News
WSJ | Fed Softens 'Swipe' Fees
The Federal Reserve ordered the nation's banks to cut the rate they charge merchants for debit-card transactions roughly in half, dealing banks a softer blow than many had feared, but one that will still likely cost them billions in annual revenue.
CNBC | Midwest Business Activity Grew More Than Expected
The Institute for Supply Management Chicago's business barometer rose to 61.1 in June, above the 56.6 in May and economists' expectatiosn for a drop to 54.
Bloomberg | Oil Drops, Extending Quarterly Loss, as U.S. Demand Falters
Futures in New York dropped as much as 0.7 percent, halting the biggest two-day rally in seven weeks. The U.S. Energy Department said yesterday gasoline demand dropped for a second week in the seven days to June 24. U.S. pump prices are up 29 percent from a year earlier.
CNBC | China to Grow Above 9% in 2011: Government Think Tank
China's economy is expected to grow a robust 9.5% in the first half of 2011 and retain much of the momentum the rest of the year with little chance of a hard landing, a government think tank said in a report published on Thursday.
Market Watch | Car sales seen holding steady in June
"The Japanese car makers are getting back to business as usual in the U.S. this month, but they likely lost more market share to still-surging Hyundai and the healing Detroit Three.
Bloomberg | Texas Cotton Farmers Abandon Record Acres on Drought as Gap’s Costs Rise
About 55 percent of the Texas cotton fields were in poor or very poor condition on June 26, matching the record low in 2006, the U.S. Department of Agriculture said. More than 70 percent of the state was experiencing “exceptional” drought as of June 21, and non-irrigated crops in the Panhandle and South Plains regions have all failed, a Texas A&M research unit said.
Econ Comments
Washington Times | GLOZER: Corn-ethanol fiction
A careful review of current federal corn-ethanol policy reveals an array of subsidies, both direct and indirect. These include: 1) corn production subsidies to farmers, 2) a 45-cents-per-gallon ethanol-production tax credit, 3) a mandate requiring gasoline refiners to blend 15 billion gallons of ethanol into gasoline annually by 2015, and 4) a 59.5 cents-per-gallon tariff/tax on imported ethanol. No other energy product enjoys such government favor.
Financial Times | Strikes: Pension tension
Across the developed world, weakened political establishments are meeting fierce resistance in their efforts to curb public spending. The future viability of public sector pensions, as lifespans increase, is a particular headache almost everywhere.
Daily Caller | Not so independent
Jobs are scarce and inflated fuel costs are making everything from food to appliances more expensive. And while the same could have been said about the economy last year, or even the year before, we are struck this year by the weak response coming out of Washington: tapping the Strategic Petroleum Reserve.
Bloomberg | Republicans Seek Spending Cuts to Slow Economy, Schumer Says
Raising the rhetorical stakes while party leaders are far apart over a plan to cut the deficit and increase the U.S. debt limit, Schumer said Republican leaders are seeking deep spending cuts as part of an effort to slow U.S. growth and hurt President Barack Obama’s chances of winning re-election next year.
CNN: Money | Made (again) in the USA: The return of American manufacturing
Lost in a sea of troubling economic data is one bright spot: America is once again competing for -- and winning -- factories and manufacturing operations.
Blogs
WSJ: Real Time Economics | A Look at Case-Shiller, by Metro Area
S&P/Case-Shiller home-price data showed a gain for most cities in April amid a boost from the start of the spring selling season began, but prices still remain below year-earlier levels.
Café Hayek | Obama and manufacturing
President Obama spoke in Iowa the other day about the economy. In a sense, it was the launching of the re-election campaign. I thought it might be interesting to evaluate the economics and see what he thinks is going to be effective politically. The full text is here. I’ll be commenting on most of it. Here we go:
Cato @ Liberty | Economic Freedom
Some smart folks have drawn strongly on the Fraser Institute’s Economic Freedom of the World Annual Report to put together a short video extolling the virtues of economic freedom. Enjoy!
Reports
RCM: Wells Fargo | Housing Data Wrap-Up: June 2011
The Recovery Continues To Have a Tough Time Getting Going.
