The U.S. government plans to sell nearly $13 billion worth of mortgage bonds obtained from Silicon Valley Bank and Signature Bank after their collapse, as part of the Federal Deposit Insurance Corp's efforts to deal with the lenders' assets.
Australian CEO Tim Gurner suggests that unemployment needs to rise drastically in Australia because workers are too arrogant, stating that employees need to be reminded that they work for the employer, not the other way around.
Treasury Secretary Janet Yellen and Goldman Sachs may be optimistic about a "soft landing" scenario for the US economy, but the author remains skeptical due to factors such as a deeply inverted yield curve, declining Leading Economic Indicators, challenges faced by the consumer, global growth concerns, and the lagging impact of the Fed's monetary policy, leading them to maintain a conservative portfolio allocation.
Canada's economic growth strategy is failing and needs to be reevaluated, as the country's GDP per capita growth is among the weakest in OECD countries and real incomes are lower than before the pandemic, with projections suggesting that it will not recover until at least 2027, according to policy advisers. The government's core policy beliefs, including freewheeling government spending, reliance on government programs to drive innovation, and excessive immigration, are misguided and contribute to a low-productivity, low-wage economy. A policy agenda focused on raising average living standards through fiscal and monetary policy restraint, productivity-focused measures, and tax and regulatory reforms is needed.
U.S. Commerce Secretary Gina Raimondo plans to meet with major American company CEOs following her recent trip to China, where she expressed concerns about business conditions and hopes for improved market access and regulatory environment.
The Federal Reserve should consider cutting its policy rate within the next six months to stabilize real rates and avoid tipping the economy into a recession, as financial stress in the real economy is rising despite slower hiring and inflation cooling, according to economist Joseph Brusuelas.
Goldman Sachs CEO David Solomon believes the U.S. economy is unlikely to experience a significant recession, but warns that inflation will be more persistent than anticipated.
The value of UK mortgage arrears has increased by almost a third in April-June compared to the same period last year, reaching its highest level since 2016, due to rising mortgage costs caused by multiple interest rate hikes by the Bank of England. While some experts predict a rise in defaults, others argue that the number of people unable to repay their mortgages remains relatively low.
The Brazilian government expects the central bank's benchmark interest rate to be cut by at least 50 basis points over the next three meetings, with the goal of ending 2023 with a rate below 12%.
The federal and provincial governments in Canada will take 20 years, not five as initially claimed, to break even on the EV battery subsidies provided to Volkswagen and Stellantis, according to the Parliamentary Budget Officer.
The euro has been continuously decreasing in value against the dollar for the eighth consecutive week, reflecting the economic challenges faced by Europe, including high inflation and the specter of recession, while the United States has better control over inflation and a stronger labor market, leading to a widening gap between the euro and the dollar.
The Global Biofuels Alliance aims to define and specify biofuels and increase international cooperation through a virtual marketplace, with India planning to increase its production of biofuels and benefit farmers, reduce import bills, and promote the energy transition journey.
The COVID-19 pandemic and the expiration of pandemic-era programs have led to a rise in child poverty and an increase in the overall poverty rate in the US, while household income has fallen and inflation has soared, according to the US Census Bureau.
US household income fell by the most in over a decade in 2022, showing the impact of rising costs and the expiration of pandemic relief programs, with the median income dropping 2.3% and marking the third consecutive annual decline, contributing to concerns about the financial well-being of American families.
Despite increased household wealth in the US, millions of households are struggling financially due to inflation, high interest rates, and rising living costs, which have led to record levels of debt and limited access to credit.
Kevin O'Leary is concerned about the negative impact of the Biden administration's economic policies on small businesses, particularly in light of rising interest rates and the lack of support compared to large corporations.
India's economic growth is estimated to be closer to 7.5%, with the country's first quarter growth at 7.8%, reflecting India's increasing stature in the world.
Russia's top lenders, Sberbank and VTB, are improving their ability to convert rupees into roubles, allowing exporters to access funds that are trapped in India due to Western sanctions and the non-convertibility of the rupee.
China has launched a disinformation campaign on social media about the dangers of the Fukushima nuclear wastewater release, raising questions about the government's motives.
The Federal Reserve is expected to maintain its benchmark interest rate and may not cut it until the second quarter of 2024 or later, according to economists in a Reuters poll.
The Federal Reserve is expected to keep its benchmark overnight interest rate unchanged and delay any rate cuts until at least 2024, according to a Reuters poll of economists, despite some suggesting that another rate hike might be needed to address inflation.
Poland is experiencing a decrease in Ukrainian refugees in its workforce as they migrate to Germany for higher wages, government benefits, and better integration opportunities, leading to concerns about labor market impacts and demographic declines in European nations.
JPMorgan Chase CEO Jamie Dimon warns that the "booming environment" of the economy cannot last forever due to significant headwinds including geopolitical tensions, government spending, and monetary policy tightening by central banks across the world.
Millennials and Gen Zers are turning to side hustles and creative strategies, such as wedding gift registries, to save for down payments on homes amidst rising mortgage rates and high home prices, according to a Redfin study. However, many in these generations still face challenges in envisioning homeownership due to the perception of expensive homes and the inability to save for a down payment.
India's industrial output rose 5.7% in July, its fastest pace in five months, driven by strong mining and electricity activity, but high inflation and slowing pent-up demand may hinder future growth.
Russian President Vladimir Putin called for Ukraine to cancel the ban on negotiations imposed by President Zelensky, emphasizing the need for dialogue and suggesting that talks could be a way for Ukraine to replenish their reserves and reinvigorate their army.
The United States is experiencing inflationary pressures due to rising home prices and rental costs, posing challenges for homebuyers and renters, and potentially leading to broader increases in related services and inflation in other categories. Fed regulators are expecting deflationary trends in the future, but the interaction between housing data and the broader economy is crucial. The imbalance between supply and demand in the housing market needs to be addressed for prices to stabilize.
The Canadian Bankers Association has criticized the government's proposal to impose high taxes on the financial sector, warning that it could harm lending and the overall economy.
The African Union plans to establish an African credit rating agency next year to address concerns that ratings given by existing agencies are unfair and do not accurately assess the risk of lending to African countries.
The Canadian government is considering implementing a cap on the number of international students allowed into the country due to the growing housing shortage, despite Prime Minister Justin Trudeau's emphasis on boosting immigration. The influx of foreign students has increased demand for housing and driven up home prices, leading to calls for restrictions on student visas.
Fundstrat's Tom Lee believes that the US economy is poised for expansion rather than recession, citing positive indicators such as a strong job market, dropping inflation expectations, falling rent prices, Janet Yellen's optimism, and reduced stock market volatility.
Goldman Sachs predicts that the August consumer price index (CPI) will show a 3.58% annual increase, with a decline in used car prices, higher airfares and transportation prices, and stable shelter inflation.
The World Trade Organization (WTO) has raised concerns about the growing fragmentation in international trade, citing a significant increase in trade concerns raised at the Council for Trade in Goods and warning that unilateral trade policies could lead to a more fragmented world economy dominated by regional trade blocs.
US economist Stephanie Pomboy has issued a warning about the economic risks posed by the increasing number of corporate bankruptcies in the country, which she believes could surpass the magnitude of the 2008-2009 financial crisis. Pomboy emphasizes that many market participants have not fully grasped the gravity of the situation and calls for a significant fiscal and monetary response to address the issue.
The president of the United Auto Workers union, Shawn Fain, who has only been in office for six months, could lead strikes by 145,000 members of his union at General Motors, Ford, and Stellantis starting this Friday, potentially impacting the American economy and the 2024 presidential election.
President Cyril Ramaphosa is proceeding with spending cuts in an effort to revive South Africa's struggling economy, which includes trimming the public sector wage bill over the next nine months despite opposition from public sector unions.
Brazil's annual inflation in August was lower than expected, giving the central bank more leeway to extend interest rate cuts at their upcoming policy meeting.
OPEC expects robust growth in global oil demand in 2023 and 2024, with pre-pandemic levels surpassing by 2023, due to signs of strong recovery in major economies despite challenges like high interest rates and inflation.
India's retail inflation eased in August due to moderating food prices, but remained above the central bank's target range for a second consecutive month, prompting policymakers to remain vigilant.
Brazil President Luiz Inacio Lula da Silva's proposal for a shared currency among the BRICS nations has been met with skepticism due to logistical and political challenges, with differing levels of enthusiasm among the other leaders and the dominant position of the US dollar in global trade.
Uncertainty in various sectors, including potential strikes, government shutdowns, geopolitical tensions, and the question of future Federal Reserve interest rate hikes, is causing markets to lack conviction, but this week's inflation readings could provide direction for the markets. If inflation comes in below expectations, it may signal that the Fed will not hike rates further, while stronger-than-expected inflation could lead to more rate hikes and market volatility. Additionally, increasing energy prices and the potential strike by the United Auto Workers union add to the uncertainty.
The long downturn in the global economy since 1973, characterized by chronic overcapacity and falling profit rates, has been the focus of UCLA economist Robert Brenner, but his theory is flawed both theoretically and empirically, as it fails to adequately explain the causes and nature of capitalist crises and the measurement of profit rates.
U.S. consumers have accumulated $43 billion in additional credit card debt during Q2 2022, three times the average amount since the Great Recession, and credit card interest rates have soared to over 20%, raising concerns about the impact of inflation and rising interest rates on consumers' ability to pay off their balances. However, some economists argue that higher wages are helping consumers keep pace with their debt, and the overall rate of charge-offs remains low. Nonetheless, the combination of spent-down pandemic savings and the resumption of federal student loan payments could pose challenges for lower-income borrowers and hinder consumer spending.
Pakistan's central bank is expected to increase interest rates in order to address high inflation and bolster foreign exchange reserves, which have led to a record low value for the rupee. A Reuters poll shows that 15 out of 17 analysts are forecasting a rate hike, with some expecting an increase of at least 150 basis points. The country's economic recovery is being challenged by IMF loan conditions, import restrictions, and subsidies removal, which have caused spikes in energy prices and elevated food inflation.
JP Morgan CEO Jamie Dimon, who was previously optimistic about China's economy, has become highly cautious due to weak domestic consumption, a slowing global economy, youth joblessness, and a shaky real estate sector.
China's foreign ministry rejects claims by US President Joe Biden that its economy is faltering and asserts that its economy is resilient and has not collapsed, stating that it has great potential for sustained and healthy development.
Over half of investors surveyed by Bloomberg believe that personal consumption in the US will decline in early 2024, as households see their savings depleted due to high borrowing costs.
The top 10 African countries with the highest fuel prices in September compared to August are the Central African Republic, Malawi, Senegal, Zimbabwe, Seychelles, Mauritius, Cape Verde, Morocco, Zambia, and Mali.
The Polish government is urging the European Union to extend the ban on imports of Ukrainian grain in order to protect its own farmers, as Prime Minister Mateusz Morawiecki emphasizes the importance of the upcoming parliamentary elections in determining Poland's agricultural future.
Guyana's economy is projected to expand by 38% this year due to the discovery of massive offshore oil deposits, with further rapid growth expected in the coming years.