The US economy grew at an unspectacular pace in recent weeks, while businesses still took a rosy view of the near future despite the escalating US-China trade war, the Federal Reserve said Wednesday.

But Fed still drew a spotty portrait, pointing to an array of softening or deteriorating conditions just as concrete signs emerge that the trade conflict is weighing on growth.

"Although concerns regarding tariffs and trade policy uncertainty continued, the majority of businesses remained optimistic about the near-term outlook," the central bank said in a nationwide survey of economic activity.

Though disagreements remain, policymakers are widely expected to cut interest rates again in two weeks to insulate the United States from the weakening global economy and mounting fears of economic damage wrought by President Donald Trump's trade wars.

The Fed cut rates last month for similar reasons, marking the first downshift for monetary policy in a decade.

The latest "beige book" survey, which gathers anecdotal reports from business people and other contacts in the Fed's 12 districts, said growth had continued "at a modest pace."&nbsp;

- Sharp deterioration -

 
The report may not have reflected all of last month's sharp deterioration in the trade conflict with Beijing, as research concluded on August 23, just as Beijing and Washington announced fresh increases on hundreds of billions of dollars in two-way trade.

According to the Fed, anecdotal reports say auto sales rose and tourism was "solid," while bank lending and commercial real estate leasing both increased a little.

Elsewhere, however, things were less than stellar. Farms were beset by a trio of woes: bad weather, low prices and uncertainties from America's trade wars.&nbsp;

Meanwhile, consumer spending the sole strong point in the US economy was "mixed" outside the auto sector, demand for transportation softened, home sales "remained constrained" and housing construction was flat.

Across the nation, employers complained they had difficulty finding workers to fill open positions and faced "strong upward pressure" to offer higher pay to entry-level and low-skill workers.

Elsewhere, employers upped benefits and other deal sweeteners, such as more flexible work arrangements and signing bonuses, according to the report.

But inflation remained tame. While some companies said they were able to pass on price increases, manufacturers complained there were limits on how much they could do so.

"District reports on the impact of tariffs on pricing were mixed, with some districts anticipating that the effects would not be felt for a few months," the report said.

The US economy grew at an unspectacular pace in recent weeks, while businesses still took a rosy view of the near future despite the escalating US-China trade war, the Federal Reserve said Wednesday.

The US economy grew at an unspectacular pace in recent weeks, while businesses still took a rosy view of the near future despite the escalating US-China trade war, the Federal Reserve said Wednesday. But Fed still drew a spotty portrait, pointing to an array of softening or deteriorating conditions just as concrete signs emerge that the trade conflict is weighing on growth. "Although concerns regarding tariffs and trade policy uncertainty continued, the majority of businesses remained optimistic about the near-term outlook," the central bank said in a nationwide survey of economic activity. Though disagreements remain, policymakers are widely expected to cut interest rates again in two weeks to insulate the United States from the weakening global economy and mounting fears of economic damage wrought by President Donald Trump's trade wars. The Fed cut rates last month for similar reasons, marking the first downshift for monetary policy in a decade. The latest "beige book" survey, which gathers anecdotal reports from business people and other contacts in the Fed's 12 districts, said growth had continued "at a modest pace." - Sharp deterioration - The report may not have reflected all of last month's sharp deterioration in the trade conflict with Beijing, as research concluded on August 23, just as Beijing and Washington announced fresh increases on hundreds of billions of dollars in two-way trade. According to the Fed, anecdotal reports say auto sales rose and tourism was "solid," while bank lending and commercial real estate leasing both increased a little. Elsewhere, however, things were less than stellar. Farms were beset by a trio of woes: bad weather, low prices and uncertainties from America's trade wars. Meanwhile, consumer spending the sole strong point in the US economy was "mixed" outside the auto sector, demand for transportation softened, home sales "remained constrained" and housing construction was flat. Across the nation, employers complained they had difficulty finding workers to fill open positions and faced "strong upward pressure" to offer higher pay to entry-level and low-skill workers. Elsewhere, employers upped benefits and other deal sweeteners, such as more flexible work arrangements and signing bonuses, according to the report. But inflation remained tame. While some companies said they were able to pass on price increases, manufacturers complained there were limits on how much they could do so. "District reports on the impact of tariffs on pricing were mixed, with some districts anticipating that the effects would not be felt for a few months," the report said.

US sees 'modest' growth, businesses show 'near-term' optimism: Fed

Netflix shares plunged Monday after its latest quarterly update showed subscriber growth below expectations for the streaming television giant. 
 
Netflix shares tumbled 15 per cent in after-hours trade after the quarterly report. 
 
The company said it ended the second quarter with 83 million subscribers, adding 1.7 million. That was well below Netflix&#39;s own forecast of 2.5 million additions and lower than many analyst forecasts. 
 
Netflix said growth was hurt, especially in the United States, when it raised rates on many long-time subscribers who had been &quot;grandfathered&quot; when it hiked most prices. 
 
&quot;We think some members perceived the news as an impending new price increase rather than the completion of two years of grandfathering,&quot; the company said in a statement. 
 
&quot;Churn of members who were actually ungrandfathered is modest and conforms to our expectations.&quot; 
 
Net profit for the quarter was $41 million, up from $26 million a year earlier. Revenue rose to $2.1 billion from $1.6 billion. 
 
Netflix said its march to becoming a global television provider was making progress, projecting gains of some two million subscribers outside the US in the third quarter. 
 
&quot;Our approach in expanding our global footprint in January was to launch a service targeting early adopters and then to listen, learn and iterate quickly,&quot; it said. 
 
&quot;Now that we are six months in, we will localize Netflix in Poland and Turkey with the addition of local language in the user interface, subtitles and dubbing. Localization in other markets will take place over time as economically prudent.&quot; 
 
The streaming television pioneer in January significantly expanded its global footprint to 190 countries, making its Internet TV service available in 130 new markets, including India -- but not China. 
 
(AFP)

Netflix shares tumbled 15 per cent in after-hours trade following the quarterly report

Netflix shares plunged Monday after its latest quarterly update showed subscriber growth below expectations for the streaming television giant. Netflix shares tumbled 15 per cent in after-hours trade after the quarterly report. The company said it ended the second quarter with 83 million subscribers, adding 1.7 million. That was well below Netflix's own forecast of 2.5 million additions and lower than many analyst forecasts. Netflix said growth was hurt, especially in the United States, when it raised rates on many long-time subscribers who had been "grandfathered" when it hiked most prices. "We think some members perceived the news as an impending new price increase rather than the completion of two years of grandfathering," the company said in a statement. "Churn of members who were actually ungrandfathered is modest and conforms to our expectations." Net profit for the quarter was $41 million, up from $26 million a year earlier. Revenue rose to $2.1 billion from $1.6 billion. Netflix said its march to becoming a global television provider was making progress, projecting gains of some two million subscribers outside the US in the third quarter. "Our approach in expanding our global footprint in January was to launch a service targeting early adopters and then to listen, learn and iterate quickly," it said. "Now that we are six months in, we will localize Netflix in Poland and Turkey with the addition of local language in the user interface, subtitles and dubbing. Localization in other markets will take place over time as economically prudent." The streaming television pioneer in January significantly expanded its global footprint to 190 countries, making its Internet TV service available in 130 new markets, including India -- but not China. (AFP)

Netflix shares plunge after quarterly report reveals cooler growth

The uncertainty created by Britain&#39;s vote to leave the European Union will slow the global economy into next year, the International Monetary Fund (IMF) predicted on Tuesday. 
 
Last month&#39;s populist victory in the British referendum has darkened the skies in that country and across the Euro area, according to the global crisis lender, forcing it to cut April&#39;s growth forecasts and rattling what had already been a fragile recovery. 
 
Britain&#39;s relations to the 28-member EU single market were thrown into confusion following the June 23 vote, raising the possibility of sudden, new trade barriers and at least initially causing a selloff in global financial markets. 
 
Analysts have predicted this will weigh on consumption and investor confidence.

In an update to its April forecast, the IMF said global economic growth was likely to be 3.1 per cent this year and 3.4 per cent in 2017, a downward revision of 0.1 per cent for both years. 
 
Brexit was liable to cost the British economy nearly a full percentage point of growth in 2017 as demand will likely be significantly lower than it would have been had the remain camp been victorious. 
 
&quot;Continuing uncertainty is likely to weigh on consumption and especially investment,&quot; the IMF said. 
 
Nigeria, Africas largest economy, saw unusually painful revisions as dropping oil prices have hurt oil revenues, power production and investor confidence. Its economy is now expected to contract by 1.8 per cent rather than grow by 2.3 per cent, a sharp revision that has followed the steep devaluation of the countrys currency. 
 
In a bright spot, stronger activity in the Euro area has seen this years growth forecast revised upward by 0.1 per cent to 1.6 per cent. But possible drops in consumer and business confidence as well as strain on banks means 2017 will likely see a slowdown after the Brexit referendum. Brexits consequences for the United States were likely to be &quot;muted,&quot; with growth steady at 1.8 per cent this year and next, representing a downward revision of 0.2 per cent in 2016. 
 
However, the IMF warned of possibly greater risks for global growth. Non-performing loans and the poor profitability of Greek, Italian and Portuguese banks as well as enduring market turbulence were among factors that &quot;could have severe macroeconomic repercussions,&quot; according to the Fund. 
 
While the short-term prospects for the Chinese economy were unchanged or even improved due to interventions by central authorities -- driving this years forecast up 0.1 to 6.6 per cent -- the heavy reliance on credit to drive growth could create instability. 
 
The recent appreciation of the Yen is likely to counteract an announced two-year delay in hiking a consumption tax in Japan. This has slowed the forecast growth in that countrys already anemic economy, with the IMF revising it downward to just 0.3 per cent, to be followed by a bare 0.1 per cent expansion in 2017. 
 
(Reuters)

Britain's uncertain relations with the 28-member EU single market raises possibility of sudden and new trade barriers

The uncertainty created by Britain's vote to leave the European Union will slow the global economy into next year, the International Monetary Fund (IMF) predicted on Tuesday. Last month's populist victory in the British referendum has darkened the skies in that country and across the Euro area, according to the global crisis lender, forcing it to cut April's growth forecasts and rattling what had already been a fragile recovery. Britain's relations to the 28-member EU single market were thrown into confusion following the June 23 vote, raising the possibility of sudden, new trade barriers and at least initially causing a selloff in global financial markets. Analysts have predicted this will weigh on consumption and investor confidence. In an update to its April forecast, the IMF said global economic growth was likely to be 3.1 per cent this year and 3.4 per cent in 2017, a downward revision of 0.1 per cent for both years. Brexit was liable to cost the British economy nearly a full percentage point of growth in 2017 as demand will likely be significantly lower than it would have been had the remain camp been victorious. "Continuing uncertainty is likely to weigh on consumption and especially investment," the IMF said. Nigeria, Africas largest economy, saw unusually painful revisions as dropping oil prices have hurt oil revenues, power production and investor confidence. Its economy is now expected to contract by 1.8 per cent rather than grow by 2.3 per cent, a sharp revision that has followed the steep devaluation of the countrys currency. In a bright spot, stronger activity in the Euro area has seen this years growth forecast revised upward by 0.1 per cent to 1.6 per cent. But possible drops in consumer and business confidence as well as strain on banks means 2017 will likely see a slowdown after the Brexit referendum. Brexits consequences for the United States were likely to be "muted," with growth steady at 1.8 per cent this year and next, representing a downward revision of 0.2 per cent in 2016. However, the IMF warned of possibly greater risks for global growth. Non-performing loans and the poor profitability of Greek, Italian and Portuguese banks as well as enduring market turbulence were among factors that "could have severe macroeconomic repercussions," according to the Fund. While the short-term prospects for the Chinese economy were unchanged or even improved due to interventions by central authorities -- driving this years forecast up 0.1 to 6.6 per cent -- the heavy reliance on credit to drive growth could create instability. The recent appreciation of the Yen is likely to counteract an announced two-year delay in hiking a consumption tax in Japan. This has slowed the forecast growth in that countrys already anemic economy, with the IMF revising it downward to just 0.3 per cent, to be followed by a bare 0.1 per cent expansion in 2017. (Reuters)

IMF: Brexit to cost Britain nearly 1% growth in 2017

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US sees 'modest' growth, businesses show 'near-term' optimism: Fed

Netflix shares plunge after quarterly report reveals cooler growth

IMF: Brexit to cost Britain nearly 1% growth in 2017