Sentences with phrase «rates in a strong economy»

Ian Sexsmith, portfolio manager at Parnassus Investments, says banks» prices don't reflect the potential impact of more consumer lending and lower default rates in a strong economy — a mismatch that's creating some enticing bargains.

Not exact matches

«Why shouldn't we look at strong dividend players, levered to the economy, in sound and important businesses that pay above market rate yields?»
Despite the strong overall report card on the health of the economy, financial markets have weakened modestly in the wake of the GDP release, perhaps reflecting disappointment that the GDP growth rate was not even quicker.
Also, in general, a stronger economy leads to a higher interest rates, with or without Fed involvement.
As it stands, the fundamentals underpinning housing markets in Vancouver and Toronto remain strong — local economies are growing, immigration is robust and interest rates are low.
In fact, currency markets now are helping the central bank in that regard, since a stronger currency essentially has the same effect on the economy as higher interest rates because it will reduce exports and corporate profitIn fact, currency markets now are helping the central bank in that regard, since a stronger currency essentially has the same effect on the economy as higher interest rates because it will reduce exports and corporate profitin that regard, since a stronger currency essentially has the same effect on the economy as higher interest rates because it will reduce exports and corporate profits.
Moody's decision to leave the government's rating in investment grade reflects the underlying strength of the Spanish economy and the government's clear desire to reverse the debt trajectory through a strong fiscal consolidation programme.
Of course, rock - bottom rates and a strong Canadian dollar, he added, are the opposite of what the Canadian economy needs right now in order to kick its current addiction to household debt and condos and switch to a more sustainable growth model fuelled by exports and business investment.
However, he says there's good reason to think Canada can manage the risks from debt, which he says is a natural consequence of several factors, including the combination of a strong demand for housing and the prolonged period of low interest rates maintained in recent years to stimulate the economy.
Meanwhile, with a series of supportive economic factors at play «we expect the country's real estate market to continue the strong showing it posted in the second half of 2013,» Soper said, noting among other things favourable interest rates and an improving U.S. economy fuelling demand for Canadian exports.
Job creation tumbled in May, with the economy adding just 38,000 positions, casting doubt on hopes for a stronger economic recovery as well as a Fed rate hike this summer.
Trudeau's Liberal Party under a former leader swept to power in 1993 and won three subsequent elections — all of them while interest rates were stable or falling and the economy was relatively strong.
The strong expansion projected for the global economy in 2018 and 2019 includes growth by the advanced economies of 2.5 % this year, easing back to the 2017 rate of 2.2 % in 2019.
This renewed crisis in the Eurozone comes at a time when the European economies appear to be slowing down after a strong first quarter, and despite this, policy interest rate increases by the ECB are expected in the coming months.
Given these positive surprises, and because monetary policy must be forward - looking to achieve our inflation target, Governing Council's discussions focused on three main issues: first, the extent to which recent strength is signalling stronger economic momentum in Canada and globally; second, how heightened levels of uncertainty, particularly about US tax and trade policies, should be incorporated in our outlook; and third, how much excess capacity the economy currently has, and the growth rate of potential output going forward.
This is because higher inflows will cause adjustments in the economy — potentially including lower credit card rates, a stronger dollar, weaker lending standards, higher unemployment and surging asset markets» - Could you please provide us the explanation of a rising unemployment in the US in the case of a stronger US$?
This number can be volatile, but a more robust Consumer Confidence Survey result suggests the economy is strong enough to withstand a hike in interest rates.
Economists forecast that the economy added a solid 180,000 net new jobs last month, down from a strong 255,000 gain in July, and that the unemployment rate will tick down to 4.8 %.
Trump delays metal tariffs on EU, Mexico and Canada: Reuters Special Counsel Mueller has far - ranging questions for Trump: NY Times US consumer spending and price inflation picked up in March: Reuters Pending homes sales in March for US point to subdued growth: CNBC Dallas Fed Mfg Index: mfg activity rebounded «strongly» in April: Dallas Fed Chicago PMI edges up in Apr, remains relatively subdued vs. recent history: MW Fed expected to hold rates steady this week and raise rates in June: Reuters Rising gas prices on track to deliver most expensive driving season since 2014: AP Initial Q2 GDPNow estimate for US economy is a strong 4.1 %: Atlanta Fed US Treasury in Q1: 2018 borrowed the most since 2008: Bloomberg
The Commerce Department reported on Thursday that the economy grew by 3.2 percent in the final quarter of 2013, echoing the even stronger 4.1 percent pace of expansion in the summer months and providing the White House with a rare bit of good news despite dismal public approval ratings.
Could the economy have successfully negotiated the period of robust growth, and rising inflation, in the first half of 2000, in the face of strong downward pressure on the exchange rate, with interest rates maintained at 4 3/4 per cent?
The signs of weakness that were seized upon were anomalies; the underlying economy remained very strong, incipient inflationary pressures were starting to appear, and during this period our interest rates were raised, as it turned out, more or less by the same amount as those in the United States.
This will benefit taxpayers through lower debt - servicing costs and will help Canada maintain its strong triple - A credit rating in an uncertain economy.
Quebec's economy grew 3.1 per cent in 2017, the strongest pace for that province since 2000 and twice its rate of growth in 2016.
This economic impact works in opposition to the interest rate risk they face: rising rates, which are bad for bonds generally, usually accompany a strong economy, which is good for high - yield bonds; falling rates, which are good for bonds overall, usually accompany a weak economy, which is bad for high - yield bonds.
North American economies have been characterized by stable interest rates, strong employment levels and higher incomes, which have offset the weakness in the housing and auto sectors.
The expanding national economic growth in countries as China and India profit with the economic growth because they are the only sizeable strong and stable economies projected to record over 5 % growth rates in 2009.
The benefits of a strong economy are more important than the negative impact from modest increases in interest rates
A strong rise in inflation from healthy growth could force the Federal Reserve to raise US interest rates aggressively in an effort to prevent the economy from overheating.
US Federal Reserve Moves Toward Gradual Policy Normalization The Federal Reserve is facing an extremely delicate task, but it is still our belief that the US economy remains sufficiently strong to be able to bear a gradual increase in short - term rates in the coming months.
Although Fed officials took strong steps early in the year, including cutting the central bank's benchmark interest rate by more than half during the first four months, it took until the fall for them to realize that the economy had fallen into a severe recession.
Following the release of National Accounts data, however, which were a good deal stronger than expected and prompted many analysts to conclude that their earlier assessments of a slowing in the economy had been overstated, the exchange rate moved higher against all currencies.
Nonetheless, while the Fed is facing an extremely delicate task — and the job of effectively communicating its intentions will be even more delicate — it is still our belief that the US economy remains sufficiently strong to be able to bear a gradual increase in short - term rates in the coming months.
A major turnaround in Quebec is expected to see the provincial economy grow 2.8 per cent in 2017 — its strongest rate in 15 years.
So, if the economy is strong and inflation is picking up, then a rise in interest rates will not cause prices to drop.
Also, the need for interest rates to rise will be lessened to the extent that inflation expectations remain well anchored and wage pressures in stronger parts of the economy do not spill over to other parts.
That could in theory help stock markets, which are generally boosted by lower rates, though investors will be weighing that against the evidence that the underlying economy is not as strong as hoped.
The pickup was spread across the currency area, with sales up 1.5 % in low - unemployment Germany, but up an even stronger 2.1 % in France, where the unemployment rate is much higher and the economy weaker.
Poloz said debt is a natural consequence of several factors, including the combination of a strong demand for housing and the prolonged period of low interest rates maintained in recent years to stimulate the economy.
A high rate of growth in spending by households has been an important factor sustaining the strong performance of the Australian economy.
In contrast, inflation in the domestically oriented sectors of the economy has continued at a higher rate, with the non-traded component of the CPI increasing by around 4 per cent over the latest year, reflecting ongoing growth in costs and strong domestic demand pressureIn contrast, inflation in the domestically oriented sectors of the economy has continued at a higher rate, with the non-traded component of the CPI increasing by around 4 per cent over the latest year, reflecting ongoing growth in costs and strong domestic demand pressurein the domestically oriented sectors of the economy has continued at a higher rate, with the non-traded component of the CPI increasing by around 4 per cent over the latest year, reflecting ongoing growth in costs and strong domestic demand pressurein costs and strong domestic demand pressures.
The main contributors remain the same: declining oil and commodity prices, renewed concerns over the pace of expansion in China, and the impact of rising interest rates and a strong dollar on the U.S. economy.
In essence, the argument goes, rising rates didn't cause the value rebound, they were merely an effect of a stronger economy and building inflationary pressures, themselves the primary catalysts for value.
Last week, New York Federal Reserve President William Dudley said the U.S. economy could be strong enough to warrant an interest rate increase in June or July, reinforcing the drum beat from within the Fed in recent days that rate increases are coming soon.
There is also the prospect of price loss as the Federal Reserve (Fed) has started raising its benchmark lending rate amid a stronger U.S. economy (a bond's yield moves in the opposite direction of its price).
Minutes of the Jan. 30 - 31 Federal Open Market Committee meeting showed that officials saw a stronger economy than at the end of 2017 and that more rate increases were in the offing.
The average savings rate for Americans is lower when the economy is strong, and then increases in tougher economic times.
Northwest homeowners receiving bills in developed areas such as Arlington Heights likely will notice the impact of slightly lower rates and municipalities benefiting from a strong economy.
We heard the current President on why we are graduate unemployment rate continue to increase, his change of position on galamsey mining in the country, the senior minister's statement that the fundamentals of the economy is strong, praises showered on the former communication minister and his team by the current communication minister, attempts to touch the heritage fund.
By contrast, Mr Blair said, «this chancellor has produced the strongest economy, the lowest interest rates, the lowest unemployment, the highest employment in this country».
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