U.S. economy above pre-pandemic level as latest GDP shows 6.5% growth

GDP

The U.S. economy grew thanks mainly to consumer spending but it was well below the expected growth level of 8.4% The U.S. economy is now bigger than before the pandemic hit – so why is the Fed still leaving ultra accommodative policies in place? After all – the economy, according to this data set is now fixed, isn’t it? Growth The U.S. economy grew rapidly in the spring and repaired most of the damage caused by the pandemic thanks to widespread coronavirus vaccinations and a nearly full reopening of the…

Read More

U.S. inflation spreads through economy at 5.4% its biggest rise since 2008

Inflation

Secondhand vehicle purchases, car, van and truck rental, food, energy, clothing, travel (plane) tickets and hotels rose sharply in June 2021 The cost of living climbed by the largest amount since 2008 as inflation spreads more broadly through the U.S. economy. Transitory inflation? Fresh questions about whether the spike in prices will subside as quickly as the Federal Reserve predicts are back in focus again. Some analysts are now saying that not only is the U.S. economy hot – it is white hot! Price jump For the 12 month period,…

Read More

Dow S&P 500 & Nasdaq reach new records… again!

U.S. stock records

After a weird week for U.S. stocks – the Dow, S&P 500 and Nasdaq yet again notch new records on Friday after losing ground during the week Inflation and growth Do you believe stalling economic growth is a bigger threat than inflation? Right now I have less of an idea that at the beginning of the week. What is going on? Fears of runaway inflation have been swapped for worries about a rapid slowdown in global economic growth. As I see it there are three obvious elements in the shift…

Read More

Will the UK’s Covid vaccine program and delta surge mean the UK will become a pandemic exit test case for the world?

Coronavirus vaccine

The U.K. has one of the highest Covid vaccination rates in the world. Yet it’s seeing a surge in coronavirus cases largely attributed to the new Delta variant that first originated in India. It is widely expected among that where the U.K. treads, others could follow. The U.K. is rushing to vaccinate as many people as possible before the full economic opening begins. Experts Experts around the world say that close attention is being paid to the latest U.K. covid data as it could become the standard for other countries…

Read More

OECD economic recovery looks promising

Economy

Prospects brighter for global economic recovery The OECD (Organisation for Economic Cooperation and Development) said the world economy is likely to expand by 5.6% in 2021. The figure for the UK is 5.1% followed by 4.7% next year. This significantly brighter outlook reflects the deployment of effective vaccines. Stimulus aid There was also an effect from economic stimulus measures in the U.S., in particular the $1.9 trillion package President Biden will introduce. The report does however suggest a risk of lasting costs from the pandemic in some countries, and that…

Read More

U.S. stock markets set new record highs

Stock market record high

Dow and S&P 500 hit new all time highs! U.S. stocks climbed to record highs on Thursday, 11th March 2021 as a rebound in tech shares resumed and President Biden’s massive $1.9 trillion Covid relief package became law. The Dow finished up 188 points after rallying more than 300 points earlier intraday trading. Record breakers The Dow closed up to close at: 32485 and the S&P 500 also jumped to a new high to close up at: 3939. Massive fiscal stimulus, vaccination programme rollout and improving job data begin to…

Read More

Tesla chases every nickel, loses share value

Electric car

Tesla share value plummets as tech shares take a hit Since Tesla’s share peak in January 2021, the company has seen its share price plummet by some 33% – and that’s even after buying £1.5 billion Bitcoin to add to the balance sheet. Maybe this is partly why? Irony? There’s an irony here – of sorts. It is a well known fact that Bitcoin mining uses a disproportionate amount of energy to create the digital cryptocurrency, and this energy may even, and most likely is, produced using unclean and environmentally…

Read More

Markets slip as bond yields gain after Powell comments

Nasdag

Dow, Nasdaq and S&P 500 all down yesterday, Thursday 4th March 2021, as bond yields increase, then stabilise later The US 10-year Treasury yield rose close to 1.59% The Nasdaq lost 2.1% to close down at: 12723 as tech stocks were sold. The S&P 500 and Dow were also affected by the tech sell-off. The S&P 500 fell 1.3% and the Dow was also down 1.1% as financial and energy stocks managed to dodge the bullet. The FTSE 100 lost just 25 points. The Nasdaq has fallen 9.7% from its February…

Read More

Deal’s off! Deal’s on! Confused?

USA China Deal

Markets whipsawed overnight as the U.S. – China phase one trade deal came into question. Doubt was cast over the deal after Peter Navarro, trade adviser to President Trump, said the U.S.-China trade deal was over, prompting a sharp fall in stocks. He was quickly forced to retract the statement, saying it was taken out of context – apparently, before Donald Trump himself quickly tweeted, ‘The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!’ The remark created an unnecessary…

Read More

UK debt now exceeds 100% of GDP

UK GDP

UK borrowing surges to pay for Covid-19 impact The UK’s debt is now worth more than its economy after the government borrowed a record amount in May 2020. The £55.2 billion was nine times higher than in May 2019 and the highest since records began. The borrowing sent government debt to £1.95 trillion, exceeding the size of the economy for the first time in more than 50 years. The borrowing was necessary as the UK government battled against the affects of the pandemic and as an extensive array of spending…

Read More