Sun. Oct 25th, 2020

Eurozone near stagnation; US productivity slides – business live

Rolling coverage of the latest economic and financial news

2.37pm GMT

Ding ding! Shares in Hewlett-Packard have surged by 17% at the start of trading in New York.

Traders are enthused by the prospect of a takeover move from smaller rival Xerox (see earlier post).

Highlight: “The idea that Xerox, a much smaller company than HP, would then be taking over HP is kind of out there — there’s really no firm idea on how they would actually finance this,” @danielhowley says about Xerox and HP deal. https://t.co/Jb7k9twFHf pic.twitter.com/vuLF8l5mnm

2.16pm GMT

Eek! US productivity has suffered its biggest decline in four years.

Labor Department figures show that the economic output per hour of US workers fell by 0.3% in July-September, the largest drop since late 2015.

Capital Economics: 0.3% annualized decline in US nonfarm #productivity in Q3 left the annual growth rate at 1.4%, still slightly above the previous five-year average, but it illustrates that the acceleration in productivity growth that began last year is already fading.” #usecon

The Trump administration promoted its 2017 corporate tax cut as a policy that would raise productivity by encouraging businesses to invest in more computers, machinery and other equipment.

Productivity did pick up in the first half of this year after growing modestly in 2018, but it now appears to be dropping back to the slow growth that has occurred since the Great Recession ended.

Bad, bad, bad | The 0.3% decline in non-farm productivity in Q3 “left the annual growth rate at 1.4% … acceleration in productivity growth that began last year is already fading … still no sign of a breakout from the weak post-crisis trend in productivity growth” – @CapEconUS

Continue reading…Rolling coverage of the latest economic and financial newsUS productivity in surprise fallHEurozone PMI shows weak economyIntroduction: German factory orders riseSoftbank pays price for WeWork debacle 2.37pm GMTDing ding! Shares in Hewlett-Packard have surged by 17% at the start of trading in New York.Traders are enthused by the prospect of a takeover move from smaller rival Xerox (see earlier post).Highlight: “The idea that Xerox, a much smaller company than HP, would then be taking over HP is kind of out there — there’s really no firm idea on how they would actually finance this,” @danielhowley says about Xerox and HP deal. https://t.co/Jb7k9twFHf pic.twitter.com/vuLF8l5mnm 2.16pm GMTEek! US productivity has suffered its biggest decline in four years.Labor Department figures show that the economic output per hour of US workers fell by 0.3% in July-September, the largest drop since late 2015.Capital Economics: 0.3% annualized decline in US nonfarm #productivity in Q3 left the annual growth rate at 1.4%, still slightly above the previous five-year average, but it illustrates that the acceleration in productivity growth that began last year is already fading.” #useconThe Trump administration promoted its 2017 corporate tax cut as a policy that would raise productivity by encouraging businesses to invest in more computers, machinery and other equipment.Productivity did pick up in the first half of this year after growing modestly in 2018, but it now appears to be dropping back to the slow growth that has occurred since the Great Recession ended. Bad, bad, bad | The 0.3% decline in non-farm productivity in Q3 “left the annual growth rate at 1.4% … acceleration in productivity growth that began last year is already fading … still no sign of a breakout from the weak post-crisis trend in productivity growth” – @CapEconUS Continue reading…

Leave a Reply

Your email address will not be published. Required fields are marked *