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A Strong U.S. GDP Report Boosts Oil, but Asia’s Economic Woes Limit Gains.

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Oil
Brandon Bell | Getty Images

(VOR News) – On Friday, there was a slight increase in the price of oil and this was due to the fact that economic reports from the United States were more robust than was anticipated.

The reliability of the data is the reason for this, which is a result. As a consequence of this information, the market’s forecasts that there will be an increase in the demand for crude oil from the nation that consumes the most energy on a global scale have been strengthened.

Concerns about the terrible economic conditions in China and Japan, which are the two economies that are the most prominent in Asia, kept the extent of the improvements from being as extensive as they could have been. Both China and Japan are the two economies that have the majority of market share in Asia.

Oil barrels for the month of September hit $82.44 at 00:14 GMT.

This is a 7 cent Oil increase over the price that was being provided before to the current pricing. At the end of September, the price of a barrel of West Texas Intermediate petroleum in the United States reached $78.32.

This was the highest price since September began. Over the course of the preceding month, the price of the same barrel increased by four cents, which is represented by this estimate.

According to estimates provided by the Department of Commerce, the economy of the United States expanded at a faster-than-expected Oil annualised pace of 2.8% during the second quarter.

This was realised as a result of individuals spending more money and businesses boosting their expenditures. The United States Department of Commerce confirmed this information. As a direct consequence of this, the economy experienced a period of expansion.

Reuters reported that economists have predicted that the gross domestic product of the United States will expand by 2.0% over the period in question based on the findings of a study they conducted. Based on the study’s findings, this conclusion can be drawn.

This meant that the assumption that the Federal Reserve would proceed with a drop in interest rates in September continued to be maintained. In the meantime, inflationary pressures began to relax, which meant that the assumption was maintained.

Oil’s reason was that inflationary pressures decreased.

There is a correlation between a decrease in interest rates and an increase in economic activity, which may then lead to an increase in the demand for oil. Because of the connection that exists between the two, this association is present.

Additionally, there were persistent indications of issues in particular regions of Asia, which prevented increases in the price of oil from occurring. In spite of the fact that, this appeared to be the case.

As a result of the information that was made available to the public on Friday, it was determined that core consumer prices in the city that serves as the capital of Japan climbed by 2.2% during the month of July when compared to the same month in the previous year.

Therefore, the market has predicted that there will be an increase in interest rates in the not too distant future. This is for the reasons stated above. There is a correlation between this forecast and the reality.

On the other hand, an index that does not include the prices of energy, which is deemed to be a more accurate depiction of the underlying pricing patterns, rose at the slowest annual pace in over two years. This index is considered to be more accurate.

There is a widespread belief that this index takes into Oil account fundamental pricing variations. In light of the fact that demand has fallen, it appears that price increases are slowing down rather than escalating as a consequence of the situation.

A second time this week, the markets were taken aback when China, the largest crude importer in the world, surprised them by carrying out an unscheduled loan operation on Thursday at considerably reduced interest rates. This was the second time this week that China has surprised the markets.

China Oil has startedled the markets for the second time this week, and this time it was on more than one occasion. It was the second time that China’s surprise measures had stunned the markets, and this time it went even further.

By taking this action, the Chinese government is giving the impression that it is making an effort to provide a more meaningful monetary injection in order to assist the economy. The impression that this action creates is described above.

SOURCE: CNBC

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Canadian Man Arrested for TikTok Video That Threatened Trudeau

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Andrew Marshall TikTok video
Marshall is facing two counts of uttering threats - CBC Image

A TikTok video that went live earlier this week has led to a Toronto man facing charges of threatening Prime Minister Justin Trudeau and Deputy Prime Minister Chrystia Freeland. Andrew Marshall, 61, is facing two counts of uttering threats.

On Friday afternoon, the Ontario Court of Justice granted him bail with a surety and restrictions after the RCMP charged him on Wednesday.

Following Monday’s upload to TikTok, CBC Toronto conducted its own independent investigation of the video. Marshall vehemently opposes what he perceives as restrictions on free expression in Canada in it.

“I get them taken down all the time— I make videos — or all my comments, that are just simple comments,” Marsh says in the TikTok. “It’s just getting ridiculous, Marshall said.”

According to the CBC more and more people are threatening politicians. The commissioner of the RCMP has hinted that further measures may be necessary to ensure their safety.

In the TikTok video, Marshall explains in great detail how he would brutally assassinate Trudeau and Freeland “if it was up to him.”

Marshall attacks multiple groups throughout the roughly 11-minute TikTok video, including the media, Muslims, migrants, and the police who defend the government.

Among Marshall’s bail terms are the following: he must not communicate with Trudeau or Freeland; he must not use the internet to make social media posts or comments; he must not own any weapons; and he must not apply for a firearms permit.

During the bail hearing, the prosecution provided all of the evidence that is often not published.

Nate Jackson, Marshall’s attorney, stressed his client’s liberties and privileges as a Canadian in an email message.

“He has the right to freedom of speech, the right to reasonable bail and the right to a fair trial,” he said. “Having secured his release from custody, we will continue to defend Mr. Marshall’s Charter rights as his case proceeds.”

Neither Freeland’s nor the prime minister’s office would comment on the allegations, according to the CBC.

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Canada’s Unemployment Rate Hits its Highest Point Since 2017

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Canada's Unemployment Rate
Canada's unemployment rate rose to 6.6 per cent in August - FIle Image

As the job market remains dismal, the national unemployment rate in Canada has risen to its highest point since 2017. This has led some analysts to question whether the Bank of Canada should be reducing interest rates more quickly.

In spite of a net gain of 22,000 jobs, Statistics Canada reported on Friday that the unemployment rate increased to 6.6% from 6.4% the previous month. The rise was due to an uptick in part-time employment and a fall in full-time employment.

Outside of the pandemic years, the national unemployment rate has reached its highest position since May 2017, according to StatCan.

Rapid population expansion in Canada has increased the overall labour pool, but the country’s unemployment rate has persisted in rising.

The summer job market was especially tough for students, according to StatCan. Not including the pandemic, the unemployment rate among students going back to school in the autumn was 16.7 percent, which is the highest level since 2012.

Canada Unemployment August 2024

Two days after the Bank of Canada dropped interest rates for the third time in a row, reducing borrowing costs to alleviate economic pressure, the most recent reading of the Canadian job market follows suit.

According to TD Bank economist Leslie Preston, who wrote a note on Friday, the central bank is “giving the OK” to keep dropping rates due to the bad August jobs report. Preston predicts two more quarter-point decreases at the remaining decisions this year.

According to CIBC senior economist Andrew Grantham, there are indications that the labour market is quickly contracting more than initially thought, since the unemployment rate is nearly two percentage points greater than the record low of 4.9% in June 2022.

“Due to this, we believe the Bank should be contemplating a quicker rate of reductions in order to bring interest rates to less restrictive levels,” he informed clients in a letter on Friday morning.

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US Job Growth Falls Short of Expectations: Economy Struggles Under High Interest Rates

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US Job Growth Falls Short of Expectations: Economy Struggles Under High Interest Rates

Last month, job growth in the United States was weaker than predicted, prompting concerns that the world’s largest economy is beginning to struggle under the weight of increased interest rates.

The Labour Department said that employers added 142,000 jobs in August, which was less than the nearly 160,000 economists predicted. It also stated that job gains over the preceding two months were weaker than expected.

However, the jobless rate went down to 4.2%, down from 4.3% in July.

The report is one of the most important indicators of the US economy and arrives at a vital time, as voters consider presidential candidates for the November election and the US central bank contemplates its first interest rate decrease in four years.

Analysts said the latest statistics kept the Federal Reserve on pace for a rate drop at its meeting this month, but did little to answer worries about the trajectory of the US economy or how much of a cut it should make.

“There has rarely been such a make-or-break number; unfortunately, today’s jobs report does not completely resolve the recession debate,” said Seema Shah, chief global strategist at Principal Asset Management.

Soaring prices in 2022 caused the Federal Reserve to hike its key lending rate to 5.3%, a nearly 20-year high.

Faced with increased borrowing costs for homes, vehicles, and other debt, the economy has slowed, helping to alleviate pressures that were boosting inflation but exacerbating market concerns.

As inflation has fallen to 2.9% in July, the Fed is under pressure to decrease interest rates to prevent additional economic deceleration.

Although job increases in August fell short of expectations, they were greater than in July, when a slowdown aroused anxieties and triggered several days of stock market volatility.

Last month, construction and health-care firms hired the most, while manufacturing and retailers laid off employees.

Ms Shah stated that the data in Friday’s report was mixed, but provided enough concerning indicators that the Fed should make a larger cut.

“On balance, with inflation pressures subdued, there is no reason for the Fed not to err on the side of caution and frontload rate cuts,” she told reporters.

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Others, however, felt the advances were just steady enough to warrant a 0.25 percentage point decrease, as markets had long projected – though this could signal more cuts than expected in the coming months.

Paul Ashworth, Capital Economics’ senior North America economist, predicted that the Fed’s decision will be “close run.”

“The labour market is clearly experiencing a marked slowdown,” he said, adding that the new statistics were “overall still consistent with an economy experiencing a soft landing rather than plummeting into recession”.

Concerns about the economy are a major issue in the US election.

According to polls, a majority of Americans feel the US is in a recession, despite healthy 2.5% growth last year.

Donald Trump has declared that the economy is headed for a “crash,” and his team instantly latched on the latest data to criticise Vice President Kamala Harris, publishing a press release titled “warning lights flash as Kamala’s economy continues to weaken.”

Democrats have defended their performance, claiming that the United States survived the pandemic and inflation better than many other countries.

They believe the slowdown is a sign that the economy is returning to a more sustainable rate of growth following the post-pandemic boom.

“Although hiring has slowed, the US job market continues to generate solid job gains and wage growth that is consistently beating inflation,” the White House Council of Economic Advisors stated in a blog.

 

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