The consumer confidence of American consumers decreased in September, particularly in regards to future expectations, amid concerns of elevated interest rates and a potential recession within a year.
Inflation is expected to rebound in 2024 due to a mismatch between supply and demand created by the shift from services to goods during the pandemic, as well as a chronic shortage of workers, according to BlackRock strategists. This could lead to higher interest rates and a higher risk of recession.
Consumer confidence in the US fell for the second consecutive month in September 2023, with the Expectations Index dropping below the recession threshold, reflecting concerns about rising prices, the political situation, and higher interest rates. Assessments of the present situation were relatively unchanged, while expectations for business conditions, job availability, and incomes declined. Concerns about the current and future financial situation of families also increased.
Government bond yields are spiking in the US, Europe, and the UK due to investors realizing that central bank interest rates may remain high for an extended period, and concerns over inflation and supply shortages caused by the retirement of baby boomers.
A survey by Morning Consult reveals concerns of a potential financial crisis as users of Buy Now Pay Later (BNPL) struggle with debt payments and face late fees, declined credit scores, and debt collection, with even wealthier individuals more likely to use BNPL; increased regulation is expected as BNPL continues to grow in popularity.
US home prices reach a record high as the market rebounds, with prices increasing for a sixth consecutive month and offsetting last year's decline, according to S&P CoreLogic Case-Shiller data.
India's External Affairs Minister, Jaishankar, criticized Canada at the UN General Assembly, accusing them of responding to terrorism based on political convenience, in the midst of the two countries' dispute over the killing of Khalistani terrorist Hardeep Singh Nijjar.
JPMorgan Chase CEO Jamie Dimon warns that investors need to be prepared for 7% interest rates, as most of them are not.
JPMorgan Chase CEO Jamie Dimon warns that interest rates could rise significantly from their current levels due to elevated inflation and slow growth, potentially reaching 7%, and urges businesses to prepare for this stress in the system.
Russian billionaire Oleg Deripaska believes that the economy has not collapsed as much as he initially predicted under the weight of Western sanctions in response to Russia's expansion in Ukraine, and argues that countries like China and India are reluctant to sever economic ties with Russia due to their own practical reasons and need for Russian resources. Additionally, Deripaska suggests that Russia is content to maintain the status quo in the conflict, rather than escalate it further.
President Joe Biden is set to join United Auto Workers in Michigan and must navigate the challenges of low inflation and strong unions.
The African Union will launch a new African credit rating agency next year to address what it sees as unfair credit ratings assigned to African countries, as lower credit ratings for many African countries lead to higher borrowing costs and limited access to international capital markets.
China's real estate giant, Evergrande, faces uncertainty as it defaults on debt repayment and undergoes investigation, raising fears of a major Chinese property crisis and potential impact on the global financial system.
Mortgage rates have increased in the past week, and while experts believe rates are unlikely to reach record lows seen during the pandemic, there is a possibility of rates decreasing before the end of the year if inflation continues to moderate. It is advised for homebuyers to focus on improving their credit scores and saving for a down payment to increase their chances of qualifying for the best rate.
Shares in Evergrande closed down 7% on Tuesday after the embattled property developer missed another bond payment, raising concerns about the company's ability to restructure its debt and the potential for a disorderly collapse that could damage China's wider economy.
Wall Street is concerned about the potential stress on the horizon as the Federal Reserve plans to keep interest rates higher for longer, and JPMorgan CEO Jamie Dimon warns that the world is unprepared for this scenario.
China's commerce minister expressed dissatisfaction with the European Union's decision to launch an anti-subsidy investigation on China's electric vehicles, calling it a protectionist act that will affect China-EU green cooperation and the global automotive industry.
The market is facing uncertainties due to a long list of negatives that have yet to be fully discounted, including concerns about the economy, higher interest rates, a possible government shutdown, an auto strike, high oil prices, and the restart of student loan payments.
Investment guru Jeffrey Gundlach advises investors to adopt a conservative approach and favor a balanced portfolio with a mix of equities, bonds, and commodities to safeguard against a potential recession, recommending high-quality bonds and credit market investments with yields of 7% to 8%.
President Joe Biden is showing support for United Auto Workers by joining them on the picket line, a move that is politically beneficial but may not be favorable to the Federal Reserve.
President Macron's change in approach toward maintaining a presence in a coup-stricken country reflects a broader shift in France's relationships in Africa, while shifting geopolitics are reshaping the list of the world's major arms dealers; additionally, internet influencers engaging in physical fights is becoming a popular trend.
Despite the recent decline in inflation, the negative effects of previous price increases have impacted Americans' perceptions of the economy, threatening the political prospects of both major parties as the 2024 presidential election approaches.
Americans are feeling pessimistic about the economy despite the decline in inflation, with rising prices and reduced household income affecting their perception, potentially influencing the outcome of the 2024 presidential election.
China and the European Union have agreed to exchange information on export controls and improve transparency on supply chains for raw materials, in an effort to address trade imbalances and geopolitical tensions.
President Joe Biden is set to join striking United Auto Workers in Michigan as he tries to balance low inflation and strong unions.
Americana, the largest quick-service restaurant operator in the Mena region, plans to invest in a new poultry feed plant in Ethiopia to address the shortage of chicken feed in the Arab world, according to its chairman Mohamed Alabbar. Additionally, Mr. Alabbar expressed excitement about the potential in the hotel industry, stating that tourism has not fully started yet with only 4% of the world population having traveled.
Geopolitics, specifically the war in Ukraine, is the biggest risk to the global economy, according to JPMorgan Chase & Co. CEO Jamie Dimon, outweighing concerns about high inflation or a U.S. recession. Dimon also emphasized the importance of the war in determining the future of the free democratic world and highlighted the strain it has caused in global relationships, particularly between the U.S. and China.
Gas prices in the United States have risen, exceeding the highs of last year, with California having the highest prices due to high state taxes and issues at refineries, as well as a less competitive gasoline market caused by certain refineries controlling a large portion of the market.
The federal government is on the verge of a shutdown, with potential consequences for various areas of governance.
The recent price growth of agricultural commodities in the EU slowed significantly in the second quarter of 2023 compared to the same quarter of the previous year, while the average price of goods and services consumed in agriculture decreased for the first time since Q4 2020, indicating a stabilization of global agricultural markets after a period of disruption characterized by high output and input prices.
China's top virologist, Shi Zhengli, known as "batwoman," has issued a warning that another coronavirus outbreak is highly likely in the future, urging the world to be prepared.
The Thai baht and Indonesian rupiah have weakened against the US dollar due to the dollar's strength and concerns about Pheu Thai's spending plans, while other Asian currencies have also seen losses.
According to a report by Oxford Economics Africa, the top 10 riskiest African countries to do business in 2023 are Nigeria, Zimbabwe, Ethiopia, DRC, Mozambique, Cameroon, Egypt, Uganda, Ghana, and Algeria.
China's real estate sector, including leading developer Country Garden, faces a risk of default as the industry's cash crunch worsens, which could have implications for the broader Chinese economy and global stakeholders.
President Xi Jinping's efforts to tackle the housing crisis in China face obstacles as multiple property developers, including Evergrande and China Oceanwide, deal with debt restructuring, liquidation, and potential defaults, leading to investor confusion about the government's plan to stabilize the market.
Starting October 2023, several key personal finance changes will be implemented, including new tax collection rules, freezing of mutual fund and demat accounts without nomination declarations, suspension of small savings schemes without PAN and Aadhaar submission, and the use of birth certificates as a single document for Aadhaar and government jobs.
Moody's warns that a US government shutdown would have a negative impact on the country's credit rating, potentially leading to a downgrade, as dysfunction in Washington DC hampers fiscal policymaking and exacerbates the country's fiscal deficits and debt affordability.
Public debt in sub-Saharan Africa has almost doubled in the past decade, raising concerns of a potential debt crisis; the IMF suggests five policy actions to address this issue, including implementing a medium-term strategy, fiscal adjustment, mobilizing more domestic revenue, strengthening budget institutions, and securing public support for reforms.
China's all-sector price index has reached its highest level in 14 months, indicating that the worst may be over for the country's economy and reducing concerns of deflation similar to that experienced by Japan.
Indian Americans are divided over the two Republican candidates, Vivek Ramaswamy and Nikki Haley, for the 2024 US Presidential elections due to their hard-line positions and ideological differences.
China is seeking to increase productivity and efficiency in its industrial northeast region, facing economic challenges such as an aging population, declining birthrate, and a real estate crisis, but some economists argue that the government's focus on industrial investments is outdated and lacks measures to stimulate consumer confidence and spending.
The Pakistani government is considering privatizing power generation and distribution companies or transferring management control to private entities for 20 to 25 years in order to address the country's circular debt in the energy sector. The circular debt in the gas sector has surpassed that of the power sector, reaching a total of Rs2.8 trillion ($17 billion).
A video showing a young black gymnast being overlooked at a medal ceremony in Ireland has sparked international outrage, leading to an apology from Ireland's gymnastics federation.
Russia's economic resilience, fueled by demand from the global south, is surprising analysts and oligarch Oleg Deripaska, who had previously predicted Russia would run out of money next year due to sanctions.
Japanese Finance Minister Shunichi Suzuki believes that Japan is at a critical stage and must decide whether to focus on increasing consumption or wage growth, and he also stated that fiscal spending may not necessarily lead to price increases.
Steel bar manufacturers in Pakistan are planning to increase prices by Rs10,000 per tonne, despite recent decreases in the dollar exchange rate and scrap prices, due to rising energy costs.
Despite Japan's labor shortage, Indian workers and students are reluctant to migrate to the country due to language barriers and low wages.
Thousands of premature deaths are expected in the UK due to the cost of living crisis, which is driven by factors such as inflation, energy costs, and government measures, leading to a wider wealth and health gap between the rich and poor.
Many retailers believe that the Biden Administration's trade strategy is inadequate, as they feel it neglects the importance of international trade and fails to create alternative options for imported products, leading to negative consequences for the American consumer and the economy as a whole.
Foreign investors, particularly those from Singapore, are showing increased interest in Japan's real estate market, attracted by factors such as the weak yen, favorable financing costs, and a recovering economy driven by the logistics and hospitality sectors. Singapore tops the list of property investments, with other investors including the US, Canada, and the United Arab Emirates. Japan's low office vacancy rate and the rapid return of workers to the workplace have contributed to its appeal as an investment destination.