Economy

European Inflation Drops for First Time in Over a Year

Inflation in Europe has dropped for the first time in more than a year (17 months) as energy prices drifted down from painful highs, but the double-digit rate still hovers near a record that has robbed consumers of their spending power and led economists to predict a recession.

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HP Announces Plans to Lay Off Thousands

Hewlett-Packard is the latest company to announce mass layoffs. HP, which is headquartered in Palo Alto, said in a press release Tuesday that it plans to cut between 4,000 and 6,000 jobs.

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Amazon Layoffs Continue

Recently Amazon announced that the company intends to reduce its workforce by 10,000 employees in an attempt to adjust to business conditions in the near future. Amazon’s Chief Executive Officer Andy Jassy has now stated that the job cuts will continue into 2023.

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Amazon Firing 10,000 Corporate Employees

Amazon is planning to lay off approximately 10,000 employees in corporate and technology roles beginning this week. Shares of Amazon closed down about 2% on Monday.

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Russian Grain Exports Are Booming

Russia’s grain-export pace is accelerating, just as Ukraine shipments are hit by uncertainty over whether the landmark Black Sea deal will be extended later this week.

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Is the Fed Going Too Far?

A respected measure of inflation in the United States is expected to tick higher in September even as the Federal Reserve moves to fight rising prices at its most aggressive pace in decades. Wall Street is worried that yet another high reading on the Consumer Price Index will prompt another massive interest rate increase and inflict more pain on markets and the US economy.

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J.P. Morgan's Jamie Dimon Has "Serious" Recession Fears

Jamie Dimon has warned that a “very, very serious” mix of headwinds was likely to tip both the U.S. and global economy into recession by the middle of next year.

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Retailers Are Punishing Suppliers

After several years of supply chain disruptions, large retailers such as Walmart and Target are beginning to return to their old ways of operating by pushing heavy fines on suppliers for failing to deliver products in an efficient and effective manner.

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British Pound to be Renamed Ounce

The U.K.’s beleaguered pound hit its lowest-ever level against the U.S. dollar before recovering slightly Monday, as investors worried about the government’s plans to cut taxes and the Bank of England warned it would raise interest rates as much as needed to hit its inflation targets.

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Prime Day 2.0

Amazon is planning on hosting a second Prime Day sale this year which will occur on October 11 and 12. This will be the first time in Amazon’s history that they will host two Prime Day sales in the same year.

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Jerome Powell Issues Stark Statements

Federal Reserve Chair Jerome Powell delivered an address this morning at the central bank’s annual Jackson Hole meeting in which he warned of tightening policies “for some time.” Risk markets have shuddered in the wake of his comments.

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The Inflation "Reduction" Act

The controversial Inflation Reduction Act of 2022, aka the Reconciliation Bill after months of on-and-off negotiations between moderate Senate Democrats over a crucial piece of the Biden Administration’s agenda has passed the Senate. It is a significantly watered-down version of the original package proposed by the president. Senate Republicans staunchly opposed the package, arguing that it would do little to address decades-high inflation and would worsen the nation’s fiscal picture.

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Americans Drawing Down on Savings is a Red Flag

From the start of the pandemic to the end of 2021, U.S. households built up $2.7 trillion in extra savings, according to Moody’s Analytics. Covid-19 lockdowns kept people at home with nowhere to spend money, and three rounds of stimulus payments boosted their incomes. Now, with inflation at its highest point in decades and wage gains trailing behind, Americans are turning to that stash to cover costs.

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China Lobby Wants Tariffs Reversed

With inflation rising and hurting American consumers, the China lobby now has the perfect cover to undo the tariffs put in place by the Trump Administration that were levied as an effort to bolster domestic labor and manufacturing as well as penalized unfair foreign trade advantages. Now The Biden Administration is weighing a decision to remove some of the tariffs on more than $300 billion in Chinese imports according to people familiar with the deliberations, as his administration desperately tries to curb fast-rising US prices. The only question is why?

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July 4th will be 17% More Expensive This Year

Amid record inflation, most Fourth of July staples have seen an increase in price over last year, with food prices up as much as 36%, according to a recent survey from the American Farm Bureau Federation.

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German Inflation Hits 50 Year High

German inflation rose to its highest level in nearly half a century in May on the back of soaring energy and food prices, strengthening the case for a big, half a percentage point European Central Bank interest rate hike in July

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Janet Yellen Speaks Out on Volatility

The United States Secretary of the Treasury, Janet Yellen recently told lawmakers that the Covid-19 pandemic and the war in Ukraine may continue to add turbulence to the world economy

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China Continues Brutal Inhumane Lockdowns

Chinese authorities raced to carry out citywide Covid-19 tests across Beijing, betting their rapid action to crush a nascent outbreak in the nation’s capital will avoid a repeat of the chaos seen during Shanghai’s stringent lockdown, though raising the risk that China’s strict antivirus policies will further damage the faltering economy

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Omicron Variant Questions Loom Over Economy

The new variant of Covid-19, known as Omicron, was originally discovered last week throughout South Africa and since then has put the world on alert

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UK Attempts to Strengthen its Manufacturing Sector & Overseas Trade

The UK government has just released its plan to provide a boost to the country’s annual exports by £1 trillion at the end of the decade. The “Made in the UK Sold to The World” plan is designed to help UK companies capture new opportunities in global and international markets

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Labor Report Indicates Robust Job Market

It's a hallmark sign of this strange pandemic labor market: America had a record 10.1 million jobs available in June, as businesses struggled to hire enough staff to support the full reopening of the economy

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Chip Shortage Hits Consumers

With no end in sight for the global chip shortage manufacturers have begun raising prices for chips of all kinds as demand continues to skyrocket. Consumers are beginning to feel the impact of the chip shortage as producers of computers and other electronics increase the price of their products as well

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Materials Squeeze Drive Prices Higher

In recent months, several events have taken place that have greatly affected the supply chain and resulted in global shortages for numerous products such as construction materials and electronics. The result of these shortages is an expected increase in price by up to 20%. After the Suez Canal blockage in March, as well as the global chip shortages associated with the drought in Taiwan (which is the leading chip producer in the world), products across the spectrum have been at a shortage and are expected to continue to be for years to come

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San Francisco’s Tech Fiefdom is Dying

San Francisco’s tech fiefdom is dying. That’s good for America. If you’re a member of the burgeoning American upper-middle-class or have relationships with any such yuppies, you have probably heard about “tech-xodus.” The term refers to the rapidly rising rate of techies leaving San Francisco

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All Eyes on India

12.07.20 - India is arguably going to be the most relevant rising country of the early 21st century. Over the last 20 years it has seen some of the fastest growth world averaging between 6%-7%. What makes India incredibly unique among the rising economies is its youth. In 2019 the average age in India was 26 compared to China at 38 and the United States at 37. India’s voice will carry serious weight on the international stage

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New Economic Partnership In the Pacific

11.16.20 - China has just joined economic forces with more than a dozen countries across the Asian Pacific region with the signing of a huge free trade deal nearly a decade in the making

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Americans Are Sitting On $2.5 Trillion Savings Bomb

11.09.20 - A $2.5 trillion cash pile hoarded by consumers may be all it takes to drive the economic recovery from the COVID-19 pandemic, according to The Leuthold Group's chief investment strategist James Paulsen

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Trouble In America's Dairyland

10.13.20 - Three years after landmark legislation was passed promising Foxconn Technology Group billions in tax credits with a groundbreaking ceremony in Mount Pleasant Wisconsin, the company will not be receiving any state tax credits for work done in 2019

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Sanctions Slam Chinese Tech Manufacturers

09.28.20 - New sanctions have reportedly been imposed on the Chinese chip manufacturer SMIC. The company is China’s largest chip manufacturer and the move threatens Beijing’s drive to become more dominant in an increasingly critical section of the technology industry

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India's Economy Shrank 23.9% In Three Months

08.31.20 - India's economy contracted at the fasted pace ever in the three months following June as the lockdowns imposed due to the COVID-19 pandemic hit the countries consumer base and investments hard

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Remote Work Options Send Shockwaves Through Cities

08.17.20 - The biggest losers of the pandemic is America’s urban centers. Both San Francisco Bay and New York may be the biggest losers of this crisis. With big tech offering long-term remote work options to employees, people are leaving expensive urban centers in droves. Facebook, Google, Twitter, and Slack are offering remote work options up to a year in some cases and as a result, employees are leaving to places like Arizona, Colorado, and Texas

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Viva La France

07.06.20 - The second-biggest economy in the European Union returned to growth this month, even as activity in the rest of the region continued to decline. The $3 trillion French economy grew this month for the first time since February, as coronavirus restrictions were eased and domestic consumption ticked up, according to a closely watched survey. An initial reading of the country's Purchasing Managers' Index, which tracks activity in the manufacturing and services sectors, jumped to 51.3 in June from 32.1 in May. Readings above 50 indicate an expansion

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BP Offers Grim Forecast on the Future of Oil

06.15.20 - BP’s potential $18 billion write-down underscores just how significant a turning point 2020 is becoming for the oil industry. It baldly acknowledges that the major hydrocarbon producers are sitting on oil fields that will never be developed — because the pandemic has curbed energy demand and increased the desire for renewables within the supply mix

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Things Get Worse Before They Get Better

05.26.20 - As many areas within the country have started a process of easing the lockdown, many estimate that the worst could soon be behind us in a matter of a month. A senior White House advisor, however, recently told CNN’s Poppy Harlow that things could ugly before we see that improvement. Kevin Hassett, the senior White House economic adviser in question, thinks the unemployment rate may rise to 23% by June before decreasing

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Tyson Warns of Food Shortages

04.27.20 - Tyson Foods is warning Americans that "millions of pounds of meat" will disappear from grocery store shelves as the current pandemic pushes food processing plants to close – resulting in product shortages in throughout the supply chain across the country

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The Economic Powerhouses of the 2010s Now Are in Recession

02.24.20 - Financial markets have closed out for the previous week with a note of anxiety. Recent economic data has shown that multiple of the world’s top economies are struggling, and as the outbreak of the coronavirus continues to shake up markets, the concern has compounded these slumps

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Empire of The Setting Sun

02.17.20 - Japan's economy shrank at the fastest rate since 2014, as it was hit by a sales tax rise, a major typhoon, and weak global demand. Gross domestic product (GDP) dropped by a much steeper than expected 6.3% at the end of 2019

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What About The Little Guy?

02.10.20 - The US economy continues to surge, according to the data. Job growth is the strongest it’s been in recent memory, wages are rising, the housing market seems robust and healthy, and the service sector seems to be in the midst of a boom. Given these strong numbers on the domestic economy, it seems reasonable to ask ourselves why small American companies that do most of their business domestically seem to continue to struggle

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Bridges to Nowhere and Driverless Cars

02.10.20 - As China continues to scramble to react to the Coronavirus, the economic consequences are getting worse. With entire provinces shut down production and global supply chains are threatened and lie in disarray. Before the launch of the trade war China was already slowing, the trade war and US tariffs caused another inhibitor on China’s growth, and now a health crisis is adding even further pressure

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Back to The Negotiating Table

02.03.20 - The U.K. formally left the European Union on Friday, marking the end of tough negotiations and political play both in Europe and domestically within the U.K.. But as Britain begins its life outside of the political union it had been tied to since the 1950s, new negotiations are set to begin over a future trade deal between Britain and Europe

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The Economics of World War Z

01.27.20 - The heavily reported on coronavirus outbreak in China has spooked the entire world, as we all conjure up images from some of our favorite apocalyptic Hollywood films. But as the world of memes and the internet has their fun with a serious situation, investors are on high alert for possible economic repercussions of the outbreak as financial markets respond

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Yeah Okay, Fine. We'll Talk About Davos

01.21.20 - The world’s elite have gathered in Switzerland for the 50th annual World Economic Forum to discuss issues such as the world economy and climate change. As the eyes of the world shift to Davos (the infamous location of the annual gathering), many eagerly await to see how the rich and powerful plan to tackle the most serious issues facing the globe

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A New Deal, A New Era

01.21.20 - Previous presidential administrations did very little as China paid no regard to WTO (World Trade Organization) rules, gaining an unfair advantage in trade markets since joining the organization in 2001

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Weak Auto Sales In China Are Telling

01.13.20 - Ford and GM have both reported horrible years in their Chinese sales for the third consecutive year - dropping 26.1% overall as the country battles a prolonged sales decline. China’s auto market is projected to contract by 2% this year as the economy weakens due to trade disputes with the United States

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