By Commodity News Service Canada
WINNIPEG, August 2 (CNS Canada) – The following is a glance at the news moving markets globally.
US CONSUMER SPENDING RISES IN JUNE
Consumer spending in the US increased for the third straight month in June, rising 0.4 per cent, according to the US Commerce Department.
Household spending accounts for more than two-thirds of economic output in the US, supporting the expansion. Consumer spending also rose 0.4 per cent in May and was up 1 per cent in April.
Incomes rose more slowly, increasing 0.2 per cent for the month. Economists speculate Americans may be saving less to spend more, as the personal saving rate was down to 5.3 per cent in June, the lowest since March, 2015.
JAPAN APPROVES $274 BILLION STIMULUS PACKAGE
Japanese Prime Minister Shinzo Abe’s cabinet approved a US$274 billion government stimulus package on Tuesday, the latest effort to give the nation’s struggling economy a boost.
The money will be allocated to infrastructure projects, such as upgrading ports to allow foreign cruise ships access and building food-processing facilities to increase farm product exports.
The government will also provide some support to citizens who haven’t received many benefits over the past few years, providing cash handouts of US$147 each to 22 million low-income people. They will also bring more people into a public-pension system by easing admission requirements and offer more college scholarships.
MOLSON COORS REPORTS BETTER-THAN-EXPECTED QUARTERLY SALES
Molson Coors Brewing Co reported higher quarterly sales than expected with strong demand for Coors Light.
Coors Light volumes rose more than 4 per cent globally in the second quarter, including strong growth in Europe and Latin America.
However, Molson Coors’ net sales fell about 2 per cent in the three months ended June 30, settling at $986.2 million.