The ultra easy monetary policy pursued by the Federal Reserve over the course of the coronavirus pandemic appears to not be as big a factor in the substantial increase in home prices as many believe, according to research from the Federal Reserve Bank of New York.
Rather, monetary policy and the related decline in interest rates has played a bigger role in driving up construction and the overall rate of home sales, bank economists Haoyang Liu, David Lucca, Dean Parker and Gabriela Rays-Wahba wrote in a report released Tuesday.
Read More ->
Job Postings Level Off as Delta Variant Cools Demand for In-Person Workers
Job openings in the U.S. plateaued in late summer at records as the Delta variant of Covid-19 curtailed previously strong demand for restaurant, salon and other in-person service positions.
Postings on job-search site Indeed.com were up about 39% at the end of August from February 2020, ahead of the pandemic. That marked a modest gain from the comparable week of July, when postings were up 37% from February 2020.
Read More ->
Digital Currencies Pave Way for Deeply Negative Interest Rates
Investors have been ignoring progress toward government-issued electronic money, even as many countries are progressing rapidly toward their own online cash. They should ask two questions: Will the Federal Reserve issue a digital dollar? And will it eventually replace physical bank notes?
I think the answer to both questions is yes, and those who agree should be assessing the impact on future monetary policy already, because dramatic change is likely within the timespan of the 30-year Treasury.
Read More ->
China's Car Sales Decline in August on Chip, Component Shortages
China's car sales declined for the third straight month in August compared with a year earlier, as the global shortage of semiconductors and other components hurt more car makers and further dented their output.
Last month, retail sales of passenger cars dropped 14.7% to 1.45 million vehicles from a year earlier and declined 3.3% from July, the first month-over-month decline for August, the China Passenger Car Association said Wednesday. Sales had fallen 6.2% in July and 5.1% in June, compared with a year earlier.
Read More ->
Dallas Fed's Robert Kaplan Was Active Buyer and Seller of Stocks Last Year
Federal Reserve Bank of Dallas President Robert Kaplan made multiple million-dollar-plus stock trades in 2020, according to a financial disclosure form provided by his bank, in contrast with other regional Fed leaders who reported more modest financial holdings and smaller transactions.
Eleven of the 12 regional Fed banks have provided disclosures of their leaders' 2020 financial profiles since Friday, sharing information that gives insight into the holdings of officials who help set the central bank's monetary policy. The Chicago Fed didn't make immediately available information for their leader.
Read More ->
Iran Blocking IAEA Access to Nuclear-Related Sites
Iran is refusing to allow inspectors access to nuclear-related sites and hindering a probe by the United Nations atomic agency while continuing to expand its nuclear activities, the International Atomic Energy Agency said in two confidential reports Tuesday, casting doubt on efforts to revive the 2015 nuclear deal.
The reports leave the Biden administration and its European allies facing a choice between pushing for a formal rebuke of Iran-which Tehran's new hard-line government has warned could scuttle the resumption of nuclear talks-or refraining from action, potentially undercutting the authority of the IAEA and its leadership.
Read More ->
The U.S. Expected an Economic Takeoff. It Got a September Slowdown.
The U.S. economy is facing a slowdown in September, rather than the takeoff once hoped for.
Earlier this summer, many economists saw the week of Labor Day as the moment when the economic recovery would kick into high gear. Their expectation was that widespread vaccination would ease labor shortages. Schools and offices would reopen, which would mean a comeback for local businesses reliant on office workers. Travel would rebound. Stevie Nicks would be back on tour.
Read More ->
Japan's Economy Grew Faster in Second Quarter Than Initially Estimated
Japan's economy grew at a faster pace than initially estimated in the April-June quarter thanks to stronger spending by companies, the government's revised data showed Wednesday.
The world's third-largest economy after the U.S. and China expanded 1.9% on an annualized basis, which reflects what would happen if the second-quarter pace continued for a full year.
Read More ->
Mexico Hit by Powerful Earthquake
MEXICO CITY-A 7.1-magnitude earthquake struck near the Mexican resort city of Acapulco late Tuesday, killing at least one person and causing buildings to sway across central Mexico.
The quake hit on the anniversary of a deadly quake in 2017 that struck southern Mexico and killed 99 people. It is the second time that large earthquakes have hit Mexico on the same days in September, years apart.
Read More ->
Firefighters Gain Ground on Caldor Fire, Dixie Fire
Firefighters made progress on two of California's largest blazes over the weekend as the region moves into the middle of fire season and exhausted crews look ahead to busy months.
The Caldor Fire near Lake Tahoe, which prompted mandatory evacuations in South Lake Tahoe last week, is now 49% contained, according to the California Department of Forestry and Fire Protection, or Cal Fire. A week ago, the fire was 18% contained.
Read More ->
Theranos Founder Elizabeth Holmes's Trial Set to Begin
SAN JOSE, Calif.-Prosecutors and defense lawyers are scheduled to deliver opening statements Wednesday in the highly anticipated criminal trial of Theranos Inc. founder Elizabeth Holmes, who faces federal charges of defrauding patients and investors with claims of revolutionary blood-testing technology.
The opening remarks in court will be the first opportunity for the former chief executive's lawyers and the prosecutors with the U.S. attorney's office in the Northern District of California to influence the jury in a trial expected to last more than three months. Ms. Holmes rose to fame as a Stanford University dropout who founded what appeared to be a cutting-edge health company, which was valued at more than $9 billion before imploding over questions about its technology.
Read More ->
Virginia to Take Down Robert E. Lee Statue on Wednesday
Virginia plans to take down a prominent statue of Gen. Robert E. Lee in Richmond on Wednesday, the latest in a series of Confederate symbols removed across the U.S. following protests against racial injustice last summer.
The state's Supreme Court last week upheld two lower-court rulings that would allow the removal of the 21-foot, 12-ton, bronze statue of the Civil War general that has been in place for more than 130 years.
Read More ->
France Opens Trial Into Paris Terrorist Attacks
PARIS-France is set to open a trial Wednesday that will examine the origins and fallout of terrorist attacks that ripped through the French capital nearly six years ago, killing 130 people and rattling the national psyche.
The trial is part of France's struggle to confront one of the bloodier chapters in its modern history. Last year, a French court convicted 14 people of helping carry out the January 2015 terrorist attack on Charlie Hebdo's newsroom and a kosher grocery store. That trial reopened historical wounds and marked the start of a new cycle of violence, including the beheading of a middle-school teacher in October last year.
Read More ->
Biden Tours Northeastern States Hammered by Ida
WASHINGTON-President Biden used a trip to parts of the Northeast battered by the remnants of Hurricane Ida to press his case for the importance of federal investment to help communities better endure major storms.
Mr. Biden left Washington early Tuesday to visit Manville, N.J., and Queens, N.Y., to survey the damage after the storm, which made landfall last week, led to record-breaking rainfall, flash floods and tornadoes in the Northeast.
Read More ->
Write to sarka.halas@wsj.com
TODAY IN CANADA
Earnings:
Descartes Syss Gp. (DSG.T) 2Q
Transcontinental Inc. (TCL.A.T) 3Q
Transcontinental Inc. (TCL.B.T) 3Q
Economic Indicators (ET):
0830 Jul Stocks of Canadian grain at July 31
1000 Bank of Canada interest rate announcement
1000 Aug Ivey Purchasing Managers Index
Stocks to Watch:
Aquila Resources Agrees to Be Acquired by Gold Resource Corp.
Aquila Resources Inc. on Tuesday said it agreed to be acquired by Gold Resource Corp.
Aquila said under the terms of the all-stock deal, its shareholders will receive 0.0399 of a Gold Resource share for each Aquila share.
The deal represents a 29% premium to the 20-day volume-weighted average price of Aquila's shares on the Toronto Stock Exchange based on a 20-day volume-weighted average price of Gold Resource shares on the NYSE American stock exchange on Sept. 3, Aquila said.
At the close of the deal, existing Gold Resource shareholders will own about 85.1% of the combined company, Aquila said, while existing Aquila shareholders will own about 14.9%.
Barry Hildred, Aquila's executive chair, said, "The business combination with GORO, a proven operator of a cash flowing mine in the Americas, materially de-risks the financing and development of the Back Forty Project. The transaction also allows our shareholders to maintain exposure to the value that is created as Back Forty advances towards production."
Other News:
No items published
Market Talk:
No items published
Expected Major Events for Wednesday
04:30/JPN: Aug Corporate Insolvencies
05:00/JPN: Aug Economy Watchers Survey
05:30/FRA: 2Q Job creation
06:00/GER: 2Q Labour cost index
06:45/FRA: Jul Foreign trade
06:45/FRA: Jul Balance of payments
08:00/ITA: Jul Retail Sales
11:00/US: 09/03 MBA Weekly Mortgage Applications Survey
(MORE TO FOLLOW) Dow Jones Newswires
09-08-21 0555ET
