The CBA average total savings balance per household, including home lending related savings and transaction or savings accounts, was up 14%/yr at July2020.
Our partial read on household income, which comprises wages salaries and government payments, indicates household income surged over recent weeks(latest data 7August2020).
Government benefit payments have stepped up sharply due to the second tranche of $A750 stimulus payments and an increase in the number of people receiving JobSeeker.
CBA’s economics team has released more stunning data showing the extend to which government emergency income support is propping up the Australian economy: Household income has surged in recent weeks primarily due to government payments(latest data to 7 August).
The Grattan Institute estimates this tapering will reduce income support from $18 billion a month (10.7% of monthly GDP) to $3 billion a month (1.9% of GDP) for the six months beyond: Leith van Onselen is Chief Economist at the MB Fund and MB Super.
Sunak, as well as some economists, said Britain's greater reliance on consumer-facing services businesses - many of which were completely shut in the lockdown - also explained why the economy suffered more than its peers.
Later lockdown British GDP shrank by 2.2 per cent in the first quarter of the year, reflecting the lockdown that started on March 24.
Some economists said the sharper decline partly reflected the timing of Britain's lockdown - which fell more in the second quarter - and its dependence on domestic consumer spending.
Suren Thiru, an economist with the British Chambers of CommerceLast week the Bank of England forecast it would take until the final quarter of 2021 for the economy to regain its previous size, and warned unemployment was likely to rise sharply.
Loading In both Britain and Spain spending on hotels, restaurants, recreation and culture make up around 13 per cent of the economy, compared with around 10 per cent or less elsewhere in Europe and the United States.
U.S. Treasury yields jumped to one-month highs on Tuesday, a day before the government sells its largest-ever amount of 10-year notes.
the lockdowns are removed after three days, the damage to New Zealand's economy should be small," Joseph Capurso of Commonwealth Bank of Australia wrote in a note Wednesday.
New Zealand, the benchmark S&P/NZX 50 index fell nearly 2% and the currency dipped against the dollar as Prime Minister Jacinda Ardern announced she was re-locking down Auckland after four new cases of COVID-19 were discovered in the city.
U.S. stocks closed lower on Tuesday, with the S&P 500 and Dow snapping a seven-day winning streak and falling late in the session on growing uncertainty about a stalemate in Washington over a fiscal stimulus deal.
New Zealand opened the region on a grim note after the Pacific nation reported its first coronavirus infections in more than 100 days, and sent its largest city back into lockdown.
He said the U.S. process should enable the production of a "gold-standard, safe and effective vaccine" available in the tens of millions of doses by the end of the year.
Azar said the U.S. is combining the powers of its government, economy and biopharmaceutical industry to "deliver as quickly as we can for the benefit of the United States' citizens, but also for the people of the world, safe and effective vaccines."
Separately, U.S. Health Secretary Alex Azar said during a visit to Taiwan Wednesday that the push to develop a COVID-19 vaccine is "not a race to be first."
Dr. Anthony Fauci, director of the U.S. National Institute of Allergy and Infectious Diseases, said Tuesday he hopes Moscow has "actually definitively proven that the vaccine is safe and effective.
Two leading voices on health issues in the U.S. are expressing skepticism about Russian President Valdimir Putin's claim that his country was the first to develop a safe and effective coronavirus vaccine.
“In the short and medium term, a pandemic recession erodes women’s position in the labor market, first through direct employment losses, and later through the loss in labor market experience brought about by low employment during the recession,” they said.
“ ‘In the short and medium term, a pandemic recession erodes women’s position in the labor market, first through direct employment losses, and later through the loss in labor market experience brought about by low employment during the recession.’ ”
Women in the U.S. have endured steep job losses due to their high representation in “high-contact” service sectors such as restaurants, travel and hospitality, which social-distancing guidelines have capsized, according to a working paper distributed by the National Bureau of Economic Research and authored by researchers from the University of California San Diego, Northwestern University and the University of Mannheim.
Women in the U.S. have endured steep job losses due to their high representation in “high-contact” service sectors such as restaurants, travel and hospitality, a new analysis says.
“Together, these changes imply that the ‘new normal’ after a pandemic recession will see a higher share of women in the labor force and a lower gender wage gap compared to the pre-recession economy.”
The economy plunged 42.9% from the previous three months on an annualised and seasonally adjusted basis, also a record and larger than the 41.2% contraction in the government’s initial estimates.
Gross domestic product (GDP) fell a record 13.2% year-on-year in the second quarter, revised government data showed, versus the 12.6% drop seen in advance estimates.
“The forecast for 2020 essentially means the growth generated over the past two to three years will be negated, ” said Chan, adding that the data was the economy’s worst quarterly performance on record.
SINGAPORE: Singapore’s record recession was deeper than first thought in the second quarter, data showed, signalling a lengthy path to recovery as the coronavirus pandemic dealt a major blow to Asia’s trade-reliant economies.
The slump marked the second consecutive quarter of GDP contraction for the global finance hub – having declined 0.3% year-on-year in the first quarter and 3.1% quarter-on-quarter – meeting the definition for a technical recession.
The government had forecast 6% economic growth in the current fiscal year beginning April, before the hit, and has since maintained that there are signs of recovery as reflected by tax collection numbers.
Passenger vehicle production in July fell 29.4% from a year earlier, separate data released by an industry body on Tuesday showed.
Manufacturing, which contributes nearly 17% to the economy, contracted 40.7% in the three months to end-June, indicating a sharp fall in economic activity.
Industrial activity has been hit hard in India after the government imposed lockdown restrictions in late March.
India's industrial output contracted 16.6 per cent in June from a year earlier, government data showed on Tuesday, as a monthly measure indicated some recovery in the sector that was hit by lockdowns imposed to curb the spread of Analysts polled by Reuters had expected industrial output contraction of 20.0 per cent in June, compared to a revised 33.9 per cent annual contraction in May, the data showed.
Image copyright Getty Images Ride-hailing companies Uber and Lyft must classify their drivers as employees rather than freelancers, a judge in California has ruled.
Gig economy firms say it means drivers can work on their own terms, while critics say they have no protection.
These are listed on the California state government website and include whether the "hiring entity" has control and direction over workers in terms of their performance, and whether the jobs offered are different from the company's main line of work.
An Uber spokeswoman said: "The vast majority of drivers want to work independently, and we've already made significant changes to our app to ensure that remains the case under California law."
Media playback is unsupported on your device Media captionTwo Uber drivers take opposing views on how the company should treat them The status of app-based drivers is set to be put to the vote in a referendum in California in November.
U.S. stock indexes closed mostly higher Monday, nudging the SP 500 within striking distance of its all-time high set in February.
The gains came on the first trading day since President Donald Trump announced several stopgap moves to aid the economy in response to the collapse of talks on Capitol Hill for a bigger rescue package.
The orders were more limited than what investors hoped to see from a full rescue bill for the economy, but hopes remain that the White House and Congress can return to talks and find a compromise.
MGM Resorts International jumped 13.8% for the biggest gain in the SP 500 after IAC disclosed that it had built a roughly $1 billion stake in the company.
The benchmark index has nearly reached the record high it set in February, before the pandemic pancaked the economy into recession.
Accelerating economic collapse Trump and his Radical Republican allies are accelerating our economic collapse by cutting off, effective today, the $600 of weekly relief payments going to 17 million people without jobs.
So, McConnell says, there will be no jobless relief or help for small business until Congress grants corporations absolute immunity from coronavirus litigation.
Black Lives Matter This is the perverse place where Trump, McConnell and Senate Republicans meet Black Lives Matter.
The tragedy of the Trump and McConnell position is that this goes far beyond their shared contempt for the 51 million Americans—roughly one of every three workers—who have filed for unemployment benefits in the last 17 weeks.
In California it will take as many as 20 weeks to restart payments and add new people to the relief roster, Sharon Hilliard, who heads California's Employment Development Department, told a legislative committee Thursday.
“The sustainability of net inflows by FPIs in Indian equities is hard to ascertain at the moment as there are several concerns looming large.
Risk appetite among foreign investors apparently enhanced after a slew of encouraging economic data from the US, Europe and China raised hopes that there could be a chance of a quicker rebound in the global economy from the COVID-19 pandemic, Srivastava noted.
Foreign portfolio investors (FPI) invested a net Rs 7,842 crore in equities and Rs 485 crore in the debt segment between Aug 3-6, according to depositories data.
Overseas investors remained net buyers in Indian markets by investing a net Rs 8,327 crore in the first week of August amid better than expected results by big Indian companies.
Surge in coronavirus cases globally, increasing tension between the US and China and limping of Indian economy may act as a deterrent for foreign investors,” Srivastava said.
Kashkari is calling for a return to mandated lockdowns in every state for up to six weeks in an effort to save both lives and the economy in response to COVID-19.
Roy Rochlin/Getty Images hide caption toggle caption Roy Rochlin/Getty Images Minneapolis Federal Reserve Bank President Neel Kashkari visits "Maria Bartiromo's Wall Street" at Fox Business Network Studios on October 11, 2019.
Kashkari is calling for a return to mandated lockdowns in every state for up to six weeks in an effort to save both lives and the economy in response to COVID-19.
Minneapolis Federal Reserve Bank President Neel Kashkari visits "Maria Bartiromo's Wall Street" at Fox Business Network Studios on October 11, 2019.
Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, says the answer should be a return to mandated lockdowns in every state for up to six weeks in an effort to save both lives and the economy.
Panagariya noted that he does not think that the talk of ‘Aatmanirbharata’ accelerated the process of import substitution policies.
“And we are going to need perhaps a little bit of stimulus on the demand side as the economy begins to pick up,” the eminent economist said.
Panagariya also said that imposing import licensing will be a violation of WTO norms that India has signed.
As India’s economic growth begins to pick up, the country is going to need perhaps ‘a little bit of stimulus’ on the demand side, noted economist and former Niti Aayog Vice-Chairman Arvind Panagariya said on Saturday.
Panagariya also said that he was more worried about the general trend of rising import tariffs in India.
“In 2H20, whether the consumer is eating more at home or feeling good enough to engage in the treasure hunt atmosphere of its 140,000-square-foot box (or use its attractive travel options), we see Costco as a share gainer,” analysts said.
“We also believe Walmart has participated in this deceleration and… we continue to favor Costco’s better-heeled consumer in a recessionary macro backdrop (average U.S. household income ~$100K) versus that of Walmart ($50-$60K with a large left tail),” JPMorgan said in a note.
UBS rates Costco COST, -0.69% shares buy with a $355 price target.
Costco Wholesale Corp. reported a 4.5% increase in U.S. comparable traffic and sales growth in July even as other retailers saw a deceleration, a result that analysts say was aided by its more affluent customer base.
Here’s what it means for retail JPMorgan rates Costco shares overweight with a $365 price target, up from $333.
The job markets in the US is a concern, and if the NFP data releases today shows an adverse number, the rally in gold and silver prices will gain momentum.
Gold at lifetime highs in the international as well as domestic markets, the momentum is here to continue unless there are green shoots of recovery in the global economy.
Prathamesh Mallya, AVP – Research Non-Agri Commodities and Currencies, Angel Broking Ltd, says that it is wrong to time the gold market as there is no right or wrong time to make an investment in the yellow metal.
As gold prices are at multi-year highs in both domestic and international markets, investors wanting to invest in yellow metal are in two minds on whether they should invest or wait for some correction to happen.
Since gold constitutes the major imports for the Indian economy and the major outflow of foreign currency, the gold bond scheme introduced by the Government of India will be key for the investors who want to diversify their portfolio in gold.
A global ‘bioeconomy’ driven, at least partly, by biology-based production is perhaps only a decade away, according to John Cumbers, a Silicon Valley investor and former synthetic biologist at NASA’s Ames Research Center.
A number of Smart Cell Project-funded labs, including a biofoundry at the Engineering Biology Research Center at Kobe University, will help address this by speeding up proof-of-concept work for companies.
Satoru Kuhara, who works for the Japanese innovation funder, the New Energy and Industrial Technology Development Organization (NEDO), leads the Smart Cell Project.
Tomohisa Hasunuma, who leads microbial research for one of Japan’s largest biotechnology research efforts, the Smart Cell Project, says its long history with fermentation puts Japan in a leading position for the chemistry of the future: engineering plants and microbes to produce the base materials for everything from drugs to fuels, a major goal in the field of synthetic biology.
The Kobe-based biofoundry is filled with new, automated research tools that have been in development since 2016 through the Smart Cell Project.
Howard Archer, an economist with EY Item Club, said the BoE probably felt it could stick with its plan to stretch the latest 100 billion-pound increase of its bond-buying programme until around the end of the year, when another expansion was likely.
Some economists think it could be years before the economy returns to its previous size.
Britain's budget forecasters say unemployment will probably jump to 12% by the end of the year, three times its most recent rate and higher than the BoE's estimate in May.
In May the MPC said the world's sixth-biggest economy might get back to its pre-pandemic size in the second half of next year, but since then the signs of recovery have been mixed.
While COVID-19 has forced policymakers around the world into emergency action, Britain faces the extra risk of a Brexit shock when a no-change period for its trade with the European Union expires at the end of 2020.
“Tourism activities tend to be labour intensive and this data shows the impact of the bushfires and the early stages of COVID-19 on the tourism industry,” she said.
According to the ABS, the economy lost 21,000 tourism jobs, with accommodation positions dropping 12.4 per cent from December 2019 to March 2020.
While tourism jobs fell, economy-wide jobs rose 1.7 per cent over the same period.
Latest figures from the Australian Bureau of Statistics shows tourism-filled jobs for the year ending March 31 fell 3 per cent compared with the same period in 2019, capturing the impact of summer’s devastating bushfire season and the initial lockdown imposed due to the coronavirus pandemic.
Tourism has taken a massive blow with the latest figures showing job losses within the sector have plunged at a rate much faster than the rest of the economy due to raging bushfires and the initial onset of COVID-19.
Traders know that a second stimulus package will be approved, and perhaps this could be the factor that took the kink out of the Initial Jobless Claims data as well.
Having said that, Dow Jones isn’t likely to pick up more steam, as stock traders want to see a number of readings before they can say definitely that the U.S. jobs market is back on the path to recovery.
U.S. Initial Jobless Claims fall to 1.1 million while the Continuing Claims dropped to 16.1 million AvaTrade, Bloomberg Dow Jones Off its Low Stock traders are hopeful that economic recovery is taking place and that the U.S. data is not going in the wrong direction as it has done over the past two weeks.
U.S. Jobless Claims Data The U.S. Initial Jobless Claims number was a lot more optimistic today when compared to the previous reading.
(Photo by Johannes EISELE / AFP) (Photo by JOHANNES EISELE/AFP via Getty Images) AFP via Getty Images The Dow Jones and SP futures bounced off from their lows on the back of today’s U.S. Initial Jobless Claims data.
The weak level of employment in the ISM’s manufacturing and service surveys signals that U.S. employment growth in July is likely to soften after big gains in June and May.
Some companies had to lay off or furlough workers again last month in states such as California where business restrictions were reimposed to slow the latest outbreak of the virus.
The Institute for Supply Management’s index of nonmanufacturing companies edged up to 58.1% last month from 57.1% in June.
The numbers: Retailers, health-care providers and most other service-oriented businesses expanded in July for the second month in a row, suggesting the economy showed more resilience than expected even after a spike in coronavirus cases caused many states to reimpose restrictions.
Wave of rehiring after economy reopened to fade in July after viral spiral Big picture: The service side of the economy employs more than 80% of all American workers.
The DOE loan guarantee program (comprising three parts: Section 1703 as created by the Energy Policy Act of 2005, the Advanced Technology Vehicles Manufacturing Direct Loan Program created by the Energy Independence and Security Act of 2007, and Section 1705 as created in the American Recovery and Reinvestment Act of 2009) is broken down by technology sector, including nuclear, fossil, and renewables, and was initially created as a means to enable new projects and technologies to access project financing and reach financial close.
The DOE loan program is profitable today, even with these failures, and its efforts have jumpstarted new sectors of the economy, creating many thousands of jobs.
Critics of the Department of Energy (DOE) loan guarantee program have pointed to the project, and other failures such as Solyndra and Fisker, as evidence that the program is a poor use of taxpayer funds.
The U.S. Department of Energy loan guarantee program supports project with capital to enable project ... [+] finance.
Another prime example: Commercial solar in the U.S. had produced zero projects greater than 100 MW prior to the DOE loan program.
Orders for non-durable goods such as oil, chemicals and textiles and advanced 5%, the Commerce Department said.
Read:Manufacturers expand for 3rd straight month, but not all the jobs are coming back What happened: Orders for durable goods rose a revised 7.6% in July, the government said Tuesday, a bit higher than the initially reported 7.3% increase.
The numbers: U.S. factory orders rose 6.2% in June to mark the second increase in a row, pointing to a steady rebound after widespread shutdowns in the early stages of the pandemic.
Read: Economy suffers titanic 32.9% plunge in 2nd quarter, points to drawn-out recovery Also:‘A massive welfare economy’ - federal aid prevents even steeper GDP collapse Market reaction: The Dow Jones Industrial Average DJIA, +0.61% and SP 500 SPX, +0.36% rose modestly in Tuesday trades.
U.S. stocks received an additional lift from Microsoft, which jumped 5.6% after it formally declared interest in buying the U.S. operations of TikTok, a popular video-sharing app owned by Chinese tech company ByteDance.
On Monday the Dow Jones Industrial Average rose 0.89%, the SP 500 gained 0.72%, and the Nasdaq Composite advanced 1.47% to set a record closing high as investors cheered the manufacturing data.
U.S. stock futures were 0.02% lower.
TOKYO/WASHINGTON: Asian shares rose on Tuesday after strong U.S. manufacturing data and gains in tech stocks helped investors look past broader worries about the coronavirus and global economy.
U.S. crude dipped 0.68% to $40.73 a barrel, while Brent crude fell 0.75% to $43.82 per barrel due to worries about extra supply coming to market.