Showing posts from April, 2018

American Economic Sentiment Riding High

Many believe the trade war talk to be just that, talk. There is little if any damage being done. While I agree that it is more likely a trade war will not happen, I falter at the anti-free market lunacy of the current POTUS. Can you not handle trade negotions with negotiations? We are not building a condomimim complex. POTUS is  putting economics in the hands of political economists, or whatever you’d like to call them...Men who use the science and art of economics to propel partisan rhetoric. What a crime! I will say that when politics die, they are generally destroyed. When these days vanish we will be in a much better place. There is no room for polite society inside   state run propaganda and US media. 
Fathom Consulting: Our US Economic Sentiment Indicator (ESI) may have slipped from 6.8% to 6.3% in March, but this was still one of the highest readings in 21 years. This comes in spite of growing fears of a trade war between the US and China, which many suggested would dampen senti…

Overall Commodity Prices In Flux Amid Looming Trade Tariffs

U.S. President Donald Trump’s decision to impose tariffs on aluminium and steel imports on 1 March heavily dragged on the prices of some base and some precious metals in March, eroding investor confidence globally. Trump declared a temporary exemption for some economies, including Canada and the European Union, but left the levies for China in place, making it clear that China was the focus of his actions. This negative climate was amplified later in the month by Trump’s announcement of tariffs on USD 50 billion of Chinese imports in response for what he called China’s unfair trade practices, which have led to massive trade surpluses in favor of the Asian nation. China retaliated by announcing a reciprocal tariff package on U.S. imports including soybeans, planes and automobiles. Against this backdrop, commodity prices fell an aggregated 1.9% month-on-month in March (February: +0.8% month-on- month), the sharpest drop in one year. Base metals, along with palladium and platinum, were …

The Problem With Amazon

Apart from the Amazon of 1999-2010 - let's refer to those as the innocent years of Amazon -  Amazon has now grown to be such a behemoth and problem to American commerce that even mainstreet is against the proposed HQ2 - all across America. In an article I published last August I stated: Despite the frenzy and furor over Amazon on both sides - shareholders and antitrust types alike - AMZN could have a rough patch ahead. While growth and market share dominate the culture and drive of $AMZN what is happening in their quest for dominance is destruction. When sales competitor Wal-Mart Stores (NYSE:WMT) is compared to Amazon the difference is intense: WMT has an enterprise value of $271B with revenues at $486B, Amazon is currently at an enterprise value of $478B with revenues of $150B. The joke in the past was Amason sold $1.00 for $.99, now AMZN is creeping towards selling $1.00 for $.50.”  (See article  - Cool Down Time For AMZN)
The joke is there is no more joke about Amazon selling …

Global Economic Outlook G7

REAL SECTOR | Trade war threatens to derail stellar global growth momentum A complete GDP dataset revealed that global growth lost some steam in the fourth quarter of 2017, despite remaining robust overall. The global economy expanded 3.4% annually in Q4, which was a notch below both the 3.5% rise estimated last month, and the 3.5% expansion recorded in Q3 2017. The slightly lower figure was the result of weaker-than-expected growth in Latin America, particularly in Brazil. Conversely, newly released GDP data for India came in above market expectations. Data for Q1 signals that the economy continues to sail smoothly, propelled by largely accommodative monetary policies, tight labor markets and robust global trade. Against this backdrop, our analysts expect the global economy to expand 3.5% in Q1 on improved dynamics in both advanced and emerging market economies. Despite the solid economic backdrop, the threat of rising protectionism has dominated headlines in recent weeks. Notably, …