Weak Producer Inflations Fuels The Fed
US producer profits fell sharply in September, leading to the lowest annual increase in 3 years. Because of this, the Fed might have more room to cut interest rates further. Because of Trump’s long trade war against China, business has eroded and pushed manufacturing into a recession. Not only that, but the sector is fighting against a slowing economy and growth overseas.
The Fed’s chair Jerome Powell confirmed an openness to more cuts amid the global economic concern. He also reiterated that the U.S. central bank would “act as appropriate to support continued growth, a strong job market”. The Fed wants to keep the current economic expansion on track, having lasted almost 11 years.
IMF Warns Of Painful Brexit
The new head of the International Money Fund Kristalina Georgieva warned of a painful Brexit. With a slowing global economy, the split will hurt not only Britain but the European Union and low-income countries with economic ties to them. She also said that UK politicians would have to work hard to shield the affected people.
“I particularly worry about low-income countries that are in a significant way dependent on the European Union and the UK,” she said. “Unfortunately this is not great news. And it comes at a time of compounded other factors that slow down growth.” Currently, the options to help the affected people are limited.
GM Strike Impact 150,000 Workers
The ongoing GM strike finally has an estimated number of people affected, sitting at almost 150,000 workers. The strike, which began on September 16th, caused nearly 75,000 layoffs. In addition, it caused a loss of nearly $660M in profit, as well as $412M in wages. It has also led to $155 million in lost federal income and payroll tax revenue and $9.1 million in lost Michigan income tax revenue.
Barnes And Noble Gets James Daunt
James Daunt, credited for reviving failing British bookstore chain Waterstones, might be able to do the same for Barnes and Noble. In the ’90s, the company was at the forefront of bookshops, revolutionizing the industry. Now, however, it is only a shadow of itself, struggling to compete with ebooks and the slowing economy. Now, Daunt is plotting a strategy to fix it. “It is relatively simple. Fill bookshops with the books their customers want,” he says.
Vodafone To Close 1,000 European Stores
Vodafone announced that it was cutting 15% of its 7,700 open European stores on Tuesday. This adds up to nearly 1,000 stores. The move is because of customers buying more online. “If you believe that 40% of your transactions are going to be digital, then how does that impact why someone goes to a store. The journeys and the purpose of the store changes,” chief executive Nick Read said.