Category: United States

U.S. Banks Lend to More Businesses as Economy Improves


More companies and small business are borrowing money, and banks are lending more to private enterprises, in a sign that the U.S. economy is continuing to improve.

On Wednesday afternoon, the Federal Reserve released a statement confirming that more banks throughout the country were lending to more businesses in the last three months. The Fed also noted that commercial and residential real estate loan demand had risen as more companies look to invest in expanding their operations.

Disappointing US Employment Data Evokes Muted Reactions in Market


The US employment data was disappointing. The short-term market had been leaning the wrong way. The recent data had fanned hopes that the labor market was accelerating, but today’s data suggest the pace of improvement has not changed.

 It is the sixth month that net new job creation was in excess of 200k, but private payrolls snapped that streak. The 198k increase in the private sector jobs was the lowest since January. 

Job Growth Falls Well Below Expectations as Unemployment Rises


The Bureau of Labor Statistics (BLS) reported 209,000 jobs were added in July, far below expectations and a steep drop from the prior month, which saw 298,000 total nonfarm jobs were added in the United States. In July, the unemployment rate rose to 6.2% from 6.1%.

Professional and business services—so-called white collar office jobs—saw the largest growth, with 47,000 new jobs in July. Manufacturing came in second (28,000 added jobs), followed closely by retail (27,000) and construction (22,000).

Strong GDP Figures Extend Gains to Dollar and Stocks


The US dollar is extending its gains in response to the strong US GDP figures.  There are four elements of the report to note.  First, the economy expanded by 4.0% in Q2, well above consensus expectations.  Second, Q1 was revised to show a 2.1% contraction rather than 2.9%.  Third, personal consumption improved to 2.5% from a revised 1.2% pace in Q1 (originally 1.0%).  Fourth, and arguably even more significant that the growth itself is the core PCE deflator.  It rose to 2.0% from 1.2%.  

Nervous Calm Amid Forex Markets to Start the Week


The US dollar is little changed to start the week. The apparent calm masks heightened geopolitical tensions in Ukraine and Gaza. Equity markets are trading heavy and this is helping to give the core bond markets, including US Treasuries, a better bid tone.  

Investors are digesting the weekend developments and awaiting this week’s key data. US and Japanese CPI figures, euro zone flash PMI, and UK retail sales and first estimate of Q2 GDP are the main highlights.

Dollar Firms on Hump Day, but does it have Staying Power ?


The US dollar is trading higher against the major currencies. Many observers are attributing dollar’s gains yesterday and today to comments from Yellen. We are concerned that this is not a fair interpretation of Yellen, or necessarily of the market. 

US Govt Charged Electricity Consumers $40 Billion For Unbuilt Nuclear Waste Dump


The U.S. Department of Energy has been ordered to end a 31-year-old scheme that had charged electricity consumers for the future construction of a nuclear waste dump, after collecting over $40 billion over the years placed into a trust fund.

Last Friday, the Energy Department finally removed the fee from electric bills having fought with power companies and state regulators over the issue, with a federal appeals court calling the fee “quite unfair”.

US Government Deficit To Shrink By 27 Percent In 2014: Report


The U.S.’s annual deficit is expected to fall by nearly $188 billion – from $680 billion in 2013 to $492 billion – this year, according to the Congressional Budget Office (CBO) on Monday.

The CBO, a nonpartisan agency that advises Congress on budget policy, predicted that the deficit would be equivalent to 2.8 percent of gross domestic product, marking the smallest deficit by percentage since 2007.

US To Be World’s Top Oil Producer By 2015, Though Dominance Won’t Last: IEA


The United States will surpass Saudi Arabia and Russia as the world’s top oil producer by 2015, said the International Energy Agency on Tuesday, however diminishing returns in shale formations could see it lose its top spot in another 15 years.

According to the IEA’s annual World Energy Outlook report, the U.S. could produce as much as 11.6 million barrels of oil per day by 2020, up from 9.2 million bpd last year; yet output is set to plateau after 2020 as the largest shale plays yield less oil.

US Consumer Watchdog Seek To Crack Down On Aggressive Debt Collectors


The U.S. Consumer Financial Protection Bureau will seek out public opinion before proposing new rules targeting the end of intimidating tactics used by debt collectors, Reuters reported on Wednesday, with about one in 10 Americans going into debt of some sort after the financial crisis.