Solid Jobs Report Expected for January

By Nick Baum

FRIDAY – 2/1/19

Despite the government shutdown, experts are predicting another strong month and a strong start of the year for the US economy. The jobs report, which will officially be released later today, will count the almost 400,000 furloughed government workers as “unemployed”. Economists are predicting that due to that high number, the unemployment rate will temporarily grow before dipping to previous 49-year lows.

Refinitiv, a polling company of economists, estimated that 165,000 jobs have been added this month, and that the unemployment rate, while moving up, will stay at 3.9%. Economists also forecast that wages will grow 3.2% this month, extending to a three-month streak of wage growth above 3%.

Experts, however, predict that the recent boom won’t hold for more longer. The Federal Reserve held off on rising interest rates, helping the stock market and Dow Jones regain its footing at almost exactly 25,000, but at the same time means that economic growth will slow down due to the currency’s value not being raised.

Sources and Pictures: Flickr, CNN Business, Google Trends

Stocks Slide Due to Weak Economic Predictions

By Nick Baum

WEDNESDAY – 1/23/19

Global stocks slid Tuesday based on predictions and records of a weakening economic rebound from the 2008 recession. The United States has seen its worst home sales in three years, while the Dow Jones Industrial Average fell over 300 points. Other countries have had a similar burnout, with China hitting its lowest economic growth in over 30 years.

The International Monetary Fund has warmed investors and countries alike that economic growth is slowing down. While some US companies did rebound from the fall, many more have been dragged down. A claim that Chinese trade representatives were uninvited from White House to talk with a US trade representative sent stocks even lower, but soon bounced back when White House Economic Advisor Larry Kudlow denied the meeting ever being discussed.

Tuesday was the first day for the United States Stock Market to react to China’s GDP report, as it was closed for Martin Luther King Day on Monday. The GDP report was made at the World Economic Forum, along with the IMF’s reports on an economic future. They cited weakening economies in Germany and Turkey as a factor, along with the ongoing trade war between China and the US.

Sources and Pictures: Flickr, CNN, Fox News, CNN Business

Dow Jones Loses 508 Points in US Stock Market

By Nick Baum

TUESDAY – 12/18/18

The Dow Jones Industrial Average, the largest stock in the US Stock Market and the go-to signal if the stock market is doing well, has slipped another 508 points at the end of the business day, ending up at a total of 23,592, the lowest point of the year.

However, the Dow Jones wasn’t the only powerhouse to fall. The Standard & Poor 500 hit its worst point of the year, and the Nasdaq also went into a negative rate. Multiple reasons are to blame for this, but here’s the largest two:

First, President Donald Trump signed a trade truce with China to end a trade war just weeks ago, but momentum from the decision had worn out, and many investors pulled out of their investments. Second, the Federal Reserve is rising interest rates, meaning that money is worth more. This makes investing in stocks more expensive, so many pull out.

Sources and Pictures: Google Finance, CNN Money, CNN Business, Wikipedia

Audi CEO Rupert Sadler Arrested

By Nick Baum

MONDAY – 6/18/18

Just hours ago, Audi CEO and Chairman Rupert Sadler was arrested in Germany in an investigation into diesel and emissions of the cars made by Audi. In a press release, a spokesman for Volkswagen (Audi’s parent company) Nicolai Laude confirmed that Sadler was arrested, but declined to comment on the current investigation.

Sadler had been CEO of Audi since the start of 2010, and had been promoted to CEO in the midst of Volkswagen’s alleged cheating in different emissions tests. From 2008 to 2015, Volkswagen allegedly installed software in their cars to cheat during emissions testing, when in reality the cars were said to pollute up “10 to 40 times more” than other cars, said the Environmental Protection Agency (EPA), whom made the allegations Sept. 18, 2015.

The arrest had also come just a week after prosecutors searched Sadler’s home for any evidence, and also just days after Germany placed a $1.2 Billion dollar penalty on Volkswagen for their alleged cheating and software used during emissions testing. All ready, Volkswagen’s stock in the Frankfurt Stock Exchange had fallen by more than 2%.

Sources: Environmental Protection Agency, Flickr, CNBC, CNBC Explains, CNN Money, Wikipedia

Trump Will Skip Part of G7 Summit

By Nick Baum

FRIDAY – 6/8/18

Yesterday, US President Donald Trump announced he plans to leave the Group of 7 Summit a few hours early, according to the White House. The decision came after a back and forth Twitter feud with Canadian Prime Minister Justin Trudeau and French President Emanuel Macron over tariffs and a possible trade war.

At the summit, which will be held in remote Quebec, an aide of Trump will replace him for the final hours of the summit which Trump plans to skip. As said before, the decision was made after a Twitter exchange with other leaders, but the exact reason, according to the White House, is avoid confrontation or argument over the US’s new tariffs.

Trump also said he was “enthusiastic” about creating new tariffs and protecting American workers, but said he was “unenthusiastic” about waging and expressing his plans to other world leaders in person. However, trade tensions are still expected to be the top of the discussion for the two days of the G7 Summit, even after President Trump leaves.

Sources: CNN, Wall Street Journal, Wikipedia, White House

OPINION: Tariffs Never Work

By Nick Baum

THURSDAY – 6/7/18

The news about tariffs in the most recent months is absolutely idiotic, but before I dive in let me explain exactly what a tariff is. A tariff is an added tax or price on a certain product that comes from another country. For example, President Trump had the US start its tariff program by adding tariffs on Chinese steel and aluminum, meaning steel and aluminum in the United States that came from China will be higher, which will force companies to buy from American workers.

So you can see why tariffs are used a lot, as it is seen as a way to protect American workers and sort of force companies to buy and hire American. Except, it doesn’t really work in real life. When tariffs are added in a certain category, it actually has a very low chance of actually helping the country’s workers, because usually, the companies who are most effected by the tariffs will either find a loophole, use a different material, or just take the same product from another country.

Not only that, but tariffs can easily backfire because it raises the price of products in America. If you’re shopping for clothes in America and you found something that recently had a tariff on, that price will rise, and in many circumstances, by a lot. Tariffs sometimes help American workers, but backfires when it makes it difficult for American consumers to get the certain product.

Donald Trump recently added tariffs in different categories on China, and the response is, well, you guessed it. Different prices are soaring, American workers are somewhat being helped, but now a trade war is occurring. A trade war is when different countries slap tariffs on certain products from the same country that slapped tariffs on them. Basically, it is an endless back and forth cycle of countries putting tariffs on different products.

Already, after the United States’s tariffs, Canada, Mexico, and the European Union decided to add their own tariffs, and that doesn’t even include China, which is most effected by this decision. Not only does this prompt poor relations, but it hurts the economy, because certain products have gotten more expensive. If it wasn’t for Trump’s tariffs, the stock market could’ve shot even further up. However, now it is rocky, not only the stock market, but trade relations with our closest allies.

Sources: CNN, Wall Street Journal, Wikimedia Commons, Fox News

EXCLUSIVE: May Jobs Report Shows Great Signs for Economy

By Nick Baum

SUNDAY – 6/3/18

In a jobs report released just yesterday, positive numbers in many areas of the economy have been proven with a monthly financial report on jobs and economics. The unemployment rate has fallen to its lowest in half a century, 3.8%, with 223,000 jobs being added in the month of May.

In other areas, the average hourly earnings, or wages, overall went up in America by 2.7%. The unemployment rate in other aspects also went down, too. The black, latino, women, and non high school graduating unemployment rate has hit its lowest point.

Criticism has still been shared by different opponents, too. House Minority Leader Nancy Pelosi said that those numbers “mean nothing”, and criticized the consequences of Trump’s approved tax plan earlier this year. The White House Twitter account also violated a passed law in the 2000’s, in that if a jobs report is released, an official government source must share at least an hour after. However, both the White House and Trump shared it shortly after.

Sources: Wall Street Journal, USA Today, UMN News