Mayor Pete Buttigieg has secured a narrow victory in the Iowa caucuses, according to reports from the state party: Reuters
The Chinese government, led by President Xi, faces increasing pressure following the death of a renowned doctor: BBG
The White House has reported the demise of a key terrorist leader in Yemen: CNN
President Trump expressed outrage over the UK’s stance on China’s Huawei and 5G technology: CNBC
While earnings reports have surpassed expectations, the market response from shareholders has been tepid: WSJ
US small-business confidence dipped slightly, yet remained robust in early January: Gallup
Germany’s industrial output experienced a sharp decline in December, triggering recession fears: Reuters
Job cuts in the US soared in January: CG&C
Conversely, jobless claims in the US decreased, approaching a 50-year low, indicating a tight labor market: MW
The US stock market, represented by the S&P 500, reached an all-time high on February 5, bringing with it fresh concerns about the potential for a bubble. However, when someone claims with certainty that a bubble is imminent, it’s worth asking them which model they are relying on.
The Senate has acquitted Trump of the charges brought against him in the impeachment trial: Politico
Cases of coronavirus continue to rise, with infections and fatalities showing no signs of abating: CNN
In response to economic challenges, China has announced plans to halve tariffs on American goods: CNBC
The US trade deficit contracted in 2019, influenced partly by increased oil production: NY Times
German factory orders plunged at the sharpest annual rate in a decade as of November: Bloomberg
Global economic output increased in January at its fastest rate since March 2019: IHS Markit
The US Services PMI reached a 10-month peak in January: IHS Markit
Growth in the US services sector gained momentum in January: ISM
Private payrolls in the US increased by 291,000 in January, marking the strongest growth in five years: ADP
In 2020, the performance of the US equity sectors shows stark contrasts. Leading the year-to-date rankings are technology shares, while energy stocks are lagging significantly, evidenced by various ETF proxies.
Buttigieg continues to hold a narrow margin in the incomplete and delayed results of the Iowa caucus: CNN
The coronavirus may delay but not impede the US-China trade agreement: WSJ
In his State of the Union address, Trump emphasized economic growth: WSJ
The Senate is anticipated to acquit Trump in the impeachment trial today: Reuters
Could the coronavirus act as a wildcard prompting central banks to respond? Bloomberg
The Eurozone Composite PMI edged upward, indicating economic stabilization: IHS Markit
China’s Services PMI continues to reflect sluggish growth in January: MW
The UK Services PMI registered a considerable increase in January, marking the first growth in five months: IHS Markit
US factory orders saw a significant increase in December, although the year-long trend remains negative:
The anticipated risk premium for the Global Market Index remained steady in January after having increased in previous months. The updated estimate puts the long-term ex ante return for the GMI at an annualized 5.0%, excluding a “risk-free” rate.
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Disarray surrounded the Iowa caucus as the release of voting results was delayed due to technical complications: CBS
China is preparing additional economic support measures in response to the fallout from the coronavirus outbreak: Reuters
Turkey has initiated airstrikes against government forces in Syria: NY Times
Wall Street is apprehensive about the possibility of Sanders winning the presidency: CNN
The coronavirus poses a threat to the supply chains of US companies: WaPo
The Global Manufacturing PMI climbed to a nine-month high in January, indicating modest growth: IHS Markit
The Atlanta Fed’s GDPNow model has slightly increased its Q1 growth forecast to 2.9%: AF
However, construction spending in the US fell in December for the first time since June: Reuters
In the US, the Manufacturing PMI dipped in January, yet still indicates modest growth: IHS Markit
The ISM Manufacturing Index experienced a rebound to growth in January after five months of contraction:
In January, stocks, crude oil, and high-yield bonds faced significant declines as investors shifted their focus toward investment-grade bonds and gold. This risk-off sentiment in the latter part of the month was largely driven by heightened concerns regarding the potential economic impact of the coronavirus spreading across China and beyond.
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A complete isolation of China due to the virus outbreak could strain the global economy: WSJ
China’s stock market plummeted on Monday after an extended holiday: CNBC
To counteract the risks posed by the virus, China’s central bank has implemented new monetary stimulus measures: BBG
UK Foreign Secretary states that post-Brexit Britain will not align with EU regulations: BBC
China has accused the US of inciting fear regarding the virus outbreak: Reuters
The UK manufacturing sector saw stagnant activity in January as political stability returned: IHS Markit
The manufacturing sector in the Eurozone continued to contract in January according to PMI data: IHS Markit
Eurozone growth slowed in Q4, marking the weakest quarter since 2013: BBG
The US Consumer Sentiment Index rose slightly to a “very positive” level in January: UoM
US consumer spending’s year-over-year trend sharply accelerated to +5.0% in December:
By Paul Krugman
Interview with author via Marketplace.org
In his new book, Paul Krugman tackles enduring misconceptions about economics that persist despite contrary evidence. He highlights how these “zombie” ideas, especially the myth that tax cuts can pay for themselves, continue to influence political discourse. Through “Arguing With Zombies: Economics, Politics, and the Fight for a Better Future,” Krugman aims to clarify these misconceptions and advocate for a more informed economic dialogue.
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