Financial and Economic Brief - March 27, 2018by © Liberty Publishing, Inc.
Economic Crisis on Horizon over Trade?
A strengthening in U.S.-China trade tensions, which many are expecting from a new round of tariff threats from both sides, would result in an economic crisis, according to economist Robert Shiller. He warned, U.S. companies are not prepared to have China cut out of their supply chains or business models. Shiller said he did not believe there would be a “significant inflationary effect” to the U.S. from steel and aluminum tariffs, but he warned that heated trade rhetoric from both sides could send the American economy into a recession.
Remington Files for Chapter 11
According to papers filed in Delaware Federal court, Remington Arms Co. and its parent Remington Outdoors filed for Chapter 11 bankruptcy protection over the weekend due to falling sales. It also follows student-led rallies across the United States calling for stricter gun laws after the mass shooting in Parkland, FL. Remington will continue to operate while it pursues Chapter 11 protection, an action that allows it to come up with a reorganization plan and strategy to pay off creditors. Stephen Jackson, Remington's chief financial officer, said the “overall business and industry environments continue to cause significant financial hardship.”
Facebook Privacy Probe
Shares of Facebook Inc. fell more than 5% after the U.S. Federal Trade Commission announced its investigation of the social network following the disclosure that data of 50 million users got into the hands of political consultancy Cambridge Analytica. The move by the FTC adds to pressure from lawmakers for Facebook CEO Mark Zuckerberg to explain how his company controls user data. The FTC rarely confirms an investigation publicly before it files a complaint except in cases of “significant public interest”. Facebook also faces dissatisfaction from advertisers and users.