The RSM Brexit Stress Index moved up again in the week, showing significantly higher levels of stress after the United States escalated its trade war with China and the Chinese renminbi was devalued against the U.S. dollar, causing upheaval in the global markets. … READ MORE >
Blog
Think China is paying for tariffs? Guess again
So far in 2019, the U.S. Customs and Border Patrol is on pace to collect more than $72 billion in import duties as a result of U.S. tariffs. An oft-repeated claim is that China is paying the cost of the tariffs. But we have data showing exactly who is paying for the tariffs: U.S. businesses and households. … READ MORE >
Despite strong consumer spending, higher costs bite into consumer margins
Even as trade disputes and other economic headwinds surface in 2019, the U.S. consumer has held strong and continues to fuel growth in the domestic economy, albeit at a slower pace than in recent years. … READ MORE >
Venture capital tech investments show strength in first half of 2019
For cash-intensive technology companies, access to capital is often required to sustain operations and quickly achieve scale. Venture capital firms invested over $30 billion in tech startups in the second quarter of 2019, according to data from Pitchbook, putting total investment on pace to eclipse $100 billion for the second straight year. … READ MORE >
Trade war takes dangerous turn toward currency wars: What could happen next?
Chinese fiscal and monetary authorities permitted the yuan early this week to slip below the important psychological level of 7 to the dollar for the first time since 2008. It was a retaliatory measure by China against President Trump’s threat to impose an additional 10% tariff on $300 billion in Chinese exports, beginning Sept. 1. The Chinese government also ordered a halt to all purchases of U.S. crops. … READ MORE >
BDCs’ popularity unlikely to be slowed by recent Fed rate cut, but headwinds remain
Business development corporations are unlikely to lose their momentum in the near term, despite last week’s interest rate cut by the Federal Reserve and the ongoing trade conflict with China. … READ MORE >
The RSM Brexit Stress Index: Pound’s decline signals rising concern
The RSM Brexit Stress Index rose sharply in the week, signaling significant worry in the market following depreciation of the British pound that will result in higher costs for food, fuel and other consumer staples for U.K. residents. … READ MORE >
US July employment report: “A Gentleman’s C”
Downward revisions to the May and June estimate of total employment as well as a decline in total and aggregate hours worked cast a pall over a total change in July employment of 123,000 (164,000 top line less net downward revision of 41,000) and the unemployment rate that held steady … … READ MORE >
When addressing nursing shortage, look to your own ranks first
The market for skilled workers, administrators and support staff remains tight in U.S. health care as providers struggle to fill jobs, particularly critical roles such as nurses. The numbers have not appreciably improved since the last time I wrote about this topic: Total health care job openings have remained around 1.1 million to 1.2 million since December of 2017. … READ MORE >
Medical cost ratio is a growing concern among health insurers
Among the worrisome trends discussed on health insurers’ recent earnings calls is a growing medical cost ratio, or MCR, the percent of premium the insurer spends on claims and expenses that improves health care quality. It is sometimes referred to as a medical-loss ratio. … READ MORE >