Yellen lays ground for interest rate rise
he US economy has “recovered substantially” from the Great Recession and is set for further growth and firmer inflation, Janet Yellen said, as she laid the ground for the first Continue Reading
Eurozone inflation unchanged at 0.1 percent, below forecasts
Inflation across the 19-country eurozone held steady in November at 0.1 percent over the year, reinforcing the case for the European Central Bank to deliver a further big stimulus for Continue Reading
Euro on shaky ground, stocks up on talk of aggressive ECB easing
The euro slipped back towards seven-month lows, bond yields fell and European shares rallied on Thursday as talk of aggressive stimulus from the European Central Bank next week gained ground. Continue Reading
U.S. GDP growth raised for third quarter
The Lower Manhattan skyline, One World Trade Center and Manhattan Bridge are seen in the background as a ferry with a U.S. flag cruises along the East River in New York September 21, 2015. The U.S. economy grew at a healthier clip in the third quarter than initially thought, but strong inventory accumulation by businesses could temper expectations of an acceleration in growth in the final three months of the year. The Commerce Department on Tuesday said the nation’s gross domestic product grew at a 2.1 percent annual pace, not the 1.5 percent rate it reported last month, as businesses reduced an inventory bloat less aggressively than previously believed. The pace of economic growth, which was also boosted by upward revisions to business spending on equipment, suggests a resilience that could help give the Federal Reserve confidence to raise interest rates next month. While consumer spending was revised down […]
Kurt Cobb: Money Cannot Manufacture Resources
Our cornucopian economic and social narrative is in a state of denial and delusions. We have volumes of science that tell us what we are doing economically and socially is not sustainable. We cannot keep expanding our economy and population. We are trying to expand our economy and we are unable. Our population growth in uncontrollable even if we wanted to. What is even more of a catch 22 with our human arrangement is it is irreversible. We cannot degrowth without catastrophic collapse. We have far too many people that must be fed. Starvation and famine lead to failed states failed state in a complex global system like ours. This leads to generalized globalized failure. Just because it has not happened yet is no reason it won’t. If Saudi Arabia collapses so will the globalized world if its oil resources are destroyed. This is the inconvenient truth of complexity. […]
Bank of England gauges impact of lower oil prices
Bank of England offers measured take on impact of lower crude oil prices, but notes inflation is below a level considered to be healthy. File Photo by Hugo Philpott/UPI LONDON, Nov. 10 (UPI) — With about 60 percent of the drop in crude oil prices linked to demand issues, the Bank of England suggested pressure may be negative for the British economy. Lower crude oil prices have translated to a de facto form of stimulus to consumers and consuming nations, but left exporters struggling to cope with weakened economies. The Canadian economy most recently said it was flirting with recession. In September, the Russian Central Bank warned of a prolonged slump in crude oil prices and said there were "persistent risks of considerable economic cooling" in Russia. The Bank of England said in a November report on inflation there were key market factors to gauge when determining the risks […]
OECD cuts world growth forecast
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Dollar hits near seven-month high after U.S. jobs report
An employee of a money changer holds a stack of U.S. Dollar notes before giving it to a customer in Jakarta, October 8, 2015. The dollar rose against other major currencies on Friday, maintaining gains that followed the release of data showing the U.S. economy created far more jobs than expected in October. The surprisingly robust jobs report helped the dollar solidify a case for the Federal Reserve to increase U.S. overnight borrowing costs for the first time since 2006, a move that would strengthen the greenback and attract investors. Nonfarm payrolls increased 271,000 last month, the largest rise since December and a far cry from the 142,000 and 136,000 jobs numbers seen in September and August. Market economists polled by Reuters had predicted 180,000 new jobs for October. The data sent the dollar higher across the board. The greenback hit highs of 2-1/2-months versus the yen, seven months […]
Brisk Job Gains Ease Fed’s Path
U.S. employers added jobs in October at the quickest pace this year, while boosting wages at the fastest rate since 2009, giving the Federal Reserve its clearest signal yet that the economy may be strong enough to withstand an interest-rate increase next month. Nonfarm payrolls rose a seasonally adjusted 271,000 last month, the Labor Department said Friday. Revisions showed employers added a combined 12,000 more jobs in September and August than previously estimated, bringing the year’s average to 206,000. The unemployment rate fell to 5%, a level Fed officials expected it to reach by year’s end and near the 4.9% rate they project as normal in the long run. Average hourly earnings of private-sector workers rose at a 2.5% annual pace in October. That marked the best year-over-year performance since July 2009, just as the economy was emerging from recession, and a notable rise from the 2% average pace […]
U.S. jobless claims rise; third-quarter productivity posts surprise gain
People wait in line to enter the Nassau County Mega Job Fair at Nassau Veterans Memorial Coliseum in Uniondale, New York October 7, 2014. New U.S. applications for unemployment benefits last week recorded their largest increase in eight months, but remained at levels consistent with a fairly healthy labor market. Other data on Thursday showed a surprise rise in productivity in the third quarter after a drop in self-employment led to overall hours worked falling for the first time in six years, restraining labor-related production costs. Initial claims for state unemployment benefits increased 16,000 to a seasonally adjusted 276,000 for the week ended Oct.31, the Labor Department said. It was the largest weekly increase since late February. Still, last week marked the 35th straight week that claims were below the 300,000 threshold normally associated with a strong jobs market. Claims had hovered near 42-year lows for much of October. […]