Japan’s Prime Minister Shinzo Abe signed on Thursday a political agreement on the EU-Japan trade deal, which would be likely completed within months,expectedly by January. Officials said it was not clear at this stage how the EU-Japan deal would be ratified in Europe. Full national ratification gives every national parliament and some regional ones a veto.
The homeownership rate among young adults in the United States has plunged to a record low, helping to explain the slow recovery in single family homebuilding. In order to understand the future of the housing stock, it helps to tell that there are currently 75 million individuals considered to be Millennials in the US with an average age of 27.5. Acording to BoAML, “in theory, this should underpin growth in homeownership. But, it is complicated – we have to understand the ability of Millennials to afford housing and the desire to become homeowners vs. renters.”
The communication released after the Fed’s June meeting, along with the publication of the system it will use to potentially reduce its balance sheet, shows there is strong support for continuing with the normalisation of US monetary policy.
Not really. The Fed hid it and forgot where it put it! They has raised rates three more times since. Inflation hasn´t gone up, as the neofisherians would have us believe, but there´s been no recession either.
The US economy has entered its ninth year of growth and the recovery could last over 10 years, clocking up a new record. At this stage the doubt surrounding an atypical recovery is whether the best thing is for the Fed to maintain its monetary policy of the last few months and continue to gradually raise interest rates, despite the absence of inflationary pressures.
Benjamin Cole | The U.S. Federal Reserve is tightening its noose on the U.S. economy, despite being below its 2% PCE inflation target, and despite the sluggish wages that define the American job scene: real hourly wages are down in Q1 (the latest reading) and are up 3.1% in the last 10 years.
Trump’s rejection of the Paris climate agreement will have few substantial consequences as regards promoting home-made pollution. On the other hand, it may deter emerging economies, such as India, from delivering on their commitments in exchange for money, unless Europe foots the bill.
Both JP Morgan and Bank of America announced that their trading revenues, specifically those from fixed income operations, had declined substantially over the year so far in interannual terms. European banks like HSBC or Deutsche could suffer the same problem.
Francesco Saraceno | I share with Donald Trump the belief that Germany is harming the world economy. (Ok, ok, it is not bad Germany, it is bad German trade. ). Yet, I think it is worth pointing out something trivial that is not emphasized enough. Trump is right about Germany, but for the wrong reasons. The problem is not the number of German cars circulating in the US, but the number of American cars not circulating in Germany.
A decent rebound in eurozone equities in recent weeks brought up concerns that the market might already be overvalued by now. Julius Baer’s research clarifies that “valuation is not the main driver of our asset allocation as earnings definitively remain more important”. However, valuation is easy to observe and thus attracts quite some attention. One of the measures they are following is the equity risk premium.