Markets & Economy

Uberfication keeping a lid on wages that’s a drag on economic growth

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Markets have paused, warily studying new plumes of smoke on the horizon. Not enough hazard to run to Treasurys or to scramble for oil, but not business as usual. Bergdahl, Brat, Baghdad and Barak ... but the important happening was Uber. U.S. data do not support the acceleration camp: May retail sales arrived at a 0.3 percent gain, half the forecast, and stripped of credit-fueled vehicles, only 0.1 percent. April's figures were revised better, but the three-year trend is down. The World Bank added its vote: U.S. GDP will not crack 3 percent this year. Long-term U.S. rates are behaving in random and jittery fashion. The bond market ignored the technical break of 2.5 percent two weeks ago, blinking and puzzled now back above 2.6 percent. Treasurys still look good because German 10-year bonds pay 1.37 percent, and Japanese government bonds 0.6 percent. With those central banks trying to devalue the euro and yen, the paltry interest will be worth even less in anyone else's currency. ...