Is the US economic growth in line with its recent trajectory? Eric Bush answers the question by taking a look at the third quarter stats on employment. While lower growth seems to be the new normal, there are ways the US can improve productivity. John Fernald discusses them in the financial market news from MNI. The risks to financial cyber-security are becoming more dangerous and diverse, but the Group of Seven industrial powers has agreed on a number of ways to protect against cross-border bank thefts. Jason Lange writes about the new guidelines for Reuters.
The Most Important US Employment Stat Improved– The most important US employment stat each month is the index of aggregate weekly hours worked, according to Eric Bush of GaveKal Capital. The good news for September is that we saw an improvement in the year-over-year rate of change from 1.05% to 1.63%. The improvement in the labor market seems to suggest that third quarter GDP will continue on its recent growth trajectory of around 1.5%-2% year-over-year. growth. Read more…
Lower GDP Growth In US Is New Normal– Real US GDP growth rates of 1.5% to 1.75% are likely to be the new normal as reductions in the labor force and labor quality take their toll, says San Francisco Federal Reserve Bank senior researcher John Fernald. He notes, however, that “policies to improve education and lifelong learning can help raise labor quality and, thereby, labor productivity.” Read more…
G7 Sets Common Cyber-Security Guidelines For Financial Sector– Following a series of cross-border bank thefts by hackers, The Group of Seven industrial powers has agreed on guidelines for protecting the global financial sector from cyber attacks. Read more…
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