US recovery

Capital hikes of Spanish companies record high

Clouds Over US Outlook, Sunshine In Europe

While the euro area managed to sustain its upbeat momentum over the summer months , market doubt s about the trajectory of the US recovery have started to deepen. As economic growth becomes less dependent on accommodative monetary policy, markets are increasingly focusing on politics and the ability of governments to implement fiscal and structural reforms.


The Fed is tightening its noose on the U.S. economy

US Jobs Data Dash Rate Hike Hopes

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.

 


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Fed shutters bond-buying program

MADRID | The Corner | Showing its confidence in the US economic recovery and the jobs market, the Fed announced it will put an end to its bond purchases scheme before the end of this week, the central bank announced after its FOMC two-days meeting on Thursday. Short-term interest rates will remain near zero for a “considerable time”.


US recovery

What the market is really telling about the US recovery

LONDON| By Stephane Deo and Ramin Nakisa at UBS | At the time of writing, the Treasury curve is telling the potential US GDP growth rate is very low – in the neighbourhood of 1%. The 30-year real yield is at 1.09% (but dipped below 1% recently), the 10-year real yield is at a frightening 0.36%, and the 5-year-in-5-year yield, a good proxy of where the market thinks long-term growth will settle, is at 1.05% (but also dipped below 1% recently).Taking those numbers at face value, we would have to conclude that the current recovery is doomed, and that growth will level off soon at a very disappointing level.


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US stimulus 1- EU austerity 0

While the US enjoy an economic confidence recovery, euro zone members have to put up with a failed mix of austerity measures and monetary expansion. The strategy must be changed since there are few signs of improvement in the real economy, none in the case of Spain.