Showing posts with the label Economics

Economics: Europe Inches Toward a $2.2 Trillion Plan That May Never Happen

By Ian Wishart and Viktoria Dendrinou 6-8 minutes - Source: Bloomberg Photographer: Geraldine Hope Ghelli/Bloomberg More than 100,000 people are dead, the euro area is headed for its deepest ever recession -- and Europe’s leaders are still talking about what to do. It’s a strange way to tackle their worst emergency since World War II when it’s already been going on for a couple of months. But in the European Union it seems it can’t be any other way. Even a 2 trillion-euro ( $2.2 trillion ) recovery plan drawn up by the bloc’s civil service may take months before it sees the light of day. If it does at all. While such a way of operating seems baffling to those more used to watching individual govern

World Business | Economics: Global Stock Rally Stalls as U.S. Futures Struggle: Markets Wrap

By Todd White 4-5 minutes - Source: Bloomberg U.S. stock futures dropped along with European shares on Tuesday as the global rally in equities eased. With the sugar rush of a partial trade deal between the two largest economies fading, investors pushed up the dollar and Treasuries. Contracts on the S&P 500 index slipped from a record high close fostered by the partial U.S.-China trade agreement. Boeing Co. fell in pre-market trading after it decided to halt production of the grounded 737 Max model in January. The Stoxx Europe 600 likewise dropped from Monday’s record close, as Unilever tumbled in the wake of a sales-growth warning and led a slump in personal goods makers. U.K. shares were particularly volatile. Earlier in Asia a benchmark gauge rose to the highest level since mid-2018. Sterling sank the most since July versus the euro after newly elected Prime Minister Boris Johnson proposed a legal change that revived the chances of a no-dea

Economics: Trump Sees No Deadline for China Deal, Prefers It Post-Election

By Derek Wallbank and Jordan Fabian 3-4 minutes - Source: Bloomberg U.S. President Donald Trump in London on Dec. 3. Photographer: Nicholas Kamm/AFP via Getty Images President Donald Trump signaled he would be willing to wait for another year before striking a trade agreement with China, casting doubt on the likelihood of a phase-one accord within weeks between Washington and Beijing. “I have no deadline,” he told reporters Tuesday on London when asked if he wanted an agreement by year end. Stocks dropped in Europe and U.S. equity futures sold off as Trump’s comments indicated no urgency to reach a deal by Dec. 15, which U.S. Commerce Secretary Wilbur Ross on

Economics: Wary of Trump’s Flip-Flops, China Prepares for the Worst on Trade

Bloomberg News 6-7 minutes - Source: BLOOMBERG Perhaps nobody was more surprised to hear that China had called President Donald Trump’s administration to restart trade talks than the government in Beijing itself. After a weekend of confusing signals, Trump’s credibility has become a key obstacle for China to reach a lasting deal with the U.S., according to Chinese officials familiar with the talks who asked not to be identified. Only a few negotiators in Beijing see a deal as actually possible ahead of the 2020 U.S. election, they said, in part because it’s dangerous for any official to advise President Xi Jinping to sign a deal that Trump may eventually break. In off-the-cuff remarks to reporters at the Group of Seven summit in France on Monday, Trump claimed that Chinese officials called

Economics I Trump Still Has Plenty of Ways to Escalate His China Trade War

By Shawn Donnan and Jenny Leonard 8-9 minutes - Source: Bloomberg Donald Trump on Aug. 9. Photographer: Sarah Silbiger/Bloomberg The trade war’s August escalation has spooked markets -- and central banks -- around the world. The bad news, though, is that while President Donald Trump has fired two large weapons in the past week by green-lighting his biggest swathe of tariffs yet and formally branding China a currency manipulator, his arsenal is far from exhausted. The loudest shot Trump could take may be the one that he increasingly appears focused on: weaponizing the dollar, the world’s reserve currency. In a series of tweets on Thursday he called for the Federal Reserve to cut rates

Economics Education | Greenback Definition

Reviewed by James Chen 4-5 minutes What is a Greenback? A greenback is a slang term for U.S. paper dollars. Greenbacks got their name from their color. In the mid-1800s, the Continental Congress did not have taxing authority. The "greenback" was a negative term because they did not have secure financial backing authority and banks were reluctant to give customers the full value of the dollar. Understanding Greenbacks It took half a century to get all foreign coins and competing state currencies out of circulation, but by the early 1800s, the U.S. was ready to try the paper money experiment again. Bank notes had been in circulation for a while, but because banks issued more notes than they had coins to cover, these notes often traded at less than face value . In the 1860s, the U.S. created over $400 million in legal tender to finance its war against itself. The government had earlier issued bonds to raise capi

Economics | You Can Still Buy a House With Gold Bars in Vietnam

By John Boudreau and Nguyen Dieu Tu Uyen 7-9 minutes Vietnamese use gold bars to buy everything from homes to motorbikes - and save them for retirement. Photographer: Maika Elan/Bloomberg Vietnam may be one of the world’s fastest-growing economies, yet it’s still in the dark ages when it comes to joining the global trend toward cashless transactions. To understand why, look no further than to consumers like Tran Van Nhan, who recently bought his two-bedroom home in Hanoi with gold and a sack of cash. “We paid almost half in gold bars and the rest in cash,” Nhan, a 47-year-old shopkeeper, said of his new $138,000 condo. “We did that because we and the flat’s owner didn’t want to do a ba

Bloomberg I Trump's Tariffs Start to Look Like Goal and Not Tool for Talks

By Shawn Donnan 6-8 minutes Photographer: Qilai Shen/Bloomberg Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Subscribe via Pocket Cast or iTunes . President Donald Trump has repeatedly portrayed the punitive tariffs he has imposed on China and other countries as tools to create leverage and draw them into new trade deals that benefit the U.S. Increasingly, however, it is looking like Trump’s tariffs are here to stay and more tangible than any of the deals the president has promised. And that, economists agree, bodes badly for the U.S. and global economies. With his move to raise tariffs on $200 billion in Chinese imports last week and to order up plans for tariffs on all fu

Economics Selected News | Trump’s Vow to Up Duties Casts Pall Over Crucial China Talks

By Mark Niquette , Jenny Leonard , and Shawn Donnan 9-11 minutes U.S. President Donald Trump Photographer: Alex Wroblewski/Bloomberg President Donald Trump ramped up pressure on China to finalize a trade deal during talks in Washington this week by threatening to more than double tariffs on $200 billion of the Asian nation’s sales to the world’s largest economy, and impose new import taxes. U.S. stock futures tumbled on Trump’s escalation threat, with S&P 500 index futures down 1.6 percent. The yuan plunged 0.8 percent, the most since August. In an abrupt shift from the White House after both sides had indicated negotiations were going well, Trump issued a pair of tweet

Economics | Trump Has a Message for the World: My Trade Wars Aren't Over Yet

By Shawn Donnan 5-7 minutes President Donald Trump is sending a clear message to the economic policy makers gathering in Washington for the IMF and World Bank’s spring meetings: My trade wars aren’t finished yet and a weakening global economy will just have to deal with it. With his latest threat to impose tariffs on $11 billion in imports from the European Union -- from helicopters to Roquefort cheese -- the U.S. president offered a vivid reminder that, even as he moves toward a deal with China to end their tariff wars, he has other relationships he’s eager to rewrite. That’s not encouraging for global growth, with the International Monetary Fund and others pointing to the uncertainty over Trump’s assault on the global trading system as a damper on business investment and sentiment. Donald Trump Photographer: A

Fed May Bow to Trump's Call for Rate Cuts If Inflation Softens

By Rich Miller 6-7 minutes Donald Trump speaks to members of the media on Friday, April 5. Photographer: Andrew Harrer/Bloomberg Photographer: Andrew Harrer/Bloomberg . With his call for lower interest rates, President Donald Trump has weighed into a debate inside the Federal Reserve about what central bankers should do about sub-par inflation. It’s not totally crazy to think he’ll eventually carry the day. In advocating easier credit, Trump and senior economic adviser Larry Kudlow have harped on the paucity of inflation to justify their call for a change of course by the central bank, even with the U.S. economy still expanding. “The Fed should drop rates,’’ Trump told