US ISM Manufacturing Stays Just Above Neutral Line in February after Ending 2 Years of Contraction in January as Trump Tariffs Trigger Greater Uncertainties
–ISM Manufacturing Index at 50.3 Vs. 50.9 in January, Below Consensus (50.5)–ISM’s Fiore: February Report ‘Overshadowed’ by Tariff Talk among Firms–Fiore: Lower New Orders, Higher Inventories, Slower Supply Deliveries ‘One-Month Blip, Might Clear Up in March or April–Fiore: This Doesn’t Indicate Decline in Overall ISM Manufacturing Activity By Max Sato (MaceNews) – U.S. manufacturing activity […]
Japan’s Government Keeps Economic Recovery Scenario Despite Headwinds of High Costs of Living, Trump Tariffs, Sluggish China Pickup
By Max Sato (MaceNews) – Japan’s government maintained its cautiously optimistic assessment for the sixth straight month, saying the economy is expected to stay on a “modest recovery” track, overcoming the lingering headwinds of high domestic costs of living, the risk of a global trade war initiated by the Trump administration and wobbly Chinese growth. […]
BofA Global Research Fund Manager Survey: Investors Embrace Upbeat World Growth Outlook
–Cash Levels Lowest Since 2010 By Vicki Schmelzer NEW YORK (MaceNews) – Global investors embraced an upbeat world growth outlook in February, as evidenced by the lowest cash level holdings since 2010, according to BofA Global Research’s monthly fund manager survey, released Tuesday. Eighty-two percent of those polled this month said a global recession was […]
TARIFFS STATE OF PLAY: CHINA Tightens Restrictions on Rare Earth Exports to USA Among Tariff Retaliations
WASHINGTON (MaceNews) – In what analysts have said is a measured response, intended not to further escalate U.S.-China trade tensions, China nevertheless Tuesday has imposed some significant new penalties. Chief among them are export controls on several rare-earth minerals important to the U.S. manufacture of high-tech products. They include indium, bismuth, molybdenum, tellurium and tungsten. […]
Preview: Bank of Canada Set to Slow Its Rate Cut Pace to 25 Basis Points Wednesday While Seeking Shelter from Imminent US Import Tariff Storm
By Max Sato (MaceNews) – The Bank of Canada is widely expected to trim its policy interest rate – the target for overnight lending rates – by a “more gradual” pace of 25 basis points to 3.0% on Wednesday in a pre-emptive move to help shield the economy from the threat of stiff tariffs on […]
UPDATE: Fed Officials Take Cautious Approach to Further Rate Cuts As Late Jan FOMC Nears
– Harker Still Sees Rates Heading Lower; But Now ‘Appropriate To Take A Pause’ – Collins Calls for ‘Patient Approach to Policy’; Cuts Could Go Faster or Slower – Schmid: Funds Rate May Already Be ‘Neutral;’ Favors Further Balance Sheet Shrinkage – Bowman Urges ‘Caution;’ Monetary Policy Not As Restrictive As Some Think By Steven […]
Canadian Prime Minister Trudeau Steps Down amid Calls for His Resignation from Opposition, Own Party; Suspends Parliament Until March 24
–Trudeau Buys Time for Liberal Party to Pick Leader That Can Fend Off Conservatives’ Lead in Polls –Deputy Prime Minister Freeland, Former Bank of Canada Governor Carney Seen as Top Candidates but Party Support Uncertain By Max Sato (MaceNews) – Canadian Prime Minister Justin Trudeau announced Monday that he is stepping down as leader of […]
Fed Gov. Cook, Other Fed Officials Tread Carefully on Monetary Policy Outlook as 2025 Begins
By Steven K. Beckner (MaceNews) – Federal Reserve Governor Lisa Cook joined other Fed officials Monday in opening the new year with ambiguous comments about the outlook for monetary policy. Cook, like several colleagues, gave no indication she is eager to resume interest rate reductions in 2025, preferring to wait to see how inflation and […]
US December ISM Manufacturing Shows Signs of Pickup on Demand Side but Layoffs Continue Until Yearend
–ISM Manufacturing Index at 49.3 Vs. 48.4 in November, Well Above Median Forecast of 48.5–ISM’s Fiore: ‘We Are Concerned’ About Trump Tariff Threat as It Would Cause Supply Chain Confusion–Fiore: ISM Set to Rise Above Neutral Line of 50 in Q1, ‘If Not In January, Probably in February’–Fiore: Not Much Price Pressure; December CPI, PCE, […]
Japan’s Government Still Sees Modest Economic Recovery Despite Sluggish Consumption, Flat Real Wage Growth Amid Food-Led Inflation
By Max Sato (MaceNews) – Japan’s government maintained its overall assessment that the economy’s “modest recovery” is set to continue despite sluggish consumer spending and flat real wage growth amid high costs for food and other necessities. In its monthly report for December released Friday by the Cabinet Office, the government said the economy is […]