Record low interest rates on U.S. Treasuries are here to stay, despite expectations a year ago that the end of the quantitative easing would pressure stocks and bonds by causing yields to rise.
Despite slowing home sales in early 2014, economists are expecting a strong home buying market in 2015 as a combination of decelerating home price growth and falling mortgage rates make homes more affordable for Americans.
Recently, France has begun to outline plans for changing its economy, as the country prepares for a budget-related battle against the European Union. The French minister for the economy, Emmanuel Macron, offered a synopsis of the current plans to President Francois Hollande at a cabinet meeting, and it is said that the bill has been designed to pull the French economy out of stagnation and fuel competition.
Many detractors believe that if France does not cut its anti-business regulations and lower its taxes then these goals will not be achieved.
Non-performing originations in the top 130 European banks have reached 8.8% of the Eurozone’s total GDP, in a sign that high debt loads, bankruptcies, deflation, and stagnant unemployment is making it impossible for Europeans to pay their debts.
European equities saw broad declines in Monday trading as the European Central Bank saw over two dozen failed Eurozone banks amidst the debut of its small bond-buying program.
For over three years, Western Australia has taken first place on CommSec’s ‘State of the States’ report. However, finally, an increase in the housing sector has allowed New South Wales to steal the top spot, rising from last to first in six years. It’s taken over a decade, but NSW is now officially the strongest state economy in Australia.
The resounding reluctance of New York to drill for natural gas, alongside painfully high taxes could be killing the state’s economy. Three years since Governor Cuomo took over the office and pledged to make New York “open for business” the state continues to have the worst business tax climate in the US. This year alone, New York tied with New Jersey as the worst two states in the annual Tax Foundation Report. This is the second year in a row that New York has been left holding the bottom ring.
The European Central Bank is rumored to fail 25 banks in the Eurozone based on a lack of capital and liquidity, according to a leaked draft communique. At the same time, disinflation and weak demand has caused economic growth in the UK to fall 22% sequentially in the third quarter of 2014.
Recently, Canada’s economy boosted the potential workforce by adding an extra 74,000 jobs into the mix, pushing the unemployment rate towards its lowest figure in six years. Statistics Canada filed a report that the jobless number has now reached 6.8%, showing a fall of 0.2 percentage points.
The good news is highly welcome in Canada, a country that has been experiencing its worst slump in the labor market since the recession in 2009. What do you expect when everyone has to pay for everyone else’s health care? This is a huge drain on the economy.
U.S. stocks recovered from last week’s slump as strong home price and unemployment data combined with solid corporate earnings to encourage equity investors to re-enter the market.
Although recently submitted statistics have suggested that Colombia’s economy could be experiencing slower growth than expected, forecasts remain positive. The economy grew less than predicted in the second quarter, but maintained a healthy pace. Consumer spending remained strong this year, and the government has spent a heavy portion of funds on infrastructure. As a result, the institute for national statistics has suggested that Colombia’s economy has seen an increase of approximately 4.3% in the financial period of April through June.
