Hi, I'm Matt Turner, the editor in chief of business at Insider. Welcome back to Insider Today's Sunday edition, a roundup of some of our top stories. On the agenda today: But first: Everyone is back to talking about a recession. I break down the latest below. |
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2023 started with fresh hope that the US could avoid a recession. It didn't last long. Inflation has persisted even as many commodity prices have dropped sharply. Tensions with China have intensified after the US shot down a spy balloon from the country. Add in the recent turmoil in the banking sector, and conditions have taken a serious turn for the worse. The Federal Reserve last week responded by raising rates by 25 basis points, fewer than the 50 that had been expected just a few weeks ago, but still a hike. Financial conditions are likely to get tighter still as a result of the stress facing small and midsize lenders, which play a significant role in US bank lending. Tougher lending standards could have the impact of one or multiple rate hikes, Fed Reserve Chair Jerome Powell said in a post-decision presser. Goldman Sachs agrees, quantifying the effect as 25 to 50 basis points of rate increases. That has big name investors and market signals predicting a recession, and soon. Bill Gross and Jeff Gundlach, both considered "bond kings" thanks to their investing prowess, sounded the alarm. "Red alert recession signals," Gundlach said. Even Powell's preferred bond-market indicator says a recession is on the way this year. Keep up with the latest markets and economy news by signing up for notifications on our app. |
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THIS WEEK'S STORIES The party is over |
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Getty Images; Alyssa Powell/Insider |
The market winds have changed. And if any city is the city to see that change, it's Miami, Insider's Linette Lopez writes. When Linette visited Miami in 2021, it was the capital of crypto and a paradise for a new type of "too-online stock jockey." She returned in January after the market's meteorological reversal to search for survivors, only to find that the years of wild partying had ended. What it's like in Miami now. |
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Deel, a buzzy human-resources startup, promises to break down the old geographical barriers to recruiting talent by helping companies hire around the world. When the pandemic hit, Deel embraced the moment. It let staff work remotely and subsequently ballooned in size, from a team of fewer than 30 employees to over 2,000. Deel's turbocharged growth scored it a private valuation of $12 billion. But according to more than 30 current or former Deel workers, the startup has a growth-at-all-costs mentality that's blistering even by Silicon Valley standards. Behind the scenes of Deel's rapid rise. |
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The world's top hedge funds, from Millennium to Citadel, are increasingly hoovering up talent from Goldman Sachs. Amid a substantial post-financial-crisis growth spurt, hedge funds have supplanted the world's top investment banks as the most desirable posts for premier Wall Street personnel — and Goldman alumni are top of their wish list. We've charted the migration. |
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| "Let's give him the Pedro Pascal treatment." |
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MORE TOP READS Vice, Amazon, & more |
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This edition was curated by Matt Turner, and edited by Dave Smith, Hallam Bullock, and Lisa Ryan. Get in touch: insidertoday@insider.com. |
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