The economist thinks the Fed ought to pay more attention to financial markets when setting interest rates.The Fedread more
U.S. President Donald Trump's latest tariff increase — and Beijing's plans to counter them — are hitting U.S. companies in China, according to a joint survey this month by...China Economyread more
"We are also constantly watching whether the trade war will turn into a tech war," Ma said Tuesday, according to a CNBC translation of his Chinese remarks published by a locak...China Economyread more
Kohl's, J.C. Penney and Nordstrom release disappointing earnings news, putting a damper on their sector.Retailread more
Bezos's comments give a rare glimpse into his interest in the auto industry. Amazon recently invested in two self-driving start-ups.Technologyread more
While investing often seems like a contrarian game where going against the flow feels like the better bet, the reality is that investors who bought the most-favored stocks...Hedge Fundsread more
Talks between the world's two largest economies have stalled after each nation lobbied higher tariffs on the other's imports.Traderead more
"Pretty much the entire suite of apps that 'talk' over the internet could be vulnerable," said Tom Uren, a senior analyst at the Australian Strategic Policy Institute's...Cybersecurityread more
A Chinese official in Hong Kong is urging the quick passage of legal measures to allow fugitives to be transferred to the mainland.China Politicsread more
GAC Motor said its delaying its launch in the U.S. but had no timeline when it could launch there.Autosread more
The U.S. administration is considering limits to Chinese video surveillance firm Hikvision's ability to buy U.S. technology, the New York Times reported on Tuesday, deepening...World Politicsread more
— This is the script of CNBC's news report for China's CCTV on January 7, 2018, Monday.
Economy loss caused by U.S. government shutdown can be said diverse. If we see that from its scale, government shutdown makes a $650,000 loss to U.S. economy weekly, Standard & Poor's said in the end of 2017
Apart from the state security this kind of basic function, the rest institutions close, makes 800,000 employees into leave and 1300,000 work without payment. And for example, the centers for disease control and prevention will lose its ability to respond to the flu, the food and drug administration will be forced to halt routine inspections, the Securities and Exchange Commission will be forced to halt new investigations, the national museum will close, NASA will suspend some programs etc.,.
But for these direct impacts, people more worry about the long-term indirect influence to industries. For instance, many concerns about the blow to agriculture as the shutdown timing is the key point when U.S. farmers waiting for subsidiary, loans and data to plan spring planting.
American agriculture just lost some foreign market share because of trade friction and experienced a fall in commodity price, if U.S. government shutdown, the $1.2 million bailout plan would be put aside, and that will delay farmers' purchases of seeds, fertilizers and chemicals, which in turn affect costs and harvests.
On financial market front, commodity traders really rely heavily on data released by agricultural department. Some projected data about global agricultural trend cannot be processed because of government shutdown, including the importing and exporting data of soybeans these key products and that may roil market sentiment and judgment. Agriculture is just one of those industries; many people are anxious waiting for government re-operation. How much will this shutdown cost? Analysis thinks that depends on how long the shutdown will last.
For example, some analysis take the U.S. government shutdown happened in OCT 2013 as a reference, that shutdown lasted for 16 days, weighting GDP growth down to 0.2% to 0.6%, with a direct economy loss of $2 billion to $6 billion, but Standard & Poor's believes the real loss, including in-direct impact made by consumption and investment information missing, actually cost $24 billion that year.
And all investment banks and analysis institutions think the longer shutdown makes greater economy loss. Let's have a look over this chart.
Moody's sees a 0.2 percent drag on annualized GDP in the fourth quarter of the year, America Merrill Lynch think that would be 0.5 percent. If the shutdown lasts more than a month, Moody's thinks it will drag GDP growth by more than 1.4%, while bank of America Merrill Lynch is pessimistic about a 2% drag
The longer the U.S. government shuts down, the worse it is for the economy. Generally, shutdown doesn't influence stocks market a lot, because the market thinks government will re-open soon, but once shutdown lasts too long time, then it's possible to see the market becomes more pessimistic because of uncertainty. We will keep an eye on this issue.