Today, Trump is set to announce his decision regarding the Iran nuclear deal: Reuters
Ahead of this announcement, Iran’s currency is approaching record lows: Reuters
A growing number of Venezuelan soldiers are deserting before the presidential elections: Bloomberg
China’s trade surplus with the US saw an unexpected rise in April: CNBC
US consumer credit growth has declined, reaching a six-month low in March: MW
According to the Fed chairman, markets are anticipating gradual interest rate hikes: Bloomberg
The White House is seeking larger-than-expected spending cuts: Fiscal Times
A former Fed governor suggests that the Fed should explore creating its own cryptocurrency: NY Times
US oil prices surpassed $70 for the first time since November 2017: Reuters
The performance of real estate investment trusts (REITs) in the US continues to impress, achieving the most substantial weekly gain among the major asset classes based on a range of exchange-traded products. This upward trend for REITs stands in stark contrast to the overall decline witnessed across most markets during the trading week ending May 4.
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Lava flows from the volcanic eruption in Hawaii have intensified: ABC
As the deadline approaches for the Iran nuclear deal, Iran and Israel have issued warnings: NY Times
North Korea labels Trump’s claims about the anticipated summit as “misleading”: CBS
Oil prices have soared to a three-and-a-half year high: MarketWatch
NAFTA trade negotiations face a pivotal moment this week: Reuters
Democrats are urged to prioritize economic issues: The Hill
US job growth saw a rebound in April following a sluggish March: Reuters
Manufacturing orders in Germany have decreased for the third consecutive month as of March: MarketWatch
California is becoming the first state to mandate solar panels on new homes: Tech Times
California’s economy is now the fifth largest globally, surpassing the UK: LA Times
PMI survey data suggests a slight increase in global economic activity in April: IHS Markit
By Nomi Prins
Interview with author via KALW
In her work, Prins reveals how major banks have reaped enormous profits from access to inexpensive capital following the global financial crisis. She notes, “No significant regulations have been implemented to address the systemic issues that led to the last financial crisis. The financial sector continues to be subsidized by artificially created monetary policies.” She argues that it constitutes a significant heist that enables elite banks and central bankers to control the global economy. What steps can be taken to dismantle this manipulated system?
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According to the Labor Department, US companies increased their workforce by 168,000 in April, which is a moderate improvement compared to the 138,000 increase observed in March, marking the smallest rise since September of the previous year. This uptick indicates that the annual growth trend remains consistent, suggesting modest growth in the labor market is a reasonable expectation for the upcoming months.
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The Equity Risk Premium in 2018
John R. Graham and Campbell R. Harvey (Duke University)
As of March 27, 2018
This analysis examines the history of the equity risk premium based on surveys conducted with U.S. Chief Financial Officers (CFOs) on a quarterly basis from June 2000 to December 2017. The equity risk premium represents the expected S&P 500 return over a 10-year period compared to the yield on a 10-year U.S. Treasury bond. The average risk premium stands at 4.42%, slightly higher than the mean observed over the past 18 years. Additionally, the research highlights the disagreements in risk premium estimates among respondents as well as the asymmetry or skewness in these estimates. The findings also connect the risk premium results to survey-based measurements of the weighted average cost of capital and investment hurdle rates, which are significantly elevated compared to the cost of capital suggested by the market risk premium assessments.
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Negotiations between the US and China concluded without reaching an agreement: Bloomberg
The US has issued warnings to China concerning the militarization of the South China Sea: Reuters
Job cuts in the US experienced a sharp decline of 40% in April after a surge in March: CG&C
Unemployment claims in the US rose slightly after dropping to their lowest levels since 1969: MW
US worker productivity increased at a slow rate in Q1: WaPo
The US Services PMI increased to a three-month high in April, indicating solid growth: IHS Markit
The ISM Manufacturing Index indicates a slowdown in growth within the US services sector for April: CNBC
A strong pace of US factory orders suggests continued manufacturing growth: Freight Waves
The S&P 500 tested its 200-day moving average intra-day before bouncing back higher:
Recent fluctuations in the equity market, coupled with expectations of rising interest rates and a slowdown in economic growth during the first quarter, have led some analysts to assert that the risk of a bear market for stocks has increased. However, this assertion merits further examination based on key indicators.
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The Federal Reserve has opted to keep interest rates steady, although it remains on course for additional hikes: WSJ
The Fed seems willing to tolerate higher inflation levels: Bloomberg
Trade negotiations between the US and China are set to take place in Beijing: Reuters
Trump is expected to withdraw from the Iran nuclear deal: Reuters
Giuliani asserts that Trump made payments for hush money: NY Times
Eurozone inflation data reveals unexpected softness in April: Reuters
According to ADP, private employment growth in the US slowed in April but remained healthy: MW
An uptick in global manufacturing PMI has led to predictions of stronger growth worldwide: Bloomberg
The Federal Reserve is anticipated to maintain interest rates at their current levels in today’s monetary policy announcement, yet rising inflation observed in recent months lays the groundwork for future hikes.
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