away from its usual 25 basis point hikes and instead work quickly to tame inflation that is at its highest rate in over four decades.

In its March meeting, the Federal Reserve approved a 25 basis point move, though, in recent days, officials have stated that faster action is necessary, with consumer inflation running at an annual pace of 8.5%.

“Our goal is to use our tools to get demand and supply back in synch, so that inflation moves down and does so without a slowdown that amounts to a recession,” Powell commented. “I don’t think you’ll hear anyone at the Fed say that that’s going to be straightforward or easy. It’s going to be very challenging. We’re going to do our best to accomplish that.”

“It’s absolutely essential to restore price stability [...] Economies don’t work without price stability.”

Recent data shows that most regions are lagging far behind the United States, mainly owing to the lack of ​​governmental involvement in business practices. This caused the number of startups to decrease, causing the gap between other parts of the world and the United States to widen. As more and more businesses find the onerous constraints in other nations, many are opting for the United States, either for better alignment with venture capital or just to prosper under the more lax corporate standards. This article discusses the growing trend of foreign business creation in the United States, its reasons, and how you may get started if interested.

Why more businesses are choosing the US

In the last few decades, the number of companies interested in establishing their business in the US has increased considerably. There are a few key reasons behind this shift which are illustrated below.

The favourable economic environment

Foreign investors can buy assets in the United States, particularly real estate, at lower prices than they can in their own country. Furthermore, the United States has the largest consumer market globally, with over 320 million inhabitants, many of whom like shopping. There is a wide range of income and interest levels in the United States, so no matter what type of company you may have, it is safe to say the US market has a decent consumer base. 

Flexible residency requirements

Most European countries require a residency permit in the country where you intend to establish your business. But in the US, owners are allowed to live and operate their businesses from anywhere in the country and do not require any special permit. Additionally, in the United States, all foreign or locally held companies are treated equally. This ensures a level playing field between competitors, and no one can seek unfair advantages. 

Federal, state, and municipal governments all provide incentives

Many states in the US provide financial incentives to foreign investors who set up shop in a particular region. Some tax benefits are also available and have lately reduced commercial real estate taxes for foreign investors. Furthermore, the United States government provides a wide range of services to American enterprises, which you will be able to take advantage of when you establish your company in the United States.

How to form an LLC as a foreigner

Now that we have seen the advantages of expanding business in the United States let us discuss the process to expand a business as a foreigner.

Choose a business structure

C corporations, S corporations, and LLCs are the three structures available to companies when looking to extend their operations in the United States. While each has advantages and disadvantages, most organisations will benefit from LLCs since they offer various advantages, including no restrictions on where you live and some tax exemptions. 

Choosing the right state

The next stage is for the business owner to decide where they want to set up their company. Delaware and  Nevada are some of the most strongly recommended states for enterprises due to their business-friendly taxation rates, maintenance costs, and corporate regulations. But for many businesses, other states can be just as lucrative, especially if they can benefit from a large population or the many commercial hubs that are set up. Some popular states with large consumer markets include New York, California, Florida, and Texas. 

Fill in the paperwork

Each state's LLC  registration requirements differ slightly, but they all follow the same basic pattern. To summarise, companies must choose a distinctive name, select a registered agent and complete a certification of incorporation. After incorporation, the company must file a report and pay a franchise tax every year.

Get an EIN

For companies, an Employer Identification Number (EIN) is the equivalent of a social security number. It enables them to recruit staff and create bank accounts for their businesses. An EIN may be obtained for free straight from the IRS.

Bottomline

Due to the various advantages, small companies operating in different parts of the world increasingly choose to incorporate their business in the United States. This gives them access to a broader audience as well as international exposure to make it global. 

While the LLC application procedure is free, it may be rather complicated and time-consuming for people who are not fluent in this field. For a small cost, several organisations offer an LLC creation service online, which will significantly lessen the stress and chance of a glitch when compared to the 'DIY' approach. 

The New York-based bank said profits fell 42% from a year earlier to $8.28 billion, or $2.63 per share. Adjusted earnings of $2.76, which excludes the 13-cent impact of the Russia-Ukraine conflict, go above the $2.69 estimate of analysts surveyed by Refinitiv. Revenue, meanwhile, was down 5% to $31.59 billion, surpassing analyst predictions for the quarter. 

The quarter illustrates how rapidly events in Europe have shifted the industry’s outlook. In 2021, JPMorgan Chief Executive Jamie Dimon said he expected a long-running economic expansion, with banks profiting from billions of dollars in loan loss reserves being released. Fast-forward a year, Dimon is warning of the possibility of a recession amid spiralling inflation and ongoing fighting in Ukraine. 

“We remain optimistic on the economy, at least for the short term,” Dimon commented. “Consumer and business balance sheets as well as consumer spending remain at healthy levels – but see significant geopolitical and economic challenges ahead due to high inflation, supply chain issues and the war in Ukraine.”