February 11, 2020
Pay May Drop Under 2020 Democrats’ Safety Net Plans, Study Says
“Proposals by several Democratic presidential candidates to shore up Social Security by raising payroll taxes could have a downside: lower economic growth and reduced wages, according to a study by the right-leaning Tax Foundation. Democratic contenders including former Vice President Joe Biden and Senator Bernie Sanders are proposing higher payroll taxes as some voters grow concerned that the Social Security trust fund they’re paying into won’t be there when it’s time for them to retire.”
Pound Needs More Than Dated Data to Change Its Negative Bias
“Economic data did little to properly dismiss a growing bearish sentiment for sterling Tuesday, leaving the pound looking more likely to revisit its November lows than sustain a move above $1.30. A day-high of $1.2942 for the currency did not last long. It came after growth data showed the U.K. narrowly avoided an economic contraction in the fourth quarter, with gross domestic product unchanged from the previous three months, as forecast by economists in a Bloomberg survey. The shine was soon taken off the currency by the weakest consumer spending rise since the end of 2015, while industrial and manufacturing production numbers for December missed median estimates.”
China’s Cogs in the Global Supply Chain Are Struggling to Restart
“Global supply chains look to be suffering longer-than-expected disruptions tied to coronavirus as China’s government tries to nudge idled factories back to work to limit the damage to the world’s second-largest economy. To contain the crisis, Chinese authorities have ordered city lockdowns and extended holidays but the human impact is unrelenting, with deaths topping 1,000. The economic fallout could extend well into March with rising numbers of bankruptcies, increasing layoffs and worsening demand, according to economists at Nomura in Hong Kong.”
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