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The S&P 500 Suffers Worst Week in 2 Years
Boston Globe
Markets ended the day lower across U.S. indexes - and sectors - Friday - but avoided the kind of steep selloff we saw Thursday. The S&P 500 saw its steepest weekly drop in two years. The Dow and the Nasdaq also finished lower. On this jobs report Friday - job ...
Related: Succinct Summations of Week's Events 8.1.14
Barry Ritholtz / The Big Picture
Succinct Summations week ending August 1st Positives: 1. GDP grew on a 4% annualized basis in Q2, up from -2.9% in Q1 and above expectations of 3.1%. 2. Consumer sentiment came in at 81.8, up from 81.3 and better than the 81.5 expected. 3. ISM manufacturing index came in at ...
Related: All those US indicators: what did we learn this week?
Cardiff Garcia / FT Alphaville
This morning's employment situation report coincided with the release of the latest Personal Income & Outlays report, bringing to a close this busy week of economic indicators and activity. What did we learn? Here's a brief roundup: Continue reading: All those US indicators: what did we learn this week?
 
War: In history's shadow
FT
It is dangerous to believe that economic interdependence, nuclear arsenals and international institutions will prevent a skirmish in Ukraine developing into a calamity
Related: Russia looks cheap, but could get cheaper
FT
Russian shares, trading at an average price to earnings ratio of five times, are the cheapest among major emerging markets according to analysts
Related: The Enigma of Russia's Economy
Timothy Taylor / Conversable Economist
The usual and most basic starting point to understanding a national economy is to look at trends and patterns over a long period of time, and then to look at episodes of divergence from those long-term trends. But applying this most basic analysis to Russia's economy doesn't work well.For starters, ...
Related: Russia's Eurasian Vision
Nouriel Roubini / Project Syndicate
The escalating conflict in Ukraine between the Western-backed government and Russian-backed separatists has focused attention on the Kremlin's long-term objectives. Though Russian President Vladimir Putin's immediate goal may have been limited to retaining some influence in Ukrainian affairs, his longer-term ambition is much bolder.
Related: Russia has reserves to ride out sanctions - assuming no panic
Reuters
LONDON/MOSCOW, Aug 1 (Reuters) - Mathematically Russia has enough reserves to hold out for at least two years before Western sanctions start to choke the economy, but it must avoid reawakening the...
 
5 Things to Watch on the Economic Calendar
Kathleen Madigan / WSJ Economics
Next week's calendar may lack the punch of this week's Fed meeting, GDP and payrolls trifecta. But upcoming reports will detail worker productivity, credit use and price pressures among service providers. New data may raise questions about that 4% spring growth surge. Here's what to look for:
Expand sublinks   Also:  Reuters | Boston Globe
 
The Decline of Red Lobster Is the Decline of the Middle Class
Alison Griswold / Moneybox
The spinoff of Darden's longtime flagship Red Lobster was officially completed this week, sending the beleaguered chain off into the hands of Golden Gate Capital. Shortly after, Darden announced a second shakeup: Clarence Otis, its chief executive of nearly 10 years, would step down from his post. Unfortunately for Darden, ...
Related: Robert Doar on the Ryan Plan
Arnold Kling / askblog
He says, He left out Medicaid, I think, because he recognizes that he couldn't commit to preserving funding levels for it because it's unrealistic as a fiscal matter. Unless we address Medicaid's spending trajectory, we won't be able to address ... Continue reading →
Related: A Q&A with Robert Doar on Ryan's Povety Plan
Andrew Smith / National Review
Editor's Note: Robert Doar is the Morgridge Fellow in Poverty Studies at the American Enterprise Institute, where he studies and evaluates how free enterprise and improved federal policies and programs can reduce poverty and provide opportunities for vulnerable Americans. Before joining AEI, Doar was commissioner of New York City's Human ...
Related: How We Reduce Poverty, and How "The Market" Doesn't
Steve Roth / Angry Bear
Matt Bruenig gives us a great breakdown of what poverty would look like if we relied on the market to solve it (as we did almost exclusively for thousands of years before the emergence of enlightened modern welfare states over the last two centuries). The poverty rate among the elderly ...
 
The Argentina Problem Can't Be Fixed
Leonid Bershidsky / Bloomberg Views
Governments are the worst possible debtors because their assets can't be tapped to repay creditors. New bankruptcy mechanisms aren't likely to solve the problem.
Related: Questions and Answers on the Argentina default
Petersen Institute
Has Argentina defaulted on its debt for the second time in 13 years? On July 30, negotiations in New York failed to resolve differences with a group of bondholders (some of them in speculative funds derided in Argentina as the "vulture funds") demanding full payment on $1.3 billion in bonds ...
Related: Stop spouting 'half truths' over default, US judge tells Argentina
Andrew Trotman / Telegraph
South American country's reaction to second default in 12 years does not alter the fact it has to pay what it owes, judge says
Related: Argentina's Default Option
Felix Salmon / Moneybox
This article originally appeared in Medium. Default: It's the worst thing that any debtor can do. It marks you out as being a deadbeat, unable or unwilling to keep your promises. And it's particularly bad if the debtor in question is a sovereign nation, because the taint of default adheres ...
Related: Argentina Defaults: The Day After
Robert Kahn / EconoMonitor
Argentina has defaulted. The long-running court drama that ran for over ten years and pitted Argentina against a small group of holdout creditors was decided decisively in favor of the holdouts in June, and Argentina subsequently refused to make payments as required by the courts. As a result, neither the ...
Related: Don't Cry for Argentina - Cry for Us
Stephen Moore / National Review
Thursday's headline in the Los Angeles Times -- "Argentina Defaults on International Debt" -- spooked me, as it did investors. The stock market tanked on the news.All Americans should feel the same apprehension. Argentina has about $200 billion in debt including billions in restructured bonds that it still can't make ...
 
Factory Jobs Still Falling Short of President's Goal
Timothy Aeppel / WSJ Economics
American factories are finally producing more of something that's been in short supply: Jobs.
Related: Jobs: onward and upward
Scott Grannis / Calafia Beach Pundit
For over 4 years, the U.S. economy has been creating new private sector jobs at the rate of just over 2% per year, and there is no sign yet of any change to that trend. It's been fairly solid and steady growth, with a few minor blips here and there. ...
Related: 5 Takeaways from the July Jobs Report
Kathleen Madigan / WSJ Economics
The July employment report was less than hoped for, but not a total washout. What's important is what the numbers tell us about That's the new buzz word when it comes to labor markets and Federal Reserve policy decisions. Here are five takeaways from the job report that suggest the ...
Related: Comments on Employment Report
Bill McBride / Calculated Risk
Earlier: July Employment Report: 209,000 Jobs, 6.2% Unemployment RateA few key points:• At the current pace (through July), the economy will add 2.75 million jobs this year (2.64 million private sector jobs). Right now 2014 is on pace to be the best year for both total and private job growth ...
Related: Economists React to July's Jobs Report: 'Not Weak, But...'
Sarah Portlock / WSJ Economics
Economists are mixed in how they view the report: some have called it while others consider it
Related: Today's Jobs Report in Pictures
Chad Stone / Off the Charts Blog
Today's solid jobs report shows a labor market that is moving in the right direction but still has a ways to go before everyone who would like to be working has a reasonable chance of finding a suitable job. In particular, Congress dealt the long-term unemployed a harsh blow when ...
Related: Jobs report: U.S. added 209K jobs in July
MoneyWatch
Labor Department says unemployment edged up to 6.2 percent
Related: By the Numbers: Five Charts That Explain the Jobs Report
Neil Irwin / NY Times
Although the number of jobs added to payrolls in July was slightly less than expected, there is better news in the fine print.
 
Fed Watch: On That ECI Number
Tim Duy / EconoMonitor
The employment cost index is bearing the blame for the market's July 31 sell-off. Sam Ro at Business Insider reports: ...traders agree that today's sell-off is probably due to one stat: the 0.7% jump in the employment cost index (ECI) in the second quarter. This number, which crossed at 8:30 ...
Related: World is at inflexion point as Fed tightening looms
Ambrose Evans-Pritchard / Telegraph
The Third Taper Tantrum has been postponed, perhaps. It has not been averted. The US Federal Reserve is preparing to tighten. Dallas Fed chief Richard Fisher said today that rates may rise early next year: "we are closer to lift-off than the market assumed we were, sometime late in 2015. ...
Related: Yellen and the Fed, On Target
Clive Crook / Bloomberg Views
The underlying message of today's jobs report didn't change -- the labor market is improving -- so where does that leave monetary policy?
Related: The Fed's inflation hawks are still wrong
Matthew Yglesias / Vox
Philadelphia Federal Reserve Bank President Charles Plosser dissented from this week's FOMC statement, arguing that the country needs tighter money faster than Janet Yellen is offering. Then this morning he doubled down in a statement, arguing that the Fed's current stance is "well behind" where it should be in light ...
Related: Inflation Still Below Fed's 2% Target
Josh Mitchell / WSJ Economics
Consumer prices grew tepidly in June, a sign inflation pressures remain below the Federal Reserve's target.
Related: It's Funny That People Are Worried That The Fed Will Start Tightening - Because The Fed Is Already Tightening
Henry Blodget / Business Insider
I have been increasingly vocal about my concerns about the stock market. These concerns boil down to three: Extremely high stock valuations (which tend to mean-revert) Extremely high profit margins (which tend to mean-revert) Fed tightening (which often precedes sharp market declines) Whenever I mention these things, some observers suggest ...
 
Investors look for signs China rally will last
South China Morning Post
The mainland's stock markets are at their highest levels since December last year, with a dramatic rally that began a little over a week ago sparking hopes that one of the world's worst-performing equities markets has finally climbed out of the basement.
Related: China's factories bounce back to life
Taipei Times
Related: Why China's Second-Baby Boom Might Not Happen Soon
Business Week
China's one-child population policy came to end six months ago, but so far the predicted boom in second babies hasn't arrived
Related: In China, 'Free Market' Has Its Limits
WSJ
The Business: China is spreading the word about its ambitious new market reforms, but U.S. firms like Microsoft aren't buying, writes John Bussey.
 
South Korea should keep calm and carry on through EU trade squall
Judith Cherry / East Asia Forum
Author: Judith Cherry, University of Sheffield The EU-South Korea free trade agreement (FTA) - implemented on 1 July 2011 - was South Korea's seventh FTA and the EU's first trade deal with an Asian country. At the time, analysts forecast that both sides stood to gain economically, with South Korea ...
 
Britain's export recovery looking a little more elusive
Andy Bruce / MacroScope
It looks like Britain might have to wait a while longer before its much-touted export recovery materialises. Export orders growth flagged in July, according to two surveys of manufacturers over the...
Related: Economists unfazed by downbeat UK data
FT
They say most economic indicators are still at historically high levels even if they are not improving at the same pace as earlier in the year
Related: Contributing Op-Ed Writer: Will the Economy Save Cameron?
MATTHEW D'ANCONA / NY Times
Britain has finally made up the ground lost since the 2008 crash, but that does not assure electoral success for the Conservative Party.
 
Good News on Financial Reform
Paul Krugman / Paul Krugman - Blog
Too big to fail? Not so much, now.
Related: Canada to Address 'Too Big to Fail'
WSJ
Canada's Finance Department said Friday it is taking the next step toward a policy that addresses advantages Canada's big banks might have because they are perceived as being "too big to fail."
Related: "Too big to fail" banks still have competitive edge
MoneyWatch
But biggest banks' funding advantage over smaller lenders is narrowing, GAO finds
Related: Too big to fail is going out of style, says new GAO report
Matthew Yglesias / Vox
A new report released Thursday by the Government Accountability Office confirms that America's most underrated law, the Dodd-Frank Wall Street Reform and Consumer Protection Act, is working and making a real difference. In this case, "working" means reducing market perceptions that the largest banks will receive special subsidies from the ...
 
Letters: Women and Japan's Workplace
NY Times
Japan has challenges ahead as it engages more women in the workplace and in leadership positions.
 
ISM Manufacturing index increased in July to 57.1
Bill McBride / Calculated Risk
The ISM manufacturing index suggests faster expansion in July than in June. The PMI was at 57.1% in July, up from 55.3% in June. The employment index was at 58.2%, up from 52.8% in June, and the new orders index was at 63.4%, up from 58.9% in June.From the Institute ...
 
Banco Espirito Santo woes reignite eurozone fears as shares drop 80pc in two days
Martin Strydom / Telegraph
Worries over finances of Portugal's biggest bank raise doubts about eurozone banks as shares drop 82pc in two day
Related: No eurozone mystery
Scott Sumner / Money Illusion
Tyler Cowen has a new post discussing the very low inflation rate in the eurozone: What is the most economical model here? The ECB invested in building up a lot of credibility in some areas, such as price level stability, but that means less credibility when it comes to pushing ...
 
The day after, India agrees to re-engage on WTO pact
Financial Express
The peace clause is meant to give developing countries immunity on any violation of limits on public stockholding for food security.
 
Europe's 'sick man' France dealt another blow as manufacturing contracts
Szu Ping Chan / Telegraph
Manufacturing activity in France contracts again in July, raising concerns about the health of Europe's second largest economy
 
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War: In history's shadow
FT
Europe's 'sick man' France dealt another blow as manufacturing contracts
Telegraph
The S&P 500 Suffers Worst Week in 2 Years
Boston Globe
The Decline of Red Lobster Is the Decline of the Middle Class
Moneybox
The Real Reason Adidas Opposes Sanctions: It Can't Afford to Lose the Gopnik Market
Streetwise Professor
Good News on Financial Reform
Paul Krugman - Blog
Succinct Summations of Week's Events 8.1.14
The Big Picture
5 Things to Watch on the Economic Calendar
WSJ Economics
All those US indicators: what did we learn this week?
FT Alphaville
"Too big to fail" banks still have competitive edge
MoneyWatch
What's this?
Link: Centre for Macroeconomics
Link: Economic and Social Research Council
 
Last Updated: 08:44 GMT     Friday, 2 Aug. 2014 Archive About FAQ Home