Despite efforts to attract foreign capital, foreign direct investment in China has dropped by over 5% in the first eight months of the year due to the slow recovery of the global economy and geopolitical tensions, with increasing investment flowing towards Southeast Asia instead.
Gas prices drive up US inflation rate, reaching 3.7% in August, while excluding volatile components shows a favorable trend in core inflation; Tesla rallies following an upgrade by Morgan Stanley, Qualcomm secures a deal with Apple, and ARM Holdings PLC debuts with the largest IPO of the year; United Auto Workers strike against Detroit automakers; upcoming Federal Open Market Committee meeting and corporate earnings reports are in focus for the week ahead.
The European Union's investigation into China's subsidy of its electric car industry has been criticized as a protectionist act, highlighting the EU's economic troubles and the need to properly consider the implications of its push for net-zero emissions. Despite concerns over China's double standards and potential market dominance, protectionism is not the solution, and the UK should remain open to Chinese competition while also encouraging investment from other automakers like Tesla.
India's merchandise exports dropped by 6.9% in August, marking the seventh consecutive month of decline, due to weak external demand, while the merchandise trade deficit reached a 10-month high of $24.16 billion driven by higher crude oil prices and robust domestic demand.
Goldman Sachs warns that three factors - the resumption of student loan payments, the autoworkers' strike, and a potential government shutdown - could lead to a significant slowdown in US GDP growth during the fourth quarter of 2023.
Despite economists' hopes for a "soft landing" of the economy, signs such as inflation and uncertain variables make it difficult to determine whether the U.S. economy has achieved this outcome.
The caretaker government of Pakistan has raised petrol and diesel prices to record levels, leading to a surge in inflation and impacting the prices of essential commodities, while the country continues to invest in and expand its nuclear weapons program.
Neymar makes his debut for Al-Hilal, assisting in a 6-1 victory and setting up a goal for Malcom.
The US, China, and Russia remain the world's most powerful countries in 2023, according to US News & World Report's global power rankings, with India and Saudi Arabia seeing a jump in their rankings this year.
Economist Gary Shilling predicts that the S&P 500 will decline by around 40% during this market cycle, citing recession indicators such as the yield curve and The Conference Board's Leading Economic Index. He believes that a US recession may already be underway due to the Federal Reserve's focus on reducing inflation, and high valuations in the stock market increase the likelihood of a significant drop.
The Canadian government is taking measures to address affordability challenges, including a cut in Goods and Services Tax, plans to boost the Competition Bureau's power, and an effort to lower food prices; however, economists believe these measures are unlikely to have an immediate impact on inflation or interest rates.
A major paper challenges the notion that higher immigration is always vital for the economy, suggesting that a smaller population could have a higher quality of life and that predictions of dire effects from a shrinking population are implausible. This challenges the long-standing belief that mass immigration always brings economic benefits, highlighting the need for a serious discussion on the topic.
Angola's interest payments to external creditors, mostly Chinese, have doubled in the second quarter of this year as the three-year debt moratorium with Chinese creditors ends, but the higher interest payments were partly offset by a fall in the deficit in service trade; Angola's debt level is expected to remain around $50 billion over the coming year, with Chinese creditors accounting for around 40%, and new loan disbursements are expected to offset higher principal payments.
Funds are rapidly leaving Chinese stocks and bonds, reducing China's influence on global portfolios and contributing to its decoupling from the rest of the world, as concerns over China's economic slump, property market crisis, and tensions with the West heighten.
India's Ministry of Finance defended its GDP data against critics, but also admitted that its numbers were not sufficient to assess economic activity, following recent criticism from various quarters. The criticism focused on the government's method of calculating GDP and its failure to accurately capture the impact of inflation. The ministry argued that it consistently uses the income side approach and that critics are simply trying to find fault with the Indian economy.
Rising rice prices in Asia, caused by factors such as export restrictions and drought, are expected to have significant spillover effects and could pose challenges for central bankers trying to manage inflation.
Nigeria's debt servicing spending decreased by 43.04% in Q2 2023, reaching N849.58bn, while the country's total public debt increased by 75.29% to N87.38tn, according to the Debt Management Office.
India's Union Minister for Power and New & Renewable Energy, R.K. Singh, announced plans to achieve affordable 24/7 renewable energy using green hydrogen, which could cost as low as Rs. 6/unit, surpassing conventional storage costs. The government aims to position India as a global player in the renewable energy industry and attract investments in this sector.
The Northern Ireland economy is experiencing signs of weakness, with data showing a contraction in the services sector and a slowdown in retail and hospitality due to inflation and consumer spending constraints. The jobs market is also showing negative trends, with a decrease in employee jobs and an increase in unemployment-related benefits. Overall business activity has fallen for the second consecutive month, indicating potential economic challenges ahead.
The massive retreat of funds from Chinese stocks and bonds is reducing China's influence in global portfolios and accelerating its decoupling from the rest of the world, as foreign holdings of equities and debt have significantly decreased amid China's economic slump and tensions with the West.
Myanmar is facing cooking oil shortages and inflated prices due to the military government's struggle with containing inflation.
Fitch has affirmed Malta's A+ credit rating, citing strong economic growth and low unemployment, but expressed concerns about fiscal deficits and high inflation, stating that the country could face a downgrade if these issues worsen.
Russia's bumper wheat harvest, coupled with the disruption of Ukraine's food exports due to the Kremlin's war, has cemented Russia's position as the leading exporter of wheat and has resulted in the lowest wheat prices in almost three years. Despite Russia's efforts to raise prices to benefit its own farmers and generate more tax revenues, the supply glut has depressed prices and made Russia the "price maker" in the market.
German Chancellor Olaf Scholz is struggling to achieve his vision of a radical push towards carbon neutrality and economic growth due to weak global demand, an energy crisis, and conflicting signals to investors.
Australian real estate CEO Tim Gurner receives backlash after stating that he wants unemployment to rise in his country to combat workers' "arrogance" and change their work ethic.
India's government defends its GDP numbers in a 10-point response, stating that it follows consistent practices in measuring economic growth and that other indicators such as purchasing managers' indices and bank credit growth support the growth figures.
China's property sector continues to deteriorate, with new home prices, property investment, and sales all experiencing declines, despite recent support measures; analysts suggest that more significant support is needed to revive the struggling industry.
Apple has agreed to update the iPhone 12 in France to address concerns over excessive electromagnetic radiation.
The short-term inflation in Pakistan increased by 26.25% due to a rise in the retail price of vegetables, particularly tomatoes and onions, caused by the closure of the Torkham border with Afghanistan.
The US federal debt has reached $32.94 trillion, prompting concerns from JPMorgan Chase CEO Jamie Dimon about the impact on households, while Congress faces pressure to pass a new budget before potential government shutdown at the end of September.
The debt-ridden Pakistan International Airlines (PIA) is facing potential closure and has requested emergency funds to pay its creditors, but the government's plan to privatize the airline is likely to face opposition from its staff and executives; PIA's debt and liabilities have surpassed its assets by five times, and its annual losses are projected to increase significantly by 2030.
WhatsApp's head, Will Cathcart, denied reports that the messaging platform was considering adding advertisements and charging a subscription fee to boost revenue, stating that the report was false.
A retreat of funds from Chinese stocks and bonds is diminishing China's global market influence and accelerating its decoupling from the rest of the world, due to economic concerns, tensions with the West, and a property market crisis.
The International Monetary Fund (IMF) plans to advise China to address issues such as weak domestic consumption, the troubled real estate sector, and local government debt, in order to boost both Chinese and global growth, according to IMF Managing Director Kristalina Georgieva. The IMF will urge China to shift its growth model away from debt-driven infrastructure investment and real estate and focus more on domestic consumption. China's aging population, falling productivity, and problems in the real estate sector are factors hindering its growth rate. The IMF is set to release new global growth forecasts, reflecting concerns about low GDP growth worldwide, with the United States being the only major economy to have recovered pre-pandemic levels. China's growth rate is crucial for both Asia and the rest of the world, given its significant contribution to global growth. However, there is a trend of some outflow from China, which needs to be monitored.
China is unlikely to devalue its currency, the yuan, despite concerns that it could do so to boost exports, as such a move would risk intensifying capital flight and tightening financial conditions, according to the Institute of International Finance. Instead, the focus will be on domestic easing measures to maintain steady growth, although there is the challenge of balancing the yuan's stability against the strengthening US dollar and other major currencies.
More Americans are choosing to work into their 80s, finding purpose and enjoyment in their part-time positions.
The International Monetary Fund (IMF) plans to advise China to boost domestic consumption, address its troubled real estate sector, and rein in local government debt, in order to combat the declining growth in China and the global economy, according to IMF Managing Director Kristalina Georgieva.
The inability of landlords to secure financing, coupled with low employee attendance rates and increasing office loan defaults, poses a significant threat to the American economy and the overall stability of the system.
The Canadian government is extending the deadlines for Canada Emergency Business Account (CEBA) loan repayments, but Restaurants Canada says it falls short of what struggling businesses need.
Germany's deep economic troubles, including three consecutive quarters of negative growth, could have significant global implications, especially considering its role as the main driver of economic growth in the euro zone and its high exposure to the Chinese economy.
Israel's annual inflation increased to 4.1% in August, surpassing the central bank's target range of 1%-3%, as consumer prices rose by 0.5%, driven by increases in the cost of fresh vegetables, culture and entertainment, transportation, and housing.
The caretaker government has increased the price of petrol and high-speed diesel (HSD) in response to rising international oil prices, with petrol now costing Rs331.38 per litre and HSD priced at Rs329.18 per litre.
Denver is experiencing high inflation rates, with prices rising quickly and groceries becoming noticeably more expensive, making it the second city with the biggest inflation problem in the US.
US retailers are expected to hire the lowest number of seasonal workers since 2008 due to increased labor costs and shaky consumer confidence.
Canada has postponed a trade mission to India, a move that comes after trade talks between the two countries have stalled and following a contentious meeting between Canadian Prime Minister Justin Trudeau and Indian Prime Minister Narendra Modi.
Nigeria's annual inflation rate reaches an 18-year high of 25.8% in August due to the removal of subsidies and rising prices, posing challenges for the country's largest economy.
The Bay Area gained 3,000 jobs in August, driven by employment gains in the East Bay but offset by losses in San Francisco-San Mateo and the South Bay, indicating a slowdown in job growth for the region.
US high-yield issuers could face a surge in defaults if inflation continues to accelerate, with a 5% inflation rate potentially causing a full-scale default wave, according to Bank of America Corp. credit strategist Oleg Melentyev.
Despite rising gas prices, Americans remain optimistic about inflation easing, as expectations for inflation rates in the year ahead have fallen to the lowest level since March 2021, according to a consumer sentiment survey from the University of Michigan. However, concerns are surfacing about a potential government shutdown, which could dampen consumer views on the economy.
The labor markets are expected to pause on rate changes as the economy slows down, with growth in employment and capital expenditure decreasing and downside risks increasing, such as higher interest payments for the government and a potential United Auto Workers strike. However, there is hope for a rebound in 2024 with a potential pause in rate cuts and moderating inflation.