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Articles related to "economic"

Digital Realty Expands London Docklands Data Center Campus

  • Digital Realty Trust this week announced the launch of a fourth data center on its campus in the London Docklands, the city’s big riverfront business center and home to a high concentration of service-provider data centers and network interconnection points.
  • The campus, called Digital Docklands, is interconnected by a private fiber network, enabling customers in any of the four buildings to connect to customers in any of the other ones.
  • Digital Docklands offers access to three internet exchanges as well as private dedicated network links to cloud providers Amazon Web Services and Oracle.
  • Along with the data center launch announcement, San Francisco-based Digital, the world’s second-largest data center provider, announced a study it recently commissioned from the market research firm Development Economics, which assessed the expected economic impact on London from four emerging technology categories: Internet of Things, artificial intelligence, blockchain, and 5G wireless connectivity.

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Here's why Iran would target major Saudi oil fields and risk a US military response

  • Secretary of State Mike Pompeo over the weekend explicitly blamed Iran, and Saudi Arabia on Monday said preliminary evidence shows Iranian weapons were used in the attack and that it did not originate in Yemen.
  • But if Iran was responsible for the attack it would fall in line with a cycle of events that in recent months as Tehran seeks relief from crippling US sanctions under what the Trump administration's "maximum pressure" campaign.
  • Iran has been battling Saudi Arabia for regional supremacy and has reacted to the US sanctions by planting mines on tankers and seizing them at sea, efforts that have largely failed to compel the Trump administration to ease them.
  • The US has sought to hit Iran where it hurts with sanctions designed to choke of the oil revenue that is its primary source of income; they went into full effect in May. Some countries, including China, have still taken oil from Iranian tankers and risked economic penalties from the US.

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Millennials Insanely Tout Bitcoin and Andrew Yang as Their Retirement Plans –

  • More than any other generation, millennials face dismal retirement finance prospects.
  • According to a recent report, those born between 1981 and 1996 face numerous economic disadvantages relative to other generations such as baby boomers and generation X.
  • Given that millennials came of age at a time when information technology was exploding, some of them are planning to ride on the coattails of the Silicon Valley giants of today (even though it is not clear whether those giants will still be existing when retirement comes around, and in what form, if so).
  • Aside from the jokes, some recognized the seriousness of the matter by admitting that millennials have been dealt a worse hand relative to generation X or baby boomers.
  • This could mean they have relatively more time to save for retirement compared to other generations.

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A $194 billion quant fund says everyone is misunderstanding the yield curve as a recession signal. Here's how its experts say it can be used more effectively.

  • At present time, investors are riddled with anxiety as they grapple with multiple inversions of different sections of the yield curve.
  • But AQR Capital Management, a quant investing firm with over $194 billion in assets managed, thinks investors can benefit from viewing the yield curve in a different light.
  • AQR finds that, after an inversion, there is a positive relationship between yield-curve slope and GDP growth in the year that follows.
  • The light-blue line — representing market timing — goes long in six markets (Australia, Canada, Germany, Japan, the UK, and the US) when the global average yield curve is steeper than its historical average and short when it's flatter.
  • The dark-blue line — representing the cross-sectional strategy — goes long the three countries with the steepest curves and short the three with the flattest curves (with weight inversely proportional to rank).

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Saudi shock presents fresh unknown before Fed rate meeting

  • Powell backed a rate increase last December and had initially indicated he planned to continue tightening this year in the face of a thriving labor market and strong consumer demand.
  • But that plan reversed as Trump's trade wars took a toll on the global economy, and Powell has signaled he's open to continuing to support the economy.
  • Now the multiple drone attack on Saudi Arabia, which has significantly cut its crude output and rattled oil markets, could also complicate matters for the Fed. In recent months, Powell has said the US economy continues to remain in a "favorable" place, with moderate growth expected along with a strong labor market and inflation inching closer to the Fed's 2% target, the level it considers healthy for the US economy.

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Oil prices are pulling back a little but investors remain wary

  • Hong Kong (CNN Business) - Oil prices pulled back slightly during Asian trading hours Tuesday as investors continue to watch for fallout from the weekend's devastating attack on Saudi Arabia's crude production.
  • China's Shanghai Composite Index fell 1% after the Chinese central bank kept a key loan rate unchanged, contrary to market expectations that it would be cut.
  • The market thought the People's Bank of China might cut the medium-term lending facility rate as a way to lower financing costs and support the economy.
  • Markets are pricing in a 66% probability that the Fed will cut rates by a quarter percentage point, according to CME's FedWatch tool.
  • China's Commerce Ministry said the country will send a negotiation team — which includes Liao Min, the vice minister of the Finance Ministry — to the United States on Wednesday.

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Where Americans say their ancestors came from, in 17 maps

  • Visit Business Insider's homepage for more stories.
  • Americans come from all over the world, and American families have countless stories about their origins.
  • The Census Bureau's American Community Survey asks several questions about residents' economic, social, and demographic characteristics and situations.
  • One of the questions on the survey asks respondents to report their families' ancestries.
  • Using individual-level data from the Minnesota Population Center's Integrated Public Use Microdata Series for the 2017 American Community Survey, we found the total number of respondents in each state reporting various ancestries as either their first or second response to that question.
  • About 83% of respondents listed at least one ancestry.
  • The following maps show the percentage of those who gave at least one answer that said they had a particular ancestry for 17 of the most common ancestries in the US.

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The Return of Mortgage-Backed Securities: Private Banks Ready to Play Fannie Mae and Freddie Mac –

  • Despite the fact that mortgage-backed securities helped tank the economy during the financial crisis of 2007–2008, banks are once again getting more heavily involved with mortgage bonds after the Trump administration proposed privatizing and downsizing Fannie Mae and Freddie Mac earlier this month.
  • According to a new report from The Wall Street Journal, major banks like Citigroup Inc., Goldman Sachs Group Inc., Wells Fargo Group, and JPMorgan Chase & Co are all restarting or growing their practice of packaging mortgages or collections of mortgages into asset-backed securities.
  • Whereas Fannie Mae and Freddie Mac have Uncle Sam taking on the risks associated with default, mortgage-backed securities from banks are inherently higher risk.
  • With interest rates from central banks around the world decreasing or going negative, unemployment rates hitting pre-recession lows as a potential leading indicator, and the inverted yield curve flashing code red on every mainstream news outlet, throwing more mortgage-backed securities into the mix may be even more cause for concern.

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Trump's trade war is starting to hurt sectors like air travel and financial services

  • As the US-China trade dispute drags into its 18th month, there are growing signs that tariffs are beginning to spill over into the services sector.
  • But that is expected to change as the US and China expand tariffs to far more finished products, increasing costs for businesses and consumers in both economies.
  • That could have a particularly significant impact on growth in the US, where the services sector accounts for more than two-thirds of economic activity.
  • In early September, the International Air Transport Association said passenger and cargo demand contracted for a ninth consecutive month and urged the US and China to reach a trade deal.
  • Economic research consultancy Pantheon Macroeconomics forecasts that if the 15% tariff were fully passed through to products, it could cut real after-tax income growth in half and pull consumer spending growth down to 1.5%.
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Fed Likely to Continue Cutting Rates into 2020: Wells Fargo

  • The stock market took a giant gulp of uncertainty over the weekend, sending the Dow Jones sharply lower on global economic slowdown fears.
  • In the note, Bullard pointed to a mixed economy in which job growth is expected to slow somewhat while the outlook for GDP and inflation remains intact.
  • Overall, the uncertainty surrounding economic expansion moves the meter.
  • Whether or not this is priced into the stock market remains to be seen.
  • Throw in a potential trade deal between the U.S. and China, and the stock market might not even need a more dovish Fed to finish the year as strong as September as a whole has been so far.
  • The Dow Jones index is up 3.6% so far this month.

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