what is happening to the economy right now

The next context is that this is way beyond the ability of the ESM to deal with alone.  The ESM, with its unused financial firepower of €410 billion, could provide credit lines at low interest rates. We’re going to know when the US recession began — early March 2020 — but we have no idea when it will end. We’re on a road to nowhere However, this is a rerun of Greece – when it came out that they retired at 55 and didn’t bother taxing half their economy, sympathy drained away. Diplomatic sources and officials said a feud between Italy and the Netherlands over what conditions should be attached to euro zone credit for governments fighting the pandemic was blocking progress on half a trillion euros worth of aid. we had freed 350. The offers that appear on this site are from companies that compensate us. UBI is frankly Roman grain dole and that worked for centuries , apparently even after the fall of Rome for a while. The saving rate of consumer households was 8.2%, 0.1 percentage points lower than in the previous quarter. Francisca Sequeira July 24, 2019. However, the position is like having a friend or relative, who is always at you, mostly for money, but sometimes to do things to save them money. Today has brought the economy of Italy back into focus and before I look at the economics let me express my deepest sympathy for also those affected by the Corona Virus there. A faster-than-expected rebound in hiring, matched with massive amounts of economic stimulus from Congress, have aided consumers’ wallets — so much that consumer spending picked up at a faster pace than was expected. With massive amounts of stimulus coming out of both sides of Washington — Congress and the Federal Reserve — some experts have warned that price pressures could build in a few years. 5 big things happening in South Africa right now. Finally in this sweep we have the elephant in the room which is the issuing of joint Euro area bonds or as they have been rebranded Corona Bonds. negative signals suggest that there might be in the coming months a deterioration in income, consumption and labour Even with 9.3 million gained across May, June and July, the job market still has a hole of about 12.9 million positions, compared with before the coronavirus crisis. Today has brought the economy of Italy back into focus and before I look at the economics let me express my deepest sympathy for also those affected by the Corona Virus there. October 03, 2019. The job market still has a long way to go, with employers only recovering about two-fifths of the positions they cut during the height of the pandemic. The Fed since March has moved farther and faster than any other previous U.S. central bank, instituting an unprecedented, unlimited bond-buying program, pumping trillions in the market for short-term repurchase agreements, creating 11 emergency lending facilities designed to get credit flowing across the economy and pledging to do more to support the financial system. “That was a clear indication that conditions were tight,” Azzarello says. Turkey lira crisis: What is happening in Turkey right now? ( Klaus Regling). Everything you need to know about the stock market today. Here is Prime Minister Giuseppe Conte from Monday via Google Translate. Virtually all corners of the economy have been hit hard during the pandemic, with some of the nastiest declines in real estate and manufacturing. What’s happening in our economy, right now? The unemployment rate is now about 10.2 percent, essentially matching the 10 percent peak during the Great Recession. Tiho updates us on the current status of the US and global economy including coverage of Europe and Emerging Markets. A separate consumer poll from the Conference Board showed that confidence also slumped in July, decreasing to 92.6 from a revised 98.3. The government can’t prevent the coronavirus from damaging the U.S. economy. Despite turmoil in the real economy, the stock market spent months surging. The Composite Output Index* dropped from 50.7 in February to 20.2 in March, falling a record 30.5 points and signalling the sharpest contraction in Italian private sector output since the series began in January 1998. “Just a few months ago, we couldn’t have guessed how this would happen, but we now know how we got here,” Hamrick says. This compensation may impact how, where and in what order products appear. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. “It’s not good enough for the Fed to do something and it not to flow through.”. ... and has placed tremendous pressure on South Africa’s economy. “I think, now, there's still $11 trillion, at least, of government debt around the world that's at a negative rate,” Buffett told Yahoo Finance’s editor-in-chief, Andy Serwer.. “So we've never seen it before.” While we adhere to strict It would also soon eclipse that high, rising to a record 6.9 million Americans by the week that ended on March 28. Today’s decree brings 400 billion of liquidity for businesses, with the #CuraItalia we had freed 350. Italy is of course a much larger economy and (I was surprised to learn) actually a slight net contributor to the EU. My issue with the project was and still is , is that it was all hype and wishful thinking instead of sound fiscal setting . When Italy gets up it runs. Another key measure of U.S. inflation, the core consumer-price index (CPI) that excludes volatile food and energy categories, fell by the most on record in April to 0.9 percent. In Q2, the full effect of the recession commenced and the economy … And speaking of BREXIT, quite understandably it has gone rather quiet, on the back burner as they say, will it ever be revisited, or just permanently delayed until quietly cancelled years from now, due to “events… events dear boy”? However the EU and the Euro will NEVER be allowed to fail by the central banks, whatever ends up coming out the other end of this catastrophe, you can be sure the EU, the ECB and the Euro will like their fellow cockroaches and rats after a nuclear devastation be still there. These three institutions have issued mutualised debt, i.e. Meanwhile, the jobless rate that tracks all persons marginally attached to the labor force, plus those who are working part-time jobs but would rather be working full time, is about 16.5 percent, near record highs. Further proposals under discussions include credit lines from the euro zone bailout fund that would be worth up to 2% of a country’s economic output, or 240 billion euros in total. But now, the exchange rate is 40 pesos for every dollar. Let me finish with something more optimistic Italy has a large grey economy estimated at over 200 billion Euros and it is a nation of savers. A Federal Reserve gauge of industrial production shows that activity rose 5.4 percent and 1.4 percent in June and May, respectively, but that wasn’t enough to offset a record 12.7 percent plunge in April, the steepest decline on record. Yesterday the Italian Statistics Office produced its Monthly Report. More and more economists are predicting a recession is imminent as the result of the pullback in the economy caused by COVID-19. The overall effect of the outbreak was seen as putting downward pressure on prices, exacerbated by weaker growth and slower spending. © 2020 Bankrate, LLC. Which is why the project will die if not already fatally wounded. April 8, 2020 by IWB. specifically, the economic climate current and future and the expectation on unemployment plummeted. Coronavirus cases first started resurging in Texas, Florida, Georgia and Arizona. The ECB has been in play and is buying more Italian bonds than the capital key suggests. “If financial markets were still stressed, that’s what would blow those dominos down even faster,” Azzarello says. Bankrate, LLC NMLS ID# 1427381 | NMLS Consumer Access 2017 was particularly bad, about 3 times worse than the current covid-19 spike to date. With slowing global growth, it’s all about the US economy and market right now. Experts far-and-wide have warned that the path forward is still wrought with unknowns, mostly because many epidemiologists have warned of a possible second wave. I’m sure when it is finally announced, the Euro will rise on the news as well. About 2 in 5 said they weren’t planning to shop at traditional in-person retailers as much as before the pandemic, driven in large part by fear of contracting the virus. Extra Eu trade preliminary figures were influenced by the sharp fall of exports towards China (-21.6% with respect to “If we thought the worst we’d ever see with economic data would be during the financial crisis and Great Recession, the virus proved us wrong,” says Mark Hamrick, Bankrate’s senior economic analyst. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence. Interesting piece on DW https://youtu.be/d7EzfPNJZgw. hmm, wouldn’t Universal National Income be more acceptable wording ? As predicted on here on numerous occasions, UBI is being proposed in Spain, and the aim is for it to be PERMANENT, they aren’t even pretending to call it temporary! In March, the consumer confidence climate slumped. Economic data has firmed up in the past few weeks: the job market looks healthy, this quarter’s growth promises to be positive, and consumers keep spending. Our experts have been helping you master your money for over four decades. The question of the scale of impact that the housing market and the economy will see hinges on how prolonged the spread of COVID-19 will be. Passive income ideas to help you make money, Best age for Social Security retirement benefits, choked the longest economic expansion on record, Bureau of Labor Statistics calculates joblessness, broader categories of labor underutilization and detachment, CARES Act known as the Pandemic Unemployment Assistance program, extra $600 in weekly unemployment benefits having expired on July 31. two emergency meetings within 13 days of each other. Meanwhile, other measures of the labor market tracking broader categories of labor underutilization and detachment show that many Americans are still suffering, with about 16.3 million individuals still unemployed and even more underutilized. We are talking about 750 billion, almost half of our GDP. China's economy is slumping and the country is still suffering the effects of the trade war with America. Get insider access to our best financial tools and content. As of August, however, more Midwestern states are seeing the most per-capita increases, including Oklahoma, Nebraska and Illinois. About 1.1 million Americans applied for unemployment benefits the week that ended on August 1, down from 1.4 million a week earlier. What is America good at doing... or producing Paying down debt and eliminating some discretionary items from your budget can help free up some breathing room in your wallet to put more funds toward those goals. What is happening to the economy of Italy right now? The fact that Italy is a net EU contributor surprised me too because its economic underperformance would mean that the contribution based in national income will be falling in relative terms. “The federal relief programs have prevented more substantial declines in consumer finances, partially shielding consumers from the unprecedented surge in job losses, reduced work hours, and salary cuts,” said Richard Curtin, director of the Michigan poll, in a statement. A devalued bog roll currency would increase debt servicing costs overnight, while trade barriers with the EU would do economic damage. All Rights Reserved. Joblessness rose to 14.7 percent in April, the largest month-to-month increase on record. And four months into the crisis, Americans are still applying for unemployment benefits in the millions. “The lapse of the special jobless benefits will directly hurt the most vulnerable and spread even further by missed rent, mortgage, and other debt payments.”. In the first week of March, we’d have answered that gross domestic product above inflation grew 2.4% at an annual rate in the fourth quarter 2019, and the unemployment rate was 3.5% in February 2020. Yes Peter, but the main thing is that central banks are still in charge of the world and will end up with a lot more power and leverage in the process, whatever currency system we end up with, than they have now. “Make no mistake about it, the unemployment situation is dire and likely to continue that way until the economy is opened back up,” Hamrick says. Learn how your comment data is processed. The real issue is for how long a time? and they are dealing with the Italians very effectively. Given that no one can see the future, it’s important to remain focused on recession-proofing your finances. And it too was centred on Lombardy, this province has double the death rate from flu/pneumonia than any other provence regularly each year. ” O and as for Eurobonds” is the UK on the hook to contribute to any existing EBonds in the event of default? The state is there and immediately puts its firepower into the engine of the economy. “What’s happening to us right now is not being driven by a market failure,” Olsen adds. Something will have to change in my view and I can see Governments using UNI as a solution/smokescreen. That defeats the purpose of slashing rates to zero. As Paul Krugman has said, the debt incurred doesn’t matter as it is “money we owe to ourselves”, funny that argument never worked in any country that tried to implement it, but hey “it’s different this time”!!! You can track how this impacts your wallet by looking at the spread between the 30-year fixed mortgage, one of the most popular forms of consumer borrowing, and the Fed’s benchmark rate. yearly basis in the second case by 9.9% . The Fed has an inflation target of 2 percent, which was challenged even during the decade-plus-long expansion. European debt, for many years already. by Shaun Richards. New applications for jobless benefits first surged to 3.3 million the week of March 14, far surpassing the previous record rise of 695,000 in October 1982. Bankrate.com is an independent, advertising-supported publisher and comparison service. Employers in March and April cut a whopping 22.2 million positions, enough to wipe out a decade’s worth of job gains during the previous economic expansion. We do not include the universe of companies or financial offers that may be available to you. Jobs and Unemployment The economy gained 638,000 jobs in October, but that still was not yet enough to restore the 20.5 million jobs lost in April, when the unemployment rate hit 14.7%. When Italy gets up it runs. Now at the high end of the range household income for that middle 20% fell from about $68,000 a year in 2000 to $66,000 a year in 2017. We have been down this road so many times now and have always ended up singing along with Talking Heads. Actually there were apparently requests for even more money to be deployed. how we make money. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. re “We are talking about 750 billion, almost half of our GDP. As General Khalifa Haftar continues his advance towards Tripoli, Ian Bremmer breaks down what's at … Economists say that number is likely underestimating the problem, with gig-economy workers and the self-employed applying for another form of benefits granted through the CARES Act known as the Pandemic Unemployment Assistance program. If that did indeed happen, leading to another round of nationwide shutdowns, it would spell even more trouble for the U.S. economy. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Like a soul without a mind We have already tip-toed onto that subject because the reference to the Euro bailout fund refers to the European Stability Mechanism or ESM. I have told you all a financial crisis would be created to ensure our capitulation to our European masters, and Corona is just a perfect set up for them in every way. And that’s exactly what came to fruition. all of this is much healthier than all the credit buying.. The state is there and immediately puts its firepower into the engine of the economy. Manufacturing activity, which was already hurting amid ongoing U.S.-China trade tensions in 2019, posted similar steep declines that have failed to recover fully. As they then demanded Germany in particular pay their debts, then of course out came the Nazi comparisons. We’ll take that ride. Our goal is to give you the best advice to help you make smart personal finance decisions. I live in the philippines and about 6 months ago each US dollar was equivalent to 55 pesos here in my country. Johannes Eisele / Contributor / Getty Images. Meanwhile, various indicators tracking volatility and stress among major markets, credit spreads and interest rates — from the St. Louis Fed Financial Stress Index to the Chicago Board of Options Exchange’s Volatility Index (VIX) — showed that financial conditions tightened in mid-March by the most since the financial crisis. Change ), You are commenting using your Google account. I suspended the, & continue tomorrow, thu. We are talking about 750 billion, almost half of our GDP. “The outbreak has disrupted economic activity in many countries and prompted significant movements in financial markets,” Fed Chairman Jerome Powell told reporters at a press conference following the Fed’s first emergency cut, a 50-basis-point reduction. More money to be deployed sliding to 72.5 in July, decreasing to 92.6 from revised! Editorial integrity, this compensation does not include the universe of companies or all available products economy... 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