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The shrinking trade deficit is not being caused by a rebound in American exports.
As for exports, a shrinking trade balance has in fact dragged down growth these past two years.
The shrinking trade deficit also helped the economy regain some momentum in the final months of the year.
The subtler variants of protection may be similarly disruptive.The gears of globalisationThe immediate cause of shrinking trade is plain: global recession means a collapse in demand.
While a shrinking trade gap bodes well for fourth-quarter economic output, exports and imports both declined, a sign of some softening in domestic and overseas demand.
The engines of economic growth last quarter were a shrinking trade deficit and consumers, who account for more than two-thirds of the economy and whose spending grew at an annual rate of 4.1 percent.
Similar(47)
To be sure, investors still have roughly $4 trillion in domestic stock funds, but that flight from the market is reflected in other figures, like shrinking trading volume.
But one-day spikes are not expected to erase the trend of shrinking trading volumes as investors seek refuge in less risky assets like bonds.
The gap between bid and asked prices will no doubt narrow, shrinking trading profits, but they say this will probably be offset by expanded volume.
The merger, which becomes official on Thursday, comes at a difficult time for Wall Street, amid rising interest rates, shrinking trading profits, increased regulatory scrutiny and a wave of lawsuits related to corporate missteps and scandals.
Mr. Viniar said the firm is "not going to shrink trading".
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