The seasonally adjusted current account of the balance of payments for the European Union was a surplus of €40.5billion or 1% of GDP in the first quarter (Q1) of 2019, up from a surplus of €40.2billion or 1.0% of GDP in the fourth quarter (Q4) of 2018 and down from a surplus of €58.3billion or 1.5% of GDP in the first quarter (Q1) of 2018, according to estimates released by Eurostat.
The United Kingdom’s trade deficit more than doubled to a record £20.3 billion in the first quarter (Q1) of 2019, or 3.7% of GDP. This was the fifth consecutive quarter of deterioration.
The last time the UK’s trade deficit was over 3% of GDP was in Q2 2002.
Australia’s Central Bank, the Reserve Bank of Australia (RBA) cut its benchmark cash rate by 25 basis points to an all-time low of 1%. This following a cut of 25 basis points in June. This is the first time since 2012 that the RBA has delivered back-to-back interest rate cuts.
Strong or weak economy? We look at
- The personal saving rate
- Consumer loan growth rate
- Growth rate of disposable personal income per capita
- Growth rate of personal consumption expenditures per capita
U.S. Equities Soar
June 2019 saw U.S. equity market records being broken shattered.
The Dow Jones Industrial Average (DJIA) gained 7% in June, its biggest June gain in 9 decades or its best June since 1938.
The S&P 500 jumped 6.9%, its best June performance in 7 decades or its best June since 1955. The S&P 500 is up 17% in 2019 so far, the best start to a year since 1997.
After a very quiet few weeks, we will restart normal service beginning July 1. We promise to again bring you a completely refreshing perspective on everything finance, markets and banking. This time it is different.
(Apologies for the delay in this being published, it should have been published almost a month ago.)
May 2019 was the quietest month (till date) for us due to unprecedented reasons. We had hoped April 2019 will be the quietest month but turns out this time it was (again) different. Hoping to write more going forward starting July but don’t want to promise that.
So, longer-term U.S. government bonds are now yielding lower than short-term bonds. Is this really a big economic warning?
At the end of March 2019, the employment rate for the United Kingdom was estimated at 76.1%, the joint- highest figure on record. The UK economic inactivity rate was estimated at 20.8%, again close to a record low.
Different measures tell another story:
- Real disposable personal income per capita
- Personal income payments
- Total employee compensation
- Personal consumption expenditures per capita