As each of the seven largest credit-card issuers in the US reported a troubling jump in default rates to levels not seen in the better part of a decade, we noted last week that relaxed lending standards combined with ‘Non-GAAP’ FICO scores suggest that the American consumer is in far worse shape than many had realized – which could seriously threaten stability during the next recession (if the Fed ever allows one to happen)….CLICK for complete article
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.
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.
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.
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.
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.