This is the world that the Right says President Obama screwed up and so desperately want to return to. In particular, the steel sector remained weak, as the dollar’s appreciation increased import competition, especially from China. The economic numbers released yesterday can best be described with a reference to wheels falling off the bus. And it wasn’t just retail sales and PPI in the U.S. but numbers from around the world, including China. Worries about China and other global problems that caused the Fed to delay an interest rate hike in September also have largely passed, St. Louis Fed President James Bullard said on Friday.
It remains a reality for trading that the biggest news overnight wasn’t the Bank of Korea rate decision nor the continued deterioration of East West relations but an article written by Jon Hilsenrath in the WSJ on the rapidly diminishing likelihood of a Fed hike in 2015. The economic data suggests that consumer prices increased 0.2% as the cost of gasoline and other products surged, implying that inflation is inching close towards the Federal Reserve’s target of 2%. Americans are paying more for services comprising medical care and rents despite a strong dollar and weakening growth globally.
Unexpectedly, total industrial production declined 0.2%, as demand for electricity reduced due to warm weather. German business confidence bounced back in November as Europe’s top economy shrugged off global uncertainty and the deadly jihadist assault in Paris, a leading economic think tank said Tuesday. Data just released by the ZEW institute showed that economic sentiment rose in October, despite the slowdown in emerging markets this summer.
The rise in expectations is a particularly encouraging sign that neither previous evidence of a slowdown in China nor the Volkswagen scandal have dented confidence,” she said. US markets have slipped back in early trading after Monday’s surge, with energy shares hit by weakness in the crude oil price amid renewed concerns about oversupply and falling demand. Pierre Moscovici, European Commissioner for economic and financial affairs, said Greece and the creditors had reached a deal on all outstanding issues, a development that also brings promised discussions on reducing Greece’s debt burden one step nearer.
The ONS reports that alcoholic beverages and tobacco prices fell by 0.4% between September and October this year compared with a rise of 0.6% between the same 2 months a year ago. This is the first time that prices, overall, have fallen in this sector between a September and October since 2009 and the largest fall between these 2 months since official records began in 1996. Your observations are accurate and useful for bringing the real economic picture into focus.