U.S. GDP Grows 5% on Consumer Spending
U.S. GDP grew at a 5% annual rate in the third quarter as consumers and businesses spent more thanks to lower oil costs and growing confidence in the economy’s future. U.S. GDP grew at a 5% annual rate in the...
Understanding the Dismal Life in North Korea
For time immemorial, North Korea has been one of the world's most tight-lipped nations in the world. It is one of the last few countries still under communist rule. The Democratic People's Republic of Korea (DPRK) formally established in 1948...
China’s Coast Guard – Smooth Sailing or Rough Seas for its Neighbors?
The establishment of the China Coast Guard (CCG) in 2013 created a huge stir. Neighbouring countries may see the CCG as a major instrument for China to reconfigure maritime power structure in the region. The establishment of the China Coast...
What Happened to Japan’s Political Opposition?
Last Sunday’s general election in Japan has returned Prime Minister Shinzo Abe’s Liberal Democratic Party (LDP) and its ally, the New Komeito, with a two-thirds majority in the lower house of the Diet. That the LDP would get a majority...
Russia, Juncker’s Investment Scheme and Greece
Russia's woes have not been sufficient to spur a change in behavior from Putin. His press conference today was strident, blaming the US and EU for undermining Russia. He blames foreign influences driving down the rouble. The EU will impose...
Some Additional Thoughts on the Fed Statement, plus a Swiss National Bank Surprise
The Swiss National Bank surprised the market by announced a negative 25 bp rate on sight deposits and lower the 3-month Libor range to -0.75% to 0.25%. Although SNB President Jordan revealed that inflows from Russia compelled it to intervene...
Will the U.S. Fed Need to be ‘Patient’ for a ‘Considerable Period’?
The Federal Reserve upgraded its assessment of the labor market, and changed the future guidance from "considerable time" to "can be patient in beginning to normalize the stance of monetary policy." The statement also draws a distinction between market-based measures...
Federal Reserve Stays Dovish on U.S. Strength as Bundesbank Warns of QE Failure
Interest rates may not rise in 2015 as the Federal Reserve indicates it will be more patient before making its first rate hike since the global financial crisis of 2008.The Federal Open Market Committee said in a statement Wednesday that...
Data Show an Alarming Drop in Highly Skilled Immigrants to the U.S.
The United States has always been known as a nation of immigrants and a top destination for scientists and other highly skilled professionals. That ability to attract the world’s most educated and innovative people to its shores has often been...
EU and US Trade and Investment Partnership a Second-Best Approach
Like the Trans-Pacific Partnership, the Regional Comprehensive Economic Partnership, and the Free Trade Area of the Asia-Pacific, the Transatlantic Trade and Investment Partnership (TTIP) between the European Union (EU) and the United States (US) is a second-best approach to trade...
Japan’s ‘Comfort Women’ Debate Casts a Long Shadow
The Japanese media has been set alight by the debate on Japan’s use of ‘comfort women’ — a euphemism referring to the women used for sex by the Japanese Army in World War II. The furore began in August when...
The U.S. FOMC Statement is on Many Minds
The US dollar's recovery that began yesterday continues today. The euro reached the 50% retracement objective of its slide since mid-October (~$1.2565) and now is more than a full cent lower. The dollar's slump against the yen ended just above...
U.S. Industrial Production Surges amid Cheap Energy
Industrial production surged to its highest level since 2010 in November after three solid months of gains. Industrial production rose 5.2% year-over-year in November and manufacturing rose 4.8% year-over-year, signaling continued confidence in the economy from the industrial sector. Industrial...
Will the Lima Conference Break the Climate Change Stalemate?
For quarter of a century, global climate change talks have suffered from a stalemate between major advanced nations and large emerging economies. Since Lima’s climate conference could not resolve it, it deferred the divide to Paris 2015.Recently, world’s leading nations...
Key Global Economic News Help the Dollar and U.S. Equities
As the 24-hour session has progressed, the US dollar and equities have stabilized and turned higher. Indeed as US traders prepare to return, stocks and the dollars are trading near session highs. Oil prices are also trading higher. Core bonds...