US consumer confidence reaches highest level in 5 months | Migrant crossings slow trade at US-Mexico border | Henry Schein expands into orthopedics with 2 deals
US consumer confidence has soared in December, with The Conference Board's index rising to 110.7, up from a revised 101 a month earlier, marking the most significant increase since early 2021. Consumers' more upbeat outlook was driven by more positive perceptions of the business environment, job availability and future economic prospects, while recession expectations have reached their lowest point this year. Inflation expectations declined to the lowest since late 2020, but price increases remain consumers' top concern.
Trucks on the US-Mexico border (David McNew/Getty Images)
The influx of migrants has forced US immigration authorities to reduce traffic at some US bridges and other points of entry for truck and rail operators and fully close others. The National Grain and Feed Association, the Association of American Railroads, the Intermodal Association of North America and other industry groups are calling for the government to open routes to boost trade flow, while Redwood Logistics says more than $1 billion in freight was disrupted at the border between September and December.
Henry Schein has agreed to acquire a majority stake in TriMed in a deal that is expected to close in the first quarter and will give Henry Schein a foot in the door to the orthopedic solutions market's extremities segment. Henry Schein is also partnering with Extremity Medical, enabling the medical device company to expand its offerings for lower extremity and wrist treatments.
UPS' new DeliveryDefense program employs artificial intelligence to help shippers identify addresses that are likely targets of theft based on past deliveries so they can reroute packages to a different pickup location. "About 2% of addresses will be considered low confidence, and we're seeing that represents about 30% of losses our customers are having," said Mark Robinson, president of UPS Capital.
Some experts have warned that the recent attacks on cargo ships in the Red Sea could prompt a new supply chain problem, with major carrier Maersk already instructing its ships to avoid the area. Extreme weather events and the possibility of more labor unrest in the US are also cited as potential disruptions to the supply chain.
Marketers' areas of focus for generative AI next year will be creating AI agents to complete tasks or answer queries, elevating the customer experience, and multimodality, a term used to describe the blending of video, audio and text prompts. Marketers also will need to keep track of AI regulation and be aware of generative AI's issues relating to bias, intellectual property and privacy, Trishla Ostwal writes.
Modernized port infrastructure around the US is the target of $21 billion in funding from the Biden administration. The money is being distributed under multiple federal programs for purposes such as speeding up operations, making the ports more attractive for ocean carriers and to help reinvigorate declining cities.
Generative artificial intelligence is in the early innings, says Sapphire Ventures' Jai Das, and the "adoption curve on this one will be mind-blowingly fast," adds Bessemer Venture Partners' Sameer Dholakia. "You'll see a lot of companies that in hindsight will look like they've replaced existing software players," notes Accel partner Daniel Levine.
There appears to be a disconnect between the Federal Reserve's messages on interest-rate cuts and investor expectations. The Fed is projecting three or more cuts in 2024, but investors are betting on faster and deeper cuts, leading to confusion on how quickly policymakers will lower rates. Fed Chair Jerome Powell's comment that a decrease in inflation without an increase in unemployment took the Fed by surprise has fueled expectations of rate cuts in 2024.
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