Fitch has highlighted a large general government (GG) deficit in 2023, accounting for 8.8% of GDP in 2023, which the credit agency expects to fall to 8% in 2024 due to rising revenue growth and slashed government spending. “The interest burden, however, will continue to grow given the higher debt burden and impact of higher rates”, Fitch explained, suggesting that a declining GG deficit will not prove to be the entire solution to stunted economic growth.

Looking forward, the credit agency views the upcoming US presidential elections in November as a vital driver of the country’s economic trajectory given potential changes in policymaking.

The post Fitch Maintains AA+ Rating for U.S. Amid Stable Outlook appeared first on theprimarymarket.com.

Consumer spending from July to September rose at an annual rate of 3.6%, with private investment surging by 10.5% annually while housing investment saw a 6.2% rise on a yearly basis, thereby defying a steep rise in mortgage rates. The economy was also bolstered by companies boosting their inventories in anticipation of rising sales.

Despite this positive economic growth, the Organization for Economic Cooperation and Development forecasted that the U.S. economy will grow by just 1.5% in 2024, down from the 2.4% expansion in 2023. This is particularly unexpected given that 2023 saw the Federal Reserve extend its steep interest rate rises, marking 11 increases since March 2022.

The post U.S. GDP Growth Hits 5.2% in Third Quarter appeared first on theprimarymarket.com.

“It is hard to disagree with the rationale, with no reasonable expectation for fiscal consolidation any time soon,” Christopher Hodge, chief economist for the U.S. at Natixis, said of Moody’s decision. Hodge added that as interest rates continue to rise, they will pile up the government’s debt.

Moody’s is the last of the three major rating agencies to downgrade its credit rating for the U.S. government. Fitch lowered its rating from triple-A to AA+ in August, while S&P’s AA+ rating has stood since 2011.

The post Moody’s Lowers U.S. Credit Rating to Negative appeared first on theprimarymarket.com.

Upon surveying a panel of economists, Bloomberg found that the nation’s gross domestic product is projected to grow at 4.3% year-over-year. This would show that the U.S. remains economically strong while Europe and China continue to stagnate.

Personal consumption is expected to grow at a 4% rate, showing consumer resilience despite two years of high interest rates in the face of persistent inflation. Such promising economic data does look likely to convince the Fed to extend its tight fiscal policy, Fed Chair Jerome Powell admitted.

“Additional evidence of persistently above-trend growth, or that tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy, Powell explained.

The post Latest Data Expected to Show Continued U.S. Economic Strength appeared first on theprimarymarket.com.

“I don’t see any signs that the economy is at risk of a downturn,” Yellen explained, taking note of the strong labor market as well as cooling inflation. “There’s absolutely no reason for a shutdown,” she advised, adding that “Creating a situation that could cause a loss of momentum is something we don’t need as a risk at this point.”

Although a strong labor market is seldom conducive to suppressing inflation, Yellen explained that because it is cooling, the labor market is providing room for inflation to decline to the Federal Reserve’s 2% target.

The post U.S. Treasury Secretary Confirms That U.S. Economy is Not Facing Downturn appeared first on theprimarymarket.com.

Measuring the dollar against a basket of major currencies, the Bloomberg Dollar Index jumped 0.5% on Tuesday, bringing the index’s rise since mid-July to 4.5%. Given the recent trajectory of the US economic landscape, Goldman Sachs Group Inc. decided to lower its likelihood of an incoming US recession from 20% to 15%.

Simon Harvey, head of FX analysis at Monex Europe, explained that “the two main drivers of dollar strength, which are higher yields, and weak growth conditions outside of the US have been thrust straight back into the limelight.”

The post Dollar Surges to Five-Month High Following Positive US Economic Data appeared first on theprimarymarket.com.

Nomura Securities strategist Maki Sawada has forecast the Nikkei to remain in a range of 32,000-33,000 this week, however, explaining that key economic indicators this week may be directed at curbing aggressive buying of Japanese stocks. “It’s an environment conducive to fostering concerns the market is overbought, considering how far it’s come over a short amount of time,” Sawada observed.

Transportation stocks enjoyed a rampant rise on Monday, with Mazda jumping 4.14%, Nissan gaining 3.64%, and Toyota rising 3.1%. Overall, transport equipment makers made the TSE’s top three, gaining 2.78% on a whole.

The post Japanese Stocks Rise Amid US Optimism appeared first on theprimarymarket.com.

Should the Fed decide to continue hiking rates while central banks across the rest of the world loosen their fiscal policies, U.S. economic divergence could have a ripple effect on global economies. International Monetary Fund chief economist Pierre-Olivier Gourinchas explained that if this indeed transpires, “Then you see a big increase in the risk premia in different asset classes including emerging markets, including the rest of the world. The risk of a financial tightening, a very sharp financial tightening, I think we cannot rule that out.”

Should inflation data and the labor market continue to show signs of easing as expected, the current forecast of another quarter percentage hike by the Federal Reserve may be realized.

The post Persistent U.S. Economic Growth Poses Global Risk appeared first on theprimarymarket.com.

The company is looking to expand its target audience by bundling access to news reports and articles with other products such as podcasts, games, and product recommendations. Furthermore, it seeks to maintain reader interest by encouraging subscribers who were attracted to the news outlet through promotions to upgrade to bundle deals, thereby increasing their payments.

With a goal of reaching 15 million subscribers by 2027, the NYT added 180,000 new subscribers during the second quarter. 190,000 new subscribers were gained during the first quarter.

Demand for advertising spots is rising as companies become more willing to increase their ad spend upon making an economic rebound. The company’s ad revenue of  $590.9 million for the second quarter outpaced its first-quarter result of $580.5 million.

The post “New York Times” Q3 Revenue Forecast Ahead of Estimates appeared first on theprimarymarket.com.

Markets are betting that Friday’s report will show that 200,000 payrolls were added in July, with unemployment holding steady at a historic low of 3.6%. Hourly pay rates are also expected to have cooled, indicating a slowdown in inflation.

On the back of a consistent inflow of positive economic data, Federal Reserve Chair Jerome Powell claimed that economists at the central bank are no longer convinced that a recession is likely to hit the United States in 2023.

Conditions in the US are contrary to those in Europe, where European Central Bank head Christine Lagarde commented that the economic situation in the eurozone has “deteriorated.” China’s economic outlook also appears bleak amid the country’s sluggish post-pandemic recovery.

A steady labor market has been the key cause of the Fed’s decision to uphold its interest rate hiking agenda. Because the government’s job opening data for June on Tuesday is expected to show a fifth straight monthly decline, markets are raising bets that the Fed’s aggressive rate hiking campaign is nearing its end.

The post US Economy Expected to Show Stability in Upcoming Jobs Data appeared first on theprimarymarket.com.

Fitch has highlighted a large general government (GG) deficit in 2023, accounting for 8.8% of GDP in 2023, which the credit agency expects to fall to 8% in 2024 due to rising revenue growth and slashed government spending. “The interest burden, however, will continue to grow given the higher debt burden and impact of higher rates”, Fitch explained, suggesting that a declining GG deficit will not prove to be the entire solution to stunted economic growth.

Looking forward, the credit agency views the upcoming US presidential elections in November as a vital driver of the country’s economic trajectory given potential changes in policymaking.

The post Fitch Maintains AA+ Rating for U.S. Amid Stable Outlook appeared first on theprimarymarket.com.

Consumer spending from July to September rose at an annual rate of 3.6%, with private investment surging by 10.5% annually while housing investment saw a 6.2% rise on a yearly basis, thereby defying a steep rise in mortgage rates. The economy was also bolstered by companies boosting their inventories in anticipation of rising sales.

Despite this positive economic growth, the Organization for Economic Cooperation and Development forecasted that the U.S. economy will grow by just 1.5% in 2024, down from the 2.4% expansion in 2023. This is particularly unexpected given that 2023 saw the Federal Reserve extend its steep interest rate rises, marking 11 increases since March 2022.

The post U.S. GDP Growth Hits 5.2% in Third Quarter appeared first on theprimarymarket.com.

“It is hard to disagree with the rationale, with no reasonable expectation for fiscal consolidation any time soon,” Christopher Hodge, chief economist for the U.S. at Natixis, said of Moody’s decision. Hodge added that as interest rates continue to rise, they will pile up the government’s debt.

Moody’s is the last of the three major rating agencies to downgrade its credit rating for the U.S. government. Fitch lowered its rating from triple-A to AA+ in August, while S&P’s AA+ rating has stood since 2011.

The post Moody’s Lowers U.S. Credit Rating to Negative appeared first on theprimarymarket.com.

Upon surveying a panel of economists, Bloomberg found that the nation’s gross domestic product is projected to grow at 4.3% year-over-year. This would show that the U.S. remains economically strong while Europe and China continue to stagnate.

Personal consumption is expected to grow at a 4% rate, showing consumer resilience despite two years of high interest rates in the face of persistent inflation. Such promising economic data does look likely to convince the Fed to extend its tight fiscal policy, Fed Chair Jerome Powell admitted.

“Additional evidence of persistently above-trend growth, or that tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy, Powell explained.

The post Latest Data Expected to Show Continued U.S. Economic Strength appeared first on theprimarymarket.com.

“I don’t see any signs that the economy is at risk of a downturn,” Yellen explained, taking note of the strong labor market as well as cooling inflation. “There’s absolutely no reason for a shutdown,” she advised, adding that “Creating a situation that could cause a loss of momentum is something we don’t need as a risk at this point.”

Although a strong labor market is seldom conducive to suppressing inflation, Yellen explained that because it is cooling, the labor market is providing room for inflation to decline to the Federal Reserve’s 2% target.

The post U.S. Treasury Secretary Confirms That U.S. Economy is Not Facing Downturn appeared first on theprimarymarket.com.

Measuring the dollar against a basket of major currencies, the Bloomberg Dollar Index jumped 0.5% on Tuesday, bringing the index’s rise since mid-July to 4.5%. Given the recent trajectory of the US economic landscape, Goldman Sachs Group Inc. decided to lower its likelihood of an incoming US recession from 20% to 15%.

Simon Harvey, head of FX analysis at Monex Europe, explained that “the two main drivers of dollar strength, which are higher yields, and weak growth conditions outside of the US have been thrust straight back into the limelight.”

The post Dollar Surges to Five-Month High Following Positive US Economic Data appeared first on theprimarymarket.com.

Nomura Securities strategist Maki Sawada has forecast the Nikkei to remain in a range of 32,000-33,000 this week, however, explaining that key economic indicators this week may be directed at curbing aggressive buying of Japanese stocks. “It’s an environment conducive to fostering concerns the market is overbought, considering how far it’s come over a short amount of time,” Sawada observed.

Transportation stocks enjoyed a rampant rise on Monday, with Mazda jumping 4.14%, Nissan gaining 3.64%, and Toyota rising 3.1%. Overall, transport equipment makers made the TSE’s top three, gaining 2.78% on a whole.

The post Japanese Stocks Rise Amid US Optimism appeared first on theprimarymarket.com.

Should the Fed decide to continue hiking rates while central banks across the rest of the world loosen their fiscal policies, U.S. economic divergence could have a ripple effect on global economies. International Monetary Fund chief economist Pierre-Olivier Gourinchas explained that if this indeed transpires, “Then you see a big increase in the risk premia in different asset classes including emerging markets, including the rest of the world. The risk of a financial tightening, a very sharp financial tightening, I think we cannot rule that out.”

Should inflation data and the labor market continue to show signs of easing as expected, the current forecast of another quarter percentage hike by the Federal Reserve may be realized.

The post Persistent U.S. Economic Growth Poses Global Risk appeared first on theprimarymarket.com.

The company is looking to expand its target audience by bundling access to news reports and articles with other products such as podcasts, games, and product recommendations. Furthermore, it seeks to maintain reader interest by encouraging subscribers who were attracted to the news outlet through promotions to upgrade to bundle deals, thereby increasing their payments.

With a goal of reaching 15 million subscribers by 2027, the NYT added 180,000 new subscribers during the second quarter. 190,000 new subscribers were gained during the first quarter.

Demand for advertising spots is rising as companies become more willing to increase their ad spend upon making an economic rebound. The company’s ad revenue of  $590.9 million for the second quarter outpaced its first-quarter result of $580.5 million.

The post “New York Times” Q3 Revenue Forecast Ahead of Estimates appeared first on theprimarymarket.com.

Markets are betting that Friday’s report will show that 200,000 payrolls were added in July, with unemployment holding steady at a historic low of 3.6%. Hourly pay rates are also expected to have cooled, indicating a slowdown in inflation.

On the back of a consistent inflow of positive economic data, Federal Reserve Chair Jerome Powell claimed that economists at the central bank are no longer convinced that a recession is likely to hit the United States in 2023.

Conditions in the US are contrary to those in Europe, where European Central Bank head Christine Lagarde commented that the economic situation in the eurozone has “deteriorated.” China’s economic outlook also appears bleak amid the country’s sluggish post-pandemic recovery.

A steady labor market has been the key cause of the Fed’s decision to uphold its interest rate hiking agenda. Because the government’s job opening data for June on Tuesday is expected to show a fifth straight monthly decline, markets are raising bets that the Fed’s aggressive rate hiking campaign is nearing its end.

The post US Economy Expected to Show Stability in Upcoming Jobs Data appeared first on theprimarymarket.com.