Wall Street: false miracle
Article Abstract:
Employment growth in the US contrasts with job losses in Europe, but there is concern over US productivity levels since weak productivity can lead to inflation. A rise in inflation may in turn affect economic growth. Interest rates may be raised if employment figures show a large rise, and share and bond prices would then be likely to fall. A lower than expected rise in employment would make a rise in interest rates less probable, and rate would be less likely to rise to high levels when they are raised.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Wall Street: a euphoric mood
Article Abstract:
US investors are more optimistic since non-farm payrolls have dropped leading to a reduction in fears about inflation. Meanwhile a household survey showed a rise in employment, and hourly wage rates have risen in the three months to Oct 1996. Nomura Securities' David Resler sees economic activity as having slowed with employment and total working hours growing more slowly. This means that interest rates may not have to be raised.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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