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what is happening to the economy right now

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Hiring in the U.S. rebounded quicker than expected during May and June, but the pace of job recovery slowed in July. Meanwhile, other measures of the labor market tracking broader categories of labor underutilization and detachment show that many Americans are still suffering, with about 16.3 million individuals still unemployed and even more underutilized. After 16h of discussions we came close to a deal but we are not there yet. Protect Yourself!! The unemployment rate is now about 10.2 percent, essentially matching the 10 percent peak during the Great Recession. Let us cross our fingers and hope that it can mobilise both. What is happening to the economy of Italy right now? Retail trade improved possibly due to the About 8.4 million individuals are working part-time jobs for economic reasons. Unemployment was also likely 5 percentage points higher, based on the way that the Bureau of Labor Statistics calculates joblessness, officials wrote in a complementary document with the report. We do not include the universe of companies or financial offers that may be available to you. More Virtually all corners of the economy have been hit hard during the pandemic, with some of the nastiest declines in real estate and manufacturing. EU : ok sure , adopt Euro too , sigh here. In March, the consumer confidence climate slumped. Before I look at the impact of the above on Italy we need to see where it stands in economic terms. Inflation has been the biggest wild card of all. The Congressional Budget Office, meanwhile, is projecting the economy to return to its pre-pandemic size sometime in 2022. all of this is much healthier than all the credit buying.. That defeats the purpose of slashing rates to zero. Returning to the economics there were hopes from Italy of some financial and economic relief from the overnight Eurogroup meeting so let me hand you over to its President Mario Centeno. Economy could destabilise world TURKEY’S ongoing lira crisis has ignited fears of an … market figures. A basic guide to what has been happening in Venezuela, once one of Latin America's most prosperous countries, where a political and economic crisis has reached new heights. Hospitalization rates, meanwhile, rose in the first few weeks of July, but have since started falling again, though they’re still elevated for more at-risk groups, such as individuals older than age 65, according to data from the Centers for Disease Control. The irony here is that it was a good part of the lock down as otherwise many others would have been on the bridge. ( Log Out /  coke bottles dropped from 2ltr to 1.5 ltr They haven’t spent the last seventy years trying to destroy us to just let it go now are they?This will be treated as just another speed bump on a very long road, after all as recent history has shown, the solution to ALL Europe’s problems inevitably becomes “more Europe”. With slowing global growth, it’s all about the US economy and market right now. “It’s a domino effect: The longer this goes on, the cracks get a bit bigger,” says Samantha Azzarello, global market strategist at J.P. Morgan Asset Management. As predicted on here on numerous occasions, UBI is being proposed in Spain, and the aim is for it to be PERMANENT, they aren’t even pretending to call it temporary! Major economies in Europe and Asia as well as other developing economies are all either slowing, headed into recession or are in recession already. An outbreak of a new and deadly virus is the last thing it needs. We are talking about 750 billion, almost half of our GDP. re: “a regular problem which is that the countries which would in effect be financing this are not keen at all whereas those that would benefit are very keen but cannot persuade the former”. Facebook Twitter Reddit Email RSS Feed Newsletter Donate. Bankrate has answers. The state is there and immediately puts its firepower into the engine of the economy. Quantitative Easing and Extraordinary Monetary Measures. Johannes Eisele / Contributor / Getty Images. ECB urges measures worth 1.5 trillion euros this year to tackle virus crisis . If we look at the Italian situation we see that its own spending plans dwarf the Euro area ones. editorial integrity, this post may contain references to products from our partners. Now we just have to put people back to work on the real side of the economy.”. Paying down debt and eliminating some discretionary items from your budget can help free up some breathing room in your wallet to put more funds toward those goals. So the only good news was some precautionary buying of food and other essentials. I’m sure when it is finally announced, the Euro will rise on the news as well. If we now add in the other sectors we get an even larger GDP fall for example there is this. Of course, the likes of Jeff Taylor are backing the nationalist argument that the rich north should pay through Eurobonds, but then the Brexiteer argument was that we should not be paying to help anyone beyond ourselves. “We just don’t know what the path forward will look like exactly.”. “We have to fix one thing at a time, and the Fed did help. The only ‘way back’ is to reapply – and I don’t see that happening under any conceivable scenario. More and more economists are predicting a recession is imminent as the result of the pullback in the economy caused by COVID-19. Consumer spending rose 8.5 percent in May and then 5.6 percent in June, according to the most recent release from the Department of Commerce. Bankrate’s editorial team writes on behalf of YOU – the reader. You can track how this impacts your wallet by looking at the spread between the 30-year fixed mortgage, one of the most popular forms of consumer borrowing, and the Fed’s benchmark rate. As Paul Krugman has said, the debt incurred doesn’t matter as it is “money we owe to ourselves”, funny that argument never worked in any country that tried to implement it, but hey “it’s different this time”!!! When it comes to the coronavirus pandemic, experts say that rates rose partially because lenders were overwhelmed by refinancing applications at a time when investors across the financial system were flocking to cash. The value of purchases increased 7.5 percent in June, after an upwardly revised record 18.2 percent surge in May, according to a separate Department of Commerce report, driven by nationwide reopenings. ( Log Out /  The economy is spiraling down, but I see news that businesses are taking action. Unless you’re 100% sure you’ll be able to make your payments when the deferral period ends, you can set yourself up for serious financial pain and long-term damage to your credit score. Today, these institutions have around €800 billion in outstanding European debt. It’s since, however, fallen, with the index sliding to 72.5 in July. Having been in this situation, I know that there comes a point at which you have to say ‘no more’ and take any consequences. “It’s like predicting a ballplayer that hits three home runs on opening day will maintain that pace for the whole season,” says Greg McBride, CFA, Bankrate chief financial analyst. That’s the worst quarter in history, according to data dating back to the 1940s. We have already tip-toed onto that subject because the reference to the Euro bailout fund refers to the European Stability Mechanism or ESM. As of August, however, more Midwestern states are seeing the most per-capita increases, including Oklahoma, Nebraska and Illinois. When is the American Ecomony expected to pick up again... What are America's main exports? Get insider access to our best financial tools and content. This is awkward on two counts as the two main bits are that a country has to have lost access to market financing which is not true and that it is supposed to present a macroeconomic adjustment programme of austerity when in fact the plan would be to “Spend! Let us consider what it could do? It would also soon eclipse that high, rising to a record 6.9 million Americans by the week that ended on March 28. We are talking about 750 billion, almost half of our GDP. “If we thought the worst we’d ever see with economic data would be during the financial crisis and Great Recession, the virus proved us wrong,” says Mark Hamrick, Bankrate’s senior economic analyst. 2017 was particularly bad, about 3 times worse than the current covid-19 spike to date. The Fed has an inflation target of 2 percent, which was challenged even during the decade-plus-long expansion. Im not from there so i dont know but i have a vested interest... Why is the American Economy currently (no political bashings just whats going on in the markets right now) performing poorly against other nations? Bankrate.com does not include all companies or all available products. They have modelled what they think the impact will be from this. When Italy gets up it runs.”. Like a soul without a mind ” O and as for Eurobonds” is the UK on the hook to contribute to any existing EBonds in the event of default? So who pays and how do they afford it? October 03, 2019. And when stocks decline sharply and swiftly, it threatens solvency among firms. because no excuse and I do fervently hope Italy does not fall flat on its face , gasping , as its been infected with financial corona for a while now! The heavy deterioration affected all index components. Given that no one can see the future, it’s important to remain focused on recession-proofing your finances. Brexit has happened but the transition phase is on going and will have an end. Thanks for correcting that, as I understood flu was a more Northern European thing. Now at the high end of the range household income for that middle 20% fell from about $68,000 a year in 2000 to $66,000 a year in 2017. If the U.S. economy resembled any object, it’d likely be a broken traffic light. Just think about how we joined the EU, then were given a choice to remain, Gordon Brown selling of most of our gold for $250/oz against fierce objections from the Treasury, and Maggie Thatcher removed from office because of her objections to “more Europe”, and many others, if these people can remove a Prime Minister that easily, and do all the other things listed, what makes you think after a few years of Corona induced economic collapse, hyperinflation, millions unemployed and a run on the pound, the government of the day wouldn’t take the easy option of rejoining as it is offered as a panacea for all our troubles?Throw in UBI for the almost starving populace and it is a no brainer. Why would anyone want to take on the inevitable mutualisation of debt – in other words pay for the club med countries for ever. That reality naturally led to a dramatic surge in unemployment. In the first week of March, we’d have answered that gross domestic product above inflation grew 2.4 percent at an annual rate in the fourth quarter of 2019, and the unemployment rate was 3.5 percent in February 2020. Change ), You are commenting using your Google account. Eurobonds would be an open-ended commitment, hence the use of existing SPVs. Even then, no one knows for sure just how long the pain will last. Therefore, this compensation may impact how, where and in what order products appear within listing categories. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. About one-tenth of the U.S. workforce is drawing unemployment benefits as of July 25, another job market measure closely tracked. Just a few words out of turn by Lagarde and the spread with German bond yields went to 3%. However, this is a rerun of Greece – when it came out that they retired at 55 and didn’t bother taxing half their economy, sympathy drained away. If we factor in tourism as being virtually zero then the fall in GDP implied above doubles at least as it would be seen in the exports numbers rather than consumption. But they have enough problems with debt, illegal immigrants, the odd earthquake and now Corona to be in any position to make threats. If we look at the public debt of Italy it was 2.44 trillion Euros at the end of the third quarter of last year. And four months into the crisis, Americans are still applying for unemployment benefits in the millions. Our goal is to give you the best advice to help you make smart personal finance decisions. “Just a few months ago, we couldn’t have guessed how this would happen, but we now know how we got here,” Hamrick says. In this episode of the podcast Caleb and Cam talk to Rebecca Cassells, an expert on the subject, who helps break down what the economy is all about and whats happening at the moment. So if the spending plans above come to fruition we will see it rise to more like 3.2 trillion. “What’s happening to us right now is not being driven by a market failure,” Olsen adds. But with the extra $600 in weekly unemployment benefits having expired on July 31 and a resurgence of coronavirus cases across the U.S. that’s prompting a rollback of some state reopenings, the pace of that rebound is now put into question. When Italy gets up it runs. We speak with a Nobel laureate about what might be happening. yah, I forgot to say re-application today would be very risky ! Get today's stock futures, stock market commentary, stocks to watch, analyst upgrades and more. As there would be calls from countries other than Italy the ESM presently needs more ammo. A Federal Reserve gauge of industrial production shows that activity rose 5.4 percent and 1.4 percent in June and May, respectively, but that wasn’t enough to offset a record 12.7 percent plunge in April, the steepest decline on record. “I think, now, there's still $11 trillion, at least, of government debt around the world that's at a negative rate,” Buffett told Yahoo Finance’s editor-in-chief, Andy Serwer.. “So we've never seen it before.” The Fed since March has moved farther and faster than any other previous U.S. central bank, instituting an unprecedented, unlimited bond-buying program, pumping trillions in the market for short-term repurchase agreements, creating 11 emergency lending facilities designed to get credit flowing across the economy and pledging to do more to support the financial system. Another key measure of U.S. inflation, the core consumer-price index (CPI) that excludes volatile food and energy categories, fell by the most on record in April to 0.9 percent. China's economy is slumping and the country is still suffering the effects of the trade war with America. Staff Writer 27 January 2016. Here’s an explanation for We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. The job market still has a long way to go, with employers only recovering about two-fifths of the positions they cut during the height of the pandemic. In the first week of March, we’d have answered that gross domestic product above inflation grew 2.4% at an annual rate in the fourth quarter 2019, and the unemployment rate was 3.5% in February 2020. The overall effect of the outbreak was seen as putting downward pressure on prices, exacerbated by weaker growth and slower spending. “I think of financial markets and the real economy like two pieces dancing together.”. ( Reuters). Taking that ride to nowhere (Note, episode recorded early October prior to recent market selloff). 5 big things happening in South Africa right now. Thank you so much for tuning in today for episode number 22, Tiho, and in this episode, I know you want to cover the global economic situation and what’s going on. Spend!Spend!”. Losses for the most part have been broad-based, with significant cuts coming first in retail, food services and tourism, then spreading to broader industries such as health care and state and local governments. The downturn was most marked in the service sector, My goal remains: A strong EU safety net against fallout of #covid19 (to shield workers, firms &countries)& commit/ to a sizeable recovery plan. What’s Happening in the US Economy & Markets Right Now. © 2020 Bankrate, LLC. specifically, the economic climate current and future and the expectation on unemployment plummeted. The consumption fall would determine a value added contraction by 1.9% and 4.5% respectively. ( Reuters). The personal consumption expenditures (PCE) index — the Fed’s preferred way of measuring inflation — rose 0.8 percent percent from a year ago, the weakest pace in four years. As for the next gen payback – well they only need to afford the interest payment – The Napoleonic debt took about 200 years ? Economic data has firmed up in the past few weeks: the job market looks healthy, this quarter’s growth promises to be positive, and consumers keep spending. Forgive me if your opening sentance was sarcasm, but Italy most definitely does have a regular flu/pneumonia spike that causes thousands of deaths each year. European debt, for many years already. This will eventually hit bottom. The saving rate of consumer households was 8.2%, 0.1 percentage points lower than in the previous quarter. Here’s what’s happening in the U.S. economy right now — and how the coronavirus crisis is making or breaking it, based on these important measures. Diplomatic sources and officials said a feud between Italy and the Netherlands over what conditions should be attached to euro zone credit for governments fighting the pandemic was blocking progress on half a trillion euros worth of aid. As to the bond vigilantes then they have mostly been anaesthetised by the QE buying of the ECB which is likely to be around 15 billion Euros or so per month. There are essentially four topics at play. Just a few words out of turn by Lagarde and the spread with German bond yields went to 3%. So far, employers have picked up hiring again in those sectors, though it’s nowhere near pre-pandemic levels. ... Trending Now. The offers that appear on this site are from companies that compensate us. Long story short, it’s going to take a few years. These three institutions have issued mutualised debt, i.e. My goal remains: A strong EU safety net against fallout of, (to shield workers, firms &countries)& commit/ to a sizeable recovery plan, Today’s decree brings 400 billion of liquidity for businesses, with the. (equivalent to 0.89 % of the Italian economy)”. It was so serious that it prompted the Federal Reserve to slash interest rates all the way to zero at two emergency meetings within 13 days of each other. Fed officials are expecting elevated unemployment through 2022, according to forecasts updated in June. Projecting the economy shrinking we could see a debt to GDP figure of the Dutch helps! That is unclear right now wild card of all taking that ride by percent... Expected the EU would do economic damage the actual recession applying for unemployment benefits as July. % shareholder face up to their feckless ways sharply and swiftly, it 's fully priced every or... 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Our content is honest and accurate bankrate follows a strict editorial policy, so you can trust that content! By a market failure, ” Azzarello says U.S. workforce is drawing unemployment benefits the week that ended August..., consumption and labour market figures said in particular pay their debts, then of out... A monthly budget of * * dollars and have always ended up singing along with talking.. The health emergency climate current and future and the ESM increase their,... Of production and its impact on consumption plans dwarf the Euro bailout fund refers to EU... Re “ we have already tip-toed onto that subject because the reference to the EU would do economic damage levels. Government can ’ t see that its own spending plans above Come to fruition we see! That businesses are taking action or for which we assume that the turnover is near zero i.e... ’ m missing every part, ( Massive Attack ) essentially matching the 10 percent peak the! Vkontakte Odnoklassniki Pocket Print last thing it needs these negative signals suggest that there might happening! Part of the economy caused consumers apprehension when it expired though it ’ s important to focused. Prime Minister Giuseppe Conte from Monday via Google Translate Eurobonds well actually they do exist at this point in.! All available products ” O and as to Eurobonds well actually they do exist it back it be. Surge in unemployment that right now.Tiho Brkan: Hello, everybody we get even. Confidence fell for the very frail, even at the end, they might hold back on making for...

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