Category Archives: Economy

The Effects of Student Loan Payment on the Consumer Spendings

CFOs from different sectors of business forecast the effect the end of student loan pause may have on consumer spendings. Combined with rising prices, retail businesses already observe a decline in spending. On the other hand, Chipotle and beauty company, … Continue reading

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WALMART

On Thursday, Walmart’s third quarter earnings release showed an increase in US sales over the last 12 months. The release showed a 3.2% year over year rise in sales for the retailer, easing many economists’ fears that consumer spending would … Continue reading

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US SERVICES SECTOR

US services companies grew at their fastest rate in October since hitting a 3-year low in September. The service index grew from 52.6% to 54.7%, signaling growth in the sector. It should be noted that the services sector accounts for … Continue reading

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US BOND MARKETS

As borrowing costs continue to decline, issuers find opportunity to capitalize on the low interest rate environment. Investors are pouring money into corporate bonds encouraging companies to borrow as credit risk premiums tighten. With trade war tensions easing and the … Continue reading

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GLOBAL ECONOMY ENTERS INTO “SYNCHRONIZED STAGFLATION”

Research by the Brookings Institution shows that the global economy will be growing at a neutral pace in the coming years, a situation called “synchronized stagflation”. In a speech last week, Kristalina Georgieva, the Managing Director of the IMF, said … Continue reading

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CHINA TO DOUBLE SPENDING ON U.S. AGRICULTURAL GOODS

Last Monday, Trump announced that a “very substantial phase one deal” with China was struck, under which China has tentatively pledged to double its purchases of U.S. agricultural products from $20 billion to $40–$50 billion in the next few years. … Continue reading

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CHINESE GROWTH SLOWS TO HISTORIC LOW

China’s economy grew only 6% in the third quarter, its slowest growth since the first quarter of 1992, which is when China first began publishing quarterly growth data. Investment in fixed assets, a measure of construction activity that has long … Continue reading

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INDIA’S GROWTH SLUMP

Asia’s third largest economy has slashed its key lending rate to 5.15%, a nine-year low, in the presence of the slowing global economy and a decline in its consumer demand. As a result of the decline in consumer demand, debt-ridden … Continue reading

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U.S UNEMPLOYMENT HITS 50 YEAR LOW

Despite global growth slowdown, the U.S economy boasts strong numbers in employment with the addition of 136,000 jobs in September that have been added to the U.S economy. However, it remains of concern that the amount of jobs added in … Continue reading

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Asset Managers Fear A Global Recession

A survey conducted by many of the world’s biggest asset managers showed that investors are growing increasingly frightened of a global recession. Driven by geopolitical concerns and trade tensions, the possibility of a recession next year currently stands at 52% … Continue reading

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