More than a third of American parents anticipate accumulating credit card debt to cover back-to-school expenses, and inflation is impacting their ability to pay for their children's education, supplies, and extracurricular activities, according to a survey by ScoreSense. Additionally, homeschooling parents are being significantly affected by inflation, with 75% reporting that it hampers their ability to fund their kids' education and extracurriculars. Back-to-school spending is expected to reach a record high of $41.5 billion in 2023, with electronics being a major driver of the increase.
Italy's 2023 budget deficit is projected to exceed the target of 4.5% of GDP and reach around 5.5% due to high interest rates and accounting adjustments related to tax credits, potentially impacting the planned tax cuts in the 2024 budget.
The war in Ukraine has significantly impacted European economic growth and increased inflation, with the Swiss National Bank stating that the consequences are likely to worsen in the medium-to-long term, according to a study.
More than a million debit cards preloaded with hundreds of dollars, intended to combat the rising cost of living in California, have yet to be activated, leaving around $600 million in unused benefits.
Despite facing Western sanctions, Russia has managed to sustain its economy through increased military spending, but questions remain about the long-term viability of this militarization.
The Federal Reserve's plan to raise interest rates to 6% and the looming problem in the US oil supply will likely cause more trouble for the US economy, particularly for small businesses, according to "Shark Tank" star Kevin O'Leary.
Big Time, a web3 RPG game, is set to launch in early October, offering players a free-to-play experience driven by a player-owned economy and non-fungible tokens (NFTs), while avoiding the play-to-earn model that has plagued other crypto-centric games.
U.S. business activity remains sluggish in September, with the services sector hovering at its slowest pace since February and new order activity hitting its lowest level of the year, according to a survey by S&P Global, which also indicated that job growth and consumer spending have held steady despite concerns over interest rate hikes and inflation.
Chinese President Xi Jinping's visit to Yiwu, a major manufacturing hub, is seen as a symbolic gesture to boost economic confidence and promote development, as China's economy slows down and Beijing aims to support the private sector.
The forecasted U.S. recession in 2024 is expected to be shorter and less severe than previous recessions, with the economy's interest-rate sensitivity much lower due to reduced leverage and elevated savings from the postpandemic environment, leading investors to consider positioning for investment opportunities that will drive markets into 2024.
The U.S. Treasury Department has announced the formation of two new working groups with China to facilitate regular policy communications, addressing economic and financial issues and promoting cooperation on global challenges between the two countries.
The Union Ministry of Finance remains comfortable with a 6.5% real GDP growth estimate for FY24, citing strong domestic demand for consumption and investment as key drivers.
The Bank of England has decided to halt interest rate rises due to unexpected inflation slowdown, while housing markets in major global economies, including the US, Germany, and the UK, are showing signs of slowing down. Additionally, there have been developments in various countries' economic outlooks and key interest rates.
The United States and China have agreed to create economic and financial working groups to address economic disagreements and promote communication between the two countries.
Senator Bob Menendez of New Jersey has been indicted for corruption, accused of aiding Egypt's authoritarian government and using his influence for personal gain in exchange for gold bars and cash.
Mortgage rates have increased over the last week, with average rates for 15-year fixed and 30-year fixed mortgages rising, while rates for 5/1 adjustable-rate mortgages remained steady; however, rates are expected to fluctuate in 2023 depending on inflation and economic indicators, and homebuyers are advised to focus on improving their credit score and saving for a down payment to qualify for the best rate.
Thailand's Prime Minister Srettha Thavisin holds meetings with U.S. companies and discusses investment opportunities to revive the country's economy, focusing on sectors such as technology and cosmetics.
Saudi Arabia's Vision 2030 is driving transformative projects in Riyadh, including Sports Boulevard, New Murabba, Qiddiya, and King Salman Park, that aim to enhance the standard of living and quality of life for residents, by creating sustainable urban spaces, promoting sports and recreational activities, enhancing cultural and heritage sites, and providing entertainment and leisure options.
Consumers can benefit from higher interest rates through increased savings rates, with some high-yield savings accounts now offering returns higher than the national inflation rate, providing a low-risk option for those seeking a lower-risk return.
The Federal Reserve's concern over inflation and its potential impact on the economy is being compared to the inflationary period of the 1970s, but there are significant differences in the economic landscape today, including a higher debt burden and a shift from manufacturing to services as the primary driver of economic activity. As a result, a repeat of the high inflation and interest rates of the 1970s is unlikely, and the bigger worry should be the potential for a financial crisis in a debt-dependent financial system.
German housing prices experienced the largest decline since records began in the second quarter of 2023, due to high interest rates and rising materials costs, creating a crisis in the construction industry.
The global risk of housing bubbles has significantly decreased in 2023, with only two out of 25 cities surveyed being at risk, down from nine in previous reports, due to rising interest rates and the end of cheap financing in the real estate sector.
The Bank of England's decision to keep its key interest rate on hold is expected to lead to a decrease in mortgage rates, providing relief to borrowers facing increasing monthly repayments; brokers anticipate more competition among lenders in the coming weeks but warn that changes will be gradual.
The Federal Reserve's measure of inflation is disconnected from market conditions, increasing the likelihood of a recession, according to Duke University finance professor Campbell Harvey. If the central bank continues to raise interest rates based on this flawed inflation gauge, the severity of the economic downturn could worsen.
Australia's shift towards cashless transactions continues to accelerate, with businesses increasingly adopting card-only payment options to expedite transactions and meet customer preferences.
China's economy showed positive signs of recovery in August, with an increase in industrial output, retail sales, and consumer inflation, indicating resilience despite concerns of "stagnation" or "collapse" in Western media reports; willingness to spend also recovered, with an increase in residents' income, per capita consumption spending, and domestic tourism; furthermore, China's exports remained resilient, with a steady increase in the export share of intermediate and capital goods, outweighing the decline in the export share of consumer goods.
Stocks plunged on Thursday and the S&P 500 suffered its worst day since March as increasing investor risk aversion and a surge in bond yields raised concerns about the US economy and impacted both stock and bond investors.
India's inclusion in JPMorgan's emerging market debt index is expected to lead to billions of dollars of inflows into the country's economy, helping it finance its deficits and raise its standing in international financial markets.
Germany's Green party, led by Annalena Baerbock, is unique for attracting a large share of the vote, occupying the center, and maintaining a consistently hawkish stance on foreign policy; Baerbock's recent trip to the US, including Texas, offered insights into Republican voter support for Donald Trump, Texas' dual energy economy, and the reasons for entrepreneurial and investment growth in the state. However, Germany's energy policy, cyclical economic downturn, digital lag, and infrastructure challenges have resulted in a drop in competitiveness and potential vulnerability to an economic security storm, particularly in the automotive industry with exposure to China. Baerbock's labeling of Xi Jinping as a dictator during her US trip has strained relations further, with potential implications for German car sales and EV production. Germany's efforts to improve competitiveness include using state aid to attract foreign investment and a study by Ursula von der Leyen on the competitiveness of European countries; however, they could learn from small, advanced economies that excel in policy making, capital markets, policy clarity, corporate governance, and coordination with other economies. The larger economies of the world are slower to adapt to changes in the global economy, with the exception of Joe Biden's industrial policy in the US.
Bearish economist David Rosenberg is sticking to his thesis that the US economy is at serious risk, listing 10 reasons including the withdrawal of fiscal stimulus, rising consumer credit delinquency rates, high mortgage rates, and the impact of external factors such as the US auto industry strike and potential government shutdown.
Despite threats such as a government shutdown, the UAW strike, rising gas prices, and the resumption of student loan repayments, economists are mostly unconcerned about a potential economic slowdown, believing the economy to be internally robust but vulnerable to mistakes.
JPMorgan recommends investing in energy stocks due to higher interest rates and an emerging supply-demand gap beyond 2025, with Eni, Shell, TotalEnergies, and Neste among the favored companies.
UK companies experienced a challenging September with growing unemployment and recession risks, reflected by a drop in the services sector PMI to its lowest level since the pandemic lockdown, leading to the Bank of England's decision to halt interest rate hikes.
Chancellor Jeremy Hunt says tax cuts will be "virtually impossible" until the UK economy improves due to high levels of national debt and the need to reduce inflation.
European Trade Commissioner Valdis Dombrovskis will visit China to discuss reducing restrictions on European businesses, despite potential tensions over the EU investigation into electric car imports, as the EU seeks to renew dialogue and address its trade deficit with China.
Saudi Arabia's Vision 2030 is driving the transformation of Riyadh through eight mega-projects, including Sports Boulevard, New Murabba, Qiddiya, and King Salman Park, which aim to create sustainable, innovative, and enjoyable urban spaces for residents and visitors.
The yen weakened against the dollar as the Bank of Japan announced it would maintain its accommodative monetary policy, with little indication of rolling it back.
The Bank of Japan has decided to maintain ultra-low interest rates and continue supporting the economy until inflation reaches its target, indicating a slow withdrawal from its stimulus program and causing the yen to fall.
Billionaire investor Bill Ackman expects 30-year interest rates to increase further and sees inflation remaining high, while his hedge fund remains short on bonds.
Hungary's central bank signals caution on further rate cuts and the government considers a new tax on banks to counteract a drop in tax revenue caused by high inflation in the European Union.
Hundreds of thousands of Chinese investors are at risk of losing their investments with Zhongzhi Enterprise Group and its trust banking arm, Zhongrong, as these companies have missed payments to investors, fueling concerns of a potential collapse of one of China's largest shadow banks.
Saudi Arabia's Vision 2030 is driving the transformation of Riyadh through eight mega-projects, including the world's largest linear park, Sports Boulevard, the New Murabba downtown area, the Qiddiya entertainment city, King Salman Park, Diriyah's cultural establishments, the Jax district for contemporary art, the King Abdullah Financial District, and the Diplomatic Quarter. These projects aim to enhance the standard of living and quality of life for residents by integrating advanced technologies and sustainable practices.
The Japanese yen remains weak against the U.S. dollar due to high U.S. Treasury yields and anticipation of the Bank of Japan maintaining its current monetary policies, while the dollar is boosted by the prospect of higher U.S. interest rates.
The recent global supply concerns caused by Russia's fuel export ban are driving up oil prices, counteracting the demand fears driven by macroeconomic headwinds and high interest rates.
Australia's government has reported a budget surplus of $14.2 billion for the last fiscal year, the first time the nation's books have been balanced in 15 years, due to low unemployment and high commodity prices.
Japan's core inflation remained steady in August, staying above the central bank's 2% target for the 17th consecutive month, signaling broadening price pressure and potentially increasing the case for an exit from ultra-easy monetary policy.
Singapore has surpassed Hong Kong to become the world's freest economy, as revealed by the Economic Freedom Index, with Hong Kong's ranking declining due to new regulatory barriers and limits on foreign labor.
Asia is at the epicenter of economic and political disruptions, which may trigger a new era where Asia plays a leading role in shaping the global economy. The region's position as a trade crossroads and a technology hub gives it the opportunity to influence and shape the world order, technology platforms, demographic forces, resource and energy systems, and capitalization. However, Asia will face challenges in retaining its commercially pragmatic trade model, transitioning from technology manufacturing to technology creation, dealing with the aging population, managing energy demands while reducing carbon emissions, and mobilizing capital to power growth and improve financial resilience. To navigate this new era, Asia will need to focus on areas such as trade tensions, technology innovation, productivity growth, renewable energy development, and efficient financial systems.
Japanese consumer inflation grew above expectations in August, potentially signaling a move away from negative interest rates as the Bank of Japan meets to discuss its monetary policy.
Two former Federal Reserve policymakers disagree on whether the central bank should raise interest rates, with one saying rates have likely peaked and the other saying they need to be raised further, but both agree that achieving a soft landing for the economy is unlikely.