Markets Archives - Page 556 of 782

Britain Defined as the Least Expensive Manufacturing Economy in Western Europe

Enhanced productivity and a consistent growth in stable wages over the past ten years have allowed the UK to emerge as an increasingly competitive economy, even in comparison with various Eastern-European countries. Recent evidence has suggested that the UK economy is finally beginning to recover its mantle as a hub for global manufacturing, becoming the cheapest location to produce goods throughout the entire Western Europe.

US Dollar Consolidating in Month-end

The US dollar is consolidating, largely within yesterday’s ranges. Month-end and quarter-end hedge and portfolio adjustments are notoriously difficult to predict. There is also large option expires today. Given the EU Summit this weekend, a holiday in the US on Monday, and no fewer than five central bank meetings among the high-income countries next week, the broad consolidative, even in choppy, tone is likely to carry into the weekend.

The Week in Review: U.S. GDP Growth, S&P 2000

The S&P 500 hit 2,000 for the first time in history shortly before the Bureau of Economic Analysis revised upwards their estimates for GDP growth in the second quarter of 2014. While stocks have reversed course from their weekly high, U.S. equities remain attractive to investors as more investors bet on equities thanks to improving economic conditions and the possibility of a quantitative easing program by the European Central Bank.

U.S. GDP Growth Revised Upwards on Declining Unemployment Rates

The United States GDP rose at a 4.2% annual rate in the second quarter, according to a new estimate by the Commerce Department’s Bureau of Economic Analysis.

U.S. Federal Deficit Spending Falls at Accelerating Rate

The U.S. Federal budget deficit is declining at a faster pace than previously projected, according to a new report by the Congressional Budget Office.

Due to cost-cutting after the so-called “fiscal cliff” in January 2013, in which Federal budget cuts automatically went into effect, the U.S. government’s deficit has shrunk to $506 billion on an annual run rate in 2014. According to the CBO, this shortfall is 25% smaller than it was in 2013, and will account for 2.9% of the nation’s GDP.

Blowing the lid off food safety in China

In July, Shanghai’s Dragon TV exposed illegal food handling practices by Shanghai Husi Food Co., a major meat supplier to multinational corporations such as McDonald’s and KFC. The story, which was the result of months of undercover investigative journalism and concealed video recording, showed footage of numerous violations including mixing expired meat with usable product as well as deliberately deceiving a regular inspection group from McDonald’s. Six Husi staff members were swiftly arrested.

The Week in Review: Stable Emerging Markets, U.S. Unemployment

Equities broadly rallied for the week as cooling tensions in Ukraine, stable unemployment rates in the U.S., and emerging markets saw growing demand for debt. Investors have eschewed the risk aversion that saw U.S. stocks fall in the first half of August, while commodity prices sought a bottom and fears of deflation were replaced with confidence in a global return to consistent growth.

New Home Sales, Home Prices Slow

Less Americans are buying new homes as the prices of those homes become unaffordable, according to new data from the Department of Commerce and the U.S. Bureau of Labor Statistics.

While salaries are beginning to see modest rises of roughly 2% growth on a year-over-year basis, home prices have risen much faster in a shorter period of time, but those home prices are beginning to stagnate as demand falls for homes amidst tight credit and diminishing affordability in the housing market.

New Home Sales Fall

Coal Tax Increase Scales Up Indian Renewables

India needs economic growth for sustainable development, which in turn requires access to clean, convenient and reliable energy. An estimated 400 million people still lack access to electricity, and blackouts are still common across the country. A combination of rapidly increasing energy demand and fuel imports plus growing concern about economic and environmental consequences is generating growing calls for innovative policies and mechanisms to promote increased use of abundant, sustainable, renewable resources.

Emerging Market Bonds Attract Greater Attention

Argentina looks to avoid a U.S. court ruling that forced the nation into default while the Bank of China announced a sale of $5 billion worth of subordinated bonds. Both markets have seen a flood of liquidity and attention from investors as low yields in developed markets urge bond buyers to invest further afield.