US Government Shutdown, Home Buyers Struggling, Trouble Brewing In Europe, Plus The Beef With China And Tariffs

Thursday, January 17, 2019
By Paul Martin
January 17, 2019

As we kickoff today’s trading, here is an important look at the US government shutdown, home buyers struggling, trouble brewing in Europe, and the beef with China and tariffs.

To Brexit Or Not To Brexit
January 17 (King World News) – Here is a portion of what Peter Boockvar wrote today as the world awaits the next round of monetary madness: Outside of the question of what the UK government and Parliament does next, the key is what the EU does and to what extent they bend. As after all we are in the 21st century with smart phones, Bloomberg news had this headline: “EU says Juncker is texting with Theresa May.”

As it now looks like Parliament will be heavily involved in constructing a deal that is palatable to both them and the May government, I believe the odds of a no deal/hard Brexit shrinks even more and therefore I’m even more positive on the British pound. While little changed today, the pound is at a 2 month high today vs the dollar and euro…

US Government Shutdown
Now that the US government shutdown is having a broader impact on government contractors than initially believed, the WH has shifted its GDP forecast to a one-tenth hit for every one week of closure vs their previous estimate of one-tenth for every two weeks. The pressure is only intensifying on both sides over this meaningless amount of money.

Home Buyers Struggling
For years in the post housing crash recovery we know the first time home buyer has only made up about 30% of purchases vs the historical rate around 40%. While there is no question younger people are starting households and getting married later in life than they did historically, student debt is also a major inhibiting factor.

The Rest…HERE

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