Hu Shuli via Caixin | The eighth session of the U.S.-China Strategic and Economic Dialogue (S&ED) in Beijing on June 6 and 7 received more than the usual attention amid signs of increased tension between the two countries. In addition to tensions over disputed islands and reefs in the South China Sea, friction has been generated in recent months by China’s attempt to be recognized as a “market economy” and America’s…
The latest jobs data from the US is the worst for six years: 38,000 jobs created in May compared to the 160,000 expected. The market slumped on the news of the bad figures, but Yellen played them down. She said “too much attention” should not be paid to one jobs report and that she was still in favour of raising rates.
F. Barciela / F.G. Ljubetic |It was well known that the forecasts the OECD were going to present for 2016 and 2017 would be nothing to shout home about. But the figures and the tone of the comments made by Angel Gurria, secretary general of the organisation and Catherine Mann, its chief economist, turned out to be more dismal than expected.
BoAmL | After an astonishing 90% increase in spot WTI prices since mid-February, oil market participants are now starting to focus on the timeframe and magnitude of a potential recovery in US shale output. But US producers have yet to bring some rigs back, and oil drilling across in Canada and the US has continued to retrench in recent months.
Disappointing job growth in May at roughly one-third of the expected figure, coupled with a downward revision for the previous two months, cast unexpected doubts on the US recovery. The labour market has slowed to half the pace seen a year ago.
Han Wei via Caixin | Apple Inc. is shifting gears and promoting new apps and services to rev up growth in China amid a slump in sales for its expensive devices as local brands nibble at its market share.
Jarno Lang | Obama is not only a pop-cultural phenomenon, but also a pragmatic leader. His successor will have to deal with a worldwide net of dependencies.
Andrew Sheng via Caixin | There are two main lessons that we can draw from the 2007 to 2009 global financial crisis: the failure of mainstream economics to predict and solve the crisis, and its inability to explain the rise of the Chinese economy
For once, BBVA chairman’s words have been a kind of premonition. Last week, when he said rather desperately that “negative interest rates are killing us,” he was not referring to Popular. But the fact remains that a few days later, the bank with Angel Ron at the helm announced a capital hike for 2.5 billion euros, slightly less than half of its stock market value. The aim of the operation is to offset the impact of future regulatory requirements and the shortfall related to the “floor clauses,” calculated at nearly 4.7 billion euros.
BBVA Research | The latest personal income and outlays report by the BEA, which is the favourite indicator for the Federal Reserve to measure deflation, showed that income continued to expand at a solid pace (0. 4 % MoM) , while spending increased dramatically (1 % MoM) in April . The increase in income was in line with consensus expectations, while the consumer spending increase was significantly higher (consensus expectations stood at 0.7% MoM). The increase in consumer spending in April was the highest since August 2009 .