Economic Outlook

Q1 Carmageddon for GM, Fiat-Chrysler, Toyota, Nissan, Mercedes, Mazda…

The first quarter was not pretty for new-vehicle sales in the US. Deliveries fell 3.2% from Q1 last year, to 3.99 million vehicles. Unless a miracle happens – and miracles are rare in the auto industry – 2019 is going to be the third down-year in a row for the industry, and the fourth down year for GM, Ford, Fiat Chrysler, Toyota, and some others, whose peak sales volume occurred in 2015.

At this pace, 2019 deliveries will fall below…Click here for full article.

One Time-Tested Economic Indicator Points to Possibility of Recession

Readers of The Telegraph are somewhat inured to dire warnings from the paper’s International Business Editor Ambrose Evans-Pritchard. However, his articles are well-researched and in the case of a piece this week, well balanced with arguments for and against his central theme that the bond market, supported by wider data, is showing sufficient warning signs regarding a recession that we should take the prospect seriously.

The piece isn’t alone in calling out the inversion of the U.S. bond market as a…Click here for full article.

Statistics Canada reports trade deficit shrinks to $4.2B in January

OTTAWA – Higher oil prices helped shrink the country’s merchandise trade deficit in January from its record high set at the end of last year as exports rose for the first time since July.

Statistics Canada said Wednesday the trade deficit amounted to $4.2 billion in January compared with a record deficit of $4.8 billion for December, which was revised from its initial reading of $4.6 billion.

Economists had expected a deficit of $3.5 billion for January, according to Thomson Reuters Eikon.

Josh Nye, a senior economist at Royal Bank, said the trade report provided…Click here for full article.

The Countries with the Most Monstrous Corporate Debt

US corporate debt, excluding debt by banks – so “nonfinancial” corporate debt – has surged in recent years by all measures and to such an extent that it was featured prominently in the Fed’s Financial Stability Report, in terms of what might trigger the next financial crisis. The Fed is counting total nonfinancial business debts, which include the debts of businesses that are not incorporated. It found about $17 trillion…Click here for full article.

Robots Are Taking A Record Number Of U.S. Jobs

The latest report from the Robotic Industries Association (RIA) has just come out, and it shows that robots are taking over a record number of U.S. jobs and that 35,880 robots were shipped to the U.S., Canada and Mexico in 2018–up 7 percent from the previous year.

Of those shipments, 16,702 were to non-automotive companies — a year-on-year increase of 41 percent. Generally, across all sectors combined. Click here for full article.

 

Millennial Debt Soars Past $1 Trillion

The debt load marks the highest exposure for the group since late 2007 at a time when younger adults under 35-years-old have decreased their spending compared to previous generations. A Friday University of Michigan survey determined that this was likely due to weakened job prospects, student loans and delayed marriage.

With millennial consumers not consuming, several policies to boost young adult spending have begun to enter the political dialogue, such as student loan debt …Click here for full article.