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    MetLife profit falls on group benefits business weakness

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    Adjusted earnings from MetLife’s group benefits business — which offers dental, disability, vision, accident, health and life insurance — slid 27% to $373 million from a year earlier.MetLife said the weakness in the unit was primarily due to the impact of its annual actuarial assumption review coupled with weaker non-medical health underwriting.Insurers use actuarial assumptions when calculating the life expectancy projection of a person seeking life insurance. Actuarial assumption is an estimate of an uncertain event for the purpose of calculating insurance premiums.Meanwhile, adjusted net investment income rose 8% to $5.3 billion in the quarter, driven by higher interest rates.Risk-averse insurers’ investment portfolio tends to be heavily weighted toward bonds, which return better yields in a high interest rate environment.Adjusted earnings available to common shareholders fell to $1.38 billion, or $1.95 per share, in the three months ended Sept. 30, from $1.49 billion, or $1.97 per share, a year earlier.MetLife shares have risen 26% so far this year, compared with a 22% gain in the benchmark S&P 500 index. More

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    US Treasury sees no auction size increases through January, announces $125 billion refunding

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    NEW YORK (Reuters) -The U.S. Treasury Department said on Wednesday it does not anticipate increasing auction sizes for notes and bonds for at least the next several quarters, in line with market expectations, as it announced a $125 billion refunding from November 2024 to January 2025.The department will refund about $116.4 billion of privately held Treasury notes and bonds maturing on Nov. 15 to raise new cash of $8.6 billion from private investors.The Treasury will sell $58 billion in U.S. three-year notes, $42 billion in 10-year notes, and $25 billion in 30-year bonds next week. These were the same auction sizes for the same securities announced at the July refunding.”The refunding was pretty much close to our expectations. There could have been a small tweak to the guidance because ‘at least for the next several quarters’ is quite open to interpretation,” said Angelo Manolatos, a macro strategist at Wells Fargo Securities.”To us, we think that the Treasury is well-funded to meet its borrowing needs and current auction sizes are sufficient until November 2025, a time when we think the Treasury can increase them.”The U.S. Treasury said on Monday it plans to borrow $546 billion in the fourth quarter, $19 billion less than the July estimate, and another $823 billion in the first quarter of 2025. It assumes an end-December cash balance of $700 billion and an end-March cash balance of $850 billion.Treasury Assistant Secretary for Financial Markets Joshua Frost, in a briefing following the refunding statement, said the borrowing plans for the quarter assume that Congress approves a “timely” increase or suspension in the debt ceiling. The current extension, approved in June 2023, expires on Dec. 31.Members of the Treasury Borrowing Advisory Committee (TBAC), who met with the U.S. Treasury before the refunding announcement, expressed concern about the borrowings for 2025 and 2026. Minutes of the meeting showed that primary dealer estimates for the next two fiscal years were marginally higher than the previous forecasts.The Treasury said on Wednesday it believes current auction sizes leave it “well-positioned” to address potential changes to the fiscal outlook and to the pace and duration of future redemptions in the Federal Reserve System Open Market Account (SOMA).The account is managed by the U.S. central bank and contains assets acquired through operations in the open market.The Treasury said it intends to address potential changes to the fiscal outlook in borrowing needs over the next quarter through changes in regular bill auction sizes and cash management bills.TIPS AUCTION SIZES TO INCREASEAuction sizes will moderately increase for Treasury Inflation-Protected Securities, the Treasury said.”Given the intermediate- to long-term borrowing outlook and the structural balance of supply and demand for TIPS, Treasury believes it would be prudent to continue with incremental increases to TIPS auction sizes in order to maintain a stable share of TIPS as a percentage of total marketable debt outstanding.”The Treasury plans to maintain the November 10-year TIPS reopening auction size at $17 billion, increase the December five-year TIPS reopening auction size by $1 billion to $22 billion, and raise the January 10-year TIPS new issue auction size by $1 billion to $20 billion.This was the overwhelming recommendation of primary dealers, the TBAC minutes showed. While demand for TIPS, especially from retail investors, had weakened as inflation has cooled, almost all dealers felt the market could absorb additional supply, the minutes added.As for Treasury bills, the plan is to maintain the offering sizes through November. But in late-November, the Treasury anticipates issuing one or two cash management bills to address cash needs at that time.Given estimates for receipts associated with the mid-month corporate tax date, the Treasury expects to moderately reduce short-dated bill auction sizes during the month of December. But in January it anticipates lifting bill auction sizes based on expected fiscal outflows.The Treasury also gave an update on buybacks, saying it plans to conduct weekly liquidity support buybacks of up to $4 billion per operation in nominal coupon securities. In longer-maturity debt, Treasury will undertake two operations, each up to $2 billion, over the refunding quarter.The department further said it expects to buy up to $30 billion in off-the-run or older securities across the curve for liquidity support over the course of the upcoming quarter, and up to $22.5 billion in the one-month to two-year debt for cash management purposes. More

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    Reeves has made her choice — but success is not guaranteed

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    $75 per monthComplete digital access to quality FT journalism with expert analysis from industry leaders. Pay a year upfront and save 20%.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print edition More

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    Polls Show Trump’s Edge Shrinking on Voters’ Top Issue: The Economy

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    It remains priority No. 1 for many voters, particularly those who are still undecided, according to Times/Siena polling. But can Kamala Harris translate her gains into votes?The economy is still the No. 1 issue in the presidential election. Voters rated it as their top priority in the latest New York Times/Siena College poll, as they have in every Times/Siena poll this year.And while former President Donald J. Trump remains the more trusted candidate in terms of handling the economy, Vice President Kamala Harris has closed much of the gap.Ms. Harris is in an unusual position, running as a sitting vice president alongside an unpopular president. Many voters say President Biden’s policies have hurt them — more than say the same about Mr. Trump’s policies — and economic concerns are a large driver of those feelings, recent polls show.Large majorities of voters rate the economy as only fair or poor, even though inflation has cooled and many other traditional indicators are positive. (Though experts note that concerns about inflation often linger, even as inflation rates lower.)But Ms. Harris has made some gains on the economy. In a September Times/Siena poll, likely voters favored Mr. Trump’s handling of the economy by 13 percentage points; that lead had shrunk to just six percentage points in the latest Times/Siena poll, which was conducted last week. Other pollsters have shown similar gains for the vice president on the issue.

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    Regardless of how you might vote, do you trust Kamala Harris or Donald Trump to do a better job on the economy?
    Notes: Question wording has been condensed. Margins are calculated using unrounded percentages. Sources: New York Times/Siena College surveys among likely voters conducted Sept. 3 to 6, 2024; Sept. 11 to 16, 2024; and Oct. 20 to 23, 2024. By The New York TimesMost currently view the economy negativelyThinking about the nation’s economy, how would you rate economic conditions today?

    Notes: Among registered voters. Question wording varies slightly by pollster. Sources: Roper Center for Public Opinion Research, ABC News, Bloomberg News, Consumer Comfort Index: State of the Economy, SSRS, NORC, Washington Post, New York Times/Siena College.By The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Can Democrats Win Back Voters From Trump on Trade Policy?

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    The Biden administration has pursued a big shift in trade policy, but it’s not clear whether that will be enough to win votes.Since Donald J. Trump won over many working-class voters in 2016 with his vows to impose tariffs and rework “disastrous” trade deals, Democrats have been scrambling to win back supporters by taking a more protectionist trade approach.Over the last four years, the Biden administration spent more time emphasizing the harm trade policy has caused to American communities than the benefits. It hit the brakes on negotiating trade deals with other countries and chose to maintain and even increase Mr. Trump’s tariffs on Chinese products. And it pumped billions of dollars into new American factories to make semiconductors and solar panels.It’s a significant shift from the decades that both mainstream Democrats and Republicans spent working to promote trade and lower international barriers.For Vice President Kamala Harris, next week’s election will be a moment of truth for whether the strategy worked.Mr. Trump has helped bring trade to the forefront in presidential elections with his vitriolic criticisms of past policy and his proposals for high tariffs. It is an issue that resonates strongly with voters in Northern swing states like Pennsylvania, Michigan and Wisconsin, where manufacturing employment fell steeply in recent decades as factories moved abroad.Biden officials have been trying to persuade more trade-skeptical voters that their policies to encourage manufacturing in the United States are working, pointing to a recent surge in U.S. factory construction.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Ray Dalio concerned about America postelection: ‘Both candidates worry me’

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    A postelection America worries U.S. billionaire Ray Dalio.
    Speaking at the Future Investment Initiative conference in Saudi Arabia on Wednesday, Dalio spoke about major geopolitical and election-related concerns.
    Dalio said he continues to be concerned about the increase in U.S. Treasury supply.

    Ray Dalio speaking with CNBC at the Future Investment Initiative in Riyadh, Saudi Arabia, on Oct. 30, 2024.

    A postelection America worries U.S. billionaire Ray Dalio, who called for reforms numerous times amid a political landscape rife with what he views as irreconcilable differences between both Democratic and Republican parties.
    Speaking at the Future Investment Initiative conference in Saudi Arabia on Wednesday, the founder of the investment firm Bridgewater Associates spoke about major geopolitical and election-related concerns, the issue of rising U.S. deficit and how investors can best position their portfolios.

    “Both of the candidates worry me,” Dalio told CNBC. “This left, right and fighting each other is a problem as it becomes more of the extremes. I think there needs to be a bringing of Americans together, that middle of that, and making great reforms. … There needs to be a strong leader of the middle, I believe, that makes great reforms. … Neither of the candidates does that for me.”
    Dalio noted that Republican presidential candidate Donald Trump is “a lot more capitalist” than Democratic candidate Kamala Harris, and therefore better for domestic capital markets. However, he warned that there will be big deficits in an economy run by either party. Both candidates have major differences, including in tax policies, he added, noting that Trump’s plan to collect greater tariff revenue could lead to a spike in prices depending on how much that revenue is converted into internal productivity.
    Consequences of the election are “really more a left-right question, and it’s a shame because we need to bring the country together in a smart way and make great reforms. We need to do that,” Dalio said. “The debt is concerning, the internal conflict is concerning, the external conflict is concerning and certainly the climate and the cost of the climate is concerning.”

    Dalio said he continues to be concerned about the increase in U.S. Treasury supply. About a third of U.S. Treasurys are held by foreigners, leading to a supply-demand issue that has more upside than downside risk for investors, he said.
    “We have a real debt problem. … I think one man’s debts is another man’s assets,” Dalio said. “Treasury market is basis of all capital formation. At some point, when you combine it with the internal conflict issue, if you have a downturn — when the downturn comes — I’m worried about internal political and social conflict.”
    When positioning one’s portfolio, the famed investor said gold should be part of a diversified and balanced strategy that reduces overall risk.

    Don’t miss these insights from CNBC PRO More

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    New Jersey Democrats Work to Flip House Seat

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    Sue Altman has made a name for herself by taking on political heavy hitters in New Jersey.First was Chris Christie, the famously pugnacious Republican governor, who, during a 2016 town hall, was so exasperated by her questions about education funding that he tossed his microphone to her.Three years later, she tangled with George Norcross III, then among the state’s most influential Democratic power brokers, as she led a drumbeat of criticism against corporate tax breaks awarded to companies with close ties to him.Now Ms. Altman is seeking to unseat Thomas Kean Jr., a first-term Republican congressman who is the scion and namesake of a former governor, in one of a handful of races nationwide that will determine whether Republicans retain control of the House.The result of Tuesday’s election in New Jersey’s Seventh Congressional District may say a lot about how Mr. Kean, 56, has campaigned in the race, where recent polls have prompted Democrats to mount a last-minute push in hopes of flipping the seat.Mr. Kean, a son of a former Republican governor, was elected to the House two years ago.Bryan Anselm for The New York TimesBut it also may offer insight into the direction of New Jersey and of suburban swing districts like the Seventh, an affluent and well-educated region split nearly evenly between Republicans and Democrats. President Biden beat Donald J. Trump there by four points in 2020, but two years later Mr. Kean beat the Democratic incumbent, Tom Malinowski, by about three points.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    GDP Report Shows US Economy Grew at 2.8% Rate

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    In a key economic report released just days before the presidential election, gross economic product rose at a 2.8 percent rate in the third quarter.Consumers are spending. Inflation is cooling. And the U.S. economy looks as strong as ever.Gross domestic product, adjusted for inflation, expanded at a 2.8 percent annual rate in the third quarter, the Commerce Department said on Wednesday. That came close to the 3 percent growth rate in the second quarter and was the latest indication that the surprisingly resilient recovery from the pandemic recession remained on solid footing.“The economy right now is firing on nearly all cylinders,” said Joe Brusuelas, chief economist at the accounting and consulting firm RSM.The report was the first of three crucial indicators on the nation’s economy scheduled for release this week, just days before the presidential election and the next policymaking meeting of the Federal Reserve.The strength in the third quarter was again driven by robust consumer spending, which grew at a 3.7 percent rate, adjusted for inflation. Rising wages and low unemployment meant that Americans continued to earn more, while inflation continued to ease: Consumer prices rose at a 1.5 percent annual rate in the third quarter and were up 2.3 percent from a year earlier.As recently as a few weeks ago, many economists were concerned that spending was about to slow as the job market weakened and household savings dwindled. But revised data released last month showed that incomes and savings were stronger than initially reported, and recent data on the job market has been strong. That suggests that spending could continue to grow — especially because data released by the Conference Board this week showed that consumers were at last feeling more confident in the economy.“Most consumers continue to be working,” said Dana Peterson, chief economist for the Conference Board. “If you’re a consumer and you’re working, then you’re going to spend.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More