The Baltic Dry Index is down 48% over the past month

The Baltic Dry Index is a trade indicator that measures shipping prices of major raw materials and is often seen as a global growth indicator. The index is based on a daily survey of agents all over the world.

 The Baltic Dry Index is down 48% over the past month (and down 47% over the past year). Is this an indicator of more trouble around global growth?

Baltic Dry Index 20190212

Continue reading “The Baltic Dry Index is down 48% over the past month”

European Commission (again) cuts GDP growth forecast for the European Union; Bank of England cuts UK GDP growth forecast; Germany forecast to grow slower than the UK despite Brexit

The European Commission slashed their GDP growth forecast for the European Union (excluding the United Kingdom) and the Eurozone for 2019 and 2020 citing slowing growth in China and weakening global trade.

The growth forecast for 2019 for the European Union (excluding the United Kingdom) was cut to 1.5% for 2019 (was previously forecast 2%) and for the Eurozone was cut to 1.3% (was previously forecast 1.9%).

Germany, Italy and the Netherlands all saw big downgrades for their growth outlook.

Continue reading “European Commission (again) cuts GDP growth forecast for the European Union; Bank of England cuts UK GDP growth forecast; Germany forecast to grow slower than the UK despite Brexit”

Is Household Debt in the U.S. really a bigger problem than before the financial crisis?

There are various ways to look at Household Debt (total debt outstanding including mortgages, loans, credit cards and other debt) in the United States, we look at two today.

The first is debt servicing costs to disposable income which effectively is how much it costs to service household debt as a fraction of disposable (after tax) income. The second is household debt outstanding to disposable income which effectively is how much debt there is with respect to the same disposable (after tax) income measure.

Continue reading “Is Household Debt in the U.S. really a bigger problem than before the financial crisis?”

Eurozone Q4 2018 GDP up by 0.2% and European Union Q4 2018 GDP up by 0.3%; 2018 annual GDP growth at 1.8% for the Eurozone and 1.9% for EU; Italy in Recession

Seasonally adjusted GDP rose by 0.2% in the Euro area or Eurozone (EA) and by 0.3% in the European Union (EU) during Q4 2018, compared with Q3 2018.

EU and Eurozone GDP up to Q4 2018
Source: Eurostat

Continue reading “Eurozone Q4 2018 GDP up by 0.2% and European Union Q4 2018 GDP up by 0.3%; 2018 annual GDP growth at 1.8% for the Eurozone and 1.9% for EU; Italy in Recession”

Delinquency and Charge-off rates across banks in the United States remain low (January 2019 edition)

We answered the question whether bad loans were really increasing for banks in the United States at the end of December. We look at Delinquency and Charge-off rates across banks for United States across different products in this post.

Continue reading “Delinquency and Charge-off rates across banks in the United States remain low (January 2019 edition)”