USA Archives - Page 16 of 32

12Sep

By Online DeskNo Comments

China, Market, USA

Domestic macro forces have a major role in driving trade balances between the US and China.

China’s widening trade surplus and the growing US trade deficit since the pandemic have renewed concerns about global imbalances and fueled an intense debate on their causes and consequences. There are increasing worries that China’s external surpluses result from industrial policy measures designed to stimulate exports and support economic growth amid weak domestic demand. Some worry that the resulting overcapacity could lead to a “China shock 2.0”—a surge of exports that would displace workers and hurt industrial activity elsewhere. This trade and industrial policy view of external balances is incomplete at best and should be replaced with a macro view. External balances are ultimately determined by macroeconomic fundamentals, while the link to trade and industrial policy i...

10Sep

By Online DeskNo Comments

Market, USA, World

US employment vacancies are declining; learn more about economics.

1. US job openings decline Job openings in the United States fell to a 3.5-year low in July, which suggests the labour market is losing steam. The number of unfilled jobs, shown in the Job Openings and Labor Turnover Survey (JOLTS), fell to its lowest since May 2021. It meant there were 1.07 open positions for every unemployed person in July. Investors and policymakers are watching the labour market closely, after four monthly increases in the unemployment rate stoked fears of a recession. "The labour market is still in pretty good shape, but it has cooled dramatically over the last year and a half," Bill Adams, chief economist at Comerica Bank, told Reuters. "Most Americans who want jobs have them, but there are fewer opportunities or alternatives for workers who ar...

3Sep

By Online DeskNo Comments

Asia, Market, USA, World

Global Economic Situation and Outlook Update for September 2024

After years of turbulence and significant volatility in economic output, the world economy is on a more stable trajectory. Global growth performance has held up surprisingly well in the face of recent shocks, including aggressive interest rate hikes by major central banks during 2022–2023 and an escalation of conflicts with international spillovers. Robust consumer spending in several large developed and developing economies – buoyed by high levels of employment, rising real wages, and relatively healthy household balance sheets – has sustained economic resilience. In a large number of economies, inflation has slowed considerably and is approaching central bank targets, providing room for monetary easing. In most cases, economies experienced disinflation without a significant deterioratio...

The number of employment added in the United States fell substantially in the year ended March.

22Aug

By Online DeskNo Comments

USA, World

The number of employment added in the United States fell substantially in the year ended March.

The United States economy added 818,000 fewer jobs from April 2023 through March this year than were originally reported, the government says. The revised total adds to evidence that the job market has been steadily slowing and likely reinforces the US Federal Reserve’s plan to start cutting interest rates soon. The Department of Labor estimated that job growth averaged 174,000 a month in the year that ended in March — a drop of 68,000 a month from the 242,000 that were initially reported. The revisions released Wednesday were preliminary with final numbers to be issued in February. The downgraded estimate follows a jobs report for July that was much worse than expected, leading many economists to suggest that the Federal Reserve had waited too long to begin cutting interest rates t...

22Aug

By Online DeskNo Comments

USA, World

Unprecedented Canadian rail strikes might have a severe impact on the United States economy.

Something happening more than a thousand miles away could have some interesting impacts on North Texas. In the early hours of Thursday, freight traffic on Canada's two largest railways came to a stop for the first time ever. The U.S. and Canadian chambers of commerce have warned that the rail stoppage could have a "significant impact" on their economies, and experts in the states believe it could also significantly affect the U.S. supply chain. “The U.S. Chamber of Commerce and Canadian Chamber of Commerce are calling on the Government of Canada to immediately intervene to avert a disruption in the Canadian rail network. A stoppage of rail service will be devastating to Canadian businesses and families and impose significant impacts on the U.S. economy,” the groups said in a st...

9Aug

By Online DeskNo Comments

Market, USA

US jobless claims fall, easing market fears and other economics stories to read

1. US jobless claims fall, easing market fears The number of new unemployment benefit claims in the US has fallen more than expected, easing concerns about labour market stability. Initial claims dropped by 17,000 to a seasonally-adjusted 233,000 for the week ending 3 August, marking the largest decline in about 11 months, and coming in below the 240,000 forecast by Reuters' economists. The news follows last week's worse-than-expected US job data, which saw global stock markets fall. The jump in jobless claims was attributed to factors including people being unable to work because of Hurricane Beryl, Deutsche Bank's Jim Reid told The Guardian. Another positive indicator this week is that, despite an increase in total US household debt during Q2 2024, delinquency...

Is the United States destined for a recession?

4Aug

By Online DeskNo Comments

USA

Is the United States destined for a recession?

The unexpected rise in the unemployment rate in the United States has left economists divided: Is the US on the brink of a recession or not? The unemployment rate jumped to a nearly three-year high of 4.3 percent in July, as per data released Friday. The increase – up from 4.1 percent in June, and up from a five-decade low of 3.4 percent in April last year – sets the stage, more than ever, for a cut in interest rates in the next Federal Reserve meeting in September. The jump in the unemployment rate “points to a recession in 2025”, Gary Clyde Hufbauer, nonresident senior fellow at the Peterson Institute for International Economics, told Al Jazeera. “I’m expecting the [US] Fed to start cutting the policy rate in September, and to continue cutting in subsequent meetings. That response...

The judgment is still out on whether the US yield curve indicates a recession.

30Jul

By Online DeskNo Comments

USA

The judgment is still out on whether the US yield curve indicates a recession.

NEW YORK, July 29 (Reuters) - The longest and deepest U.S. Treasury yield curve inversion in history, a key bond market signal of an upcoming recession, could be nearing its end. While an inverted curve has typically preceded a recession, this time there is debate about the predictive power of the curve, with optimism that the U.S. could escape prolonged economic pain. Some indicators in recent weeks have pointed to a slowdown, but growth remains strong thanks to a resilient labor market. "I'm not looking at it as recessionary as of now, I think it's a very different time," said Phil Blancato, chief market strategist at Osaic. Investors observe the shape of the Treasury yield curve - which plots the yields of all Treasury securities - because it reveals market expectati...

15Jul

By Online DeskNo Comments

Asia, China, Market, USA, World

Will China ever overtake the US economy?

The idea of China's outstripping the United States to become the world's largest economy has been a fixation for policymakers and economists for decades. What will happen, they argue, when the US — one of the most dynamic, productive economies — is usurped by an authoritarian regime with a workforce of 750 million? Predictions of when exactly China would steal the US's crown have come thick and fast ever since the 2008/9 financial crisis, which hampered growth in the United States and Europe for many years. Before what became known as the Great Recession, China saw double-digit annual gross domestic product (GDP) growth for at least five years. In the decade following the crisis, China's economy continued to expand by 6%-9% annually. That is, until COVID-1...

<strong>EU, US retaliate against Chinese attempts to dump electrical vehicles</strong>

15Jul

By Joe RodriguezNo Comments

China, USA

EU, US retaliate against Chinese attempts to dump electrical vehicles

The move of the European Union to impose duties of up to 87.6 percent on import of electrical vehicles made in China has thwarted the plan of Beijing to flood the markets in Europe with cheap electrical vehicles manufactured with subsidy from the state. Studies have found that China has been using subsidies extensively to take a leading role in the global markets for green-tech products such as battery electoral vehicles and wind turbines. The World Trade Organization has stipulated under the WTO Subsidies Agreement that: “A subsidy granted by a WTO member government is prohibited by the Subsidies Agreement if it is contingent, in law or in fact, on export performance, or on the use of domestic over imported goods. Those prohibited subsidies are commonly referred to as export subsidies...

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