Category: News Desk

Germany, France Show Signs of Contracting Economies


Germany’s economy shrank for the first time since 2012 in the second quarter of this year, according to the German Federal Statistics Office. The German GDP fell 0.2% after rising 0.7% in the first quarter, below analysts’ expectations. The eurozone’s largest economy previously saw 0.8% growth in the first quarter, which analysts had expected to be threatened by the Ukraine crisis. Last week, European Central Bank President Mario Draghi admitted that the Ukrainian conflict posed a threat to the eurozone economy.

Stronger UK Economy Despite EU Struggles


While the European Union surrounding the United Kingdom seems to continue struggling, the United Kingdom is beginning to see numbers improve at the completion of this year’s second quarter, according to information released by the International Monetary Fund. Considered to be one of the fastest-growing economies, its repeated growth for the last several quarters proves it is finally reaching pre-recession standards.

Weak Retail Sales, Mortgage Activity Point to Stumbling U.S. Economy


Less Americans are applying for mortgages and retail sales growth is decelerating amidst sluggish demand from consumers.

The Commerce Department reported retail sales excluding cars rose 0.1% in July, down from 0.2% in June. In a separate report, the Labor Department saw inflation-adjusted average weekly earnings fall by 0.2% in the 12 months to June 2014, the biggest decline since October 2012.

Is the European Union Slipping into a Recession?


Despite efforts to improve the state of the economy worldwide, including the European Union, geopolitical issues have dictated otherwise, causing various countries’ stocks to slip and create an increased amount of worry. While most analysts believed the European Union was starting to see a comeback, the lowering numbers have shocked them, and they believe the geopolitical issues have a direct effect.

Italy and Germany Slipping as Euro-Zone Recovery Attempts to Take Hold


Starting a few years ago, several countries within the European Union (EU) were placed under direct scrutiny to determine causes of debt and attempt to reconcile the issue through various bonds being sent. While Greece and Spain were the hardest hit initially, other countries are beginning to feel the effect, specifically Italy and Germany.

Affordable Housing Stock in U.S. Declines as Home Prices Gain


Houses selling for less than $200,000 are becoming harder to find in U.S. markets as home prices continue to rise at a strong but slowing pace in 2014.

Asian Investors Gain Confidence in Equities


Asian stock markets saw strong gains in Monday trading, erasing much of the losses suffered in August as a number of encouraging data points emerged from China, Japan, and Ukraine.

A Drop in the Wages of Japanese Workers Puts a Drag on the Economy


Due to Prime Minister Shinzo Abe’s growth strategy, known as Abenomics, Japan’s stockmarket is up by three-fifths since he came into office. However, despite the progress made by Abe and his allies, Japan’s economy likely shrank for the first time in nearly two years during the second quarter. The reason for the economic decline appears to be due to the weaker than expected consumer spending. Although the recent sales tax hike definitely helped weaken consumer spending, it appears that a decline in the wages of Japanese workers is putting a real drag on the economy.

Is the US economy beginning to bounce back?


Following Britain’s lead, the United States economy has begun to recover after a severely disappointing start for this year. As freezing weather took its toll within the initial months of 2014, high taxes, job killing regulations, Obamacare, and so on, the GDP (figure used to determine the complete size of the economy) fell by a rate of approximately 2.9%. However, the 2nd quarter of the year displayed some growth in the GDP, leading some analysts to believe that the world’s largest economy could not be so devastated to its own people.

Week in Review: Stocks Slide, Euro Recession, China Exports


U.S. equities fell this week, as did European stocks on fears that a new recession in Italy could endanger the economic recovery of the broader European Union. Stocks fell in spite some strong economic data that showed the U.S. job market was recovering, although at a slow pace.