Category: Economics

Following WTO Ruling, US Repeals Meat Labeling Law


Say what you will about the American diet — the truth is that Americans are actually among the most conscientious eaters in the world. Millions of Americans enjoy knowing exactly what they are eating, including where it came from; how it was processed, and other details of how it made it to the table. Now, a World Trade Organization (WTO) ruling has made it much harder to find out where Americans’ pork and beef was born, raised, and slaughtered.

2016 Starts with a Whimper


Economic data proved so weak at the beginning of 2016 that global markets fell and China halted stock trading.  In China, the Caixin Purchasing Managers Index (PMI), released by Markit Economics, fell to 48.2 in December, down from 48.6 and indicating the tenth month in a row of a contraction in activity.

An Unusual Policy Move by Sweden’s Riksbank


Many countries may look with envy upon Sweden.  Growth last year was probably around 3%, with household consumption rising a little more than 2%.   Its current account surplus is 7.5% of GDP.  Exports were up by 4.3%.  Its budget deficit is around 1% of GDP.  Yesterday, Sweden reported its manufacturing PMI rose to 56.0 from 54.9 in November.  This is the highest since March 2014.

Investor Worries Carry Over to the New Year


As trading begins in 2016, investors fret over the trends in oil and equities that dominated the last two years.  U.S. equities ended 2015 with a 2.15 percent loss, as measured by the S&P 500 excluding dividends.

Both large cap stocks and small cap stocks underperformed the broader market, with the Dow Jones Industrial Average ending down 3.43 percent and the Russell 2000 losing 6.57 percent in 2015.

China Sneezed


The markets are in turmoil.  Global equity markets are sharply lower, dragging bond yields down.  The risk-off move has propelled the yen sharply higher.  Its 1.4% advance has seen the dollar slump to JPY118.70, its lowest level since mid-October. 

So We Begin Again


The US dollar firmed against nearly all the major currencies in the last week of 2015.  The exceptions were the Antipodean currencies and the Japanese yen. The relatively high short-term yields offered Australia, and New Zealand may have attracted some hot flows looking park over the turn.  The yen’s gains were all scored on New Year’s Eve in thin turnover, as equity markets and US yields slipped lower.

2015 In Review: Collapsing Oil, Weakening Housing, Flat Equities


As 2015 winds to a close, economists examine the major trends in the American economy, noting a combination of deflationary effects that point to weak demand and possible volatility in the New Year.

The biggest story of 2015 was a continuation of the prior year’s biggest story: the falling price of oil. WTI futures fell to $35 at the end of December, recovering slightly but failing to breach $37 by the end of the year. Meanwhile, natural gas futures also fell to $2.22, reflecting a similar decline of over half its value from normal ranges seen in 2013 and 2014.

IMF Chief Warns That Global Growth May Disappoint in 2016


As most people look forward with hope to the potential of a new year, the International Monetary Fund’s (IMF) Managing Director, Christine Lagarde, warned of a disappointing global economic outlook. 

That’s All Folks


Many financial centers in Asia and Europe are on holiday today, and those that are open, are experiencing a minimum of activity.  Turnover may pick up briefly in the North American morning, but conditions will remain thin and only those who need to transact will. 

China Obtains Dramatic Voting Rights Boost in IMF


The US Senate recently agreed to changes to the International Monetary Fund’s voting rights. This ratification redistributed voting rights to give emerging economies a bigger role in the affairs and policy decisions of the international lender. Thanks to these reforms, China’s stake in the IMF’s affairs increased by almost 60 percent.