Traders Community : News > Economy News http://www.traderscommunity.com/ Traders Community where you will find one of the biggest and best collections of trading information. en-gb The information contained in this website is for general information purposes only. The information is provided by Traders Community and whilst we endeavor to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.Read full disclaimer: Website disclaimer info@nospam.com (Admin) info@nospam.com (Admin) Thu, 23 May 2013 21:12:29 -0500 Thu, 23 May 2013 21:12:29 -0500 http://backend.userland.com/rss e107 (http://e107.org) hourly 1 60 Traders Community : News > Economy News http://www.traderscommunity.com/images/web_logo88a.gif http://www.traderscommunity.com/ 88 31 Traders Community where you will find one of the biggest and best collections of trading information. What Recovery? Challenger U.S. Planned layoffs Soar in June http://www.traderscommunity.com/news.php?item.34910.10
Employers planned 41,432 job cuts last month, up 11.6 percent from 37,135 in May according to a report from consultants Challenger, Gray & Christmas, Inc. Job cuts were up 5.3 percent from 39,358 in June last year.

America should be seeing job creation with more attempted bailouts than the titanic. However so far the results are similar. We are actually seeing further job destruction. The number of planned layoffs at U.S. firms increased for the second month in a row in June. This despite a respite from downsizing in the first half of 2011. Downsizing was actuallyat the lowest level since 2000.

"The employment picture remains a bit cloudy," John Challenger, chief executive of Challenger, Gray & Christmas, said in a statement.

"Continued slowness in the pace of job cuts is certainly promising. However, hiring is coming in spurts and is not quite robust enough to make a significant dent in unemployment."
While some sectors saw significant increases in layoffs in the first six months of the year, it was not an indication that job cuts will surge in the second half of the year, Challenger said. The government and non-profit sector continued to see the heaviest downsizing, accounting for 10,176 announced cuts in June.

The report comes two days ahead of the key U.S. jobs report. Economists forecast that a total of 90,000 jobs were added last month.
For the first six months of the year, job cuts totaled 245,806, down 17.4 percent from 297,677 cuts in the first half of last year. The six-month total was the lowest since 2000 when 223,421 job cuts were announced between January and June.

In the second quarter, 115,057 job cuts were announced, down 12 percent from the previous quarter and off 1.2 percent from the second quarter of 2010.

Source: Challenger, Reuters

From the BAD Desk]]>
Employers planned 41,432 job cuts last month, up 11.6 percent from 37,135 in May according to a report from consultants Challenger, Gray & Christmas, Inc. Job cuts were up 5.3 percent from 39,358 in June last year.

America should be seeing job creation with more attempted bailouts than the titanic. However so far the results are similar. We are actually seeing further job destruction. The number of planned layoffs at U.S. firms increased for the second month in a row in June. This despite a respite from downsizing in the first half of 2011. Downsizing was actuallyat the lowest level since 2000.

"The employment picture remains a bit cloudy," John Challenger, chief executive of Challenger, Gray & Christmas, said in a statement.

"Continued slowness in the pace of job cuts is certainly promising. However, hiring is coming in spurts and is not quite robust enough to make a significant dent in unemployment."
While some sectors saw significant increases in layoffs in the first six months of the year, it was not an indication that job cuts will surge in the second half of the year, Challenger said. The government and non-profit sector continued to see the heaviest downsizing, accounting for 10,176 announced cuts in June.

The report comes two days ahead of the key U.S. jobs report. Economists forecast that a total of 90,000 jobs were added last month.
For the first six months of the year, job cuts totaled 245,806, down 17.4 percent from 297,677 cuts in the first half of last year. The six-month total was the lowest since 2000 when 223,421 job cuts were announced between January and June.

In the second quarter, 115,057 job cuts were announced, down 12 percent from the previous quarter and off 1.2 percent from the second quarter of 2010.

Source: Challenger, Reuters

From the BAD Desk]]> US Economy traders Wed, 06 Jul 2011 08:39:05 -0500 http://www.traderscommunity.com/news.php?item.34910.10 The Ugly American - Ponzi, Jobs, Houses, ISM and PMI - The Week Ahead http://www.traderscommunity.com/news.php?item.34860.10
Despite window dressing or market gaming commodities and stocks were offered. There was the continual timely news announcements popping out when Crude and ES was about to test critical levels. One senses this manipulation, applauded by the relentlessly long POMO boys and blood speculators will fall the way of risk aversion.

We notice a quick flip back into the Euro on IMM reports and an underbid on Gold so there is certainly a fear quotient there. Expect more surmises like John Paulson wipe-out of over half a billion on Friday. Paulson is no dummy but got donkey punched by the Sino-Forest ponzi fraud. Paulson holds 34.7 million shares.

The stock was halted after a Muddy Waters report exposed the company as a fraud. Paulson has last half a billion overnight. All the big names are in, CapRe, Bessemer, Blackrock and, John Hancock and Hartford.

Hold that thought as we look at the data that came out this week reminded us of. The slog ain't over..


All we week we saw stock indices soft. However commodity markets though tied to global growth seemed to hang on for the most part.

One gets the sense that missing out on profits is more important than taking hits. Funny how brokers and money mangers mind's work. Now think back to the Sino-Forest ponzi and than think of those touting the different spec spots around the world. Think commodities and IPOs. Of course it is different his time right!

The one bullish factor for stocks and commodities is QE III (3) as it will awash the spec hands with even more cheap money and send the US dollar down further. Though there is a little thing called Supply and Demand that is relevant.

So how F#$%^@ is the US economy?

Housing has NOT recovered. On Tuesday the March S&P/Case Shiller index showed that home prices in 12 major US cities have reached their lowest level since the housing bubble burst.

Jobs have NOT recovered. Wednesday's ADP jobs data showed +38K jobs versus expectations for +175K. This was the lowest since last September,. Analysts slashed their expectations for May payrolls. However these new revisions well still smashed.

The May non-farm jobs data on Friday had non farm payrolls of he headline figure coming in at +54K versus expectations of +165K. Unemployment also ticked up to 9.1%. Bulls said the number was the result of a birth-death adjustment making the number look even worse after an unusually large adjustment. Hence they rallied crude and stocks back into the close. Crude going positive with stocks making up half their losses.

Keep an eye on when investors and speculators get bearish on these US numbers for more than 45 minutes for signs of a buying opportunity.

US Manufacturing has NOT picked up. The May Chicago PMI and the May ISM Manufacturing both touched lows last seen in the fall of 2009. Most worrying is new order growth rates being vulnerable and weak.

Looking for help elsewhere? Be warned. Data was soft out of China, Europe and Australia. Many of these numbers had extenuating circumstances but underscore the risk ahead.

Over the week S&P 500 declined 2.3%, Dow fell 2.3% and the NASDAQ fell 2.3%. One could argue not a bad effort in the face of it. We certainly are facing short covering bursts also so this is no easy street!

The Week Ahead

We look for a week ahead that will feature Greece, China and lots of Fed chatter. Fed and Treasury talkers include Plosser, Fisher,, Lockhart, Dudley Hoenig, Yellen and Bernanke. We are blessed to have Treasury's Geithner on Monday.

Of interest will be the Apple WWDC conference - seems that is all that matters to most Americans.

We also get Consumer Credit; Fed's Beige Book, an OPEC meeting, Trade balance and the May Budget statement

Enjoy.

From the B.A.D. Desk
]]>
Despite window dressing or market gaming commodities and stocks were offered. There was the continual timely news announcements popping out when Crude and ES was about to test critical levels. One senses this manipulation, applauded by the relentlessly long POMO boys and blood speculators will fall the way of risk aversion.

We notice a quick flip back into the Euro on IMM reports and an underbid on Gold so there is certainly a fear quotient there. Expect more surmises like John Paulson wipe-out of over half a billion on Friday. Paulson is no dummy but got donkey punched by the Sino-Forest ponzi fraud. Paulson holds 34.7 million shares.

The stock was halted after a Muddy Waters report exposed the company as a fraud. Paulson has last half a billion overnight. All the big names are in, CapRe, Bessemer, Blackrock and, John Hancock and Hartford.

Hold that thought as we look at the data that came out this week reminded us of. The slog ain't over..


All we week we saw stock indices soft. However commodity markets though tied to global growth seemed to hang on for the most part.

One gets the sense that missing out on profits is more important than taking hits. Funny how brokers and money mangers mind's work. Now think back to the Sino-Forest ponzi and than think of those touting the different spec spots around the world. Think commodities and IPOs. Of course it is different his time right!

The one bullish factor for stocks and commodities is QE III (3) as it will awash the spec hands with even more cheap money and send the US dollar down further. Though there is a little thing called Supply and Demand that is relevant.

So how F#$%^@ is the US economy?

Housing has NOT recovered. On Tuesday the March S&P/Case Shiller index showed that home prices in 12 major US cities have reached their lowest level since the housing bubble burst.

Jobs have NOT recovered. Wednesday's ADP jobs data showed +38K jobs versus expectations for +175K. This was the lowest since last September,. Analysts slashed their expectations for May payrolls. However these new revisions well still smashed.

The May non-farm jobs data on Friday had non farm payrolls of he headline figure coming in at +54K versus expectations of +165K. Unemployment also ticked up to 9.1%. Bulls said the number was the result of a birth-death adjustment making the number look even worse after an unusually large adjustment. Hence they rallied crude and stocks back into the close. Crude going positive with stocks making up half their losses.

Keep an eye on when investors and speculators get bearish on these US numbers for more than 45 minutes for signs of a buying opportunity.

US Manufacturing has NOT picked up. The May Chicago PMI and the May ISM Manufacturing both touched lows last seen in the fall of 2009. Most worrying is new order growth rates being vulnerable and weak.

Looking for help elsewhere? Be warned. Data was soft out of China, Europe and Australia. Many of these numbers had extenuating circumstances but underscore the risk ahead.

Over the week S&P 500 declined 2.3%, Dow fell 2.3% and the NASDAQ fell 2.3%. One could argue not a bad effort in the face of it. We certainly are facing short covering bursts also so this is no easy street!

The Week Ahead

We look for a week ahead that will feature Greece, China and lots of Fed chatter. Fed and Treasury talkers include Plosser, Fisher,, Lockhart, Dudley Hoenig, Yellen and Bernanke. We are blessed to have Treasury's Geithner on Monday.

Of interest will be the Apple WWDC conference - seems that is all that matters to most Americans.

We also get Consumer Credit; Fed's Beige Book, an OPEC meeting, Trade balance and the May Budget statement

Enjoy.

From the B.A.D. Desk
]]> US Economy traders Sat, 04 Jun 2011 18:00:43 -0500 http://www.traderscommunity.com/news.php?item.34860.10 US Economic Data Weak, Europe Crisis Deepens as China Stalls http://www.traderscommunity.com/news.php?item.34857.10
I have to chuckle when I hear Obama saying Europe is bad guy, economically and debt wise. Think for a minute of all the floating dollars out there from QE 1 and 2. Yet the two major economic reports out this week only underscored what an abject mess America finds itself in.

We had an advance Q1 GDP and the April durable goods report that clearly identify that the US economy is not firing on too many cylinders right now.

With the GDP the second reading of headline Q1 GDP matched the original +1.8% figure. Problem is the Street expected +2.2%. Couple this with the more recent weaker-than-expected April durable goods figure and we see the US economy has failed to spring to life.

One has to wonder why is this a surprise?


We have had aircraft orders drop off, auto manufacturing off since the Japanese Tsunami. Then Friday we had April pending home sales surprising even the bears to the downside coming in at seven-month lows.

China is supposedly our great white hope yet Chinese numbers continue to suggest slowing. The punters favorite broker, Goldman Sachs cut its outlook for Chinese GDP.

The European debt crisis continues to be at the forefront. Again how is this a freaking surprise.

When did Greece first get bailed out? What has happened since.?

Monday we saw a slaying at he polls for Spain's ruling Socialists in local elections. Not enough? Well S&P downgraded of its sovereign outlook on Italy. Greece lumbers from bad to worse. Seriously how long do you think the people will just take all this why the banker's carry no burden for their lending practices?

We have seen the Greek conservatives say they will NOT support extreme austerity. This raises the ugly threat of possible early elections.

How bad is the US Dollar?

Given this backdrop of restructuring and dismal growth in the PIIGS the euro managed to regain some lost ground. It sits just above the $1.4100 against the dollar at weeks end. The true story is the Euro after seeing new lows against the Swiss Franc.

Those buying the dollar for Fed rate increases must be feeling a little restless right now. Many commodities look like they are merely holding ground before the next leg down. Crude bounced because Goldman told everyone to buy iot but finished just over $100 for the WTI contract. This is with the weekly manipulation by crude holders!

Stocks traded water, which suggests there is a nice blend of people caught short and deluded longs. In reality the POMO keeps the show going. Over the week the S&P fell marginally. The Dow lost over half a percent and the NASDAQ lost nearly a quarter percent.

From the B.A.D. Desk

]]>
I have to chuckle when I hear Obama saying Europe is bad guy, economically and debt wise. Think for a minute of all the floating dollars out there from QE 1 and 2. Yet the two major economic reports out this week only underscored what an abject mess America finds itself in.

We had an advance Q1 GDP and the April durable goods report that clearly identify that the US economy is not firing on too many cylinders right now.

With the GDP the second reading of headline Q1 GDP matched the original +1.8% figure. Problem is the Street expected +2.2%. Couple this with the more recent weaker-than-expected April durable goods figure and we see the US economy has failed to spring to life.

One has to wonder why is this a surprise?


We have had aircraft orders drop off, auto manufacturing off since the Japanese Tsunami. Then Friday we had April pending home sales surprising even the bears to the downside coming in at seven-month lows.

China is supposedly our great white hope yet Chinese numbers continue to suggest slowing. The punters favorite broker, Goldman Sachs cut its outlook for Chinese GDP.

The European debt crisis continues to be at the forefront. Again how is this a freaking surprise.

When did Greece first get bailed out? What has happened since.?

Monday we saw a slaying at he polls for Spain's ruling Socialists in local elections. Not enough? Well S&P downgraded of its sovereign outlook on Italy. Greece lumbers from bad to worse. Seriously how long do you think the people will just take all this why the banker's carry no burden for their lending practices?

We have seen the Greek conservatives say they will NOT support extreme austerity. This raises the ugly threat of possible early elections.

How bad is the US Dollar?

Given this backdrop of restructuring and dismal growth in the PIIGS the euro managed to regain some lost ground. It sits just above the $1.4100 against the dollar at weeks end. The true story is the Euro after seeing new lows against the Swiss Franc.

Those buying the dollar for Fed rate increases must be feeling a little restless right now. Many commodities look like they are merely holding ground before the next leg down. Crude bounced because Goldman told everyone to buy iot but finished just over $100 for the WTI contract. This is with the weekly manipulation by crude holders!

Stocks traded water, which suggests there is a nice blend of people caught short and deluded longs. In reality the POMO keeps the show going. Over the week the S&P fell marginally. The Dow lost over half a percent and the NASDAQ lost nearly a quarter percent.

From the B.A.D. Desk

]]> US Economy traders Sun, 29 May 2011 10:11:38 -0500 http://www.traderscommunity.com/news.php?item.34857.10 US Manufacturing Looking Up? Alcoa to restart 3 U.S. aluminum smelters http://www.traderscommunity.com/news.php?item.34800.10
The three smelters will bump Alcoa's aluminum production up by 137,000 metric tons for 2011. Given an economic revival this would see an increase of 200,000 metric tons for 2012. Putting the move in perspective his will still leave Alcoa with 674,000 metric tons of idle capacity.

Alcoa will announce it's fourth-quarter earnings on Monday.

Aluminum prices rose 5 percent in the fourth quarter and are trading at a two-year high of $2,500 per tonne as commodities took off at the end of 2010. Though in 2011 many have been sold off aggressively. Silver down by around 10% in 2011 already.

Alcoa plants to be restarted are the Massena East facility in Massena, New York; Wenatchee Works in Malaga, Washington; and Intalco in Ferndale, Washington.
The company said it was able to sign long-term power supply contracts for the Wanatchee and Massena plants that put energy prices there at 40 percent below worldwide averages. The Italco plant is operating under its current 17-month contract.
Shares in Alcoa were down 2 cents in pre-market trading at $16.34 per share.

Alcoa signed long-term power supply contracts for the Wanatchee and Massena plants that put energy prices there at 40 percent below worldwide averages. The Italco plant is operating under its current 17-month contract.

Alcoa said it was able to sign long-term power supply contracts for the Wanatchee and Massena plants that put energy prices there at 40 percent below worldwide averages. The Italco plant is operating under its current 17-month contract.

Shares in Alcoa were down 2 cents in pre-market trading at $16.34 per share.

Sources: Alcoa, Reuters

From the B.A.D. Desk]]>
The three smelters will bump Alcoa's aluminum production up by 137,000 metric tons for 2011. Given an economic revival this would see an increase of 200,000 metric tons for 2012. Putting the move in perspective his will still leave Alcoa with 674,000 metric tons of idle capacity.

Alcoa will announce it's fourth-quarter earnings on Monday.

Aluminum prices rose 5 percent in the fourth quarter and are trading at a two-year high of $2,500 per tonne as commodities took off at the end of 2010. Though in 2011 many have been sold off aggressively. Silver down by around 10% in 2011 already.

Alcoa plants to be restarted are the Massena East facility in Massena, New York; Wenatchee Works in Malaga, Washington; and Intalco in Ferndale, Washington.
The company said it was able to sign long-term power supply contracts for the Wanatchee and Massena plants that put energy prices there at 40 percent below worldwide averages. The Italco plant is operating under its current 17-month contract.
Shares in Alcoa were down 2 cents in pre-market trading at $16.34 per share.

Alcoa signed long-term power supply contracts for the Wanatchee and Massena plants that put energy prices there at 40 percent below worldwide averages. The Italco plant is operating under its current 17-month contract.

Alcoa said it was able to sign long-term power supply contracts for the Wanatchee and Massena plants that put energy prices there at 40 percent below worldwide averages. The Italco plant is operating under its current 17-month contract.

Shares in Alcoa were down 2 cents in pre-market trading at $16.34 per share.

Sources: Alcoa, Reuters

From the B.A.D. Desk]]> US Economy traders Fri, 07 Jan 2011 08:29:26 -0600 http://www.traderscommunity.com/news.php?item.34800.10 BOJ Miyao Warns About U.S. Economy Long Term http://www.traderscommunity.com/news.php?item.34789.10 In a day where Ben Bernanke signals that the U.S. Central Bank is moving ready to print even more money to try and get the American economy going Japan continues to caution about the U.S. prospects.

Bank of Japan board member Ryuzo Miyao sees greater risks of the U.S. economy suffering low growth for a long time. What worries strategists is that America resembles a rudderless ship with President Obama appearing clueless about economic management. Throw in a central Bank chief who has tried all he knows to no affect.

These long term risks may see the BOJ change its primary scenario on the Japanese economy. The pitiful U.S. economy has further hampered Japan by investors dumping U.S. dollars and putting pressure on Japan's export based economy.

Miyao, mirroring P.M. Kan's comments repeated the pledge from the BOJ to act in a timely and appropriate manner when it deemed necessary.
Miyao was quoted from his speech to Japanese business leaders in Tokushima, in Japan's SouthWest.


'The Japanese economy is likely to be headed for a sustained recovery path on a pickup in capital spending and personal consumption...

'But the risk of the U.S. economy suffering low growth for a somewhat long period may force the BOJ to change this scenario.'

'Under the current circumstances, the BOJ needs to pay more attention to downside risks for overseas economies. The main factor is that there is a greater risk of the U.S. economy slipping into low growth for a somewhat long period.'


On the surging yen and intervention risks he made the following comments.

'Yen buying is accelerating on investors' risk aversion due to worries about the U.S. economic outlook and about European fiscal and economic conditions...

'If the current situation continues, I'm worried that there would be no small impact on corporate profits and sentiment. But at present, we judge that the mechanism of a sustained economic recovery is continuing.'

'We are carefully watching the impact of the yen rise on the Japanese economy as one of the downside risks.'



'We have pursued powerful monetary easing. We will continue to examine developments in the economy and prices and will take action in a timely and appropriate manner when necessary.'


Meanwhile the markets sells dollars and continues to pressure the U.S. leadership into action. For Japan the U.S. moves are keenly watched as it watches the high yen threaten it's international competitiveness.

From the BAD desk]]> In a day where Ben Bernanke signals that the U.S. Central Bank is moving ready to print even more money to try and get the American economy going Japan continues to caution about the U.S. prospects.

Bank of Japan board member Ryuzo Miyao sees greater risks of the U.S. economy suffering low growth for a long time. What worries strategists is that America resembles a rudderless ship with President Obama appearing clueless about economic management. Throw in a central Bank chief who has tried all he knows to no affect.

These long term risks may see the BOJ change its primary scenario on the Japanese economy. The pitiful U.S. economy has further hampered Japan by investors dumping U.S. dollars and putting pressure on Japan's export based economy.

Miyao, mirroring P.M. Kan's comments repeated the pledge from the BOJ to act in a timely and appropriate manner when it deemed necessary.
Miyao was quoted from his speech to Japanese business leaders in Tokushima, in Japan's SouthWest.


'The Japanese economy is likely to be headed for a sustained recovery path on a pickup in capital spending and personal consumption...

'But the risk of the U.S. economy suffering low growth for a somewhat long period may force the BOJ to change this scenario.'

'Under the current circumstances, the BOJ needs to pay more attention to downside risks for overseas economies. The main factor is that there is a greater risk of the U.S. economy slipping into low growth for a somewhat long period.'


On the surging yen and intervention risks he made the following comments.

'Yen buying is accelerating on investors' risk aversion due to worries about the U.S. economic outlook and about European fiscal and economic conditions...

'If the current situation continues, I'm worried that there would be no small impact on corporate profits and sentiment. But at present, we judge that the mechanism of a sustained economic recovery is continuing.'

'We are carefully watching the impact of the yen rise on the Japanese economy as one of the downside risks.'



'We have pursued powerful monetary easing. We will continue to examine developments in the economy and prices and will take action in a timely and appropriate manner when necessary.'


Meanwhile the markets sells dollars and continues to pressure the U.S. leadership into action. For Japan the U.S. moves are keenly watched as it watches the high yen threaten it's international competitiveness.

From the BAD desk]]> US Economy billyaustindill Wed, 22 Sep 2010 00:25:40 -0500 http://www.traderscommunity.com/news.php?item.34789.10 U.S. Growth Revised Down For Second Quarter http://www.traderscommunity.com/news.php?item.34786.10
The revision was 0.8% lower than the last estimate. We anticipate when the final revision comes in it will be straddling 1% growth. Importantly this is a stimulus ladden Q2. Negative Q3 growth is the overriding issue.

Personal Consumption: Q/Q 2.0% versus Expected 1.6% (Previous 1.6%)
Core PCE 1.1% versus estimate of 1.1% (Previous 1.1%)


S&P futures popped 6 handles on the news and oil 60 cents. On the real positive beta end AUD/JPY popped 70 pips. Who said this market wasn't tightly wound?
From the B.A.D. Desk]]>
The revision was 0.8% lower than the last estimate. We anticipate when the final revision comes in it will be straddling 1% growth. Importantly this is a stimulus ladden Q2. Negative Q3 growth is the overriding issue.

Personal Consumption: Q/Q 2.0% versus Expected 1.6% (Previous 1.6%)
Core PCE 1.1% versus estimate of 1.1% (Previous 1.1%)


S&P futures popped 6 handles on the news and oil 60 cents. On the real positive beta end AUD/JPY popped 70 pips. Who said this market wasn't tightly wound?
From the B.A.D. Desk]]> US Economy billyaustindill Fri, 27 Aug 2010 07:59:15 -0500 http://www.traderscommunity.com/news.php?item.34786.10 U.S. Trade Deficit Surges on Chinese Consumer Imports http://www.traderscommunity.com/news.php?item.34777.10
Strengthening domestic demand led to imports of goods and services being up 3 percent to $200.3 billion in June. Consumer goods imports were at a record $43.1 billion. Imports of non-petroleum goods also surged to be at the highest since August 2008.

For those watching the Chinese economy and potential bubble they would have been hearted to see the U.S trade deficit with China widen to $26.2 billion. This was the highest since October 2008. However not so rosy for the U.S. as American exports to China fell marginally.

The weak export numbers will likely see Q2 GDP estimates revised lower from around 2.4% to under 1.5%. The slowing of exports signals a spluttering U.S. recovery.

The market reaction to the news that the U.S. trade deficit surges on Chinese consumer imports saw the U.S. S&P Futures fall as the did the Euro as growth concerns rattled investors. US. Treasury prices remained steady.

From the B.A.D. Desk]]>
Strengthening domestic demand led to imports of goods and services being up 3 percent to $200.3 billion in June. Consumer goods imports were at a record $43.1 billion. Imports of non-petroleum goods also surged to be at the highest since August 2008.

For those watching the Chinese economy and potential bubble they would have been hearted to see the U.S trade deficit with China widen to $26.2 billion. This was the highest since October 2008. However not so rosy for the U.S. as American exports to China fell marginally.

The weak export numbers will likely see Q2 GDP estimates revised lower from around 2.4% to under 1.5%. The slowing of exports signals a spluttering U.S. recovery.

The market reaction to the news that the U.S. trade deficit surges on Chinese consumer imports saw the U.S. S&P Futures fall as the did the Euro as growth concerns rattled investors. US. Treasury prices remained steady.

From the B.A.D. Desk]]> US Economy billyaustindill Wed, 11 Aug 2010 07:32:55 -0500 http://www.traderscommunity.com/news.php?item.34777.10 American Consumer Spending and Incomes Remain Flat in June, American Savings Rise http://www.traderscommunity.com/news.php?item.34757.10
May's spending had been previously reported as 0.2 percent increase. The Commerce Department downwardly revised 0.1 percent in May and said spending was unchanged in June.

Austerity habits were highlighted as American personal savings reached their highest level in a year.

It was the first time since September that incomes did not riser. The expected U.S. income was a 0.2 percent increase in June from the previously reported 0.4 percent May rise. Friday's U.S. GDP report showed weak consumer spending contributed to a slower 2.4 percent GDP in Q2. This was down from a 3.7 GDP percent rate in Q1 2010.

The economy is trying to emerge from the longest recession since the great depression of the 1930s. The number shouldn't surprise with the high unemployment rate and absent job growth in the U.S.
Spending in June adjusted for inflation rose 0.1 percent. In May it gained 0.2 percent.
Real spending on services edged up 0.1 percent.
Spending on goods rose 0.2 percent.
Real disposable income increased 0.2 percent after rising 0.4 percent the prior month.
The saving rate was 6.4 percent, the highest since June last year, from 6.3 percent in May.
Savings rose to an annual rate of $725.9 billion, the highest level since June last year.


The personal consumption expenditures price index, excluding food and energy rode 1.4 percent in the 12 months to June. That was the slowest increase since September.

The index, a key inflation measure monitored by the Federal Reserve, rose 1.5 percent in May.


From the B.A.D. Desk]]>
May's spending had been previously reported as 0.2 percent increase. The Commerce Department downwardly revised 0.1 percent in May and said spending was unchanged in June.

Austerity habits were highlighted as American personal savings reached their highest level in a year.

It was the first time since September that incomes did not riser. The expected U.S. income was a 0.2 percent increase in June from the previously reported 0.4 percent May rise. Friday's U.S. GDP report showed weak consumer spending contributed to a slower 2.4 percent GDP in Q2. This was down from a 3.7 GDP percent rate in Q1 2010.

The economy is trying to emerge from the longest recession since the great depression of the 1930s. The number shouldn't surprise with the high unemployment rate and absent job growth in the U.S.
Spending in June adjusted for inflation rose 0.1 percent. In May it gained 0.2 percent.
Real spending on services edged up 0.1 percent.
Spending on goods rose 0.2 percent.
Real disposable income increased 0.2 percent after rising 0.4 percent the prior month.
The saving rate was 6.4 percent, the highest since June last year, from 6.3 percent in May.
Savings rose to an annual rate of $725.9 billion, the highest level since June last year.


The personal consumption expenditures price index, excluding food and energy rode 1.4 percent in the 12 months to June. That was the slowest increase since September.

The index, a key inflation measure monitored by the Federal Reserve, rose 1.5 percent in May.


From the B.A.D. Desk]]> US Economy billyaustindill Tue, 03 Aug 2010 07:43:41 -0500 http://www.traderscommunity.com/news.php?item.34757.10 Weak Durable Goods Double Dip Recession Concern http://www.traderscommunity.com/news.php?item.34748.10
The U.S. Commerce Department announced June durable goods orders fell 1.0 percent. This was after they a revised 0.8 percent fall for May from a previously reported 0.6 percent decrease.

Reuters forecasts indicated durable goods orders were expected to be up 1.0 percent in June.

'Caution should always be applied to the Durable goods report it is notorious for large monthly swings. There tends to be too much weight put on certain components, which don’t always materialize. Case in point commercial aircraft orders were expected strong, they were not and the result is negative.

Highlights
June Durable goods orders expected rise fell flat after non-defense aircraft orders slid 25.6 percent in June following a 30.2 percent drubbing in May.

The aircraft orders were based on Boeing Co saying they had received 49 civilian aircraft orders in June. They had only received five in May.

Computers and electronic products orders were hit seeing their biggest fall since October 2009.

However ex- aircraft and defense durable goods show a rise of 0.6 percent. Year on year durable goods ex-aircraft and defense is up 15.2 percent. This could auger well going forward for industrial production.

Today’s report, and in particular the aircraft component shows the weighted average over several months is needed to interpret the report.

From the B.A.D. Desk]]>
The U.S. Commerce Department announced June durable goods orders fell 1.0 percent. This was after they a revised 0.8 percent fall for May from a previously reported 0.6 percent decrease.

Reuters forecasts indicated durable goods orders were expected to be up 1.0 percent in June.

'Caution should always be applied to the Durable goods report it is notorious for large monthly swings. There tends to be too much weight put on certain components, which don’t always materialize. Case in point commercial aircraft orders were expected strong, they were not and the result is negative.

Highlights
June Durable goods orders expected rise fell flat after non-defense aircraft orders slid 25.6 percent in June following a 30.2 percent drubbing in May.

The aircraft orders were based on Boeing Co saying they had received 49 civilian aircraft orders in June. They had only received five in May.

Computers and electronic products orders were hit seeing their biggest fall since October 2009.

However ex- aircraft and defense durable goods show a rise of 0.6 percent. Year on year durable goods ex-aircraft and defense is up 15.2 percent. This could auger well going forward for industrial production.

Today’s report, and in particular the aircraft component shows the weighted average over several months is needed to interpret the report.

From the B.A.D. Desk]]> US Economy traders Wed, 28 Jul 2010 08:28:49 -0500 http://www.traderscommunity.com/news.php?item.34748.10