Real Time Economics: U.S., Canada Try Again On Nafta | American Factories Are Humming | Amazon Tops $1 Trillion

This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here. Good morning. Today we look a the latest on Nafta talks, the U.S. manufacturing boom, clouds on the horizon for automakers, Australia’s 27-year economic expansion, and Amazon’s membership in an exclusive club. YO, CANADA The U.S. and Canada are going to try to salvage the North American Free Trade Agreement this week. Canadian Foreign Minister Chrystia Freeland and U.S. Trade Representative Robert Lighthizer meet in Washington to try to bridge differences on a range of issues and maintain three countries in an updated pact, Paul Vieira and William Mauldin write. The pressure is on Canada: The U.S. and Mexico already agreed to terms, and the Trump administration is threatening more tariffs. Members of Congress want Canada to stay in the pact. Mexico wants Canada to remain. Canada Continue reading "Real Time Economics: U.S., Canada Try Again On Nafta | American Factories Are Humming | Amazon Tops $1 Trillion"

Real Time Economics: Dollar Strengthens as Turkey’s Troubles Rattle Currency Markets

This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here. Good morning! Today we look at a wild ride for currency markets, the economic outlook for the U.S., U.K. and Japan, and one high-class problem for a resurgent manufacturing sector—American factories are running short of parts. CURRENCY CRASH The dollar rose to its strongest point in more than a year while Turkey’s lira, Russia’s ruble and other currencies tumbled. Turkey: The lira has lost more than 20% over the week as international markets soured on the country’s capacity to repay its foreign-currency debts. Concerns about the health of Turkey’s financial system are rippling through global markets, Mike Bird writes.
Russia: U.S. sanctions roiled Russia’s currency and blue-chip stocks. Since 2014, Western sanctions have taken a severe toll on Russia’s economy, wiping out half of the ruble’s value, Continue reading "Real Time Economics: Dollar Strengthens as Turkey’s Troubles Rattle Currency Markets"

Real Time Economics: The U.S. Has More Job Openings Than Unemployed; Tariffs Take a Toll On Small Business

This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here. Good morning! Today we look at a record number of job openings in the U.S., small businesses struggling with tariffs while the Trump administration readies round two for China, a speed bump for the revised U.S.-South Korea trade pact, and the long-lost Phillips curve’s reemergence in … Japan.  READY, AIM, HIRE Unfilled jobs are piling up across the U.S. economy. U.S. job openings reached 6.7 million last quarter, the highest level on record, as an expanding economy demands more workers and a historically low unemployment rate means fewer are available. The situation is particularly acute in the transportation, retail and business-services sectors, Eric Morath and Jennifer Smith report.
Case study: Scotlynn Group is turning down work for lack of employees. The Fort Myers, Continue reading "Real Time Economics: The U.S. Has More Job Openings Than Unemployed; Tariffs Take a Toll On Small Business"

Real Time Economics: $500B In Tariffs on Chinese Goods? ‘Definitely a Realistic Possibility’

This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here. Good morning! Today we look at the Trump administration’s frustration with the Fed and China, U.S. industrial policy, how manufacturers are getting squeezed by rising costs, China’s tech catch-up, freezers full of meat, and why there aren’t enough caregivers for the elderly.  TARGET: THE FED, CHINA Last week ended with a bang. President Donald Trump signaled for a second straight day his frustration with the Federal Reserve’s policy of gradually raising interest rates, and then said he was prepared to impose U.S. tariffs on $500 billion worth of imports from China as part of his push to narrow U.S. trade deficits. The tough comments suggest the president could continue to escalate a feud with the Fed and take aim at currency markets, Nick Timiraos reports. Earlier in Continue reading "Real Time Economics: $500B In Tariffs on Chinese Goods? ‘Definitely a Realistic Possibility’"

Apple Betting Big on Production of Forthcoming iPhones, Says BlueFin

Apple is ramping up production of forthcoming iPhone models to what would be higher levels than ever before produced, write analysts with BlueFin Research Partners. That implies a confidence on Apple's part that three new models will induce customers who sat out the iPhone X, thereby boosting upgrade rates.

Wait, Tesla’s Model 3 Numbers Don’t Matter?

Tesla bull Pierre Ferragu of New Street Research doesn't really care what Tesla reports next week in terms of production numbers for its Model 3, as obsessing over such metrics are a bit of distraction from the long-term point of the company's mission, he writes.

Tech Today: Apple’s Other Stuff, Tesla’s Numbers, Domo’s IPO

Apple's planning to dump the "SE" low-priced iPhone model according to boutique research house BlueFin, and Apple's business can thrive based on lots of little innovations like the AirPods according to RBC Capital, Tesla's employees are speculating the company will miss its production target but one bullish analyst thinks it doesn't matter much, the IPO of software vendor Domo jumps 20% on debut, Amazon's PillPack buy causes a wave of price target cuts on the pharmacy stocks while its moves in the delivery business shouldn't be much of a worry to Fedex and UPS.

Tech Today: Google vs Amazon, Buying Tesla, Lattice’s Turnaround

Amazon's acquisition of pharmacy startup PillPack freaks out pharmacy stocks while its offer to help start small delivery businesses could be key to Whole Foods' expansion, Alphabet's Google needs to give away its home speaker to combat Amazon according to Morgan Stanley analyst Brian Nowak, now is the time to buy Tesla stock ahead of next week's Model 3 numbers according to Baird's Brian Kallo, T-Mobile's chances of getting Sprint are looking a little better to Wells Fargo's Jennifer Fritzsche, Lattice semiconductor may bounce back with new management and activist input thinks Dougherty's Charles Anderson, Square is no Amazon so says SunTrust, Twilio has a brilliant opportunity according to Argus, and Apple is set to see its supplies of OLED displays for iPhone expand according to Bloomberg.

Tech Today: Apple Suppliers Rocked, Stitch Fix Soars, Snap a Work in Progress

Shares of Cirrus Logic, Skyworks Solutions and other Apple suppliers drop on word the iPhone may see 20% lower production rates this year compared to last, Snap is a work in press according to Aegis Capital's Victor Anthony, Verizon names a new CEO, PayPal has expanding opportunities with Visa and MasterCard collaborations, the chorus is rising about slowing sales of chip equipment, and the market for storage equipment using flash-based storage is on fire accordion to Morgan Stanley's Katy Huberty.