The average U.S. consumer is pulling back on spending as mixed signals warn of a volatile job market.
One government report indicated that Americans are earning more than they used to, but those income gains are not translating into larger spending. At the same time, less spending from manufacturers and other companies suggests an economic contraction may be on the horizon.
South Asian and Southeast Asian economies have all embraced an outward-oriented development strategy, albeit to different degrees. The result has been an impressive increase in international trade, foreign direct investment (FDI) inflows, and significant productivity improvements, which in turn have contributed to important socio-economic gains. Indeed, some of these economies have delivered among the most striking economic performances in the world.
The world is changing. The weather is becoming more volatile, with the number of extreme weather events on the rise. Climate change represents the new normal: the Earth is already showing the impacts of our actions, which will continue to become more visible.
In recent years the power of the Central Committee of the Communist Party of Vietnam (CPV) has increased dramatically. If this trend continues, it may bear important implications for Vietnam’s political outlook.
Two separate economic indicators show a sudden reversal, hinting that recent weakness in the U.S. might have been temporary.
Independent payroll services firm ADP announced on Wednesday morning that private employment rose by 212,000 jobs in February, with goods-producing jobs rising by 31,000 and construction industry jobs gaining 31,000. Manufacturing was the weakest sector, according to the report, but still saw 3,000 new jobs relative to January.
The biggest gains were found in the service sector, which saw employment rise by 181,000 jobs in February.
Billionaire investor Warren Buffet does not approve of President Obama’s recent veto of the Keystone XL pipeline. Buffet believes Obama is thumbing his nose at Canada.
Buffet said another reason he would have passed Keystone XL is because the United States may need a favor from Canada in the future. It should be noted that Obama’s veto of Keystone XL is not his final decision on the transnational project. The president vetoed the bill because he wants to make the final decision as opposed to allowing Congress to back him into a corner.
The third cease fire in Ukraine had a rocky start, but today the German foreign minister noted that tensions have calmed. The top NATO military commander, US Air Force General Breedlove agreed earlier today that there has been a “definite decrease” in fighting. Both sides have withdrawn some weapons. He noted that the past two cease fires were used to rearm and prepare for additional action.
ECB’s Draghi failed to provide much fresh insight into implementation of its asset purchase program. The details will be posted on the ECB’s web site later.
The more important information comes from the ECB’s new forecasts. CPI this year is now expected to be zero, which implies more price pressures beginning later this year. CPI next year has been tweaked higher to 1.5% and 1.8% in 2017. The 2017 forecast has been introduced for the first time, and suggests the ECB’s mandate will be achieved by the end of that year.
Japan’s new Minister of Agriculture, Forestry and Fisheries (MAFF) Yoshimasa Hayashi, who previously served in the position in 2012–14, was a logical choice to take over from his disgraced predecessor Koya Nishikawa. He arrived at the Prime Minister’s Office (Kantei) only five minutes after Nishikawa left, and was apparently selected because he was ‘the only one that could immediately do the job’.
The ECB meets tomorrow. We do not attribute any significance to its location in Cyprus. A couple times a year, the ECB meets outside of Frankfurt.
