Tone of Upcoming G7 to be ‘Confrontational’

https://image.zype.com/593087b25d3c19148e001735/5b1936836c1cba12b8003b3b/custom_thumbnail/1080.jpg

 

German Chancellor Angela Merkel got the ball rolling Wednesday by asserting she was going to engage in a diplomatic full-court press on the president’s EU tariffs, which impact her country the most. She was soon followed by French President Emmanuel Macron, who said he plans to “stand up” against his friend the president.

White House economic adviser Larry Kudlow tried to downplay the situation Wednesday afternoon, calling it “a family quarrel,” and said the president is merely “trying to fix this broken system” But, then he added:

“He’s sticking to his guns. He’s going to talk to them. The lines are open.” Continue reading

Nearly 7 in 10 Americans have less than $1,000 in savings

America’s spend-first mentality is a genuine concern.

The U.S. is often referred to as the land of economic opportunity. Apparently, it’s also the land of consumption and “spend everything you’ve got.”

We don’t have to look far for confirmation that Americans are generally poor savers. Every month the St. Louis Federal Reserve releases data on personal household savings rates. In July 2016, the personal savings rate was just 5.7%. Comparatively, personal savings rates in the U.S. 50 years ago were double where they are today, and nearly all developed countries have a higher personal savings rate than the United States. In other words, Americans are saving less of their income than they should be — the recommendation is to save between 10% and 15% of your annual income — and they’re being forced to do more with less in terms of investing.

Continue reading

Markets More: HSBC Bearish HSBC WARNS: The world economy faces a ‘titanic problem’

HSBC chief economist Stephen King is already thinking about the next recession.

In a note to clients Wednesday, he warns: “The world economy is like an ocean liner without lifeboats. If another recession hits, it could be a truly titanic struggle for policymakers.” Continue reading

Morgan Stanley’s Doom Scenario: Major Recession in 2013

The global economy is likely to be stuck in the “twilight zone” of sluggish growth in 2013, Morgan Stanley has warned, but if policymakers fail to act, it could get a lot worse.

The bank’s economics team forecasts a full-blown recession next year, under a pessimistic scenario, with global gross domestic product (GDP) likely to plunge 2 percent.

More than ever, the economic outlook hinges upon the actions taken or not taken by governments and central banks,” Morgan Stanley said in a report. Continue reading