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Big Mac attack: McDonald's stock sizzles

Posted by jimmy213 on August 27th, 2010

If you needed any more proof that the economy is slowing down, look no further than how well McDonald's stock is doing.

Chances of Double Dip Now Over 40%: Roubini

Posted by FTBRon on August 26th, 2010

The chances of a double-dip recession are now more than 40 percent and policymakers have options to stimulate the economy, Nouriel Roubini of Roubini Global Economics told CNBC Thursday.

Are We Headed for a Lost Economic Decade?

Posted by Guru on August 17th, 2010

Not if we embrace pro-growth fiscal policies. A good start would be the bipartisan Wyden-Gregg tax reform bill.

The Crisis in Middle-Class America

Posted by philsworld on August 8th, 2010

One of my favorite topics since I themed the year with our 2010 Outlook "A Tale of Two Economies" and in the years before that I’ve been bitching about the topic of wealth disparity in America to the point where even arch-Conservatives Alan Greenspan and David Stockman are now forced to agree with me. So that’s two down, 99,999,998 to go!

On Thursday the Bank of England policymakers voted to leave its benchmark interest rate at the historically low 0.5%. This move was expected because BoE officials are still unsure what the effect the newly implemented austerity measures will have on the economy. Furthermore, there is still uncertainty over what the upcoming new taxes will have on economic growth.

On Thursday the Bank of England policymakers voted to leave its benchmark interest rate at the historically low 0.5%. This move was expected because BoE officials are still unsure what the effect the newly implemented austerity measures will have on the economy. Furthermore, there is still uncertainty over what the upcoming new taxes will have on economic growth.

The U.S. Dollar is under pressure against most majors as investor concern that the U.S. economy’s recovery is losing steam drove traders into higher yielding assets. The overnight weakness in the Dollar was triggered by a better than expected economic report in Australia and a strong surge in Asian equities.

This week the EUR USD penetrated the 1.31 price level for the first time since May. The primary driving forces behind this move were the better outlook for the Euro Zone economy and the weak outlook for the U.S. economy. The data out of Europe may have brought the European Central Bank closer to a rate hike than the Fed.

U.S. economic growth slowed during the second quarter more than economist estimates, pressuring equity markets before the opening. Expectations were for a rise of 2.5% to 2.7%. The actual GDP figure was an increase of 2.4%. Stocks fell on the news as investors shed risky assets.

The strong economic data from Europe this week is helping to renew confidence in a global economic recovery while the U.S. still struggles with the possibility of a double-dip recession. Traders have been punishing the Dollar late this week as the combination of dovish testimony from Fed Chairman Bernanke and robust economic news from Europe means interest rates will remain low in the U.S.

Overnight stock futures are showing slight gains. Selling in Asia and a 4.2% drop in Google stock is likely capping the market in the pre-market. News that Goldman Sachs reached a $550,000 settlement with the SEC has had very little impact on the market. Trading has also been light ahead of the release of earnings data from Citigroup, General Electric and Bank of America.

Stocks struggle to rise

Posted by Penny Stocks on June 30th, 2010

Stocks struggled to gain Wednesday after a weaker-than-expected jobs report killed some momentum toward a market rebound.

U.S. stocks fell, sending the Standard & Poor’s 500 Index lower for the fifth time in six days, as declines in oil and metal prices dragged down commodity producers.

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