Business Activity Pumps U.S. Economy Amid Global Slowdown
When it comes to parenting there are no perfect answers? But that's okay because you don't have to be perfect to be a perfect parent teens in foster care will love you just the same for more information on adoption visit adoptuskids. US Kids Dot Org a message from the US Department of Health and Human Services adoptuskids and the Ad Council. Here's your money briefing from Monday. November twenty fifth I'm Jr Whalen at the Wall Street Journal in New York. Economists warned the global economy may not get back on track for another two years. But don't play me United States we'll check in with the Wall Street Journal reporter to find out what surprised economists about the US economy. I some money and market news you you should know the. US Census Bureau says Latino women earn forty six percent less than white men and thirty one percent less than white women. That's the largest wage gap for any group of minority women and study by Mackenzie and company and lean in fines. That just sixty eight Latinas are promoted into a management role for every one hundred men promoted the overall Rachel Thomas. CEO of the Sheryl Sandberg. Dave Goldberg Family Foundation told The Wall Street Journal's Women in the Workplace Forum last week that closing the Latina pay gap would result in an additional one million dollars in earnings over the course of a Latina Woman's career. The numbers aren't much better for other minority women. The Census Bureau says black women earn thirty nine percent less than white men. While native American women earn forty-two percent less the Walt Disney Company wants to be sure fans are frozen to our in frozen out of finding the perfect gift six years ago. After the release of the original frozen Disney marketing executives were caught off guard by the overwhelming overwhelming popularity of toys and clothing based on the main characters Elsa and Anna. This time around Disney's allocated the license to more partners branched out into a new categories like technology and it's targeting older fans through retail outlets like fashion accessories chained clair's and Hasbro which has rights to make frozen to toys has rushed merchandise to US store shelves to meet demand. Alison is perfect. I mean she'd never tell you that. She's perfect allison. Wait are you texting and driving texting. And driving makes good people look bad visit stoptextsstopwrecks dot org brought to you by the National Highway Traffic Safety Administration and the Ad Council. I'm so the. US economy is proving to be a diamond diamond in the rough as the global economy continues to struggle business activity in the US is showing signs of a rebound and Wall Street Journal reporter. Paul Hanan joins us to discuss. So Paul what was it about. US business activity. That's giving economists. Optimism surveys of businesses the purchasing managers who by all the things that businesses need to be able to make their goods or provide their services detected a pickup in activity a surprisingly strong pickup inactivated during November and that is sort of eased fears that the US economy was was slowing more sharply than it has been today and the business activity but he is picking up. It's still at levels below recent years isn't it. It's not a strong a very strong economy by any means but what it is a stronger economy than then Europe Japan and most of the rest of the world right now and you know is obviously something to hold onto the same things that are holding back the rest of the world economy appear to be holding back the US that is to say this great uncertainty about how the the trade relationship with China is going to work on future is it was being manufacturers in particular and they're holding back on investment spending now the trade issues between the US and China. Is that a a major factor that contributes leads to economic groups saying they don't think that the global economy is going to make significant moves forward until two thousand twenty one. I think that's the case you know. There is some progress or or at the appearance of progress towards what's called phase one deal between the. US and China might deal with some some of the issues on the surface but a lot of people people who look at these issues. I think that there is much much more work to be done. In coming years to to really solve the underlying stresses that have driven this this particular dispute over the last eighteen months so nobody really expects all this uncertainty that's spooking businesses around the world to suddenly disappear even if if there is a a short term trade deal at to be announced in the next few weeks or months and what did European Central Bank had Christine Lagarde say about the global economy. She has has been until now. The head of the International Monetary Fund that looks at how the global economy is performing so her assessment is based on that experience appearances while as as being a central banker. And you know her assessment of this is not very encouraging She says that the the global system that people got news over the last few decades has become fractured and that is a big worry for businesses for the eurozone in particular for Europe in particular what she had to say. Okay was look we. We can't rely on exports to drive growth in the future. We have to be doing more to lift demand at home. And that's a message that is going out to the German government in particular which she wants to spend more on on investment project. There's so much connective tissue between the world economies that add anything going on in Europe and any sort of tick upper tick down can really have an impact back in the US especially for investors who may have money invested in Dan conglomerates and corporations. It's very connected place over the last four decades. This this web of of supply chains has been built across globe. People obviously invested a lot of money in in other countries businesses have subsidiaries there. US businesses sale everywhere even if they aren't making things in the US Shipping them overseas so You know if if China India rope are having a bad time at the. US Isn't going to isn't going to be unscathed. scathed having said that the. US isn't as dependent on exports as Europe and Japan for example. So you know if if there is trouble ahead on the the trade front more globally. It's likely to emerge from less damaged than than the other big developed economies. Can you also explain concern behind a slowdown in the manufacturing sector spilling over to the services sector factories of a hard time everywhere for the last eighteen months. The variety of reasons for that but you know factories employ people and if if they begin to cut jobs or to hire less S. aggressively That has an impact on incomes and people with less money to spend are going to the thing at home not going out to restaurants not going to the cinema. Uh Not doing all the things that you can do. If you've got a lot of cash and that's how the ripple or the connection from manufacturing woes too services It might happen all right. That's Wall Street Journal reporter. Paul Hanan joining us from London. Paul thank you so much for coming on the show. Thanks for having me. And that's your money briefing. Im J._R.. whalen in New York for the Wall Street Journal.