GDP
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China's Exports to Return to Growth Next Year, but How Much Will It Matter?
Shipments from the Red Dragon were hit hard in the first 11 months this year, falling 18.8% compared to a year earlier, but are expected to bounce back and grow 6% in 2010, China's State Information Center said today (Tuesday).
However, exports from China, which is largely considered to be the world's manufacturing floor, are becoming less and less relevant as the Red Dragon moves toward a more balanced economy.
For instance, imports are expected to grow 11% next year, reflecting a shift toward more domestic consumption. And while the country is known for its massive spending on infrastructure, its service sector is growing twice as fast as its construction and infrastructure sectors, according to Money Morning Chief Investment Strategist Keith Fitz-Gerald, who says exports account for only 20% of China's gross domestic product (GDP).
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What the Government Isn't Telling You About the New Healthcare Bill
In a vote that was held at 1 a.m. Monday, the Senate approved a procedural measure that makes it likely a version of the national healthcare bill will make it into law.
In fact, by taking advantage of an obscure rule that allowed lawmakers to start their day and vote on the measure well before dawn, Senate leaders were able to approve the measure and keep alive the possibility that the healthcare bill will be passed by Christmas.
But if you study the Senate bill carefully - no matter what your political persuasion may be - you have to wonder why they even bothered. -
GDP Revised Lower For Third Quarter, Sets Stage For Slow Growth in 2010
The U.S. economy expanded at a slower rate than expected in the third quarter, but reductions in corporate spending and inventories have set the stage for continued growth of gross domestic product (GDP) in 2010.
GDP, a broad measure of economic activity, rose at a 2.2% annual rate from July through September, the Commerce Department reported yesterday (Tuesday), compared to a 2.8% gain in its previous estimate.
The new figure was below the 2.8% median estimate of 73 economists in a Bloomberg News survey, and significantly below the government's initial estimate of 3.5%. The GDP report is the third and final for the quarter.
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How to Profit From the Oil-Price Spike of 2010
Oil prices staged a remarkable rally this year on the back of a weak dollar and a nascent economic recovery. In 2010, it's likely that these same factors will combine with an increase in global energy demand to push oil prices back up over $100 a barrel.
With stockpiles still high and energy demand rebounding sluggishly, most forecasts are calling for the "black gold" to edge up into the low-triple-digit price range. That's 40% higher than where oil is trading right now - but is still well below the record high of nearly $150 a barrel that was established in 2008.
Money Morning Chief Investment Strategist Keith Fitz-Gerald is even more bullish. He believes that a price of $100 a barrel is "easily attainable" and says that some sort of unforeseen market shock could cause crude oil to spike as high as $150 barrel by the end of 2010.
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Investment News Briefs
With our investment news briefs, Money Morning provides investors with a quick overview of the most important investing news stories from all around the world.
Sovereign Fund Attempts to End $7.5 Billion Citi Share Purchase; Credit Suisse to Pay U.S. $536 Million Penalty; Cohen: U.S. Economy to Slow in 2010; Roy Disney Dead at 79; Former TPG, Lazard Employees Sued by SEC for Insider Trading; Galleon Group Founder Indictment Alleges Fraud, Conspiracy; Comcast Launches Online TV Service
- The Abu Dhabi Investment Authority (ADIA) is trying to call off a deal it made to buy $7.5 billion of Citigroup Inc. (NYSE: C) stock at eight times yesterday's (Wednesday) price, saying Citi misled it about the investment, Bloomberg News reported. The sovereign fund alleged "fraudulent misrepresentations" and seeks more than $4 billion in damages if the deal is upheld, ADIA said in an arbitration claim. Citi calls ADIA's claims "entirely without merit."
- Switzerland's Credit Suisse Group AG (NYSE ADR: CS) will pay the U.S. government $536 million for conducting business with Iran and other sanctioned countries, prosecutors said yesterday (Wednesday). The bank moved more than $1.6 billion through the U.S. financial system on behalf of Iran, Sudan, Myanmar, Cuba and Libya, documents filed in federal court and obtained by Reuters showed.
- U.S. housing starts rebounded sharply, rising 8.9% to a seasonally adjusted 574,000 units on an annualized basis in November, the Commerce Department said. Economists polled by MarketWatch.com were expecting a pace of 563,000. "We now expect both starts and permits to rally significantly further over the next few months, though the big test for the market will come in the spring," said Ian Shepherdson, chief U.S. economist at High Frequency Economics Ltd.
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U.S. GDP Revised Up, but Economic Growth is Unlikely to Gain Momentum
After contracting by 6.4% in the first three months of the year, the U.S. economy shrank just 0.7% in the April-June period. But while many analysts believe growth resumed in the third quarter, any recovery will likely be hamstrung by high unemployment. The U.S. Commerce Department revised its estimate of gross domestic product (GDP) to [...]
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U.S. Economy Shrinks 3.8% in 4Q, and Stats Show Worst Isn’t Over
By Mike Caggeso Associate Editor Money Morning The U.S. economy shrank 3.8% – less than forecast – but still the biggest gross domestic product (GDP) slide since 1982. For 2008, GDP rose 1.3%, the slowest pace since 2001's 0.8% growth. Most of the grim indicators of the third quarter – during which the economy shrank [...]
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U.S. Economy Expanded Faster than Reported, With First Quarter GDP Revised Upward to 0.9%
By Jennifer Yousfi Managing Editor Real gross domestic product (GDP) increased at an annual rate of 0.9% in the first quarter, the Bureau of Economic Analysis (BEA) announced yesterday (Wednesday). "We are somewhere in the twilight zone between an expansion and a recession," Michael Feroli, an economist at JPMorgan Chase & Co. (JPM) in New [...]
