www.amchamguate.com WEEKLYNEWSLETTER JANUARY09TO JANUARY13
Canada, U.S., Mexico pledge to tighten economic ties, boost domestic production
TheUnitedStates,MexicoandCanadaonTuesday vowed to tighten economic ties, producing more goods regionally and boosting semiconductor output, even as integration is hampered by an ongoing dispute over Mexico’s nationalist energy policies.
U.S. President Joe Biden, Mexican President Andres Manuel Lopez Obrador and Canadian Prime Minister Justin Trudeau met in Mexico City and pledged to beef up supply chains after weatheringseriousdisruptionsduringtheCOVID19pandemic.
Consumers see inflation and spending—cooling
off in
the
year
ahead, New York Fed survey shows Consumers see the inflation burden easing while they expect to pull back considerably on their spending,accordingtoacloselywatchedsurveythe NewYorkFederalReservereleasedMonday.
Economists believe that expectations are a key to inflation, as they influence the behavior of companies that will raise prices and workers who will demand higher wages if they think prices are goingtokeeprising.
The New York Fed’s one-year expectations gauge had hit a record 6.8% in June, according to data going back to 2013, amid a surge in inflation to its highestpointinmorethan40years.
Over the longer term, expectations were little changed,withthethree-yearoutlookholdingat3% andthefive-yearprojectionedginghigherto2.4%.
Consumers expect gas prices to increase 4.1% and food prices torise7.6%overthenextyear,butboth figures represent 0.7 percentage point declines fromthepreviousmonth.
Souce: https://www.cnbc.com/2023/01/09/consumers-see-inflation-and-spending-coolingnew-york-fed-survey-shows.html
The leaders also promised to reduce their countries’carbonfootprintandtackleinflation.
“We’re working to a future to strengthen our cooperationonsupplychainsandcriticalminerals so we can continue to accelerate in our efforts to buildthetechnologiesoftomorrow–rightherein North America,” Biden said in a joint news conference with his fellow leaders after their meeting.
https://globalnews.ca/news/9401492/three-amigos-summit-economy-canadamexico-us/
January 10, 2023 January 9, 2023
Photo: Seth Herald | AFP | Getty Images
Photo: Formato Sie7e
Souce:
Cost-of-living crisis is top immediate risk for global economy: World
Economic Forum
The threat of recession, the cost-of-living crisis and mounting debt distress will dominate the global economy in the next two years as it struggles to move on from the pandemic and war in Ukraine, according to a survey by the World Economic Forum.
Its Global Risks Report, an annual poll of 1,200 government,businessandcivilsocietyprofessionals compiled by the Geneva-based foundation, suggests there will be little respite as countries grapple with “energy, inflation, food and security crises”.
Almost seven in 10 respondents reckon the near term will be characterised by volatile economies and multiple shocks, while a fifth of them fear “catastrophicoutcomes”withinadecade.
The most immediate risk is the cost-of-living crisis, whilethebiggestlong-termthreatsremainclimaterelated, the survey found. Saadia Zahidi, WEF managing director, is concerned that the world mightbeenteringa“viciouscycle”. Souce:
https://gulfnews.com/business/cost-of-living-crisis-is-top-immediate-risk-for-globaleconomy-world-economic-forum-1.93151809
US deficit widens by $85 billion in December
The US government recorded a deficit of $85 billion in December, bringing the total deficit to nearly $1.42 trillion for the 2022 calendar year, the TreasuryDepartmentreportedThursday.
The government is running a deficit of $421.41 billion for its fiscal first quarter of 2023, a 12% increase from the fiscal first quarter of 2022, Treasurydatashows.
December’s deficit was nearly four times as large as the $21.3 billion deficit recorded in December 2021 as spending grew and revenue fell last month. Receipts totaled $454.94 billion, while outlayswere$539.94billioninDecember2022.
Budget watchdog the Committee for a Responsible Federal Budget said the $1.4 trillion calendaryeartotalis“staggering,consideringthe worst of the pandemic and the accompanying recessionhavebeenoverforalongwhilenow.”
“We should not be borrowing $4 billion a day, an apparent debt addiction that is harmful to the economy and the budget,” Maya MacGuineas, presidentoftheCRFB,saidinastatement.
January 12, 2023 January 11, 2023
Photo: AFP
Photo: Mandel Ngan/AFP/Getty Images
Souce:
https://edition.cnn.com/2023/01/12/economy/us-government-budget-deficitdecember/index.html
U.S. Chamber of Commerce threatens to sue the FTC over proposed ban on noncompete clauses
TheU.S.ChamberofCommerce,whichrepresentssome3millionbusinesses,ispreparedtosueiftheFTC continues to push for a proposal that prohibits companies from imposing noncompete clauses on employees,PresidentandCEOSuzanneP.ClarktoldreportersThursday.TheorganizationisthelargestU.S. businesstradegroupandspentcloseto$60millionlobbyinglawmakersduringthefirstthreequartersof lastyear,accordingtonon-partisancampaignfinancewatchdogOpenSecrets.
The Chamber called the proposal “blatantly unlawful” and ignorant of established state laws where “noncompeteagreements areanimportanttoolinfosteringinnovationandpreservingcompetition.”The changewouldpotentiallyincreasewagesbyapproximately$300billionayearforworkers,accordingtothe FTC.
TheorganizationhasalsovowedtolobbyCongresstolimitsomeoftheFTC’sregulatoryactivitiesthrough the appropriations process, said Neil Bradley, executive vice president, chief policy officer and head of strategicadvocacyfortheU.S.Chamber.
Souce: https://www.cnbc.com/2023/01/12/us-chamber-of-commerce-threatens-to-sue-theftc-over-proposed-ban-on-noncompete-clauses.html
January 13, 2023
Photo: Andrew Kelly | Reuters
