The 10-year U.S. Treasury yield has risen above 5% for the first time since 2007, leading to concerns about increased borrowing costs across markets and potential impacts on the economy if bond yields continue to rise at this pace.
Oil prices experienced volatility as Israel agreed to delay its ground attack in Gaza, allowing the US to assemble air defenses to protect its troops in the Middle East.
The Israel-Hamas war is expected to have a negative impact on the economies of Egypt, Lebanon, and Jordan, including lower tourism, increased costs for goods transportation, and more cautious investment, according to the IMF's managing director, Kristalina Georgieva. The economic fallout from the war is likely to continue to grow, despite current market stability. The UNCTAD also warned of severe consequences for the Palestinian economy, estimating damage in the tens of billions of dollars, with persistent challenges including poverty and declining foreign aid.
Housing prices are higher than ever, with San Francisco residents needing to make over $400,000 annually to afford a home, while 70 years ago, a mortgage payment could be as low as $45.29 per month.
China is selling a record amount of US assets, including treasuries, bonds, and stocks, in an effort to boost the Chinese Yuan and reduce reliance on the US dollar, potentially causing a decline in the US economy.
In the second quarter of 2023, Nigeria saw a decline in capital imports with the production sector receiving the largest inflow of $605.04 million.
Approval of Brazilian President Luiz Inacio Lula da Silva has fallen as worries about the country's worsening economy grow, with 54% of respondents saying he is doing a bad job, according to a new poll.
Ivory Coast is struggling to sell cocoa export contracts for the 2024/25 season as multinational companies demand lower prices due to elevated global cocoa prices caused by a supply squeeze.
The CEO of Starwood Capital Group, Barry Sternlicht, predicts that the Federal Reserve will be forced to lower interest rates due to the high cost of paying off the government's debt pile, and warns that other Western central banks may follow suit or resort to printing money to cover deficits.
French payments company Worldline saw its shares plummet more than 60% after cutting its full-year targets due to an economic slowdown and increased cybercrime risks, impacting rival companies including Nexi and CAB Payments.
Americans are spending a trillion dollars a year in interest payments on the national debt, causing it to become an economic and national security emergency.
Wall Street leaders shared pessimistic outlooks for the global economy at an event in Saudi Arabia, citing concerns such as political tensions, inflation, recession, and conflicts such as the Israel-Hamas war.
Over Rs 2 lakh crore of investors' wealth has been wiped out in a single day as the BSE Sensex fell for the fifth consecutive day amid global tensions triggered by the Israel-Gaza war and its impact on the Middle East.
Higher interest rates and short-term Treasury yields at 5% are causing a "dramatic change" in global industry trends and preventing capital from flowing to innovative industries and companies, according to Bank of America's Jim DeMare.
The inability to accurately measure employment and unemployment in the UK is due to a decline in response rates for traditional surveys, which is attributed to the busy lifestyles and connectivity of millennials and Gen Zers. The Office for National Statistics (ONS) is now using alternative methods such as income tax data and "claimant count" figures. This change in data collection has created uncertainty and could potentially impact interest rates set by the Bank of England. The decline in survey response rates is a global issue, reflecting the changing nature of work and people's busier lives.
Millennials and Gen Zers' busy lifestyles and reduced response rates to traditional surveys are posing challenges to measuring employment and unemployment statistics, prompting the UK Office for National Statistics to adopt alternative data sources such as income tax data and unemployment-related social security claims. This trend is not unique to the UK and reflects a global shift in the way people engage with surveys.
Indian tax authorities have issued notices to online gaming companies demanding around 1 trillion rupees ($12.03 billion) in taxes that they allegedly evaded by imposing a 28% tax on total funds deposited to play online games.
Three-quarters of manufacturing executives believe that current federal policy on manufacturing strengthens their sector, but they are divided on which party would bring about a manufacturing renaissance, with 36% choosing Republicans and 35% choosing Democrats, according to a poll by Forbes, Xometry, and Zogby. Additionally, the poll revealed contradictions among manufacturing executives' views on industrial policy, the economy, climate change, immigration, and inflation.
India is projected to become the world's third-largest economy by 2030, driven by strong domestic demand, increased foreign direct investment, and a growing middle class, according to a report by S&P Global Market Intelligence.
Retailers are facing concerns as interest rates rise and savings dwindle, with low-to-middle income consumers spending their excess savings while high-income consumers still have a significant amount left, according to CFRA Analyst Zachary Warring. Warring recommends stocks that cater to high-income consumers and benefit from a trade-down from middle-income consumers.
Hong Kong's Chief Executive, John Lee, has reduced taxes for homebuyers and stock traders in an effort to boost the city's economy and maintain its status as a global financial hub, amidst challenges including the mass departure of residents and geopolitical tensions.
Investors are rapidly selling Chinese stocks due to concerns over the country's economic slowdown, lack of convincing response from authorities, and rising tensions between China and the US, leading to a collapse in trust in the Chinese Communist Party.
China has initiated investigations into Foxconn, the key Apple supplier based in Taiwan, over its land use in mainland China, with experts suggesting that the move may be politically motivated ahead of Taiwan's upcoming presidential elections. The investigations highlight Beijing's prioritization of politics over the economy and indicate its willingness to sacrifice economic gains for political purposes.
The US deficit for fiscal year 2023 reached $1.7 trillion, growing 23 percent in a year, and multi-trillion-dollar deficits are expected to become the new normal under Bidenomics, driven by excessive government spending and insufficient revenues.
The US economy likely grew at its fastest pace in nearly two years in the third quarter, driven by strong consumer spending, rising wealth, and easing inflation. However, there are concerns that this robust growth may lead to further tightening of monetary policy to curb inflation. Economists expect growth to slow in the fourth quarter and next year.
Foreign investors pulling back from China and wealthy residents moving their money abroad are causing the yuan to face downward pressure, leading to the biggest decline in investment capital outflows in China in seven years and eight months in September.
Head of the International Monetary Fund, Kristalina Georgieva, emphasizes the importance of international cooperation in combating slow global growth and high interest rates, citing the need for governments to implement strong buffers through tax policies and expenditure policies that invest in human capital. Additionally, Georgieva highlights the costs of fragmentation and the responsibility of global leaders to address the concerns of those who have not benefited from globalization.
Shares of Worldline dropped by 57% after the payments company reduced its growth and profit guidance, attributing it to a worsening economic environment in Germany.
Chinese developer Country Garden Holdings has been deemed in default on a U.S. dollar bond for the first time after failing to pay interest within the grace period.
Hong Kong's Chief Executive, John Lee, outlined his annual policy vision focused on revitalizing the property market and tightening national security laws, including enacting new legislation by the end of 2024, amidst the city's struggles with protests, COVID lockdowns, emigration, and a national security crackdown.
Zimbabwe has reduced its benchmark interest rate to stimulate economic growth, resulting in Argentina now having the highest interest rate in the world.
China's issuance of new sovereign bonds aims to support the economic recovery by driving domestic demand and consolidating the economy, amid a fiscal stimulus increase and a higher budget deficit due to central government debt.
The Bank of England is expected to keep interest rates on hold at 5.25% next week, emphasizing its commitment to fighting high inflation despite concerns about a potential recession. Economists predict a 6-3 vote in favor of a rate pause, and the central bank is unlikely to cut rates anytime soon.
Canada's lentil exports to India are at risk as no new contracts are being signed due to escalating diplomatic tensions, potentially impacting Canadian farmers and leading to inflation in India.
Australian inflation was unexpectedly strong in the third quarter due to broad-based and persistent cost pressures, increasing the likelihood of an interest rate hike as early as next month.
The rapid increase in US government bond yields, similar to previous occurrences, has raised concerns about the possibility of back-to-back recessions, despite the economy's current resilience and strength.
Visa surpasses fourth-quarter profit estimates as strong travel demand contributes to consumer resilience.
S&P Global Ratings has revised Israel's sovereign debt outlook to negative, citing concerns over the potential economic and security impact of the Israel-Hamas war, with a forecast of a 5% contraction in the fourth quarter.
Locking in a top rate on a 2-year CD is a smart move in the current high-rate environment, as it offers a balance between easy access and high earning potential with rates as high as 5.60%.
The average American household reached millionaire status in 2022 due to increased savings, higher home values, and growing retirement accounts during the pandemic.
Inflation actually increased the net worth of the median household by $14,300 between 1983 and 2019, benefiting middle-class households by reducing the real value of debts, according to a research paper by economist Edward N. Wolff. However, lower earners were negatively impacted by inflation as they have less household wealth.
Economists believe the US economy had a strong summer, but warnings from Wall Street figures like Bill Gross and Bill Ackman suggest an economic downturn has already begun, with evidence of weakening demand and rising Treasury yields. Investors are advised to prepare with a mix of risky and safe assets.
Recent layoffs in the tech sector have raised concerns about the job market, but there is evidence that Americans are still spending and businesses are quickly absorbing any job losses, indicating that there is no imminent crisis in the labor market, according to economists. The labor market is cooling from the post-pandemic boom, but it remains strong overall, and the recent layoffs are concentrated in specific sectors. Additionally, the Federal Reserve's high interest rates may slow down hiring, but experts do not expect a significant increase in unemployment or mass layoffs in the near future.
The collapse of Silicon Valley Bank is attributed to management issues and weak oversight, as regional banks continue to face challenges such as higher interest rates, changes in credit loss provisions, and increased competition for deposits.
Historically, recessions in the US have been short-lived and can be favorable opportunities for stock investors, with the S&P 500 index showing solid returns in a matter of months, even before the official end of an economic downturn, according to Bank of America wealth unit's chief market strategist Joseph Quinlan. Quinlan believes that recessions represent periods of reset and revitalization that leave the economy stronger at the other end. Furthermore, he mentions that rolling recessions, which are limited to certain sectors, are more common than economywide downturns.
Food inflation continues to rise, with a 5.9% increase in the cost of food in September, highlighting the struggle of rising prices and the need to make hard choices at the grocery store.
The true definition of "wealthy" in 2023 is being redefined due to stubborn inflation and rising costs, with a median net worth increase of 37% to $192,900 for American families but a perception of financial insecurity and a devalued U.S. dollar.
The US economy is at risk of significant damage due to a soaring national debt, with experts warning of a potential credit event and unsustainable interest payments exceeding half of the national budget.
Canada is experiencing an economic slowdown, with flat growth, rising unemployment, sluggish retail sales, and slowing inflation, leading economists to predict that the Bank of Canada will keep interest rates unchanged at 5% and end its rate increase campaign.
Americans are struggling with their car payments at the highest rate in decades as subprime borrowers face delinquencies, indicating a tightening economy after a year of counter-inflationary measures.