Home / Business / Trade deficit increases to $ 67.1 billion, a 14-year high: real-time updates

Trade deficit increases to $ 67.1 billion, a 14-year high: real-time updates

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Credit…Justin Sullivan / Getty Images

WASHINGTON – The U.S. trade deficit in goods and services continued to rise in August, growing 5.9% from the previous month to $ 67.1 billion, the highest monthly level since 2006 as U.S. imports outstripped exports .

The United States exported $ 171.9 billion in goods and services in August, compared with $ 239 billion in imports The Commerce Department said. The commodity trade deficit climbed to $ 83.9 billion in August, the highest level on record.

The growing trade deficit comes at an uncomfortable time for the Trump administration, which is eager to declare victory in its trade agenda as the election approaches. Economists warn against using the trade deficit as a measure of the health of the economy, but President Trump sees the figure as a measure of his success in rewriting trade deals in favor of the United States.

So far this year, the overall deficit of goods and services has increased by $ 22.6 billion, or 5.7%, compared to the same period in 2019. Exports fell by $ 296.1 billion, or 17, 6%, while imports fell by $ 273.5 billion, or 13.1%.

The overall US trade deficit narrowed last year for the first time in six years as the US economy cooled and Trump’s trade war against China took a toll on imports. But this year the trade deficit tends to rise again as the growth of imported goods outstrips exports.

The heavy tariffs that Mr. Trump has imposed on more than $ 360 billion worth of Chinese products has caused a narrowing of the trade deficit with China, although Americans have instead switched to importing products from other countries.

In August, the trade deficit with China fell from $ 1.9 billion to $ 26.4 billion as exports increased and imports remained stable. But the trade deficit with Mexico hit a record $ 12.8 billion.

On Tuesday morning, the World Trade Organization revised its forecast for global trade, projecting a smaller contraction than in April as economies reopened.

The W.T.O. it now expects the volume of global merchandise trade to decline by 9.2% in 2020, compared to its previous forecast of at least a 12.9% decline. But he said growth would likely be weaker next year, bouncing only 7.2% in 2021, leaving trade well below pre-pandemic levels.


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Federal Reserve Chairman Jerome H. Powell addresses his political colleagues at the annual virtual meeting of the National Association for Business Economics.CreditCredit…Photo of the swimming pool by Toni L Sandys

Federal Reserve Chairman Jerome H. Powell delivered a message to his fellow policymakers on Tuesday: Faced with a once in a century pandemic that inflicted economic pain on millions of families, go big.

“Insufficient support would lead to a weak recovery, creating unnecessary inconvenience for families and businesses,” Powell said in a speech prepared for virtual delivery before the National Association for Business Economics.

He added that even if the job market recovers, “there is still a long way to go”. Here’s what else he said:

  • “Over time, household insolvencies and business failures would increase, damaging the productive capacity of the economy and holding back wage growth. On the contrary, the risks of exaggerating seem, for now, to be minor. “

  • “Overall, fiscal and monetary policy actions have so far supported a strong but incomplete recovery in demand.”

  • “A long period of unnecessarily slow progress may continue to exacerbate existing disparities in our economy. It would be tragic, especially in light of our country’s progress on these issues in the years leading up to the pandemic. “

Credit…Elaine Thompson / Associated Press

Boeing said on Tuesday that demand for commercial airplanes would be about 11 percent lower over the next decade than expected last year. But the company expects aerospace and defense sales to hold up much better.

In its annual market outlook report, Boeing predicted that airlines and other customers would purchase 18,350 airplanes over the next decade, spending around $ 2.9 trillion. The market for all aerospace products and services over the next decade would be worth about $ 8.5 trillion, he said, down from last year’s estimate of $ 8.7 trillion and supported by demand for defense, space and services businesses. .

“While this year was unprecedented in terms of disruption to our industry, we believe aerospace and defense will overcome these challenges in the short term, return to stability and emerge strongly,” said Marc Allen, chief strategy officer. by Boeing, in a statement.

Airplane sales are expected to be driven by demand for single aisle aircraft like the 737 Max, which is close to flying again after it landed in March 2019 following two fatal crashes. Such planes are expected to be more in demand because people who travel mainly take short trips.

Worldwide, airlines are experiencing very different recoveries, with China in the lead. In the United States, air travel has dropped by about two-thirds from last year, according to data from the Transportation Security Administration, and airlines are cutting flights ahead of the expected drop in travel this winter.

American Airlines said Tuesday its flight schedule for November would be 50 percent lower than the same time last year. The move is in an effort to “meet the low demand stemming from the coronavirus,” the airline said, adding that it plans to operate more than 104,000 flights next month.

US airlines are also reeling from an impasse among lawmakers in Washington for further economic stimulus. American Airlines e United Airlines said last week they would lay off more than 32,000 workers – cuts they vowed to reverse if Congress and the Trump administration reach a deal that included aid for the industry.

Some airlines have been able to avoid such cuts, but not without employee concessions. TO Delta Airlines, more than 40,000 people have volunteered for unpaid leave to avoid radical cuts. On Monday, Southwestern Airlines he said he will cut executive pay and hopes to implement a larger pay cut to avoid layoffs next year.

Gillian Freidman contributed to the report.

  • Shares drifted on Tuesday as investors regrouped after a strong gain the day before as talks about a potential US stimulus deal were expected to continue.

  • On Wall Street, the S&P 500 Index was slightly higher at the start of trading. European equities were mixed and Asian markets rallied.

  • President Nancy Pelosi and Treasury Secretary Steven Mnuchin are expected to speak again on Tuesday to try to break the deadlock on another round of fiscal stimulus. On Monday, they had a one-hour phone call and said they would share more documents with each other as part of the negotiations.

  • On Monday, Federal Reserve Chairman Jerome H. Powell urged the government to take action to address the economic pain the pandemic has inflicted on millions of families. “Insufficient support would lead to a weak recovery, creating unnecessary inconvenience for families and businesses,” Powell said in a speech prepared for virtual delivery before the National Association for Business Economics.

  • President Trump left the hospital late on Monday and returned to the White House, where he still has 24-hour medical care. The White House doctor said the president “may not be quite out of the woods yet” and that it would be another week before the doctors could be sure.

  • “President Trump may have left the hospital, but he didn’t give the financial markets a shot in the arm,” said Susannah Streeter, an analyst at Hargreaves Lansdown. “There is a wait-and-see attitude settling in the market with investors still nervous about the chances of a disputed outcome of the US presidential election.” Meanwhile, investors are still hoping for new stimulus to be agreed, he added.

  • Some tech stocks fell after Bloomberg reported this Apple would stop selling third party audio equipment on its website and in its stores. Shares Logitech, a Swiss-based peripheral manufacturer, including speakers, fell more than 5% e Are S, the California-based wireless speaker manufacturer, plummeted 4%

  • Oil prices rose extending Monday’s gain by more than 6%. Shares of the British oil and gas company Premier Oil it increased after it was announced that Chrysaor he would take over the company and train the largest producer in the North Sea.

  • The International Monetary Fund plans to make a small revision to its global economic forecast for 2020 to reflect that the situation is “less dire” than in June, when the fund said the economy would contract by 4.9%. Reuters reported.

  • “But this calamity is far from over. All countries are now facing what I would call “the long climb”, a difficult climb that will be long, bumpy and uncertain. And prone to setbacks, “I.M.F. chief executive, Kristalina Georgieva, said Tuesday.

Credit…Gabby Jones for the New York Times

Hollywood studios are delaying blockbuster movies and paying a great tribute to the film business.

On Monday, Cineworld, the parent company of Regal Cinemas, one of the largest theater chains in the country, said it would temporarily close its 663 theaters in the US and Britain this week. The decision affects 40,000 employees in the US and another 5,000 in Britain, and raises questions about what the other chains will do if Hollywood’s release schedule remains sterile.

AMC he said Tuesday he would not follow Regal’s lead. More than 80 percent of the chain’s theaters in the United States are open, and the company plans to open more theaters, particularly in New York and California, if authorized by state and county officials. “Fortunately for AMC, our groundbreaking deal with Universal Studios announced earlier this summer puts AMC in a position where we can open our theaters when others may feel the need to close,” said the president and CEO of AMC, Adam Aron.

Here are just a few of the films that have been delayed.

  • At the end of last week, MGM / Universal announced it was delaying the release of the new James Bond film, “No Time to Die,” until next year, the latest in a series of high-budget films that have been moved from the 2020 Hollywood studios.

  • Christopher Nolan’s “Tenet,” whose Labor Day weekend release was intended to herald the return of theaters, continues to struggle at the US box office, at least in part because audiences are wary of theaters.

  • Warner Bros. is postponing the release of the “Dune” remake, once scheduled for December, until October 1, 2021, according to two people familiar with the studio’s plans who spoke on condition of anonymity because they had not been made public. Warner Bros. declined to comment.

  • However, there is still hope for 2020 “Wonder Woman 1984” Warner Bros. has already postponed its release from October to Christmas. “Soul”, the latest from Walt Disney Company‘S Pixar animation studio, is scheduled for November 20.

Nearly 16,000 positive coronavirus cases recently went unrecorded in the UK’s tracking system, officials said Monday. The glitch has led to an underestimation of the country’s count and a delay in tracing the contacts of infected people, leaving tens of thousands of people in the dark about their potential exposure.

The culprit was a spreadsheet error, explains today’s DealBook newsletter. In particular, the system relied on files formatted for an earlier version of Microsoft Excel, which can only handle a certain number of cells. When key files got too large, thousands of entries were ignored. To solve the problem, large files are now split before putting them into the system, in other words, More spreadsheets.

The power of worksheets comes from their flexibility, which also makes them dangerous. Spreadsheet errors have hindered genetic research, allowed for billions of dollars in commercial losses, and led to misconceptions about fiscal austerity. The European Spreadsheet Risks Interests Group, which has been lecturing on the dangers of spreadsheet applications for 20 years, maintains an extensive list of other horror stories.

The fact that England’s much maligned test and tracking system succumbed to such a trivial mistake – and that it relied so heavily on spreadsheets – led to brilliant humor on social media which could be fun, if it weren’t so serious.

Credit…Jeenah Moon for the New York Times

Across the country, as the hospitality industry grapples with a severe recession, hotels have sought to reinvent themselves – such as schools, emergency housing, wedding halls or homeless shelters – although the new uses could be a short of revenue.

There are signs of financial hardship. In New York, 44 bond-backed hotel loans totaling $ 1.2 billion are in default, according to September data from Trepp, an analytics firm. In second place is Houston, with 39 outstanding loans at $ 682 million, followed by Chicago with 29 at $ 990 million.

While a foreclosure wouldn’t necessarily cause a hotel to close, many analysts don’t expect the industry to fully recover until 2023. Many hotels are doing what they can to resist:

  • The 607 rooms of the InterContinental Times Square in New York transformed into housing for doctors and nurses who treat coronavirus patients.

  • Five hotels in Miami, including the Doral Inn and Suites, have been designated as housing for doctors, homeless people, and Covid-19 patients, totaling more than 2,100 people from July to September, officials said.

  • In London West Hollywood in Beverly Hills, a 226-unit property in Los Angeles, the beds have been removed to create workspaces more like meeting rooms.

  • Five families rented a conference room at a Courtyard by Marriott on the outskirts of Elmhurst, Illinois, so that their first-graders could comfortably engage in distance learning.

But money can be a pittance compared to what it used to be. “For some properties, just keeping the lights on could cost $ 1 million a month,” said Jeffrey Davis, a broker with commercial real estate firm JLL and co-head of its hospitality group.

  • American Airlines said Tuesday its flight schedule for November would be 50 percent lower than the same time last year. The move is in an effort to “meet the low demand stemming from the coronavirus,” the airline said, adding that it plans to operate more than 104,000 flights next month.

  • Macy’s invested in the Swedish payment company Klarna and will become the first department store in the United States to offer the “buy now, pay later” online shopping option, a payment method increasingly popular with younger shoppers. The size of the investment was not disclosed. Klarna said it was part of a five-year partnership that would allow Macy’s buyers to pay for their purchases in four equal, interest-free installments.

Credit…Lee Smith / Reuters

British Prime Minister Boris Johnson said on Tuesday he would aim to quadruple the electricity generation capacity of wind turbines installed in seas across the country by 2030.

Britain already generates more energy from offshore wind turbines than any other country, capitalizing on the availability of both strong breezes and large expanses of shallow water suitable for planting turbines.

“As Saudi Arabia is to oil, the UK is to the wind,” Mr Johnson said in a virtual speech at a Conservative party conference. His proposal would expand Britain’s offshore wind generation capacity to 40 gigawatts from around 10 gigawatts.

Mr Johnson’s goal is not just to continue moving the country away from electricity generated by burning fossil fuels, but to create jobs in the towns and villages of the northern part of England. That region has been hit hard by the decline of heavy industry and fishing, but has recently attracted investment in offshore wind and other green energy sources. It is also a traditional Labor party stronghold where conservatives have gained support.

Mr. Johnson’s goal involves huge multi-billion pound investments, most of which will have to come from private developers. Mr Johnson only spoke of £ 160 million ($ 207 million) of government support for upgrading ports and other infrastructure. Currently, the British government supports offshore wind by guaranteeing a price – set by auctions – for the energy produced by the wind farms.

Tuesday’s announcement will help developers, turbine manufacturers and other companies comfort investments in new factories and expand existing ones, said Soren Lassen, an analyst at Wood Mackenzie, a market research firm.

“What’s really new and valuable here is the certainty it provides,” he said.

The Supreme Court of the European Union on Tuesday said that mass collection of electronic communications data is illegal in the lockdown, except during urgent national security risks. It is the latest ruling to limit governments’ ability to collect electronic information on European citizens.

The decision of the European Court of Justice is part of a global debate on the balance that governments should achieve between the protection of individual privacy and the protection of national security. In July, the court overturned a transatlantic data transfer agreement between the United States and the European Union after the agreement was insufficient to protect European citizens from espionage by American intelligence agencies.

Tuesday’s ruling hits France, Belgium and other European countries where governments see data collection as a necessary tactic to counter terrorist attacks and other threats. But privacy advocates have argued that the mass collection of information is excessive and violates fundamental privacy rights guaranteed in the European Union.

In its ruling, the court said that extensive surveillance laws requiring companies to share Internet data and location information with government authorities present “particularly serious interference with the fundamental rights guaranteed” by the European Union. He said part of the data collection was allowed if there was a “serious threat” to national security and that there were safeguards in place to have the actions reviewed by a court or other independent body.

In 2015, following the terrorist attacks in Paris, France granted the authorities an extensive national espionage capacity, allowing intelligence services to collect large amounts of electronic data. The policy sparked bitter debate and was compared to the Patriot Act passed in the United States after the 9/11 attacks.

Privacy International, a London-based organization that led one of the cases involved in the decision, hailed the ruling.

“It serves as a reminder that no government should be above the law,” Caroline Wilson Palow, the group’s legal director, said in a statement. “Democratic societies must place limits and controls on the surveillance powers of our police and intelligence agencies.”

Credit…Harold Postic / Agence France-Presse – Getty Images

California and its $ 3 trillion economy are facing a profound question: After the coronavirus pandemic and a ferocious fire season showing the increasingly intense effects of climate change, how much has permanently changed?

Businesses may increasingly wonder whether the high cost of California cities is worth it if their employees can work remotely, and the wave of wildfires has brought new control to widespread development models that have welcomed an expanding population and it drove people inland to cheaper areas most exposed to fire.

Il motivo per cui le aziende trasferiscono posti di lavoro fuori dallo stato sono gli alloggi a basso costo e il minor costo del lavoro che ne consegue. Economisti e pianificatori hanno a lungo consigliato che il modo migliore per alleviare questa pressione è costruire più alloggi vicino ai centri di lavoro costieri, ma la California ha continuato a espandersi, un modello che ha minato gli obiettivi di riduzione delle emissioni dello stato incoraggiando spostamenti più lunghi, mentre mettere più case nelle zone antincendio.

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