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Caterpillar (CAT) is poised to drive into the middle of a new financial "megacycle" that could send its stock price higher by at least 25%, argues Cowen analyst Matt Elkott.

"We are projecting a megacycle of financial performance for Caterpillar in the next three years starting in 2021. Growth in revenue, gross margin, operating margin and EPS. It's fairly consistent with the consensus, but I think what is somewhere overlooked here is this will be the first time in 14 years that Caterpillar has grown in all these metrics for three consecutive years. The last time this happened was 14 years go, and the stock had one of its most sustained, positive price action," said Elkott on Yahoo Finance Live.

Elkott slapped Caterpillar with an Out-perform rating on Thursday with a $241 price target.

Caterpillar shares popped 3% to $194.18 on the call. To be sure, Caterpillar's stock is in no way reflecting a new financial "megacycle."

Shares are up a mere 6.7% year-to-date, lagging the S&P 500's 17% gain as investors fret about inflationary impacts on industrial companies and slowing growth in China's once red-hot property market. At a forward price-to-earnings multiple of 15.8 times, Caterpillar's stock trades at a discount to the S&P 500's forward multiple of roughly 21 times.

But Elkott is going all in on Caterpillar, pointing to several key drivers of a higher valuation for the maker of giant dump trucks.

Elkott is bullish on Caterpillar's new technologies designed to lower emissions, autonomous products, ongoing strength in the U.S. construction market and an eventual infrastructure bill. The company also has an opportunity over time in electrifying its fleet of products.

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The spike in energy prices recently may further play into a bull thesis on Caterpillar's stock.

"Commodity prices do raise their input costs, but on balance higher commodity prices are good for Caterpillar because their customers do well. That more than offset the higher input costs. Definitely that is a part of our thesis," Elkott says.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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A new 'megacycle' may send shares of this dirt-moving equipment maker up 25%: analyst - Yahoo Finance

Suze Orman: These 5 moves will keep you out of the poorhouse in retirement

Everyone hopes that, after decades of hard work, they'll retire rich enough to spend decades more enjoying the fruits of their labor.

But if you ask financial guru Suze Orman, the average American is nowhere near ready. Their savings won't last decades they'll last about three years.

Research by the Transamerica Center for Retirement Studies found the median savings in this country is just $144,000. That might sound like a healthy amount, but seniors 65 and older spend an average of $46,000 a year, the Bureau of Labor Statistics says.

If you want more than three good years, Orman's book The Ultimate Retirement Guide for 50+ offers five key moves you can make today to set yourself up for a happy retirement. Here's how to get started.

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If you havent already, Orman says its time to buckle down and take a deep look through your budget.

Compare what youre spending to what youre saving. Trim the fat where you can and cut back on any unnecessary spending so you can allocate more to your retirement savings column.

Do you own a home and are you planning to stay in it through retirement? Then Orman says you need to come up with a plan now to ensure youll have your mortgage fully paid off before you retire.

Not sure how? A mortgage refinance at today's still historically low interest rates could save you hundreds of dollars a month and make it possible for you to get out from under your home loan sooner.

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You may have plenty of sentimental reasons to want to stay in your current home, but if its more space than you need and you can make money off of it, you may want to consider selling now.

Not waiting until you have to sell the house makes sense, Orman says, because if you invest the profits now, youll accrue much more interest than if you waited another 10 or 15 years.

I dont want you to wait till youre 60 or 70 to sell this home, she says. I want you to downsize right now, so that you can start saving more money right now.

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While some may hesitate to part with their family homes, a smaller space is easier to clean, cheaper to run, will cost you less in homeowners insurance and will be more accessible as you age.

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Financial experts typically recommend you have an emergency fund of at least three to six months worth of living expenses, Orman actually recommends you make that two or three years.

Yes, three years worth of expenses in an emergency fund. Her reasoning is that if the market ever takes a downturn, youre not going to want to be withdrawing from your retirement accounts until it bounces back.

With a substantial emergency fund youll be able to get by until its once again safe to take out funds from your retirement account. If you need a little help setting up your emergency fund, you can turn to a fiduciary financial adviser.

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To avoid paying tax when you take money out of your retirement account, Orman recommends you go for a Roth IRA account.

Later on in life, you want to be able to take that money out tax-free, she explains.

Because your contributions to a Roth account are made after tax, you wont have to deal with deductions when you withdraw. Traditional IRAs, on the other hand, arent taxed when you make contributions, so you end up paying later.

However, the IRS does set limits on how much you can contribute and who can contribute. Youll need to have an adjusted gross income under $139,000 or $206,000 for married or joint filers.

Most banks and brokerage firms offer these accounts. And if youre not keen on making the big investment decisions yourself, you can always open an IRA through a robo advisor that will manage your retirement account for you.

One popular robo advisor will even let you boost your account by investing your spare change.

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Taking a set it and forget it approach to your investment portfolio rarely pays off. You have to regularly revisit your portfolio and make sure its still in line with your financial goals and timelines.

Check in with your financial adviser to ensure the balance youve got of cash, stocks and bonds is the right amount for your retirement goals.

And keep your costs down by downloading an investment app that offers low- or no-commission trades.

Orman recommends either stocks or exchange-traded funds ETFs that pay dividends. So even if the market sees a downturn, your investments will still provide you some income.

If you happen to hit a patch where the market starts to go down, you want these stocks to still provide income for you, she says.

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When it comes down to it, the greatest threat to your comfort in retirement is not the stock market, how much you have saved or exorbitant spending its you.

Orman says its normal to make a few missteps along the way, but if you want to retire comfortably one day, its time to get learning. Whether you do the research yourself or work with a professional financial adviser, the more financial education you seek out, the less likely you are to mess up.

The biggest mistake you will ever make in your financial life are the mistakes you dont even know that you are making, Orman says.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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Suze Orman: Make these 5 moves to stay out of the poorhouse in retirement - Yahoo Finance

For 25 years, Plug Power (PLUG) has quietly nudged the U.S. towards hydrogen fuel cell technology.

Now, its stars are starting to line up.

The hydrogen fuel company announced a string of new partnerships and a major acquisition at its annual symposium Thursday, riding on the momentum of a global push to accelerate the adoption of clean energy.

Driving the initiatives is a larger push by the company to churn out 500 tons per day of liquid green hydrogen in the U.S. by 2025 and establish 13 green hydrogen plants by the end of 2025.

We use more hydrogen than anyone else in the world for transportation. And this is really just an extension of our vision, Plug Power CEO Andy Marsh told Yahoo Finance Live on Thursday.

That vision includes harnessing hydrogen to power airplanes and vehicles. The company announced a partnership with Airbus ahead of the symposium, to study the use of so-called green hydrogen, produced with renewable energy sources, in airports and aircraft. Marsh said the company would look to fuel at least one airport utilizing its fuel cell technology over "the coming years," though he admitted wide-scale use in planes is still long-term.

Airbus has previously set a goal of bringing zero-emission planes to market by 2035.

Andy Marsh, President and CEO of Plug Power, a New York based company that manufactures residential and commercial fuel cells, speaking at a shareholders meeting in New York. (Photo by James Leynse/Corbis via Getty Images)

Plug Power is already working with Los Angeles-based startup Universal Hydrogen to convert regional jets to clean energy. Marsh said that is on track to conduct test flights by the end of next year.

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Were converting de Havilland aircraft to four regional planes for hydrogen. So, it can be done, Marsh said. The cycle for airplanes is not overnight, but Universal Hydrogen has come up with a really cool conversion kit that will really start the journey to make hydrogen aircraft, so we're really excited.

Hydrogen is expected to play a key role in the transition to a zero-carbon future, as countries scramble to cut harmful greenhouse gas emissions to stave off the worst effects of climate change. Green hydrogen is particularly promising, because it is produced with renewable energy like solar and wind. But the scale and cost of the fuel has slowed adoption. Marsh said renewable electricity costs would need to be in the range of three cents a kilowatt hour, in order for hydrogen to be competitive with natural gas. Electrolyzers, which split hydrogen from water, would also need to be deployed on a larger scale to bring prices down.

We found that every time you double the number of units in the field, costs come down 25%, and were looking to deploy over 40 gigawatts by 2030, Marsh said. As this technology becomes more and more mature, just like solar and wind, you're going to see the cost of capital for these big projects come down.

In the absence of large-scale deployment, Plug Powers technology has largely been limited to use in vehicles.

On Thursday, the company unveiled a prototype for its fuel cell-powered van, HyVia, developed in partnership with the Renault Group. It also announced the acquisition of Applied Cryo Technologies (ACT), a technology and equipment provider for the transportation and distribution of liquified hydrogen.

Plug Power also established long-term guidance of $3 billion in annual sales by 2025, with 65% growth expected in the next year alone.

It may get some extra help from Congress. The proposed bipartisan infrastructure bill calls for an $8 billion investment to establish at least four regional clean hydrogen hubs. It also sets aside $1 billion in grants to improve electrolyzers for efficiency and cost.

It's very, very competitive. Those sort of bills and extension of the investment tax credit, like solar and wind had, will also really help this market accelerate for the U.S. and create lots and lots of jobs in this country, Marsh said.

Akiko Fujita is an anchor and reporter for Yahoo Finance. Follow her on Twitter @AkikoFujita

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Plug Power CEO: Hydrogen adoption will create 'lots and lots of jobs' in the US - Yahoo Finance

Apple CEO Tim Cook delivers his keynote address at the Worldwide Developers Conference in San Francisco, California June 8, 2015. REUTERS/Robert Galbraith

Apple (AAPL) is diving deeper into the health space. The tech giant is working on a new pair of its best-selling AirPods that will take your temperature, police your posture, and possibly even function as a hearing aid, according to The Wall Street Journal.

The global medical device market is expected to be worth $671 billion by 2027, according to Precedence Research. And Apple is clearly keen on taking a slice of that pie for itself.

Apple CEO Tim Cook has said that the company's most important contribution to humankind will be in the health sector. To that end, the company has reportedly spun up its own internal testing of a primary care medical group, according to The Journal. But the effort has stalled. Similarly, an app developed by Apple meant to connect users to clinicians has received little interest from users.

The Apple Watch is easily its most successful entry in the health space, thanks to its heart rate monitor that can provide atrial fibrillation altars, blood oxygen sensor, and sleep tracking.

Still, Apple's heart monitor is the only feature that has been certified by the Food and Drug Administration as a Class II medical device. The blood oxygen sensor and sleep tracking features don't have the same kind of certifications.

Apple has already leaned heavily into the health industry with its Apple Watch. (Image: Howley)

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The planned AirPods, which may or may not eventually come to market, are expected to take your temperature from within your ear. The posture measuring feature would rely on the AirPods' built-in sensors to sense whether you're hunched over and tell you to sit up straight.

Finally, the hearing aid capabilities would boost audio for users who are hard of hearing. The AirPods already have a passthrough mode that can pump external audio into your ears using external microphones, so it's not too far of a leap to think the AirPods could be used in a similar way for those who suffer from partial hearing loss.

To be sure, smart hearing aids that connect to smartphones already exist. And some of those smart hearing aids, like the Oticon aids my father wears, can be used to listen to music or movies from your phone.

Beyond the AirPods, Apple has also been working to build out the Apple Watch's health features. According to The Journal, Apple is developing a version of the watch that can not only take your temperature, but eventually determine if you suffer from sleep apnea. Google-owned Fitbit has been working on a similar feature, but has yet to pull it off.

Apple's accessories business has been a boon for the company both its Apple Watch and AirPods are best sellers for the tech giant. While Apple doesn't break out the exact revenue for its individual components, it does provide a blanket revenue amount for its Wearable, Home, and Accessories segment. That part of the business pulled in $8.7 billion in Q3 2021, more than both its Mac and iPad segments.

If Apple can further build out the health features for its AirPods and Apple Watch, that business could become far more valuable to Apple as smartphone sales wane.

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Apple's rumored AirPods would be just its latest attempt to make you healthier - Yahoo Finance

Over the course of Tom Bradys 22-year career, the NFLs winningest quarterback has bolstered the reputation of lesser-known players and coaches, his own brand TB12, and most recently the Tampa Bay Buccaneers after winning a Super Bowl championship during his first season with the franchise.

But businesses dont need to be directly on Bradys team to benefit from the future Hall of Famer. New data from EDO, which measures consumer engagement with ads, shows that brands that advertise during Brady's games are also reaping the benefits of his star power.

The Tom Brady effect is very real, Kevin Krim, the CEO and President of EDO, said on Yahoo Finance Live (video above). What we've seen over the last six-and-a-half years is that Tom Brady has a huge impact when he's in a game, and the effect on advertising in those games is elevated.

Tampa Bay Buccaneers quarterback Tom Brady (12) points toward the sidelines prior to an NFL football game between the New England Patriots and Tampa Bay Buccaneers, Sunday, Oct. 3, 2021, in Foxborough, Mass. (AP Photo/Steven Senne)

The benefits of advertising during a Brady game start with audience size.

Nationally televised games like the Buccaneers' upcoming Thursday Night Football matchup with the Philadelphia Eagles draw a substantial number of the viewers. Less than two weeks ago, Brady's Sunday Night Football matchup against the New England Patriots was NBCs second-most watched Sunday Night Football game ever. The game reached 28.5 million viewers with more than one-third of the countrys active televisions tuned into the game, per NBC Sports Group.

This wasnt just because the game was hyped as a return home for Brady, who played his first 20 NFL seasons in New England. EDO reported that a regular season game that features Brady averages a 12% larger viewing audience than other games.

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And it's not just that audience sizes are larger for Brady's games viewers also appear to be more engaged. In fact, consumers were 15% more likely to search brands that advertised during Brady games, according to EDO.

Search, what [viewers] search for on places like Google, is one of the most powerful signals of advertising impact available out there, Krim explained. When people search for things, they're looking to buy those things often. And so what we do is measure every ad on TV and its effect on changes in search for every single area.

Screenshot of Tom Brady's Subway commercial.

On Sept. 9, Brady played in the NFLs season opener during primetime broadcasting hours. A Subway commercial, which featured the notoriously health-conscious Brady smelling a loaf of Subway bread, drove 141,000 additional online searches for Subway, per EDO. To put that in perspective, viewers of the recent Brady ad were 68% more likely to search for Subway online than a viewer of an average Subway commercial over the last six years.

Brady augmented that engagement with his ad appearance, according to EDO data. The quarterback starred in two of the four advertisements that drove more than 100,000 searches during the Bucs game against the Patriots.

Quarterbacks and stars matter, especially in context, Krim said. And so what the networks do when they're selling these ad packages is they use the value of these premium primetime NFL games, with these stars as the anchor, as the centerpiece of a bigger buy. And this is the way that they generate tens of billions of dollars in the upfronts each year.

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'The Tom Brady effect' in advertising 'is very real,' CEO explains - Yahoo Finance

After a two-year delay, season three of HBO's "Succession" (T) is finally upon us.

Actor Alan Ruck who plays Connor Roy in the Emmy-award winning series used three words to describe the upcoming season, telling Yahoo Finance that viewers can expect "misery, wretchedness and horror" when the new season begins Sunday.

The breakout show ended its second season back in October 2019, but, due to production headwinds stemming from COVID-19, filming was put on hold.

Ruck said shooting the show amid the pandemic was "odd," noting that the cast got tested "all the time" amid tightened protocols, and that protective equipment was required unless filming.

"The only time the cast took off their masks and their shields was when they were ready to roll," Ruck said, adding that the cast and crew also worked "shorter hours" to lessen exposure.

"But, you know, as soon as you take the mask off and they say action, it was just like old times," he continued.

Succession (CREDIT: HBO)

The cast skyrocketed to fame early on in the series thanks in large part to the characters' witty one-liners and unique personalities.

At the end of season 2, Connor Roy's presidential dreams (his platform is built around getting rid of taxes) hung in the balance, as his father offered him $100 million to end it.

For Ruck's part, the 65-year-old star said he drew inspiration from the Trump campaign. "I looked at the previous administration that we had in this country and apparently anybody can become president, so I took that as a little bit of inspiration," he told Yahoo Finance.

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As for the status of Connor Roy's own presidential campaign, Ruck hinted that it's not a failed one just yet.

"Succession" (CREDIT: HBO)

"Succession" has been one show that's avoided the binge-watching format made popular in recent years by streaming platforms like Netflix (NFLX).

Instead, HBO releases the episodes weekly, which Ruck believes "makes people want us more."

"There's a certain mystery to that and it keeps people wanting more [versus] when you can just download everything and binge it on a weekend. There's advantages to that, too, but I like the way we do it," he said.

LOS ANGELES - JUNE 11: The movie "Ferris Bueller's Day Off", written and directed by John Hughes. Seen here from left, Mia Sara as Sloane Peterson, Alan Ruck as Cameron Frye and Matthew Broderick as Ferris Bueller. Initial theatrical release June 11, 1986. (Photo by CBS via Getty Images)

Besides "Succession," Alan Ruck is most well known for his role as Cameron Frye in the 1980s smash hit "Ferris Bueller's Day Off."

In the age of reboots with "Saved by the Bell," "Sex and the City" and "Home Alone" all receiving their own special restarts Ruck hinted that it might be time for a new "Bueller" film, with the original cast.

"I just saw Matthew [Broderick] the other day. I think we should, but I think it should be role reversal. I think that [Ferris] should be in a really bad marriage and I should be really successful and I should come pull him out of the doldrums and take him around town," Ruck suggested.

"I also I thought that they should wait until we were like in our 80s and Cameron should be in the nursing home and Ferris breaks him out and takes him out for a wild night in Chicago," he said cheekily.

"And then at the end of the movie, Cameron dies, but he's happy, you know?"

Alexandra is a Producer & Entertainment Correspondent at Yahoo Finance. Follow her on Twitter @alliecanal8193

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'Succession's' Alan Ruck on Season 3: Expect 'misery, wretchedness and horror' - Yahoo Finance

After hitting a low of around $31,000 in mid-July, bitcoin (BTC-USD) has healthily recovered, currently trading at around $55,000 following resistance at around $45,000 during September. Amid talks of regulation over cryptocurrency markets, however, OANDA Market Analyst Craig Erlam believes that bitcoins momentum will continue.

You look at the charts, for example, and that's all we really have to go off right now and there just still seems to be plenty of momentum in the move, Erlam told Yahoo Finance Live. You look at some of the shorter-term charts, and potentially we're going to see a little bit of profit-taking around $60,000.

And though this profit-taking may generate some resistance at the $60,000 level, analysts believe that bitcoin is well positioned to break the all-time high of around $63,000 it reached back in April.

But that all-time high the temptation around these levels the idea that we could be seeing bitcoin breaking into new territory, and the excitement that generates on its own, I think it's going to be enough, potentially, to see this rally continue, Erlam added.

Erlam joined Yahoo Finance Lives Brian Sozzi and Julie Hyman to discuss bitcoin's price action and the general market outlook. OANDA is a Canadian-based foreign exchange company providing currency conversion, online retail foreign exchange trading, online foreign currency transfers, and FOREX data.

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According to Erlam, crypto markets have been steadfast in the face of calls for increased oversight and Chinas ban on cryptocurrency taking into effect. In a House Financial Services Committee oversight hearing last Tuesday, Oct. 5, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler suggested that the SEC has the authority it needs to regulate crypto under existing legislation.

[Bitcoin doesnt] necessarily need headlines, Erlam said. We look at the price action from the last few weeks alone. It looked like we were pushing new lows. It looked like we were just looking at support levels being broken. And there was an incredible amount of resilience in the markets, despite the fact that it looked like technical levels had been broken.

Part of the reason why so many people want to be involved in bitcoin and other cryptocurrencies is because of the excitement that it brings whenever significant price movements occur, Erlam said. Ultimately, he believes, bitcoin is unlike any other asset currently on the market.

I think we've got to wait a long time to decide what bitcoin is and what it's going to be, if anything, Erlam said. I think bitcoin, quite often, can move in line with some assets, but you do see those correlations break down quite quickly.

Thomas Hum is a writer at Yahoo Finance. Follow him on Twitter @thomashumTV

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Bitcoin: There 'still seems to be plenty of momentum:' technical analyst - Yahoo Finance

Jamie Dimon keeps blasting Bitcoin as 'worthless' try these 3 safe havens instead

Investors hold Bitcoin for a variety of reasons. And hedging against inflation is one of the bigger ones.

But JPMorgan Chase CEO Jamie Dimon hasn't been shy about his dislike for the cryptocurrency, blasting it as worthless during a virtual summit earlier this week.

So what are a few more conventional ways to protect your portfolio against the ravages of inflation, which is already here with a vengeance?

Simple. Make rising consumer prices along with rising interest rates work in your favor by investing in sectors that have historically done well in inflationary environments.

Lets take a quick look at three of those areas. One (or all) of them might be worth sprinkling some of your spare change over.

Hrach Hovhannisyan/Shutterstock

Central banks use monetary policy to tame inflation. According to the latest forecast, half of the members of the Federal Open Market Committee expect a rate hike in 2022.

In fact, rising interest rates have become a major concern for stock market investors.

But heres something to consider: While the majority of sectors fear rising interest rates, banks adore them.

Banks make money by lending capital out at higher rates than they borrow it at. And when interest rates increase, the spread through which they earn widens.

Investors have already been warming up to major financial stocks.

Banking giants like JPMorgan, Bank of America, and Goldman Sachs have all returned at least 30% year to date.

Of course, that means these stocks arent cheap.

The good news? If youre on the fence about jumping into bank stocks at these elevated levels, some investing apps will give you a free share of JPMorgan or Bank of America just for signing up.

rblfmr/Shutterstock

Consumer staples are essential products such as food and drinks, household goods, and hygiene products.

We need these things regardless of how the economy is doing.

So even when inflation drives up input costs, consumer staple companies particularly those with scale and distribution advantages are able to pass those higher costs onto consumers.

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Even if the biggest crash in world history hits, well probably still see Quaker Oats and Tropicana orange juice made by Pepsico on families breakfast tables. Meanwhile, Tide and Bounty well-known brands from Procter & Gamble will likely remain on shopping lists across the nation.

And then theres retail gorilla Costco, which sells thousands of consumer staples across roughly 800 warehouses worldwide. With inflation forcing consumers to hunt for lower prices, Costcos value proposition is tough to turn down.

To be sure, these consumer staple leaders all command triple-digit stock prices.

But you can get a piece of them by using a stock trading app that allows you to buy fractions of shares with as much money as you are willing to spend.

Ravital/Shutterstock

Precious metals particularly gold and silver have helped investors preserve their purchasing power for centuries.

They cant be printed out of thin air like fiat money.

Investors often rush toward gold in times of crisis, making it the go-to safe haven asset.

Silver is also a store of value and a hedge against inflation. At the same time, it is widely used as an industrial metal so it could also outperform in a high growth, high inflation environment.

The most direct way to play precious metals is to own bullion. But that can be difficult and expensive. An easier method is to invest in large mining companies.

Gold miners like Barrick Gold and Freeport-McMoRan typically do well during tough times for other sectors.

Meanwhile Wheaton Precious Metals and Pan American Silver can provide easy access if youre interested in dabbling in the grey metal.

With the number of bitcoins capped at 21 million and its increasing adoption, the cryptocurrency could very well be a great hedge against inflation.

But of course, neither inflation-proof stocks nor Bitcoin are immune to market volatility.

If you want to invest in something that has little correlation with the ups and downs of the stock market or the crypto market you might want to consider an overlooked asset: fine art.

Investing in fine art by the likes of Banksy and Andy Warhol used to be an option only for the ultra-rich like Dimon.

But with a new investing platform, you can invest in iconic artworks too, just like Jeff Bezos and Peggy Guggenheim.

According to the Citi Global Art Market chart, contemporary artwork has offered a return of 14% per year over the past 25 years, easily topping the 9.5% annual return from the S&P 500.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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Jamie Dimon keeps blasting Bitcoin as 'worthless' try these 3 safe havens instead - Yahoo Finance

This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe

Thursday, October 14, 2021

The latest on the inflation front shows that consumer prices are still on the rise. As usual these days, theres good, bad and worse news.

First, the (sort-of) good news: Septembers consumer price index (CPI) was relatively stable, with the headline rate only marginally higher than expectations at 5.4% year-over-year. Core prices, which strip out the more volatile components like food and energy, also held steady at an annualized 4.0%, and some elements like clothing, airline fares and used cars tumbled from historically high levels.

The bad news, of course, is that inflation is still running well above trend (and thats even before we start factoring in what is shaping up to be a cold winter with very hot energy prices). Inflation expectations are spiraling higher, and the Federal Reserves favored buzzword transitory is becoming a bit of a meme among economy watchers.

And now, for the worse news: Not only is there no immediate relief in sight, but some of those component declines may not last long. Meanwhile, theres evidence that relentlessly rising prices are starting to infect other sectors of the economy namely, where we live and how we travel.

A hint of what might lie in store came on Wednesday from Delta Air Lines (DAL) CEO Ed Bastian, who spoke to Yahoo Finances Adam Shapiro for the companys third-quarter earnings results.

Pointing to skyrocketing energy costs, Bastian suggested that Delta could pass some of those costs down to travelers (who, bear in mind, are already ponying up more cash for virtually everything).

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Consumers are interested in traveling and consumers have a meaningful amount of wealth, he pointed out. I think they can cover the higher costs.

Yikes.

In fact, some economists pointed out that the CPI would have been higher, but for a couple of the more volatile components that fell and arent expected to stay in retreat. And more than a few eyebrows were raised by a spike in rent prices, a development thats not entirely unexpected given the convergence of two powerful housing trends.

One, last years lockdowns, and the resulting exodus from big cities, forced desperate landlords to offer boatloads of concessions to get new tenants and keep existing ones.

Secondly, the end of the controversial federal eviction moratorium effectively freed cash-strapped landlords to hike prices on newly vacant apartments (if you havent read Yahoo Finances Dani Romeros spectacular coverage on this hot topic, you absolutely should).

Primary rents and owners equivalent rent account for a third of the CPI basket with movements in these components tending to lag 12-18 months below house price changes, ING Economics wrote in a research note, adding that housing inflation is now the story to watch [this] year and could add nearly a full percentage point to annual inflation on their own.

Taken together, it suggests that both headline and core inflation will remain elevated well into 2022, the bank added. This hardly fits the transitory narrative put out by many at the Fed (there goes that t word again).

Over at Bank of America, economists warned that given strength in the high frequency rent data, we believed it was only a matter of time before the CPI rent components broke out higher, according to a research note.

While one month does not make a trend, this is an early signal of stronger persistent inflation pressures materializing, ultimately supporting continued above-target inflation over the medium term, the bank added.

No kidding. Renters in big cities like New York have already been hip to that particular game, with data from StreetEasy suggesting the pandemic-era trend of favorable rent deals is all but over. In San Francisco, where an exodus of technology workers to other cities helped push down sky-high rents, prices are creeping back toward pre-COVID levels.

An analysis by Bloomberg in September found that Big Apple landlords are jacking up rents often by 50, 60 or 70% on tenants who locked in deals last year when prices were in freefall, according to the story.

Some renters are being forced to move at a time when the market is roaring back to nearly pre-pandemic levels. And concessions are slipping away, it added.

All of which suggests that renters and maybe holiday travelers may have to gird their wallets for more unpleasant price shocks.

By Javier E. David, editor at Yahoo Finance. Follow him at @Teflongeek

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China is counting the cost of a multiple whammy of hits to its economy, from a crackdown on the property market and an energy crunch to stringent virus controls and soaring commodity prices.

The cumulative impact will show in gross domestic product for the third quarter due on Monday, with growth forecast to slow to 5% from 7.9% in the previous three months. Further illustrating that picture will be monthly industrial and investment data the same day, revealing the severity of electricity shortages last month.

Chinas slowdown will ripple across Asia and the rest of the world, knocking commodity markets like steel and iron ore that are reliant on the countrys construction activity.

With Beijing tightening its grip on the property market as part of a broader effort to tackle financial risks, real-estate sales and prices are already falling.

Meanwhile, a power shortage last month curbed factory production, pushing the purchasing managers index down enough to signal a manufacturing contraction for the first time since the pandemic started -- even if frontloaded export orders for Christmas could have offset some of that.

Beijing will likely still meet its modest full-year growth target of more than 6%, meaning authorities may be in no rush to pump in stimulus. The Peoples Bank of China refrained from injecting liquidity into the financial system on Friday, while asking lenders to keep credit to the real estate sector stable and orderly.

Premier Li Keqiang sounded a confident note in a speech on Oct. 14, saying China has risen up to the challenges including severe flooding and a complex international environment.

Story continues

Growth leveled off a little bit in the third quarter, he said. But for the whole year, we have the confidence and the ability to meet our overall development targets.

What Bloomberg Economics Says:

Chinas GDP data are likely to confirm a sharp deceleration in growth in the third quarter, as a confluence of shocks -- delta variant outbreaks, an acute energy shortage and regulatory tightening -- batter the economy.

--Chang Shu and David Qu. For full analysis, click here

Elsewhere, Turkey may cut interest rates while Russia raises them, a new reading of U.K. inflation may keep focus on the Bank of Englands possible response, and the Federal Reserve will release its Beige Book.

Click here for what happened last week and below is our wrap of whats coming up in the global economy.

Asia

Aside from Chinese economic data, Japan is likely to be a focus as its general election campaign kicks off Monday with a policy debate among party leaders seeking to stop what looks like an inevitable victory for new Prime Minister Fumio Kishida.

Japanese exports figures out Wednesday should offer the latest gauge of how the global trade recovery is holding up amid supply chain bottlenecks. Inflation figures on Friday are likely to show the first price growth in Japan in 18 months, and a much stronger upward trend fueled by energy prices.

Also on Friday, Reserve Bank of Australia Governor Philip Lowe speaks on a panel about central bank mandates amid talk of a possible review of the RBAs. Indonesias central bank is likely to keep interest rates on hold when it meets on Tuesday.

U.S.

In the U.S., traders await the latest data on industrial production, manufacturing and housing to judge the state of the economy.

For Fed watchers, the central banks Beige Book is due out on Wednesday and will provide a snapshot of businesses across the country.

Europe, Middle East, Africa

U.K. inflation on Wednesday is likely to have kept to the fastest pace in almost nine years in September, with a reading of 3.2% anticipated. Investors having piled on bets in recent weeks for imminent Bank of England tightening, so these data will be one of the most-watched reports in the region.

Elsewhere, the coming days present a final window for European Central Bank policy makers to speak out on the future of stimulus before a pre-decision quiet period. Executive Board members Fabio Panetta and Philip Lane, along with Governing Council member Olli Rehn, are among officials scheduled to share their views.

On Sunday, Governing Council Member Klaas Knot said he sees interest rates edging up once central banks begin unwinding their stimulus programs. Knot said the current jump in inflation is mostly transitory, echoing comments Saturday by ECB President Christine Lagarde.

In the Nordic countries, Riksbank Governor Stefan Ingves and Deputy Governor Martin Floden will speak in Swedens Parliament on Wednesday, while Norways sovereign wealth fund -- the worlds biggest -- will release third-quarter results the next day.

Interest-rate decisions will dominate the economic news from around the rest of the wider region, with seven due this week.

The highlights include Turkey, whose central bank will hold its first meeting on Thursday since President Recep Tayyip Erdogan sacked three policy makers who were wary of cutting rates, driving the lira to record lows. That sets the stage for the bank to maintain its easing cycle after a surprise cut at its last decision, despite runaway inflation.

Meanwhile on Friday, economists predict Russias central bank will raise its interest rate by a quarter-point amid no letup in inflation, though expectations are rising that policy makers could go even further, with a half-point move.

Heres a quick summary of the other monetary decisions due in the region:

Hungarys central bank is poised to raise interest rates for a fifth month but resist pressure to accelerate tightening. Thats on Tuesday.

The Mauritius central bank will likely leave its benchmark rate at an all-time low of 1.85% on Wednesday to support growth in the tourism-dependent nation.

Also Wednesday, Namibia is expected to keep its key interest rate unchanged to aid the recovery.

Ukraines central bank, the same day, will reveal how it plans to address persistent inflation against the backdrop of plans to keep borrowing costs unchanged this year.

Botswanas central bank may stay on hold on Thursday, reckoning that inflation now above its target band of 6% start will start moving back within range

Latin America

On Tuesday, look for data to show that Colombias strong June-July activity, which saw the economy return to its pre-pandemic level, continued in August. The IMF forecasts 2021 output of 7.6%, which would be the fastest since at least 1991.

Argentine President Alberto Fernandezs government has ramped up spending before next months midterms. Look for the September budget results out Wednesday to push the year-to-date deficit well above 500 billion pesos.

On Thursday, Mexican retail sales figures for August will likely show some bounce given a record high level of remittances in the month and sustained rises in same-store sales. In Argentina, an easing pandemic and rising mobility may sustain the June-July bump in Argentina GDP-proxy data into August.

Mexico posts mid-month inflation data on Friday, the second-to-last set of readings before Banxicos November rate decision. Persistently elevated inflation has seen a divided central bank hike at its last three meetings to the current 4.75%. Patience may be wearing thin, though, with the board talking of a more aggressive adjustment to deal with the risk scenario ahead.

Closing out the week, Brazil on Friday reports September current account and foreign direct investment figures.

(Updates with Knot, Lagarde comments in Europe section.)

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