Waiting For The Rebound, Rationality Shall Prevail

The U.S. stock market was an accident waiting to happen as valuations were historically excessive before the coronavirus struck.  Moreover,  markets are very distorted due to all the government intervention and the Federal Reserve’s extraordinary monetary policy since the Great Financial Crisis (GFC).   The traditional economic signals extracted from the financial markets are no longer … More Waiting For The Rebound, Rationality Shall Prevail

U.S. Industrial Production Fall -0.3% In December, Electronics Up

The Federal Reserve Board reported Industrial Production this morning, Industrial production declined 0.3 percent in January, as unseasonably warm weather held down the output of utilities and as a major manufacturer significantly slowed production of civilian aircraft. The index for manufacturing edged down 0.1 percent in January; excluding the production of aircraft and parts, factory … More U.S. Industrial Production Fall -0.3% In December, Electronics Up

Industrial Production In Euro Area Falls 2.1% Sequentially In December

Seasonally adjusted industrial production for December fell by 2.1% in the euro area (EA19) and by 2.0% in the EU27, according to estimates from Eurostat.  Captial goods took the brunt of the hit. In November 2019, industrial production was flat in both the euro area and in the EU27 In December 2019 compared with December … More Industrial Production In Euro Area Falls 2.1% Sequentially In December

What Is Coronavirus?

What exactly is coronavirus? Here's what you need to know about the China-linked mystery illness now confirmed in the U.S. pic.twitter.com/caaUP764uu — QuickTake by Bloomberg (@QuickTake) January 22, 2020

Tentative & Sluggish Economic Recovery – IMF WEO

The International Monetary Fund (IMF) updated its World Economic Outlook (WEO) yesterday.   The money quotes follow: Global Growth There are now tentative signs that global growth may be stabilizing, though at subdued levels. Some risks have partially receded with the announcement of a US-China Phase I trade deal and a lower likelihood of a no-deal … More Tentative & Sluggish Economic Recovery – IMF WEO

U.S. Industrial Production Down 0.5% In December

Industrial production fell 0.3% in December, the third decline in the past four months, the Federal Reserve reported Friday. The decline was expected and reflected in the December unemployment report released last week, where manufacturing shed 12,000 jobs. Industrial production was down at a 0.5% annual rate in Q4. Production was down in three of … More U.S. Industrial Production Down 0.5% In December

North American Freight Volume Posts Sharpest Drop Since Great Recession

December freight volumes posted their sharpest year-over-year decline since the Great Recession. The Cass Freight Index, a measure of freight volumes and expenditures, accelerated its decline due to high inventories and a manufacturing downturn. Stifel analyst Dave Ross doesn’t expect a rebound in 2020: “The tariff relief from the phase-one deal seems to be just … More North American Freight Volume Posts Sharpest Drop Since Great Recession