Economy

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Eurozone August retail sales saw the worst decline almost two years, however the Euro shrugged off the bad news to move higher as it showed it's teflon qualities after ignoring the Catalonia referendum crisis in Spain.

At all time highs U.S. stock markets have put it all on red on Tax reform with the Trump Adminstration. U.S. Treasury Secretary Mnuchin is out with the spin on the plan and his outlook. Highlights on states, growth and debt follow. The big one, he wants the tax cuts to be retrospective.

We saw the third estimate of U.S. second quarter GDP Thursday which was higher at 3.1% up from the second estimate of +3.0% and the first estimate of +2.6%. However corporate profits after tax were revised to +0.1% from +0.8% is worrisome particuarly with stock markets at all time highs.

The British Prime Minister speaking at the Bank of England conference reminded of the nature of unintended consequences when actions to solve one problem can create others. She is talking about Brexit but could well be allusing to the Boeing-Bombardier fallout.

The NAFTA renegotiation talks completed their third round today in Ottawa, Canada. No surprise the reporters favorite topic, the US imposing 220% duty on Bombardier planes. Negotiators from Canada, Mexico and the U.S. were all positive and look forward to round 4.

U.S. President Trump may be the most divisive President in History but the Federal Reserve shows Americans are getting weathier with him. U.S. household wealth increased in the second quarter to yet another record by $1.7 Trillion to $96.2 trillion, following a 2.327 Trillion gain in the first quarter. 

Global GDP growth is projected to increase to around 3.5% in 2017 and 3.7% in 2018 from 3% in 2016,slightly improved since the OECD’s June Economic Outlook. The upturn has become more synchronised across countries. Investment, employment and tradeare expanding.

While the stock mania grows unabated with $SPX and $DJIA pinging new highs housing continues to wobbles. The NAHB housing market index (HMI) for September 64 vs 67 estimate Also the prior month 67 was revised lower from 68

Real gross domestic product (GDP) rose 1.1% in the second quarter, following a 0.9% gain in the first quarter.

The production index, a key measure of state manufacturing conditions, edged down to 20.3, indicating output grew but at a slightly slower pace than in July.

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