BREAKING NEWS...
Wholesale Prices Moderate In April (5/20)
“Wholesale prices rose a smaller-than-expected 0.2% in April after gasoline prices sank, government data showed on Tuesday, but core inflation at the producer level posted a larger advance.” Determine what category of “finished goods” helped to moderate whole prices in April (PPI). Assess if wholesale prices are trending up or down (Trend). Discuss how commodity – food and energy – prices may continue to affect prices in the economy (Data & Analysis).
RECENT NEWS...
Companies Give Billions To Start Ups (5/19)
“Looking past the economic downturn, big companies are charging back into venture capital, seeking new technology and teaming with start-ups and venture firms.” Assess how much venture capitalists invested in startups during the first quarter of this year (Investments). Discuss why venture capital growth tends to be organic in nature (Data). Examine how new ventures and their entrepreneurs help to generate jobs and growth the economy (Famous Entrepreneurs).
Leading Indicators Signal Slow Growth (5/19)
“The Conference Board announced today that the U.S. leading index increased 0.1 percent, the coincident index remained unchanged and the lagging index increased 0.1 percent in April.” Identify what emerging factors may have increased the leading index for the past two months (Index). Discuss why some economists believe the economy may avoid a recession this year (Analysis). Explore how stock markets and consumer expectations may influence the economy in the coming months (Research).
Worker Productivity Up At 2.2% Rate In Q1 (5/07)
“The Bureau of Labor Statistics of the U.S. Department of Labor today reported preliminary productivity data--as measured by output per hour of all persons--for the first quarter of 2008. ” Examine Q1 labor productivity measures. Discuss why analysts read the “bigger-than-expected” rise in productivity as a good sign that inflation pressures are remaining under control (Analysis). See how companies like Productivity Inc. can help to boost productivity (Productivity). Compare how US productivity rate or GDP per hour worked compare against other OECD economies (Comparison & Table 2).
It Costs More Than APenny To Make A Penny (5/06)
“Further evidence that times are tough: It now costs more than a penny to make a penny. And the cost of a nickel is more than 7 cents.” Examine the composition of each coin produced by the U.S. Mint (Composition). Discuss how rising commodity prices may affect the production costs of minting coins (Prices). Examine how many coins are in circulation (Coins). Assess if there is a positive or negative seignorage (Dictionary).
US Sheds Less Jobs Than Expected(5/02)
“Nonfarm payroll employment changed little in April (-20,000), following job losses in the first quarter that averaged 80,000 per month.” Examine April Employment Situation summary (Summary). Determine how many Americans are currently out of work (Unemployed). Discuss if April’s “less-than-expected” job losses are the harbinger of a new, positive trend or a monthly pause in the larger losses from earlier this year (Trend, Analysis & Forecast).
Fed Shaves 1/4-Point Off Rates (4/30)
“The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 2 percent.” Discuss why the Fed reduced its target for short-term rates for the seventh time since September (Analysis). Examine how short-term rates may affect long-term rates (Rates). Discuss why the “steepness of the yield curve” may be an excellent indicator of a possible future recession (Yield Curve & Research).
Sam’s Club Limits Rice Purchases (4/23)
“We currently have plenty of rice for Sam's Club Members. However, like our competitors, we're just taking the precautionary step of limiting sales of the very large 20 pound bags… ” Examine the current rice supply situation (Supply)? Discuss why rice prices are increasing globally (Prices). Review the current forecast for food prices for the remainder of this year (Forecast). Discuss how high food and energy prices may be affecting consumer confidence (Select – Press Release).
Real Estate Agents Courting Foreigners (4/23)
“Real estate agents are increasingly courting foreigners to buy homes in the USA — hiring agents fluent in other languages…” Examine how much the U.S. dollar has depreciated during the past few years (Depreciation). Learn what steps by realtors to court foreigners (Steps). Assess the U.S. Current-Account balance (Balance). Discuss how low U.S. rate of savings rates may be fueling more foreign investments (TIC).
Consumer Prices Up Less Than Expected (4/16)
“The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9 percent in March, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.” Review the March Consumer Price Index Summary information. Discuss how higher energy prices are affecting consumer prices (Analysis). Assess how core US CPI inflation is performing (Core). Examine how the rising cost of food is felt around the world (Food). What may happen if inflation becomes out of control (Hyperinflation)?
Tax Rebate Stimulus (4/14)
“Rob Karas, 39, of Haymarket, Va., expects to receive a tax rebate of $2,400 this spring.” Examine the facts associated with the Economic Growth Act of 2008 (Facts). Discuss how tax rebates may help to stimulate the slowing economy (Stimulus). Assess the current public budget deficit (Debt). Discuss how short term fiscal stimuli may affect the economic performance in the long run (Economy).
GE Reports Unexpected 6% Profit Drop (4/11)
“GE announced today first quarter 2008 earnings from continuing operations of $4.4 billion with $.44 per share, down 8% from first quarter 2007. ” Determine what economic factors affected GE’s first quarter financial performance (Analysis). Examine why GE was considered to be one for the best stocks for 2008 (GE). Assess how GE’s first quarter 2008 earnings report has affected its stock price (Stock). Assess how deteriorating economic conditions may affect GE’s financial performance during the remainder of this year (Presentation).
IMF Global Economic Outlook (4/11)
“The global expansion is losing speed in the face of a major financial crisis. The slowdown has been greatest in the advanced economies, particularly in the United States…” View the IMF’s outlook for the global economy (Video). Examine how different parts of the global economy are forecasted to perform this year (Forecasts). Discuss what steps can be taken by financial officials to restore confidence in the global economy (Action & Analysis).
2002 Deflation Fears Helped Drive Down Rates (4/11)
“Just-released transcripts show the Federal Reserve was worried about the threat of deflation when it decided to cut a key interest rate by a half point in November 2002.” Survey the January 2002 Federal Open Market Committee meeting transcript (Transcript). Discuss why deflation can have negative effects on the economy (Deflation). Examine when was the last time the consumer prices declined in the US (Decline).
Large Job Losses In March (4/04)
“U.S. Secretary of Labor Elaine L. Chao issued the following statement on the March employment situation report released today: “Today’s report of negative job growth in March shows that the challenges in the housing market and financial sector continue to impact the economy.” Examine the March employment situation report (Report) and discuss which groups are affected more by a worsening employment situation (Analysis). Determine if the nation’s job market appears solidly in recession (Market).
Fed Chief Bernanke Defends Bear Stearns Deal (4/02)
“ Federal Reserve Chairman Ben Bernanke said Wednesday that the economy could fall into recession, as housing and financial markets remain distressed despite dramatic Fed interest rate cuts and emergency lending.” Look over the proposed Bear Stearns deal (Deal). Discuss how write-downs of mortgage inventory net of “hedges” affected Bear Stearns’ earnings and cash flow (Earnings). Examine how Bear Stearns’ stock performed in response to the write-downs (Stock). Read why the Fed supported the proposed Bear Stearns deal (Testimony).
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