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    High-Yield Savings Accounts Are Still a Good Deal

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    Interest rates have been falling, but deposits are earning more than inflation.You’ve probably been discouraged to see the interest rate on your high-yield savings account fall during the past couple of months. But your money is still earning much more than it would in a traditional savings account — and more than inflation.Rates paid on cash in savings accounts have been dropping since the Federal Reserve began cutting its key interest rate in September as inflation cooled. The central bank cut rates again, by a quarter point, at its meeting this month, and another cut in December is seen as likely, though not certain because of a recent uptick in inflation.Banks are following the Fed’s lead in gradually reducing interest rates. Even so, the rates paid on federally insured high-yield savings accounts, many offered by banks that operate solely or mostly online, are still beating inflation, which was 2.6 percent on an annual basis in October.“High-yield savings accounts are still attractive relative to traditional savings accounts,” particularly for emergency or “rainy day” funds that savers want to be able to tap into quickly, said Alan Bazaar, chief executive and co-chief investment officer at Hollow Brook Wealth Management in Katonah, N.Y.Online banks were offering rates of 4 percent or higher this week, compared with a national average rate of just 0.56 percent for all types of savings accounts, according to the financial site Bankrate. If you put $5,000 in a savings account for a year at the average rate, you’d earn just $28, compared with about $200 with a high-yield account. (At some of the biggest national banks, which are offering just 0.01 percent, you’d end up with a measly 50 cents.)Just a few years ago, savers were getting 1 percent on their deposits at best, so 4 percent is nothing to scoff at, said Ted Rossman, a senior industry analyst at Bankrate. High-yield accounts can also be attractive for funds needed in the not-so-distant future — say, for a child heading to college or for retirees looking to set aside cash for living expenses.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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      Trump’s 2nd-Term Agenda Could Transform Government and Foreign Affairs

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      The president-elect could reshape government and may dramatically transform foreign and domestic policy in a second term.As he declared victory, President-elect Donald J. Trump said that his mission now was nothing less than to “save our country.” His version of doing that involves an expansive agenda that would reshape government, foreign policy, national security, economics and domestic affairs as dramatically as any president in modern times.Over the course of the campaign, Mr. Trump outlined a set of policies for his second term that would be far more sweeping than what he enacted in his first. Without establishment Republicans and military veterans surrounding him to resist his more drastic ideas, Mr. Trump may find it easier to move ahead, particularly if his party completes its sweep by winning the House.Many of his policy prescriptions remain vague or change in detail depending on his mood or the day. But if he follows through on his campaign trail talk, he would restructure the government to make it more partisan, further cut taxes while imposing punishing tariffs on foreign goods, expand energy production, pull the United States back from overseas alliances, reverse longstanding health rules, prosecute his adversaries and round up theoretically millions of people living in the country illegally.“We’re going to do the best job,” Mr. Trump said in his victory speech. “We’re going to turn it around. It’s got to be turned around. It’s got to be turned around fast, and we’re going to turn it around. We’re going to do it in every way with so many ways, but we’re going to do it in every way. This will forever be remembered as the day the American people regained control of their country.”Having promised to devote his next four years in office to “retribution,” Mr. Trump plans to quickly shield himself from legal scrutiny, end criminal investigations against himself, pardon supporters who stormed the Capitol on Jan. 6, 2021, and turn the power of federal law enforcement against his adversaries.He has said he will fire Jack Smith, the special counsel who has brought indictments against him for mishandling classified documents and trying to overturn the 2020 election, and he has threatened to investigate President Biden, Vice President Kamala Harris and others who have angered him, including Republicans like Liz Cheney, the former congresswoman from Wyoming.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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      G7 Finalizes $50 Billion Ukraine Loan Backed by Russian Assets

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      The economic lifeline is expected to be disbursed by the end of the year.The Group of 7 nations will announce on Wednesday that it has finalized plans to give Ukraine a $50 billion loan using Russia’s frozen central bank assets, according to a White House official.The loan represents an extraordinary maneuver by Western nations to essentially force Russia to pay for the damage it is inflicting on Ukraine through a war that shows no sign of ending.“Never before has a multilateral coalition frozen the assets of an aggressor country and then harnessed the value of those assets to fund the defense of the aggrieved party,” Daleep Singh, the White House’s deputy national security adviser for international economics, said on Wednesday.The announcement comes after months of debate and negotiation among policymakers in the United States and Europe over how they could use $300 billion of frozen Russian central bank assets to support Ukraine.The United States and the European Union enacted sanctions to freeze Russia’s central bank assets, most of which are held in Europe, after its invasion of Ukraine in early 2022. As the war dragged on, officials in the United States pushed for the funds to be seized and given directly to Ukraine to aid in its economic recovery.European officials had concerns about the lawfulness of such a move, however, and both sides eventually agreed over the summer that they would use the interest that the assets were earning to back a $50 billion loan.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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      HSBC Announces Restructuring and Names First Female C.F.O.

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      The restructuring of Europe’s largest lender comes as it looks to cut costs and navigate a diplomatic minefield across its sprawling operations.HSBC announced its biggest restructuring in a decade this morning, splitting itself into four divisions, combining some of its commercial and investment banking operations and reshuffling management.The changes come as Europe’s largest lender looks to cut costs and navigate a diplomatic minefield between China and the West, and are the first since Georges Elhedery became chief executive in April.The bank will make its British and Hong Kong banking units into two stand-alone entities. A new corporate and institutional banking division will house commercial banking outside Britain and Hong Kong, as well as the markets and investment banking business. HSBC’s private banking, asset management and insurance businesses will be become part of an international wealth and premier banking unit.The lender will also create an Eastern regional division that will pair its Asia Pacific and Middle East operations. Europe, Britain and the Americas will be grouped in another.With rates under pressure, banks are scrambling to cut costs. HSBC reported better-than-expected second quarter results, but some analysts worry that the lender is exposed to big rate cuts by the Federal Reserve and other central banks.HSBC is also at the front line of trade tensions between the West and China. The bank is listed in London but makes most of its money in Asia. It was caught in the crossfire during the pro-democracy protests in Hong Kong in 2019. Last year, investors rejected a plan backed by Ping An, a Chinese insurer and one of HSBC’s biggest shareholders, for the bank to separate its Asia operations.Mr. Elhedery said the changes had been designed to simplify operations. “The new structure will result in a simpler, more dynamic and agile organization as we focus on executing against our strategic priorities, which remain unchanged,” he said in a statement.But investors shrugged off the latest changes. HSBC’s shares are up almost 10 percent over the past year but barely moved this morning. That’s partly because details weren’t revealed on how much the restructuring would cost, how many roles would be cut and how much money would be saved. Some analysts also want to know what other parts of the group could be cut next.HSBC also announced that Pam Kaur, the chief risk and compliance officer, will become the chief financial officer. Ms. Kaur, who joined the bank in 2013, will be the first woman to hold that role at the bank. More

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      Residents in Lebanon Flee as Israel Strikes Hezbollah-Affiliated Financial Institution

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      The Israeli military conducted a wave of airstrikes across Lebanon on Sunday, targeting branches of Al-Qard al-Hasan, a financial association associated with the militant group Hezbollah.The organization was placed under U.S. sanctions in 2007 and has been accused by American, Israeli, Saudi Arabian and other officials of operating as Hezbollah’s de facto banking arm. Inside Lebanon, where Hezbollah also functions as a political organization and provides a range of social services, Al-Qard al-Hasan is designated a non-governmental organization and is viewed as a Hezbollah-affiliated charity.It operates as a lender and financial services provider for civilians in many areas of Lebanon, where the traditional banking sector is in shambles. Many of its branches are situated on the ground floors of residential buildings, and it is deeply embedded in the Shiite Muslim communities it serves.On social media on Sunday night, Avichay Adraee, the Arabic spokesman for the Israeli military, warned residents of Lebanon to evacuate buildings near the infrastructure of Al-Qard al-Hasan around Beirut and across southern and eastern Lebanon, saying that the organization “is involved in financing the terrorist activities of the Hezbollah organization against Israel.”Soon after, the sounds of explosions could be heard ringing across Beirut, the Lebanese capital. A New York Times reporter saw dense plumes of black smoke rising in the near distance after the strikes.The strikes marked an apparent escalation of Israel’s war against Hezbollah, with a senior Israel intelligence official saying the targeting of the banking system — rather than weapons depots or command and intelligence centers — was intended to disrupt Hezbollah’s day-to-day operations, undermine its support in Lebanese communities and hamper its ability to rebuild.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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      American Business Cannot Afford to Risk Another Trump Presidency

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      Throughout American history, business leaders have been able to assume that an American president of either party would uphold the rule of law, defend property rights and respect the independence of the courts. Implicit in that assumption is a fundamental belief that the country’s ethos meant their enterprises and the U.S. economy could thrive, no matter who won. They could keep their distance from the rough-and-tumble of campaign politics. No matter who won, they could pursue long-term plans and investments with confidence in America’s political stability.In this election, American business leaders cannot afford to stand passive and silent.Donald Trump and his Democratic opponent, Vice President Kamala Harris, have sketched out versions of their parties’ traditional positions on issues like taxation, trade and regulation that are well within the give-and-take of politics. In this election, however, stability itself is also at stake.Mr. Trump denies the legitimacy of elections, defies constitutional limits on presidential power and boasts of plans to punish his enemies. And in these attacks on America’s democracy, he is also attacking the foundations of American prosperity. Voting on narrow policy concerns would reflect a catastrophically nearsighted view of the interests of American business.Some prominent corporate leaders — including Elon Musk, a founder of Tesla; the investors David Sacks and Bill Ackman; and the financier Stephen Schwarzman — have been supportive of Mr. Trump’s candidacy. Beyond pure cynicism, it’s nearly impossible to understand why.Business leaders, of course, may be skeptical of Ms. Harris’s policies, uneasy because they don’t feel they know enough about how she would govern or worried that she may not be open to hearing their concerns — a frequent criticism of the Biden administration. They may be reluctant to offend or alienate employees, customers or suppliers who have different political views. Most of all, they may be afraid of angering Mr. Trump, who has a long track record of using the levers of power to reward loyalty.They should be more afraid of the consequences if he prevails.This week Donald Trump provided a stark reminder that this election is different. In remarks that ought to alarm any American committed to the survival of our democratic experiment, the Republican nominee again refused to commit to accepting the results of the 2024 election. That comes on the heels of remarks in which he declared that he regards his political opponents as an “enemy from within” and that he would consider deploying the military against them merely for opposing his bid for the presidency. The implication is that participation in the democratic process is treason, and the threat is a fresh indication that if he is elected to a second term, Mr. Trump intends to deploy government power in new and dangerous ways.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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      China’s Lackluster Growth Continues, Signaling Why Beijing Acted on Economy

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      Falling prices, weak consumer spending and a housing market crash help to explain why the Chinese government is taking steps to stimulate the economy.The Chinese economy continued to grow at a lackluster pace over the summer, according to data released on Friday, underscoring the urgency of the government’s recent attempts to bolster the economy.Construction has slowed because of a housing market meltdown. Millions of young college graduates have been unable to find work. Many local governments have run out of money to build roads or even pay the salaries of teachers and other workers.Looming over it all are falling prices across the Chinese economy, from apartments to cars to restaurant meals. Broadly falling prices, a phenomenon called deflation, make it hard for companies and families to earn enough to pay their mortgages and other debts.China’s economy grew 0.9 percent in July through September over the previous three months, China’s National Bureau of Statistics said. When projected out for the entire year, the economy grew at an annual rate of about 3.6 percent in the third quarter.The growth in part reflected an official revision on Friday to show that the second quarter was even weaker than previously acknowledged. Growth then was at an annual pace of 2 percent, and not the previously reported pace of 2.8 percent.Beijing has announced a series of measures since Sept. 24 to address the lingering troubles that became clear in the numbers released on Friday. The central bank has cut interest rates and minimum down payments for mortgages. The finance ministry promised the sale of more bonds to raise money for local governments to pay municipal salaries and buy vacant apartments for conversion into affordable housing.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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      Is the Trump Trade Back?

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      Market observers see signs that investors increasingly believe Donald Trump will win the election, but there may be alternate explanations for a shift in sentiment. A rally in some stocks, cryptocurrencies and Donald Trump’s social media company are some signs of investors betting on the former president to win in November.Brendan Mcdermid/ReutersA trade makes a comeback The election polls may be deadlocked. But in the markets, some investors are indicating that they see Donald Trump as increasingly likely to win the White House, a belief that seems to mirror a swing in the prediction markets.Market observers see the return of the so-called Trump trade, which posits that certain industry sectors and financial assets — think oil drillers and cryptocurrencies — would benefit from the former president bringing in lower taxes and less regulation.The signs that the Trump trade is gaining steam: Stanley Druckenmiller, the billionaire financier, told Bloomberg yesterday that over the past 12 days, markets appeared “very convinced Trump is going to win.” (It’s worth noting that Druckenmiller said he didn’t plan to vote for either candidate.)Among the evidence Druckenmiller pointed to:A rally in bank stocks, which are up 8.5 percent over the past two weeks. (That said, banks have so far reported better-than-expected earnings.)Shares in Trump Media & Technology Group, the former president’s unprofitable social media company, have soared since late September, adding nearly $2 billion to its market value. But the stock’s volatile trading hasn’t always correlated with polls or prediction markets, and it’s unclear whether the company would draw more advertisers if Trump won. Some companies might flock to the platform to curry political favor; others might stay away.Bitcoin has risen about 13 percent in the past week. The cryptocurrency world has largely bet on a second Trump administration being friendlier to digital assets, though Vice President Kamala Harris has made appeals to the industry.Also, the dollar approached a two-and-a-half month high this morning as currency traders appear to be pricing in a Trump victory, betting that his economic policies would drive up inflation, lower the price of bonds and strengthen the dollar. (That said, Trump wants a weak greenback.)But there are potential pitfalls to betting on Trump. “It is a thing in the financial markets,” Holger Schmieding, the chief economist at Berenberg, a German bank, said of the Trump trade.He told DealBook: “I don’t agree with it in the long run. Higher tariffs and less immigration would hurt U.S. vitality.”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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      Profits Leap at Goldman Sachs as Banks See Steady Economy

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      The investment bank earned more than expected in the latest quarter, a theme for other big banks, too.Goldman Sachs on Tuesday reported a monster jump in its third quarter earnings, reaping $3 billion in profits — far higher than what Wall Street analysts had expected.How did the investment bank do it? The steadying economic environment helped — but so did a financial maneuver employed by Goldman’s chief executive, David M. Solomon, a few weeks ago.In early September, Mr. Solomon publicly sounded the alarm, saying many aspects of the bank’s business were stumbling in the third quarter. He warned that the bank’s upcoming earnings might disappoint.They didn’t — not at Goldman nor the two other major banks that reported results on Tuesday.Up first, a billion-dollar beatGoldman pulled in nearly $13 billion in revenue during the third quarter, over $1 billion more than projections. The bank’s $3 billion in quarterly profit was roughly equal to what it pulled in during the previous quarter, despite Mr. Solomon’s warning last month that profits might not hold up as well as they had in the first half of the year.A bank executive, briefing reporters on the condition of anonymity, said that trading activity — a core part of any investment bank — came in stronger than expected in September, the same period that the Federal Reserve announced a large cut in interest rates.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