There may be signs that the wealthiest few zillionaires in emerging markets are outgrowing their love of bling or at least becoming more discerning.
But the fashion houses in Milan and Paris are unlikely to be losing sleep over that. Because for many millions in the EM, success and status remains all too bound up with having Chanel’s double-Cs on their handbag or an Ω on their wrist. Read more
A decent review of a theme we’ve been exploring recently, courtesy of Moody’s Analytics:
Several important demographic trends will influence US activity for some time. They include (i) the slower growth of Americans aged 15 to 49 years, which is a population cohort that shows a comparatively strong correlation with the growth of real consumer spending, (ii) the record slow growth of the working age population, (iii) the much faster growth of older workers relative to younger workers, and (iv) the breakneck growth of those 65-and-over vis-à-vis the number aged less-than-65. Read more
The two-year-old US recovery’s staying power may be diminishing as consumers and the government pare spending, say five of the nine economists on the academic panel that dates recessions, Bloomberg reports. Meanwhile, a fall in US consumer spending is adding to economic woes. Consumers cut back on spending in June for the first time since September 2009 and incomes rose at the slowest pace in seven months in a further sign of sluggish economic growth, the FT says. Consumer spending fell 0.2 per cent over the month, following a downwardly revised 0.1 per cent rise in May, the commerce department said. Reuters reckons such lacklustre sentiment will weigh on growth.
Just when you thought it was safe to go back into the UK retail sector…
… along comes another shocking trading statement. Read more
Not that we think any of these indicators will have much of an impact on the last trading day before Christmas — but here’s a roundup of activity on Thursday morning:
Initial weekly unemployment claims: Read more
Japan’s economy grew at a faster pace in the July-Sept period from the previous quarter, in part because the hot summer boosted consumer spending, but officials and economists warned that the outlook remained tough, reports the FT. The economy expanded at 3.9% on an annualised, price-adjusted basis as households took advantage of government stimulus programmes. But, says the WSJ’s Heard on the Street, the good news is actually ‘bad news’ for Japan. With 3Q spending driven by one-off factors, the question is whether the economy will slip into a technical recession early next year.
Don’t save, spend, Bank of England official Charles Bean advised Britain on Monday, telling Channel 4 News that low interest rates made any other choice rather useless.
‘No problem at all, my dear Bean,’ said Britain. Read more