Real Time Economics: Trump Eases Tensions with China, Ratchets Up Pressure on Fed


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It’s Fed day! The central bank is under unusal pressure as it considers cutting rates, U.S.-China trade talks are back on track and American employers are getting stingier with bonuses. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

Trump and Xi to Meet

President Trump and Chinese President Xi Jinping agreed to meet in Japan next week, lifting financial markets and spurring hopes for a trade truce, Vivian Salama, William Mauldin and Josh Zumbrun report. Both sides are under pressure to get back to the bargaining table.

Real Time Economics: The Fed Weighs a Rate Cut and the White House Considers a Tariff Increase


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The U.S. Trade Representative opens hearings on new China tariffs, the Fed has a tough task on communication this week and corporate bond investors don’t seem too worried about the economy. Good morning. Jeff Sparshott here to take you through the day’s economic news. Send us your questions, comments and suggestions by replying to this email.

Like a Good Neighbor

The Federal Reserve usually cuts interest rates because bad things are happening. Sometimes, though, it cuts rates because the risk of bad things has gone up—like taking out an insurance policy, Nick Timiraos writes.

Real Time Economics: U.S. and China Talk Tough on Trade


This post is by Jeffrey Sparshott from Real Time Economics


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U.S. consumer spending and industrial production numbers are in focus this morning, the White House is threatening consequences if China’s president doesn’t meet with President Trump, and Washington has learned to love debt. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

Trade or Consequences

The White House’s top economic adviser said President Trump could take further action against China if President Xi Jinping doesn’t agree to a meeting at the Group of 20 summit in Japan later this month, William Mauldin reports.

Real Time Economics: Low Inflation Could Allow the Fed to Cut Rates. But Should It?


This post is by Jeffrey Sparshott from Real Time Economics


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Low inflation gives the Fed space to cut interest rates, the U.S. budget deficit is ballooning, and investors are wary of big Western economies. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

No Price Pressure

U.S. inflation slowed in May, restrained by weakening price pressures almost across the board. The consumer-price index, which measures what Americans pay for household goods and services, rose just 1.8% from a year earlier despite a strong labor market and moderate wage gains. The report is the last broad look at inflation before Federal Reserve officials meet Tuesday and Wednesday. Policy makers are debating whether to cut interest rates to bolster a Continue reading “Real Time Economics: Low Inflation Could Allow the Fed to Cut Rates. But Should It?”

Real Time Economics: U.S.-China Tensions Spread Across the Economy


This post is by Jeffrey Sparshott from Real Time Economics


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U.S. inflation numbers are out today, Chinese money is suddenly toxic in Silicon Valley, and students in Jersey City are getting a chance to earn free college and a $70,000 a year job. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

U.S.-China Tensions Hitting Silicon Valley

The Chinese cash that powered Silicon Valley is suddenly toxic. Since late last year, venture firms with China ties have been dialing back their U.S. investments, structuring deals to avoid regulators or shutting their U.S. offices. Some American venture firms are dumping their Chinese limited partners and some U.S. startups are trying to push their Chinese investors out to Continue reading “Real Time Economics: U.S.-China Tensions Spread Across the Economy”

Real Time Economics: U.S.-China Tensions Spread Across the Economy


This post is by Jeffrey Sparshott from Real Time Economics


Click here to view on the original site: Original Post




This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here.

U.S. inflation numbers are out today, Chinese money is suddenly toxic in Silicon Valley, and students in Jersey City are getting a chance to earn free college and a $70,000 a year job. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

U.S.-China Tensions Hitting Silicon Valley

The Chinese cash that powered Silicon Valley is suddenly toxic. Since late last year, venture firms with China ties have been dialing back their U.S. investments, structuring deals to avoid regulators or shutting their U.S. offices. Some American venture firms are dumping their Chinese limited partners and some U.S. startups are trying to push their Chinese investors out to Continue reading “Real Time Economics: U.S.-China Tensions Spread Across the Economy”

Real Time Economics: Just How Tight Is the Labor Market?


This post is by Jeffrey Sparshott from Real Time Economics


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The number of U.S. job openings has outpaced the number of unemployed for 14 straight months, the Fed is trying not to listen to the president, and gasoline prices are falling just in time for a trip to the beach. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

Career Opportunities

The number of job openings exceeded the number of unemployed Americans by the largest margin on record in April, signaling difficulty finding workers in a tight market, Sarah Chaney reports.

Real Time Economics: Who Will Trump Threaten With Tariffs Next?


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The South’s low-tax, low-wage economic strategy is faltering, a top Trump official wants a reprieve for Huawei, and some states are starting to remove one big obstacle to a more mobile labor force. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

The South Isn’t Rising Anymore

The American South spent much of the past century trying to overcome its position as the country’s poorest and least-developed region, with considerable success: By the 2009 recession it had nearly caught up economically with its northern and western neighbors, Sharon Nunn reports.

Real Time Economics: Employers Tap the Brakes


This post is by Jeffrey Sparshott from Real Time Economics


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The May employment report wasn’t pretty. The U.S. added just 75,000 jobs and the prior two months were revised down by a combined 75,000. Investors may expect the softer jobs data, alongside some other so-so economic indicators and heightened global trade tensions, to push the Federal Reserve toward cutting interest rates. Jeff Sparshott and Greg Ip here to take you through some of the numbers.

A Reason to Worry, a Little

May’s surprisingly soft 75,000 rise in nonfarm payrolls is, fundamentally, fine: it’s about what the U.S.’s slow-growing population can sustain over the long run. Claims for unemployment insurance and confidence surveys point to solid labor demand inconsistent with a recession. Yet there are reasons to worry, a little:

Real Time Economics: Will Trump Really Impose Tariffs on Mexico?


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President Trump says tariffs on Mexico start Monday, Greg Ip likens a full-scale trade war to 1973’s Arab oil embargo, and a 50-year low for unemployment masks deep structural changes in the labor market. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

Across-the-Board Tariffs

President Trump said 5% tariffs on goods from Mexico will start Monday unless the two sides come closer to a deal on immmigration, Josh Zumbrun, Louise Radnofsky and Juan Montes report.

Real Time Economics: Fed Promises to Ride to the Rescue


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The Fed wants the expansion to keep going and going and going, employers need to draw more workers off the labor market’s sidelines, and China is warning its citizens away from visiting the U.S. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

Fed to Markets: We Got Your Back

Federal Reserve officials are watching the recent escalation in trade tensions. And if those tensions cause the economy to deteriorate, they could respond by cutting interest rates, Nick Timiraos reports.

Real Time Economics: What’s the Biggest Threat to the U.S. Economy?


This post is by Jeffrey Sparshott from Real Time Economics


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The WSJ’s Jon Hilsenrath looks at threats to the 10-year expansion, U.S. factories are flashing some warning signals and Australia became the largest developed economy to cut interest rates so far this year. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

Keep on Truckin’

Economies don’t just wear down and peter out. Shocks and bad policy decisions knock them off course. The WSJ’s Jon Hilsenrath looks at what’s going right, and what could go wrong, as the U.S. expansion reaches its 10-year mark this month—and (probably) becomes the longest on record in July.

Real Time Economics: Who’s Afraid of a Few More Tariffs?


This post is by Jeffrey Sparshott from Real Time Economics


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China and Mexico want to talk trade, U.S. factories are struggling and the Fed is trying to figure out how to hit its inflation target. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

Something to Talk About

China and Mexico both signaled a willingness to negotiate with Washington over escalating trade issues, Josh Zumbrun and Yoko Kubota report.

  • Beijing released a government policy paper Sunday accusing Washington of scuttling trade negotiations. It said the Trump administration’s “America First” program and use of tariffs are harming the global economy and that China wouldn’t shy away from a trade war.
  • But China’s government appears ready to return to negotiations. “We’re willing to Continue reading “Real Time Economics: Who’s Afraid of a Few More Tariffs?”

Real Time Economics: Who’s Afraid of a Few More Tariffs?


This post is by Jeffrey Sparshott from Real Time Economics


Click here to view on the original site: Original Post




This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here.

China and Mexico want to talk trade, U.S. factories are struggling and the Fed is trying to figure out how to hit its inflation target. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

Something to Talk About

China and Mexico both signaled a willingness to negotiate with Washington over escalating trade issues, Josh Zumbrun and Yoko Kubota report.

  • Beijing released a government policy paper Sunday accusing Washington of scuttling trade negotiations. It said the Trump administration’s “America First” program and use of tariffs are harming the global economy and that China wouldn’t shy away from a trade war.
  • But China’s government appears ready to return to negotiations. “We’re willing to Continue reading “Real Time Economics: Who’s Afraid of a Few More Tariffs?”

Real Time Economics: Who’s Afraid of a Few More Tariffs?


This post is by Jeffrey Sparshott from Real Time Economics


Click here to view on the original site: Original Post




This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here.

China and Mexico want to talk trade, U.S. factories are struggling and the Fed is trying to figure out how to hit its inflation target. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

Something to Talk About

China and Mexico both signaled a willingness to negotiate with Washington over escalating trade issues, Josh Zumbrun and Yoko Kubota report.

  • Beijing released a government policy paper Sunday accusing Washington of scuttling trade negotiations. It said the Trump administration’s “America First” program and use of tariffs are harming the global economy and that China wouldn’t shy away from a trade war.
  • But China’s government appears ready to return to negotiations. “We’re willing to Continue reading “Real Time Economics: Who’s Afraid of a Few More Tariffs?”

Real Time Economics: Tariffs on Mexico Threaten Economic Disruption


This post is by Jeffrey Sparshott from Real Time Economics


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The Trump administration is readying tariffs against Mexico, China’s economy is looking shakier and the U.S. expansion will soon be the longest on record. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

South of the Border

President Trump threatened tariffs on Mexican imports unless the country does more to curb migration from Central America. The president said levies on one of America’s largest trading partners would begin at 5% on June 10 and grow steadily, hitting 25% on Oct. 1, Louise Radnofsky, William Mauldin and David Luhnow report.

Real Time Economics: Will the Fed Be Forced to Cut Interest Rates?


This post is by Jeffrey Sparshott from Real Time Economics


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Invesors are putting Fed’s wait-and-see strategy to the test, America’s friends are tired of the dollar’s dominance, and a productivity boom is maybe, possibly, hopefully just around the corner. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

The Fed is in a Bind

Trade tensions are complicating the Federal Reserve’s make-no-moves policy posture, Nick Timiraos writes.

  • Bond investors are increasingly betting the central bank will cut intererest rates to bolster the economy.
  • Fed officials have demonstrated their willingness to defuse looming economic threats. In January, they shelved plans to raise rates after a sharp pullback in stock and credit markets.
  • But the trade-war scenario is messy: It involves making assumptions Continue reading “Real Time Economics: Will the Fed Be Forced to Cut Interest Rates?”

Real Time Economics: Investors Worry Expansion is Nearing an End


This post is by Jeffrey Sparshott from Real Time Economics


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Bond yields tumbled, supply chains are shifting, and the U.S. is no longer the world’s most competitive economy. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

Run to the Hills

Investors around the world pushed government bond yields near multiyear lows Tuesday, reflecting growing concern that global economic growth is slowing, Daniel Kruger and Sam Goldfarb report.

Real Time Economics: Trade Fight Spurs Aid to Farmers, Theresa May to Resign


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The bill for the U.S.-China trade fight is coming due, U.K. Prime Minister Theresa May is out, and one-quarter of Americans say they don’t have any retirement savings. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

Farm Aid II

President Trump said a trade deal with China was a “good possibility.” In the meantime, the White House rolled out a $16 billion plan to help farmershit by the conflict, Josh Zumbrun and William Mauldin report.

Real Time Economics: U.S. Blacklist Squeezes Chinese Companies


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Trump administration sanctions are reverberating beyond the U.S. border, Europe goes to the polls, the Fed debates inflation and honey prices aren’t so sweet. Good morning. Jeff Sparshott here to take you through key developments in the global economy. Send us your questions, comments and suggestions by replying to this email.

Huawei Feels the Heat

Huawei’s foreign partners are backing away from the Chinese telecommunications giant after the U.S. blacklisted it, imperiling its global business, Dan Strumpf and Mayumi Negishi report.