The Euro Area unemployment rate was 8.5% in April 2018, down from 8.6% in March 2018 and from 9.2% in April 2017. This is the lowest since December 2008 but still more than double of the US unemployment rate of 3.9% reported in April (the US unemployment rate further fell to 3.8% in May). The EU28 unemployment rate was 7.1% in April 2018, stable compared with March 2018 and down from 7.8% in April 2017. This remains the lowest rate recorded in the EU28 since September 2008.
Manufacturing has been in focus recently in the United States with trade tariffs being discussed and the talk of bringing back some manufacturing to the United States.
U.S. manufacturing has been growing but it isn’t generating too many new jobs.
The reasons are simple:
- Increase in productivity
- Increase in automation
- Shift towards higher value goods (like aircrafts or high-end electronics)
Here are some graphs,
Indexed Number of manufacturing jobs vs Indexed manufacturing output (Both indexed to January 2012 = 100)
Apparently, the new CEO of Deutsche Bank is “sick and tired of bad news”. Here are some recent events,
April 8: Christian Sewing is appointed new CEO of Deutsche Bank.
April 15: The European Central Bank (ECB) asks Deutsche Bank to estimate the cost of winding down its investment bank.
Thursday, May 31: The Financial Times reported that Deutsche Bank’s US subsidiary was added to the Federal Deposit Insurance Corporation’s list of “problem banks,” or those with weaknesses that threaten their financial survival.
Thursday, May 31: Deutsche Bank shares hit an all-time low.
Friday, June 1: Standard & Poor’s cut Deutsche Bank’s credit rating from A- to BBB+. The ratings agency also questioned whether Deutsche Bank’s new CEO Christian Sewing would be able to return the bank to profit.
Friday, June 1: Deutsche Bank is going to face new cartel and criminal charges in Australia.
Friday, June 1: Deutsche Bank shares hit new all-time low.
The U.S. unemployment rate is at an 18-year low,