Fears of a global economic downturn are growing as nations around the world react to inflation concerns. Peter Goodman, global economics correspondent for the New York Times, joins CBS News to discuss why he believes the COVID-19 pandemic remains the root cause of our current economic situation.
Germany would face costs almost six times as high as Brexit if it and the European Union were to shut China out of their economies, the Ifo institute said on Monday, citing the results of a study. The biggest losers of a trade war with China would be the automotive industry with a 8.47% loss of value-added, manufacturers of transport equipment with a 5.14% loss and mechanical engineering with a 4.34% loss, the Ifo said. The goal of German and EU economic policy should be "to establish strategic partnerships and free trade agreements with like-minded nations such as the U.S.," co-author Florian Dorn said.
Top economist Mohamed El-Erian says inflation ‘will be sticky’ and utters the words nobody wants to hear: ‘Entrenched’ and ‘broad-based’
“What I’m most worried about is the collateral damage that’s going to be associated with inflation coming down, because the Fed has been so late in responding,” said Mohamed El-Erian, chief economic adviser at Allianz.
In 2020 and 2021, American consumers and businesses alike were flooded with various forms of stimulus in an attempt to keep the economy stable during the worst of the coronavirus pandemic. Since then,...
- Business Insider
Investor Dennis Gartman says stocks are rallying in a bear market, and apart from the jobs number, all the data points to an economy in recession
The recent strength in the stock market comes as a surprise to Gartman who predicts it is a bear market rally - and that a recession is still coming.
Median expectations for where inflation will be in one year tumbled 0.6 percentage point to 6.2% and the three-year outlook fell 0.4 percentage point to 3.2%, the lowest levels since February of this year and April of last year, respectively. For the one-year outlook, the fall in expectations was driven by big drops in year-ahead price growth changes for gasoline and food, with the decline in anticipated gasoline price growth being the second largest in the survey's nine-year history and the decline in food price growth the largest ever. Inflation expectations are a key dynamic being closely watched by Fed policymakers as they aggressively raise interest rates to contain price pressures running at four-decade highs.
Gas prices are finally starting to fall back down to earth in much of the country. According to AAA, the national average is down to $4.189 per gallon as of Aug. 2. Fuel costs started to climb just as...
As summer winds down, gas prices are slowly starting to fall despite an economy in turmoil. See: 22 Side Gigs That Can Make You Richer Than a Full-Time JobFind: 7 Surprisingly Easy Ways To Reach Your...
'Not something we've seen ever before': With the US gaining jobs at a startling pace, any recession would be a bizarre one indeed
While the U.S. has seen two quarters of negative GDP growth — a typical recession sign — economists say current conditions are anything but typical.
BOGOTA (Reuters) -Colombia's new leftist government on Monday formally proposed a tax reform bill to lawmakers which would raise some 25 trillion pesos ($5.76 billion) in 2023, equivalent to some 1.72% of gross domestic product, in an effort to increase revenue for anti-poverty programs. Finance Minister Jose Antonio Ocampo said the bill would eventually add some $11.53 billion annually to government coffers, with revenue gradually climbing as the legislation comes into force. The funds, raised by levying more charges on high-earning individuals and exports of coal and oil, will be directed toward an ambitious agenda of social programs -- including anti-hunger efforts, free public universities, and aid for elderly people without pensions.
‘Stagflation is out, Goldilocks is in’: Jefferies’ chief financial economist says the economy will be ‘stronger for longer’—but only to a point
“I don't buy this idea that a recession is imminent, but I do think a recession is inevitable,” Markowska told Fortune.
Workers and CEOs alike are worried about an impending recession. But some industries weather economic downturns better than others, LinkedIn finds.
- Business Insider
China's digital yuan pushes key US lawmakers to seek urgency from the Fed on a digital dollar that fends off global rivals
"We should be concerned about China's predatory practices," Rep. French Hill, R-Ark., told the Wall Street Journal.
- Fox News
Poll: Americans trust GOP to tackle inflation, economy, but prefer pro-choice over pro-life candidates
A new poll found that the American people have more trust in Republicans to tackle key midterm issues but favor candidates with pro-choice positions
- Business Insider
Russia's imports of Chinese goods jump 20% to hover near pre-invasion highs, helping stem the ruble's rally
Russian demand for China's yuan is soaring, while the ruble has pulled back from a massive rally.
Germany's economy will lose more than 260 billion euros ($265 billion) in added value by 2030 due to the Ukraine war and high energy prices, spelling negative effects for the labour market, according to a study by the Institute for Employment Research (IAB). In comparison with expectations for a peaceful Europe, Germany's price-adjusted gross domestic product (GDP) will be 1.7% lower next year and there will be about 240,000 fewer people in employment, said the study published on Tuesday. The employment level is expected to stay at around this level until 2026, when expansive measures will gradually begin to outweigh the negative effects and lead to a plus of about 60,000 gainfully employed in 2030.
- Business Insider
A hot inflation report this week could upset the stock market's relief rally, even after a strong jobs reported quelled recession fears, Barclays says
The S&P 500 surged 9.1% in July and has gained so far in August. The market's direction will lie largely in the July inflation report due Wednesday.
- Fox News
Sen. Ted Cruz, R-Texas, discussed what was happening on the Senate floor as a vote-a-rama on the Democrats' social spending and taxation bill continued to go on.
The overall Consumer Price Index for June 2022 increased 1.3% from the previous month on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics said. Year-over-year, inflation rose a...
(Bloomberg) -- The ugliest year ever for US corporate-bond investors is expected to get uglier -- and they only have the Federal Reserve to blame.With the central bank raising interest rates at the fastest pace in decades, nearly three quarters of those who responded to the MLIV Pulse survey said that tighter monetary policy is the biggest risk facing the corporate-debt market. Just 27% were more concerned that corporate bankruptcies will pile up over the next six months. The results underscore
- The Hill
The U.S. is sending out an additional $4.5 billion in aid to the government of Ukraine, bringing the total amount of budgetary support to the country since it was invaded by Russia to $8.5 billion, the Treasury Department said Monday. The funds will help keep the Ukrainian government afloat as it seeks to withstand the…