Lithuania Signs LNG Deal with U.S. Company
Lithuania has signed a non-binding agreement with Louisiana-based Delfin LNG for the supply of liquefied natural gas. The Baltic state hopes to break away from Russian imports.
Category: News Desk
The Week in Review: Spending Falls, Mixed Employment Signals in U.S.
The average U.S. consumer is pulling back on spending as mixed signals warn of a volatile job market.
One government report indicated that Americans are earning more than they used to, but those income gains are not translating into larger spending. At the same time, less spending from manufacturers and other companies suggests an economic contraction may be on the horizon.
U.S. Indicators Show Sudden Positive Reversal
Two separate economic indicators show a sudden reversal, hinting that recent weakness in the U.S. might have been temporary.
Independent payroll services firm ADP announced on Wednesday morning that private employment rose by 212,000 jobs in February, with goods-producing jobs rising by 31,000 and construction industry jobs gaining 31,000. Manufacturing was the weakest sector, according to the report, but still saw 3,000 new jobs relative to January.
The biggest gains were found in the service sector, which saw employment rise by 181,000 jobs in February.
Brazil Risks Recession to Raise Interest Rates
Brazil, Latin America’s biggest economy, is risking a recession as politicians and policy makers make a desperate gamble to bring down inflation. The push is led by Brazilian President Dilma Rousseff who has promised to do “whatever it takes” to lower inflation and win back investor confidences.
Warren Buffet Criticizes Obama on Keystone XL Veto
Billionaire investor Warren Buffet does not approve of President Obama’s recent veto of the Keystone XL pipeline. Buffet believes Obama is thumbing his nose at Canada.
Buffet said another reason he would have passed Keystone XL is because the United States may need a favor from Canada in the future. It should be noted that Obama’s veto of Keystone XL is not his final decision on the transnational project. The president vetoed the bill because he wants to make the final decision as opposed to allowing Congress to back him into a corner.
Will Bitcoin Soon Replace Paper Money?
An Australian economics professor has predicted that electronic currency such as Bitcoin will replace paper cash within a decade. Others believe this prediction is unrealistic given the slow adoption of the digital currency. But, all sides agree that digital currency will have an influence on the fiat currency systems of the world.
Crude Production Reaching Storage Limit
Producers prepare for drastically low oil and gasoline prices in the coming months as stockpiles increase. The United States has been producing a million more barrels a day than it is consuming in the last seven weeks.
The U.S. Department of Energy reported American supplies are at its highest capacity in 80 years. Crude inventories have been reaching overcapacity in storage tanks, otherwise known as “tank tops.” Companies are reducing drilling in the short-term, but excess supplies do not expect to decline until later in the year.
Canada, Switzerland See Stronger Growth
Economic growth in Canada and Switzerland beat expectations, but currency issues are causing analysts to urge caution for the future.
In the fourth quarter of 2014, Canada saw GDP rise by 2.4% annualized, according to a statement by Statistics Canada issued on Tuesday. The growth was above expectations although slightly lower than third quarter growth, which rose by 3.2%, according to a revised estimate. Economists had expected 2% economic growth.
Greek and German Like-mindedness
Politics makes for strange bedfellows.
The German critics on the right of Chancellor Merkel think that Greece should leave the monetary union. The economic advisers to Merkel have argued that the Greece’s exit would not necessarily be disruptive.
U.S. Spending and Production Fall Despite Income Growth
American companies and consumers are spending less even as personal income is growing in a sign that economic growth is under threat.
Several new economic indicators released on Monday indicate that U.S. economic activity is slowing because of disinflation and lowered demand. At the same time, the Bureau of Economic Analysis shows that personal income is rising. Although some economists expected a rise in incomes to coincide with a rise in spending, in reality money velocity and liquidity are in fact falling as more Americans choose to save.
