In light of recent events, various critical issues have come to the forefront of global economic discussions. In the following article, we’ll explore a range of impactful stories, from rising US-China tensions to the economic repercussions of the ongoing pandemic, with insights from reputable sources. Keep reading for a deeper understanding of the current landscape.
US-China tensions are predicted to escalate as the US election approaches: CNBC
Concerns over a potential second wave of the virus posing an economic threat may not be as dire as initially thought, according to Fed’s Bullard: WSJ
Today’s US jobless claims report is anticipated to show a rise of 2.4 million: Reuters
China has implemented limited lockdown measures in response to a new coronavirus outbreak: WSJ
Eurozone PMI for May indicates a slowing economic contraction as lockdowns begin to ease: IHS Markit
Japan continues to experience a severe economic contraction as indicated by recent PMI data: IHS Markit
Highly indebted ‘zombie’ companies pose a risk within the US economy: CNBC
All 50 states are now reopening their economies. What’s the outlook from here? NY Times
The S&P 500 has surged to its highest closing value since March 5:
This year, growth stocks have distinguished themselves by achieving positive year-to-date performance, gaining unique momentum as of this week. The modest uptick recorded through May 19’s closing highlights this segment of factor investing, contrasting sharply with other areas still facing varying degrees of losses throughout 2020, based on up-to-date exchange-traded funds data.
Across the globe, economies are gradually reopening, including here in the US: WSJ
A fresh outbreak of the virus in China highlights the ongoing struggle to combat Covid-19: Bloomberg
The Congressional Budget Office (CBO) has forecasted a staggering 38% drop in US economic output for Q2: CNBC
After receiving a US warning, the Iranian navy has indicated it will persist with its operations in the Gulf: Reuters
The Taiwanese president has dismissed China’s unification proposal: Reuters
In April, UK inflation reached its lowest rate since 2016: Bloomberg
Expectations indicate that world trade volumes are likely to “fall precipitously” in the first half of 2020: WTO
US housing starts have plummeted 30% in April, marking a five-year low: CNBC
An extensive timeframe is crucial for a thorough analysis of the stock market. Therefore, Professor Robert Shiller’s data set, which begins in 1871, is regarded as one of the premier resources for studying the history of US equities. With this context, let’s examine how the current S&P 500 drawdown compares with the past century and a half.
Risk managers predict a prolonged global recession: Reuters
New evidence suggests that Covid-19 patients recovering have ceased to be infectious: BBG
President Trump is contemplating permanently cutting US funding to the World Health Organization: WSJ
Moderna has reported promising results from its Covid-19 vaccine trials: CNN
Economic expectations in Germany show signs of improvement: MW
The UK has seen a record surge in jobless claims during April: MW
US home builder sentiment has slightly rebounded in May following a steep decline: CNBC
Commodities experienced a rebound last week, registering their third consecutive weekly gain. This uptick highlights the performance of major asset classes, as reflected through exchange-traded funds up to May 15.
The focus on China’s initial response to the coronavirus pandemic has intensified: CNN
China has asserted that it will take all necessary actions against new US restrictions on Huawei: AP
Iran has issued a warning to the US regarding the interception of oil shipments to Venezuela: AP
Fed Chair Powell has stated that the US economy could contract by 30% in the second quarter: CNBC
Powell also indicated that a full economic recovery may hinge on the development of a vaccine: CNBC
Japan has become the first major economy to report two consecutive quarterly GDP declines: NYT
Covid-19 deaths in the US dropped on May 17, reaching near a seven-week low: Johns Hopkins
Industrial output in the US experienced an unprecedented decline of 11.2% in April: MW
Retail spending in the US fell dramatically, dropping by 16.4% in April: AP
Joel Kotkin
Summary via publisher (Encounter Books)
Following a significant era of broader wealth and opportunity distribution, society appears to be reverting to a more feudal structure characterized by concentrated wealth and property, diminished upward mobility, demographic stagnation, and increased dogmatism. While the last seventy years witnessed a considerable expansion of the middle class in America and many developed nations, this trend is now in decline, leading to the emergence of a more stratified society.
The new class structure mirrors that of the Medieval period, with two principal classes: a rejuvenated clerical elite, the clerisy, which dominates the upper professional ranks, academia, media, and culture, and a new aristocracy led by tech oligarchs possessing unprecedented wealth and control over information. These two classes can be likened to the former French First and Second Estates.
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The economic impact of the coronavirus crisis is set to be profound, with multiple GDP forecasts indicating a significant downturn for the US in the second quarter. Insights from Q1 data revealed a 4.8% decline, but projections for Q2 suggest an even steeper contraction is imminent.
The House is scheduled to vote on a $3 trillion coronavirus aid package: CNN
The chief of the World Trade Organization has resigned: NY Times
China’s cautious economic recovery serves as a cautionary tale for others: Bloomberg
There is currently no timeline on when the US will reopen to international travelers: Reuters
The German economy experienced its largest decline in Q1 since the financial crisis: CNBC
A record drop in US retail sales is anticipated in today’s April report: CNBC
Jobless claims in the US surged by 2.6 million last week due to pandemic-related shutdowns: MW
After a dramatic decline, crude oil prices have rebounded to levels not seen since April 3:
