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China Slowdown Hits U.S. Factories, Tests Fed’s Resolve [U.S. MANUFACTURING HIT BY FALLING EXPORTS]
Investors Busniness Daily ^ | 09/01/2015 | ANDREA RIQUIER

Posted on 09/02/2015 4:17:17 AM PDT by expat_panama

Manufacturing indexes hit multiyear lows in the U.S. and China, exacerbating global growth concerns and roiling markets again as the Federal Reserve enters the home stretch toward deciding whether to raise interest rates for the first time in nearly a decade.

The S&P 500 fell 3% Tuesday, dashing hopes that the market had stabilized after plunging early last week.

Official data from China showed a factory sector in contraction for the first time since the winter and at its lowest in three years — fresh evidence that the world's No. 2 economy is downshifting much faster than the government wants and is willing to admit. Private indexes have been in contraction for six months.

That downturn is being felt around the world, from commodity-dependent economies like Australia to supply-chain-linked countries like South Korea and Malaysia.

Most analysts had believed that the U.S. was relatively isolated from China-related shocks. But American manufacturing, which is relatively exposed overseas, showed strains in August.

[snip]

The U.S. has settled into what he calls a "split-level economy."

Domestic demand remains sturdy. Q2 GDP rose at a revised 3.7% annual rate in Q2. Construction spending hit a seven-year high in July, the Commerce Department said Tuesday. Automakers reported better-than-expected U.S. sales for August.

But exporters are struggling, which "forces investors to think about where their earnings are coming from," Silvia said.

S&P 500 companies, which include multinational giants and big exporters, get a huge share of sales and profits overseas.

(Excerpt) Read more at news.investors.com ...


TOPICS: Business/Economy; Extended News; Foreign Affairs; News/Current Events
KEYWORDS: economy; investing; trade
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Editing w/ the 'excerpt' thing ended up cutting much of the fed news (Beige Book coming out today at 2 pm). The link shows the rest.
1 posted on 09/02/2015 4:17:18 AM PDT by expat_panama
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To: expat_panama

Bring back jobs to AMERICA.


2 posted on 09/02/2015 4:18:42 AM PDT by Cringing Negativism Network (http://www.census.gov/foreign-trade/balance/c5700.html)
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To: expat_panama

It’s nice to know that the Obama recovery is still going strong.


3 posted on 09/02/2015 4:23:15 AM PDT by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: 1rudeboy; Toddsterpatriot; Mase

fyi (cackle)


4 posted on 09/02/2015 4:25:36 AM PDT by expat_panama
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To: expat_panama

Why the USA doesn’t retaliate against the tariffs these Communist butt holes put on on exports to China is a mystery to me.


5 posted on 09/02/2015 4:27:17 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: 1010RD; A Cyrenian; abb; Abigail Adams; abigail2; AK_47_7.62x39; Aliska; aposiopetic; Aquamarine; ..

Good Morning and good grief!  Our poor stock indexes took a sever -3% downturn yesterday in rising volume while gold and silver continue to plod (now at $1,139.55 and $14.60).  Now we're back in rollercoaster mode w/ futures calling a rise in indexes to +0.58% and metals falling -0.38%. The announcement glut continues today with:

7:00 AM MBA Mortgage Index
8:15 AM ADP Employment Change
8:30 AM Productivity-Rev.
8:30 AM Unit Labor Costs -Rev.
10:00 AM Factory Orders
10:30 AM Crude Inventories
2:00 PM Fed's Beige Book
7:30 AM Challenger Job Cuts

---not to mention:
 


6 posted on 09/02/2015 4:35:27 AM PDT by expat_panama
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To: Pontiac; Cringing Negativism Network; central_va
Bring back jobs to AMERICA.

retaliate against the tariffs these Communist butt holes

the Obama recovery

Hearing all this talk about wanting to hurt China by raising U.S. taxes on imports so we can have more jobs w/ less trade --y'all may have missed the news at the top of the page.   China is already hurting itself w/o any help from us and so their econ problems mean fewer orders at our factories and that's going to mean fewer U.S. jobs.  In the mean time we got a stalled import tax-cut treaty and leading candidates are calling for a 30% tax hike.  Some how it's hard to believe that anyone here misses the fact that higher taxes make it so we have less money for ourselves to buy stuff and hire people.

7 posted on 09/02/2015 5:41:19 AM PDT by expat_panama
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To: expat_panama

They should learn the lessons of New York

IRS: New York Lost Most Tax Paying Residents In 2013
http://www.freerepublic.com/focus/f-news/3331971/posts


8 posted on 09/02/2015 5:51:15 AM PDT by Lurkina.n.Learnin (It's a shame nobama truly doesn't care about any of this. Our country, our future, he doesn't care)
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To: Lurkina.n.Learnin

tx! It never ceases to amaze me how the idea of lowering taxes to create jobs is so hard to explain on a conservative forum.


9 posted on 09/02/2015 6:05:20 AM PDT by expat_panama
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To: expat_panama
It isn't always about money, it is about long term survival. We need to hit these bastards while they are down. You gloBULList are going to learn a lesson when the back lash starts.

I will pay the same for USA made products as I will for Chinese made product as many Free Traitors™ have already explained the difference in reduced labor goes to the bottom line and stock holders not to the consumer. Do you want me to pull up this posts? So as a consumer why do I care?

10 posted on 09/02/2015 6:09:21 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: expat_panama
It never ceases to amaze me how the idea of lowering taxes to create jobs in China is so hard to explain on a conservative forum.

Fixed.

11 posted on 09/02/2015 6:12:03 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: expat_panama
From the Chinese article:

The Fed is also confronting a vastly different economy than when it raised rates in the 1990s, Silvia said. An increasingly globalized world now has a manufacturing glut that will weigh on inflation for some time, he said. He expects that to keep the Fed's rate path even lower than it now forecasts.

Well, isn't that an interesting forecast?

12 posted on 09/02/2015 6:19:02 AM PDT by Chgogal (Obama "hung the SEALs out to dry, basically exposed them like a set of dog balls..." CMH)
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To: expat_panama
You want to increase manufacturing jobs in the U.S.?

Lower government regulations and taxes and import German tool and die makers who want to homeschool.; )

13 posted on 09/02/2015 6:24:15 AM PDT by Chgogal (Obama "hung the SEALs out to dry, basically exposed them like a set of dog balls..." CMH)
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To: expat_panama
Hunh?? Is this correct? +200 DOW, -140 Nasdaq??

DJIA
16,265.26 +206.91
Nasdaq
4,636.10 -140.40
S&P 500
1,913.85 -58.33

GOLD
1,137.00 -1.70

14 posted on 09/02/2015 6:38:41 AM PDT by citizen (America is-or was-The Great Melting Pot. JEB won't even speak American in his own home. NO Bush!!)
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To: citizen

Can’t be correct, only the DOW seems to be an active tally this morning.


15 posted on 09/02/2015 6:40:19 AM PDT by citizen (America is-or was-The Great Melting Pot. JEB won't even speak American in his own home. NO Bush!!)
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To: Chgogal
...a manufacturing glut that will weigh on inflation for some time...expects that to keep the Fed's rate path even lower than it now forecasts.

Yet Yellin wants to raise rates.

This whole economy vs rates thing has me pulling my hair out! One week I'm yellin' (pun) about zero interest rates and no return on my savings, the next it's about them trying to raise them in a deflated world economy.

We can't win.

16 posted on 09/02/2015 6:58:30 AM PDT by citizen (America is-or was-The Great Melting Pot. JEB won't even speak American in his own home. NO Bush!!)
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To: citizen

It would be easier if this country had a good fiscal policy, lower taxes, less regulation, etc. Now with a national debt of close to $20 Trillion (and nothing to show for it), highest corporate taxes, lowest labor penetration in decades, stagnant wages, where do you go?


17 posted on 09/02/2015 7:09:28 AM PDT by Chgogal (Obama "hung the SEALs out to dry, basically exposed them like a set of dog balls..." CMH)
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To: citizen
-140 Nasdaq??

Naw, that's got to be a typogorical errand that was diserroneously misconfused.   Right now (here):  S&P500, NASDAQ, and Dow at +10.83 (+0.56%), +37.01 (+0.78%), and +134.32 (+0.84%).

 

18 posted on 09/02/2015 8:16:57 AM PDT by expat_panama
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To: central_va
lowering taxes to create jobs in China

Yeah, sure seems it's going to be a while before we can get together on this...

19 posted on 09/02/2015 8:26:32 AM PDT by expat_panama
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To: expat_panama

I reckon this fella has it about right.
Bill Gross: “Go To Cash” (or near-cash)
http://www.zerohedge.com/news/2015-09-02/bill-gross-go-cash
Gross recommends 1-2 year corporate bonds. Maybe I can find a fund of something like that in my 401k.


20 posted on 09/02/2015 8:39:39 AM PDT by citizen (America is-or was-The Great Melting Pot. JEB won't even speak American in his own home. NO Bush!!)
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