Home Create my own Portal Premium function, contact us! Premium function, contact us! Premium function, contact us! Premium function, contact us! 
Username:
Password:
Create a account
Making stock and economic news easier to read, bookmark and use!
 
  Submit Article Add a Feed Watchlist
Volatile Stock Markets - Global Economics

Global Economics Weekly Brief

Volatile Stock Markets - Global Economics and You

As if volatile stock markets and slower growth weren’t generating enough headlines, China devalued its currency last week. The move, coupled with the country’s manufacturing clout, creates the prospect of more downward pressure on global inflation.



So central banks are watching. Is it a ‘yuan time’ move or are more on the way? We forecasted China`s issues/problems two years ago and now they are here `big-time`!.....

Summer discount. China surprised markets by devaluing its currency by 2% against the US dollar. On the face of it it's not a big move. Other emerging market currencies have fallen by much larger amounts this year. Yet it matters. China is the world's largest exporter. And those exports are now getting cheaper and putting downward pressure on already low developed world inflation rates. Indeed, the Bank of England was highlighting the deflationary risks from China earlier this month. To accommodate the deflationary forces, interest rates may have to stay ‘lower for longer’. China have been in trouble for some time and now we are seeing the start of a `real` slow down and pressure on global currencies!...

Weaker. China's currency devaluation could also be an effort by the Chinese authorities to prop up flagging growth (a lower currency makes exports more competitive). Judging by the latest growth indicators the economy is indeed slowing. At 6%y/y, industrial production is growing at levels not seen since the depths of the financial crisis. Meanwhile, investment growth is slower than at any point in the past ten years with new funds into factories and real estate slowing sharply. Another global boom and bust on its way!...When will people start learning from history!......

That was expensive. China's credit growth figures for July reveal two stories. Firstly, growth in credit to the real economy appears to be weak as the downturn in the economy intensifies. Second, the government's recent effort to prop up the stock market seems to have resulted in an expensive bill to the country's banks. Bank loans totalled around £150bn with more than 50% going to financial institutions - widely believed to have been various bodies that intervened as stock prices plunged. China was supposed to be letting market forces have a bigger say in the running of the economy. But old habits!….

Steady. The UK unemployment rate stood at 5.6% in the three months to June. While this was a slight rise on the previous quarter, there is little in the numbers to suggest anything worrying. Rather, the economy seems to have hit something resembling full employment - full in terms of numbers rather than necessarily full of the types of jobs everybody wants. Earnings grew by 2.8%y/y, again unchanged and well above the rate of inflation. And the nation's productivity grew at the fastest rate since Q2 2011. Nice and steady then, but as yet unlikely to move opinion on the Monetary Policy Committee. There are plenty of people unemployed, so train them for a job...now!.....

Watch this space. UK construction output grew 0.2%q/q in Q2, slightly higher than initially thought. But there was a split. Private house building was the fastest growing sector but house-building by public bodies contracted at a faster rate than any of the other sub-sectors. And it’s down by 10% since the third quarter of 2014. But house building stands to get a boost soon. Companies typically start and finish projects when prices are rising faster. They may not be at the moment, but the reliable monthly indicator from the Royal Institute of Chartered Surveyors suggests they are about to pick up significantly. More higher production and exports are needed for growth!....

Hell-ena Yeah! The euro zone economy expanded by 0.3% in Q2, slightly slower than Q1's 0.4%. In context, the US managed 0.6% and the UK 0.7%. The stand-out stat award goes to Greece. No, not down. That'll come soon enough. Rather output in the Hellenic Republic expanded by a mighty 0.8%. That's faster than Germany, which may raise an ironic smile for your average Athenian. Closer to home, France's economy stagnated, while Italy's managed a meagre 0.2%. In short, the euro zone economy remains weak, and certainly poorly-placed to resist the eastern wind's deflationary blast. Come on Euro zone countries wake up and drive investment from wealthy people and then increase productivity and growth!...

Slippery slope. The euro zone's industrial production figures also raise a few concerns about the region’s recovery, with output shrinking 0.4% in June. And it’s the third contraction in the last four months. Germany and Italy stand out, both shrinking by about 1%, whilst France's performance was a rather stagnant -0.2%. That's also the same amount as Greek output was estimated to have shrunk in June. Factory output across the Euro zone is still 1.2% above where it was last year, but that comparison will deteriorate unless the recent run of form is reversed. What are the Euro zone countries doing to increase investment/productivity?

Still patchy. The US is growing at a decent rate and increasing numbers of people are getting into work but data on performance remain patchy. On the plus side, the number of people registering as unemployed reached its lowest level in 15 years. Retail sales were up 2.6%y/y in July, a solid if unspectacular result. Industrial production edged up, although it was flat if car production was excluded. On the downside, consumer confidence slipped again and core producer price inflation rose only 0.9%y/y. There’s little in these numbers to encourage an early rate rise!....

--- --- ---
Written and submitted by:

Dr Colin Thompson
Managing Partner
Direct: + 44 (0) 121 247 4589
Mobile: 07831 588310
Office: + 44 (0) 121 244 1802
email: colin@cavendish-mr.org.uk
Skype: colin.thompson384


http://www.cavendish-mr.org.uk

The Cavendish Academy
http://www.linkedin.com/e/-tc85tw-gbkla9w4-1f/vgh/3212542/



Volatile Stock Markets - Global Economics

Rating: 2 (1 today) - Visits: 2474 (30 today)
Read the full article | Bookmark this article(to my MFP account)

Comments on this item:

ghost pillow reviews
04-05-2017 12:01:13
Pleasant diamond mattress reviews along with wool and also real materials, and made in the USA. Suits our twin amerisleep reviews frame (no carton spring) wonderfully. serta oakbridge review
I read the assessments before ordering and observe the warning concerning opening up the plan. Set it on package springtime just before cutting available the deal it can be found in and also make use of scissors not a blade. beautyrest mattress reviews 2015
I fallinged asleep Like The Dead website as well as go through and also review concerning all the onpurple mattress review. Simplify to just what I failed to really want and continued off there. plush bed reviews
My only small grievance is actually that the sides could possibly be a little "firmer". If you get too close to the advantage, there is actually an odds you could roll off. tempur cloud supreme reviews
Every person in our family members is actually astonished that a mattress review site that got here in a roll with the air sucked out from it may be such a nice tuft and needle mattress review, however this really is actually. memory foam contour pillow reviews
These bed mattresses review were actually the perfect option for a daybed/king dimension bed combination. 100 latex mattress reviews
He brought in a two component bed coming from timber and these cushions operated flawlessly. linenspa reviews
Edit after almost 2 years: comfort mattress reviews is still storing up great. Excellent buy for a reviews of tempurpedic mattresses without nasty chemicals. That is incredibly comfortable and also appears to be actually properly made. saatva firm mattress reviews

These cushions were the excellent choice for a daybed/king dimension bedroom combination. natural latex mattress topper reviews
I permit that perform this is actually factor for 24 hrs without sleeping on this allowing that to fill out as well as increase after being actually spun up, as was proposed. king mattress reviews
During that he still possesses a sofa for friends as well as a spacious bed for two that supplies a relaxed night's sleeping. shop factory direct reviews
This was used as a substitute for my little girls best twin mattress reviews and also its own wonderful, especially for the cost. king size mattress topper reviews
When initially opening it, I didn't observe any sort of smell at all also. leaf reviews
Simply place swimming pool noodles under the fitted sheet on each edge up until they obtain used to that if that is actually a problem for kids. Affection this! best rated foam mattress
I was actually a little worried to see just how that was actually packaged yet it simply took few seconds to receive to size and also is actually extremely relaxed. I would certainly buy this simmons beautyrest luxury firm mattress review once again. leesa mattress review consumer reports
For the cost ($279, no tax, and also free of cost shipping) that is most certainly worth the rate. jersey sheets review
 
best mattress topper for back pain
09-05-2017 01:48:04
best mattress for lower back pain best mattresses for back pain
best type of mattress for back pain mattress back pain
top mattress for back pain best mattress for back pain
best mattresses for back pain best bed for back pain

best type of mattress for back pain top mattress for back pain
top mattress for back pain mattress back pain
mattress pad for back pain best mattress for back pain
mattress for back pain best mattress for lower back pain
 
top mattress for back pain
12-05-2017 03:56:55
best mattress back pain best mattress back pain
best bed for back pain top mattress for back pain
top rated mattresses for back pain best mattress for lower back pain
best mattress for back pain top rated mattresses for back pain

mattress pad for back pain best mattress topper for back pain
best mattress for lower back pain best type of mattress for back pain
top mattress for back pain best bed for back pain
best type of mattress for back pain best mattress back pain
 
try this web-site
21-05-2017 00:53:10
how to buy a mattress visit site cheap best mattresses
serta best rated mattress check here top selling mattress
what's the best mattress to get see it here what is the best mattress to buy
twin mattress prices read price of mattress
what's the best mattress to buy Look At This top rated best mattress
buying a mattress dig this find best rated mattress
top mattresses to buy prev top 10 mattress companies
top 10 bed mattresses Find Out More where to buy the best mattress

find best mattress official site world best mattresses
top 10 mattress companies redirected here mattress which is best
the best bed top article cheapest mattress prices
where to buy the best mattress have a peek at this website king size mattress prices
top ten mattresses find more information what's the best kind of mattress to buy
buying best mattress casper promo mattress price
overall best mattress check out here which are best mattress
buy mattress helpful hints top 10 mattresses 2016
 
Sonjacania
27-05-2017 12:32:22
price of mattress leesa mattress ratings which are best mattress
top 5 mattresses 2016 review leesa mattress the best mattress to buy
comparison mattresses best mattress review leesa mattress world best mattresses
euro top mattress leesa mattress twin mattress prices
what's the best mattress to buy leesa mattress coupon top mattresses
mattress s best leesa coupon mattress which is best
top 10 best mattresses leesa mattress coupon what's the best mattress
top 10 bed mattresses leesa discount price of a mattress
finding best mattress casper coupon find best mattress
find best mattress you casper mattress promo code find best mattress
top ten best mattresses casper mattress promo what's best mattress to buy

mattress which is best leesa mattress compare best mattress
find best mattress prices leesa mattresses reviews what's the best mattress to buy
top 5 mattresses to buy review leesa mattress euro top mattress
what's the best mattress on the market leesa mattress reviews where to buy best mattress
queen size mattress prices leesa mattress discount top 10 mattress companies
top 10 best rated mattresses leesa mattress coupon code mattress buy
comparison mattresses best mattress leesa mattress promo code top ten mattresses 2016
where to buy the best mattress leesa mattress coupon code world best mattresses
mattress which is best casper coupon top 10 mattress companies
top best mattresses casper mattress promo code the best mattress on the market
top 10 mattresses to buy casper promo code top best mattresses
buy mattress casper mattress promo top 10 bed mattresses
 

View page:  1   2   3   4   5 



Post your comment
Your name:
 
E-mail Address(Not visible in comment):
 
 
Retype the number:
   
Your comment:
 




:8 :o? :) :P :/ :D :o :% :0/ :o| :? :o-
:DD :(( 8o :( 8D :N :Y :DDD 7| :luv: :\'( :(((

 
Feed of the Month
Wall Street Pit


Submit your own economic or stock news today!



Open Quark in InDesign








Site Owner: David
Location: Los Angeles
© 2006 - 2013 Help/FAQ | Privacy Policy | Terms & Conditions | About us | Contact | Your feed on this site?