We're
one step closer to no more RadioShacks
- (www.businessinsider.com)
RadioShack might have a deal. According to a report from Bloomberg, RadioShack and Sprint are in talks on a deal
that would see RadioShack sell half its stores to Sprint and close down the
other half of its retail outlets. Radioshack is reportedly discussing
liquidation as part of this deal. In afternoon trade on Monday following the
report, shares of RadioShack were down about 18%, to $0.22 per share, little
changed from where they were ahead of this report. Sprint shares were little
changed following the report. The half of RadioShack's stores sold to Sprint
would operate under Sprint's name, though a deal has been discussed for
co-branding the stores, according to Bloomberg, which cites two people familiar
with the matter.
Obama's
budget proposal gives grim view of future - (www.cnbc.com) Beneath
President Barack Obama's plan to fight income inequality lies a
gloomy view of an economy that is growing slower and creating fewer rewards for
its workers than it did in much of the last century. In a budget proposal
unveiled on Monday, the White House cut forecasts for an array of economic
variables, depicting less growth, weaker inflation and lower interest rates
than officials expected only a year ago. This comes despite an unemployment
rate that the Obama administration expects to hit the 5.2 percent level
considered to be roughly in line with full employment sometime this year. The
administration's take on the economy moves it closer to the growing view among
economists that the United States could be stuck in a prolonged period of
stagnation. "In the 21st century, real GDP growth in the United States is
likely to be slower than it was in earlier eras," the budget proposal
says.
The Eurozone Is Tumbling Into Its Deepest
Deflation Ever - (www.businessinsider.com) Europe's
deflation deepened in January — prices fell 0.6% year over year. That's a
joint-record low for the 15-year-old currency union, matching the drop seen in
2009, when prices tumbled immediately after the financial crisis. The
core figure is being closely watched — it fell back to 0.7% in December and
plunged to 0.5% in January: That's the lowest in the eurozone's history, too. The
figure tries to measure inflation but strips out very volatile items like food
and, crucially, energy. Eurozone inflation has been dropping for a couple of
years, but falling oil prices have finally pushed the index into negative
territory. Spanish prices in December fell 1.5%, the steepest drop of any major
eurozone economy, and Germany joined the club in January with prices down 0.5%
year on year.
U.S. Consumer Spending Weakest Since 2009 - (www.nytimes.com) U.S. consumer spending recorded its biggest
decline since late 2009 in December with households saving the extra cash from
cheaper gasoline. Other data on Monday
showed factory activity cooled in January, suggesting the economy may have
entered the new year on a slightly softer footing than had been expected. Nevertheless,
upbeat and cash-flush consumers are expected to step-up spending and buoy the
economy this year. "The consumer is poised to do well in early 2015. Lower
gasoline prices are going to provide a big lift to consumption," said Ryan
Sweet, a senior economist at Moody's Analytics in West Chester, Pennsylvania. The
Commerce Department said consumer spending, which accounts for more than
two-thirds of U.S. economic activity, fell 0.3 percent after gaining 0.5
percent in November and 0.3 percent in October. The drop, the largest since
September 2009, reflected a decline in spending at service stations as gasoline
prices fell, as well as weak auto receipts and weather-related softness in
demand for utilities.
Baltic Dry Plunges At Fastest Pace Since Lehman, Hits New 29 Year Low - (www.zerohedge.com) The Baltic Dry Index dropped another 3% today to 590 - its first time below 600 since 1986 and not far from the all-time record low of 554 in July 1986. Of course, the absolute level is shrugged off by the over-supply-ists and the 'well fuel prices are down'-ists but the velocity of collapse (now over 60% in the last 3 months) suggests this far more than some 'blip' discrepancy between supply and demand - this is a structural convergence of massive mal-investment meets economic reality.
The
Fed's favorite measure of inflation is drifting in the wrong direction - (www.businessinsider.com)
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