1) PMI readings released for America, Japan and the Eurozone indicate a slowing down. This is a result of international tensions, with America having a one in four chance of a slowdown.
2) Honda announced it is pulling out of England, with a loss of 3,500 jobs. Honda claimed their decision wasn’t a result of Brexit, but Britain is considered to be a business friendly country and therefore a portal into the European Union, but with Brexit that will now be going away. Presently, about half the cars in Britain are Japanese models, and Honda’s withdrawal is raising fears that the other Japanese automakers will decide to also withdraw.
3) Fears deepen that the sharp rise of the yen may hurt Japan’s economy. Japan is plagued by low growth, tepid consumer purchases, fast falling of exports and an aging population, all which contribute to Japan’s economic woes.
4) 19 FEB 19 Stock market closings:
Dow 25,891.32 up 8.07 Nasdaq 7,486.77 up 14.36 S&P 500 2,779.76 up 4.16
The world continues to slow down economically, and will continue until 2016 as well. Stagnation seems to be currently occuring for the rest of 2015 and this will also hinder 2016 prospects. More developed countries such as the US, Great Britain, Germany, have been able to weather the storm and hold up recovery efforts being influenced world wide.
However OECD (Organization for Economic Cooperation & Development) indicates that future outlook seems bleek for the most part for the next couple of years because of the slowdown of the economy in Japan, and other eurozone/european countries. They instituted this as being ” puzzles and uncertanties”
The OECD maintained that “prospect of higher interest rates in the US and UK had exposed the vulnerability of emerging market economies to higher borrowing costs.”
China and Brazil happen to be two of the hardest countries hit by the economic slowdown. -SB
Finance Ministers across the Eurozone spectrum agreed to extend Greece’s bailout. This allows Greece to restructure their financial banking and regulations that the country had in place. This also helps Greece in that they now do not have to put in place capital controls.
Greece Finance Minister Yanis Varoufakis, indicated they will institute new regulations and have to crack down on corruption and business entities evading taxes, while also trying to balance the Greek annual budget.
The Eurozone’s has stated they will impose the bailout extention to Greece for an extra 4-5 months, so Greece can have the necessary time to restructure their financial banking.