US weekly jobless claims total 269,000 vs. 265,000 expected

US weekly jobless claims total 269,000 vs. 265,000 expected

US weekly jobless claims total 269,000 vs. 265,000 expected


jobless claims The number of Americans filing for unemployment benefits unexpectedly rose last week, but the trend continued to point to a healthy labor market.

Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 269,000 for the week ended July 30, the Labor Department said on Thursday. Claims for the prior week were unrevised.

Economists polled by Reuters had forecast initial claims edging down to 265,000 in the latest week.

Claims have now been below 300,000, a threshold associated with a strong labor market, for 74 consecutive weeks, the longest streak since 1973. With the labor market perceived to be either at or approaching full employment, there is probably limited scope for further declines in claims.

 

Through the gyrations, the trend in claims has remained consistent with jobs market strength. The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 3,750 to 260,250 last week.

A Labor Department analyst said there were no special factors influencing last week’s claims data and no states had been estimated.

The claims data has no impact on July’s employment report, scheduled to be released on Friday, as it falls outside the survey period. According to a Reuters survey of economists, nonfarm payrolls likely increased by a healthy 180,000 jobs in July after surging 287,000 the prior month. June’s jump in job gains was viewed as unsustainable given anemic economic growth.

US Stagnation Threat, Policy Responses Will Boost Gold, Silver Prices

US Stagnation Threat, Policy Responses Will Boost Gold, Silver Prices

US Stagnation Threat, Policy Responses Will Boost Gold, Silver Prices

US Stagnation Threat, Policy Responses Will Boost Gold, Silver Prices

With a loose monetary policy increasingly ineffective at boosting investment and underlying growth, there will be strong pressure for a change in tack. Any monetary tightening would increase the risk of an aggressive sell-off in equities while the risks of rising inflation and weaker dollar would increase substantially if the US tried to use negative interest rates. Both scenarios would boost demand for precious metals including gold. A move to a much looser fiscal policy would risk a bond-market collapse and falling equities, also boosting precious-metal demand. A principal feature of the US economy since the financial crisis has been
Brexit eToro
Although the US economy has also gained an important competitive advantage due to the decline innatural gas prices and general availability of cheap energy, capital spending has remained disappointing. In the advance second-quarter GDP report, non-residential investment fell by 3.2%, the steepest decline since 2009.

The weakness in investment has also continued despite very strong levels of cash held on company balance sheets. There is important over-capacity in certain industrial sectors such as steel due to a large extent from huge excess capacity in China which has continued to discourage capital spending.

There have also been increasing concerns that the low interest-rate environment is a contributory factor in undermining investment. A key objective of low interest rates and the quantitative easing programme was to underpin financial asset prices with a notable focus on equities. High equity prices, however, have also encouraged equity buybacks and financial engineering rather than encouraging actual investment, especially as the returns on share buy-backs are immediate.

… (full story)

Investors Buz Global Economy 8.3.16

Investors Buz Global Economy 8.3.16

Investors Buz Global Economy 8.3.16

Investors Buz Global Economy 8.3.16

The reversal in oil prices

to $40 a barrel is rippling through equity and bond markets, reigniting concerns about deeply indebted companies and countries reliant on commodities. “Should oil slice through $40 towards $35, macroeconomic fears will pick up,” said Michael Hartnett, chief investment strategist at Merrill Lynch. Before the sharp drop in crude this week, investment in some of the riskiest areas of financial markets had been gathering pace, as central bank stimulus programs pushed equities to record highs and yields in safer areas of the market to new lows.

Atlanta Fed President Dennis Lockhart

is not ruling out a rate increase at the U.S. central bank’s next meeting in September, saying “at this point… we just have to wait and see how the data comes in.” He also expressed concern about what he called lofty asset valuations in the financial markets. “At the moment I would say they particularly deserve watching because they are relatively buoyant or relatively high.”

Despite Japan’s massive stimulus program,

the Nikkei fell close to 2% today, on lingering disappointment that it did not include more direct government spending which could give an immediate boost to economic growth. Meanwhile, minutes from the BOJ’s June meeting showed uncertainty over the actions being pursued by the central bank, highlighting doubts about the sustainability of its policies.

President Obama still plans

to move ahead with the Trans-Pacific Partnership while he’s in office despite diminished support on Capitol Hill and outright opposition from both of his potential successors – Hillary Clinton and Donald Trump. “Right now I’m president, and I’m for it,” he said at a press conference. “I’ve made this argument before. I’ll make it again. We are part of a global economy. We’re not reversing that.”

“I’m calling on the United States

what kind of strategic partners are we, that you can still host someone whose extradition I have asked for?” Turkish President Tayyip Erdogan said regarding cleric Fethullah Gulen, whom he claims masterminded last month’s bloody putsch. “This coup attempt has actors inside Turkey, but its script was written outside. Unfortunately the West is supporting terrorism and stands by coup plotters.”

The U.S. airlifted $400M

of cash to Iran, with the payment coinciding with the January release of four Americans held in Tehran, the WSJ reported, citing officials briefed on the covert operation. The money has been portrayed as ransom payment by the Iranian press, although senior U.S. authorities noted the cash was the first installment of a $1.7B decades-old failed arms settlement and didn’t represent any quid pro quo.

A North Korean ballistic missile

has fallen for the first time into Japan’s exclusive economic zone, drawing strong condemnation from the government in Tokyo. “This is a serious threat to our country’s security,” Prime Minister Shinzo Abe told reporters. “We have made a strong protest to North Korea.” The missile, believed to be an intermediate-range Rodong type, landed in waters about 150 miles from Japan’s coastline.

India’s parliament will vote

today on a much-awaited Goods and Services Tax bill, which seeks to streamline the country’s fragmented tax system with one levy. Businesses have been lobbying for a single tax rate as it would reduce costs, particularly for shipping goods across state borders, and analysts say the move could boost India’s economic growth by up to 2 percentage points.

Investors Global Markets Buzz 8.2.16

Investors Global Markets Buzz 8.2.16

Investors  Global Markets Buzz 8.2.16

Investors Global Markets Buzz 8.2.16

Looking to jolt the nation

back to life, Japanese Prime Minister Shinzo Abe’s cabinet has approved a ¥28T ($274B) stimulus package amid a growing consensus that monetary policy alone won’t be able to revive the economy. According to Dow Jones, the stimulus package ranks among Japan’s biggest since the global financial crisis, and will: Lift GDP by 1.4%, include childcare benefits, provide $150 handouts to 22M low income people, loan ¥10.7T for infrastructure and provide ¥7.5T for direct fiscal spending.

Typhoon Nida has swept through Hong Kong,

shutting down its financial hub and disrupting hundreds of flights, but no major damage was reported as the storm moved onto the mainland. Winds of up to 90 miles per hour were recorded in some parts of the city, according to the Hong Kong Observatory, which also warned of the potential risks of flooding.

The Reserve Bank of Australia

cut its benchmark interest rate overnight by 25 basis points to a fresh record low of 1.50% amid signs of slowing economic growth and persistently low inflation. “This is expected to remain the case for some time,” the RBA said in a statement. The Aussie slumped after the rate cut, while Australian equities remained in negative territory.

U.K. Prime Minister Theresa May

will outline her bid to reshape the British economy for a post-Brexit world today, reviving the once unfashionable concept of industrial policy 30 years after Margaret Thatcher killed it off. May’s office said the strategy would focus on addressing long-term industrial productivity growth, including encouraging innovation and focusing on sectors and technologies that will give Britain a competitive advantage.

U.K. construction shrank

the most since the financial crisis in July, with companies citing uncertainty related to Brexit for the continued weakness. Markit’s Purchasing Managers Index for construction activity slipped to 45.9 from 46 in June, marking the lowest level since 2009 (when the economy was last in a recession). All three sectors – housing, commercial and civil engineering – recorded sub-50 readings.

Oil prices are edging up

after U.S. crude broke below $40 per barrel in the prior session, but traders said fuel markets continue to be dogged by a production glut. “We got here on the back of excessive storage in crude oil and gasoline,” said Bob Yawger, director of the futures division at Mizuho Securities. WTI settled 22% below its June peak Monday, meeting the common definition of a bear market.

 

Investors Global Markets Buzz 8.1.16

Investors Global Markets Buzz 8.1.16

Investors Global Markets Buzz 8.1.16

Investors Global Markets Buzz 8.1.16

Uber Technologies is giving up

its costly battle for China’s riders, swapping its local operations there for a minority stake in the country’s homegrown champion. The new entity combines Didi Chuxing’s (Private:DIDI) most recent valuation of $28B and Uber China’s $7B for a $35B market capitalization. Didi will also make a $1B investment in UBER as part of the complex deal, which will end the bruising competition between the two firms.

 

Economy

The Fed should be cautious

in considering an interest rate increase due to lingering risks to the U.S. economy, New York Fed President William Dudley declared, describing Friday’s GDP growth figure of 1.2% as “sluggish.” Although he said it was “premature” to rule out monetary policy tightening in 2016, he added that negative shocks were more likely than positive ones due to the unknown fallout from Brexit, a strong dollar and because it was safer to delay a move with rates so low.

China’s manufacturing sector

painted a mixed picture in July, with the official activity gauge unexpectedly slipping into contraction territory while another survey pointed to an expansion for the first time in 17 months. The government’s manufacturing PMI came in at 49.9, but Caixin’s figure, which tracks smaller-scale private firms compared to the official gauge, rose above the key 50 level for the first time since February 2015.

Other PMIs from around the globe

: Manufacturing growth across the eurozone eased in July, with Markit’s PMI for the bloc dropping to 52.0 from 52.8 in June, while Greek factory activity fell back in contraction. Sterling pulled back from the highs hit late last week on weak manufacturing figures, signaling some economic backlash from June’s Brexit vote. Japanese factory activity shrank in July at a slower pace than the previous month but new export orders contracted the fastest in more than 3.5 years.

Failure to ratify the TPP

would hand China “the keys to the castle” on globalization and do nothing to solve the real problems underlying American anxiety over jobs, according to U.S. Trade Representative Michael Froman. The tariff-slashing deal has turned into a hot-button topic in the run-up to the Nov. 8 presidential election, threatening to dampen support from lawmakers needed to pass an agreement critics condemn as a job-killer.

Britain’s Financial Conduct Authority

and the China Securities Regulatory Commission are discussing an agreement that will pave the way for landmark financial services projects between the countries, easing fears that the U.K. could be a less attractive partner in a post-Brexit world. The scheme includes cooperation on a regulatory framework for distributing fund products in each other’s jurisdiction and a proposed London-Shanghai link for trading shares.

“The oil market is oversupplied

now but there are expectations that there will be balance between demand and supply in the market,” Iran’s Oil Minister Bijan Namdar Zanganeh said after a Reuters survey showed OPEC’s oil output this month was likely to reach its highest point in recent history. Today also marks the first day at the desk for OPEC’s new general secretary. Nigeria’s Mohammed Barkindo will be the first new top official at the cartel in almost a decade. Crude futures -1.4% to $41.04/bbl.

Brazil’s interim President Michel Temer

has expressed confidence in Rio de Janeiro’s ability to pull off a successful Olympics (beginning this Friday), despite fresh data showing surging crime rates in the capital. Around 85,000 security personnel are expected to be deployed during the Games, the largest contingent for a mega event, to guard the half a million visitors expected to descend upon Rio.

Saudi Arabia Oil Demand Growth at 6-Year Low as Economy Sputters

Saudi Arabia Oil Demand Growth at 6-Year Low as Economy Sputters

Saudi Arabia Oil Demand Growth at 6-Year Low as Economy Sputters

Saudi Arabia Oil Demand Growth at 6-Year Low as Economy Sputters

Oil consumption in Saudi Arabia, the world’s biggest crude exporter, is expanding at the slowest pace in at least six years as low energy prices hurt economic growth. The kingdom’s demand for oil increased by an average of 24,000 barrels a day in the first five months of 2016, the slowest growth rate for that period since at least 2010, the first year for which data are available from the Joint Organisations Data Initiative in Riyadh. The International Energy Agency is now looking for a drop in demand in Saudi Arabia for all of 2016, after forecasting an increase earlier this year. Consumption of gasoline, kerosene and other
300x250 new sheriff en 08.10.2014
“If the oil slump continues into next year and governments are not in the position to use counter-cyclical fiscal measures to support the economy, we aren’t going to see a huge contribution to oil-consumption growth from the region,” Edward Bell, a commodities analyst at Dubai-based lender Emirates NBD PJSC, said in an interview.

Saudi Arabia has boosted output for years to sustain export income while also satisfying domestic demand. The kingdom’s consumption spikes between June and September when air-conditioning use peaks. Demand for refined fuels such as gasoline has doubled since 2003, according to JODI. Saudi Arabia, the United Arab Emirates, Qatar, Oman and Bahrain have reduced or eliminated fuel subsidies over the past year to limit government spending because of low oil prices. Brent crude, an international benchmark, has dropped 20 percent in the past year and traded at $42.46 a barrel on Friday compared with over $100 a barrel as recently as in 2014.

Gasoline demand in Oman grew 1 percent during the first four months of this year, far below the annual average growth rate of 9.6 percent over the past decade, according to BMI. “The slowing consumption in Oman causes concern that other countries that have enacted or plan to roll out subsidy reforms might see a greater impact than first anticipated,” it said in the report last week.

… (full story)

U.S. Consumer Sentiment Fell in July on Prospects for Economy

U.S. Consumer Sentiment Fell in July on Prospects for Economy

U.S. Consumer Sentiment Fell in July on Prospects for Economy

U.S. Consumer Sentiment Fell in July on Prospects for Economy

Consumer confidence slid in July from the prior month on dimmer views of the U.S. economy’s prospects and lingering concerns among higher-income earners about global market conditions. The University of Michigan said Friday that its final index of sentiment declined to 90 this month from 93.5 in June. The median projection in a Bloomberg survey of economists called for a reading of 90.2 after July’s preliminary figure of 89.5. A record share of households with incomes in the top third mentioned the U.K.’s decision to leave the European Union was weighing on outlooks. The gap between current views of the economy and expectations
Yellow page%20300x600 en
The sentiment survey’s current conditions index, which measures Americans’ assessment of their personal finances, fell in July to 109 from 110.8 last month. The measure of expectations six months from now decreased to 77.8 from 82.4.

Americans anticipated an inflation rate of 2.7 percent in the next year, up from 2.6 percent in June. They expect prices to rise 2.6 percent over the next five to 10 years, the same as in the previous month.

Despite the setback in sentiment this month, consumers have shown they’re more willing to spend than they were at the start of the year.

Personal consumption climbed at a 4.2 percent annualized rate in the three months ended in June following a 1.6 percent pace in the first quarter, the Commerce Department’s GDP figures showed.

Consumer Sentiment

… (full story)

 

Global Financial Buzz Online this Morning 7.27.16

Global Financial Buzz Online this Morning 7.27.16

Global Financial Buzz Online this Morning 7.27.16

Investors Buz  –   Todays outlook

Global Financial Buzz Online this Morning 7.27.16

company outcomes from the tech, energy, industrial and patron sectors are all piling onto the radar as traders locate themselves within the warmth of earnings season. Analysts are nonetheless debating how it’s going to all cease, however so far the Dow, S&P and the Nasdaq have steadily risen over the past two weeks. other income reviews arising this week encompass fb (NASDAQ:facebook), Google (GOOG, GOOGL), Exxon (NYSE:XOM), Chevron (NYSE:CVX), Boeing (NYSE:BA) and Coca-Cola (NYSE:KO).

economic system

The Federal Reserve is anticipated to face pat at its assembly today, bowing this time to international volatility from the U.ok.’s Brexit vote after staying on preserve since it raised quotes in December. relevant to the debate on the Fed’s coverage meeting could be a way to reconcile upbeat U.S. economic information, highlighted by means of robust task profits in June, with a slowdown in global growth and different headwinds threatening the inflation trajectory.

The Democratic party officially nominated Hillary Clinton for president Tuesday night, making her the first female to ever head the price tag of a chief U.S. political birthday celebration. In a display of team spirit, Bernie Sanders became the only who introduced Clinton must be selected because the birthday party’s nominee following a nation-by-nation roll name vote at the convention ground.

A ¥28T stimulus bundle? 50-yr bonds? “Helicopter-money mild”? reports from Fuji television, WSJ and the Nikkei pushed up jap stocks overnight, with the yen weakening to as high as 106.53. despite the fact that shares pared gains and the forex retreated after some of the rumors got shot down, traders are still looking forward to a main assertion on the BOJ’s coverage meeting this Friday.

Britain’s economy picked up velocity in Q2, helped by the largest upturn in industrial manufacturing in view that 1999. in step with the workplace for national statistics, gross home product grew via zero.6%, up from 0.4% in the ultimate area. The high quality figure adds to optimism that the U.okay. economic system was robust going into the Brexit vote and may therefore climate feasible outcomes better than forecasted.

trying to repair an financial system damaged by means of years of political upheaval, Egypt is “nearing the very last ranges” of its talks with the IMF to comfortable $7B annually over 3 years. one at a time, Jordan and the fund have signed a letter of motive for a $700M credit facility to augment the kingdom’s reserves and help it address an influx of refugees. EGX 30 +4.eight% to 7,900.

 

300x250 new sheriff en 08.10.2014

 

shares

Apple shares soared 6.eight% in extended trading after the company’s outcomes beat expectations, soothing fears that iPhone call for had hit a wall. Apple (NASDAQ:AAPL) shipped forty.4M iPhones, 10M iPads and 4.3M Macs inside the 1/3 monetary area and gave robust steering for FQ4 with revenue expectancies ranging from $forty five.5B-$47.5B. Tim prepare dinner additionally expects offerings to be “the dimensions of a Fortune 100 corporation through next year,” with important increase inside the App store, Apple tune and the iCloud.

european movers: Deutsche bank’s (NYSE:DB) -four.7% premarket after net profits fell nearly a hundred% in Q2, prompting the lender to vow a more competitive overhaul. Pointing to persevered stress on refining margins and fees, Statoil (NYSE:STO) -4% premarket after lacking expectancies on each the top and backside strains. Airbus (OTCPK:EADSY) is up five% in France after taking up €1.4B in sparkling costs for its troubled A400M and A350 applications, but reaffirmed its objectives.

extra profits out of Europe: Telecom Italia (NYSE:TI) raised its complete yr domestic profit outlook after beating expectations and agreeing to make investments $1.2B with Fastweb across 29 Italian towns. Santander’s (NYSE:SAN) income fell on forex swings and a restructuring fee associated with branch closures and worker layoffs. ARM Holdings (NASDAQ:ARMH) posted a profit and income rise, but turned into unable to provide complete yr guidance given restrictions associated with its takeover by using Softbank (OTCPK:SFTBY).

“If the query is will we see a deteriorating surroundings, the answer is yes,” Air France-KLM (OTCPK:AFLYY) CFO Pierre-Francois Riolacci stated with reference to France’s standing as a visitor hotspot. Islamic kingdom-inspired killings are weighing on tour call for, while gas financial savings helped the carrier’s Q2 working income surge 77%. in addition to contending with turbulent markets, Air France flight attendants started a 4-day strike these days, even as KLM ground team is planning unspecified exertions actions the next day.

Tesla’s grasp plan ought to fee the automaker “tens of billions” of bucks over the long term, however might probably require simplest a “modest” capital raise, Elon Musk stated after a tour of his gigafactory in Nevada. because the plan will roll out over some of years, it is able to be on the whole funded from income of vehicles, specifically the model three, he introduced. Musk took warmness from buyers last week after delivering a plan that become quick on “financing details,” and followed what became already a rocky month for Tesla (NASDAQ:TSLA) because of a fatal Autopilot crash in Florida.

A U.S. federal judge has granted preliminary approval to Volkswagen’s (OTCPK:VLKAY) $14.7B settlement with U.S. drivers, clearing the way for the organisation to put in force its plan and put the emissions scandal in the back of it. The deal offers owners of 475,000 diesel-powered motors with -liter engines the option of both promoting lower back their cars or ready until regulators approve a technical fix to make them compliant with emissions requirements.

Mitsubishi motors stated a lack of ¥129.7B ($1.2B) for the sector finishing in June after a gasoline economy scores scandal triggered the japanese automaker to halt minicar sales and seek a rescue by using Nissan (OTCPK:NSANY). Mitsubishi (OTC:MMTOY) additionally reiterated its forecast given last month for a ¥145B deficit for the fiscal yr finishing in March, which will be the employer’s first annual loss in 8 years.

After decreasing expectancies in advance of its monetary outcomes, Nintendo (OTCPK:NTDOY) published a internet lack of ¥24.5B in the course of FQ1 due to gradual sales of Wii U consoles and a more potent yen. The wildly popular “Pokemon pass” cell recreation wasn’t meditated in the employer’s earnings since it was launched inside the area that ended June. Nintendo also introduced that its Pokemon cross Plus accent can be behind schedule through months until September.

extra consolidation within the semiconductor industry? Analog gadgets (NASDAQ:ADI) has agreed to buy fellow chipmaker Linear technology (NASDAQ:LLTC) for approximately $14.8B. by way of buying Linear, Analog is aiming to reinforce its profitability and growth its percentage inside the fragmented market for analog chips, which technique alerts consisting of sound, mild and temperature and convert them into virtual signals.

China’s LeEco plans to acquire Vizio (Pending:VZIO) for $2B – a circulate in an effort to create a international tv powerhouse and help cement the tech large’s presence in the U.S. LeEcos LeTV is first-class-known as the “Netflix of China,” however additionally courts customers via low-priced smartphones and TVs, with the goal of earning profits by means of charging for content.

kingdom street has agreed to pay $382.4M for misleading mutual budget and different custody customers by way of making use of hidden markups to forex trades. The settlement consists of $167.4M in disgorgement and consequences to the SEC, a $155M penalty to the DOJ, and as a minimum $60M to ERISA plan customers in an settlement with the DOL. nation street (NYSE:STT) also agreed to pay $147.6M to settle non-public elegance movement proceedings filed by using bank clients alleging comparable misconduct.

big apple lawyer preferred Eric Schneiderman said his office will not follow a subpoena issued by using the residence technology, area and technology Committee for details on its probe of whether or not Exxon Mobil (XOM) misled traders on weather alternate dangers. Schneiderman feels his office is not obligated to conform with such an “extraordinary” subpoena and that the house committee does not have a constitutional proper to intervene with the states’ probes.

What took place to the Brexit jitters? GlaxoSmithKline (NYSE:GSK) is investing £275M in 3 British manufacturing websites, dubbing the U.ok. an “appealing area.” The investment will go to websites at Barnard castle, Montrose and Ware, with “new employment possibilities” expected to be created as a result. Glaxo, like the rest of the U.k. pharmaceutical enterprise, subsidized the stay marketing campaign ahead of final month’s referendum on eu club.

Japan monthly report: Economy is on a moderate recovery

Japan monthly report: Economy is on a moderate recovery

Japan monthly report: Economy is on a moderate recovery

Investors Buz  –  Global Markets  Roundup

Japan monthly report: Economy is on a moderate recovery

Japan monthly report cabinet office monthly report published on Monday, revealed that the government cut its view on the corporate sentiment, while economic view remained unchanged.

Key Findings from the report:

The Japanese economy is on a moderate recovery, while weakness can be seen recently.

Private consumption is almost flat, while consumer confidence appears to be pausing.

Business investment is picking up.

Exports are almost flat.

Industrial production is flat.

Corporate profits improvement appears to be pausing, although they remain at a high level.

Firms’ judgment on current business conditions shows cautiousness further.

The employment situation is improving.

Consumer prices are rising at a slower tempo recently.