Wall Street banks are revising their outlooks for Turkish interest rates as inflation rises faster than expected, with JPMorgan, Morgan Stanley, and Bank of America suggesting that borrowing costs may need to rise higher or quicker in response to the surge in price growth.
The prospect of a prolonged economic slump in China poses a serious threat to global growth, potentially changing fundamental aspects of the global economy, affecting debt markets and supply chains, and impacting emerging markets and the United States.
Two people have been arrested for using an excavator to cause irreparable damage to a section of the Great Wall of China, which was built during the Ming Dynasty as a military defense project spanning over 20,000 kilometers.
Despite weak economic news and concern over a slowing economy, there is still optimism among investors that a recession is unlikely.
Ukraine's grain export deal with Russia remains uncertain, impacting global grain prices, while Russia continues to export record volumes of wheat and ink deals with other countries. Airbnb hosts in New York face new regulations that ban short-term rentals, potentially setting a precedent for other cities. A lack of homes for sale in the US has pushed up home prices, with the median home-sale price reaching its highest level since October. AI adoption in the healthcare sector is expected to double by 2024, with potential transformative effects.
Goldman Sachs predicts that the chances of the US falling into a recession within the next year have decreased to 15%, and its chief economist believes that the slowdown in the economy will be shallow and short-lived.
The Congress party alleges that the Modi government is undermining the unity of the country by referring to the President as "President of Bharat" in a G20 dinner invite, sparking concerns that the government may remove the name 'India' and recognize 'Bharat' as the official name of the country.
María Barro, a domestic worker in Buenos Aires, supports the idea of dollarizing Argentina's economy as a hedge against inflation and the devaluation of the local peso, but is undecided about voting for libertarian candidate Javier Milei due to his aggressive style; Milei's dollarization plan has sharply divided opinion, with supporters arguing it is a solution to inflation while detractors say it would sacrifice the country's ability to set interest rates and control money circulation.
Lebanon's private sector experiences a decline in business conditions in August, with the purchasing managers' index falling to a seven-month low, as output and new orders decrease amid the country's ongoing economic crisis.
China's property sector remains in crisis as 34 out of the top 50 developers have defaulted on debt, with $1.5 billion of combined bond payments due in September.
The dollar has reached a five-month high as investors anticipate the need for elevated interest rates due to the strong US economy, with factors such as weak growth in China and Europe, rising US yields, and falling equity prices further supporting the case for dollar strength.
China's exports are expected to contract at a slower pace in August, with a projected fall of 9.2%, as manufacturers continue to face pressure due to weak overseas demand and a shrinking labor market.
HSBC economists predict that higher borrowing costs will lead to a decline of more than 1% in the euro zone's GDP by 2025, potentially causing a recession, although the British economy is expected to be less affected due to government-backed loans and healthy balance sheets.
US President Joe Biden's participation in the upcoming G20 Summit in New Delhi is uncertain following First Lady Jill Biden's positive Covid-19 test, making him the third major leader to potentially miss the event.
The German government has presented its 2024 budget, aiming to end years of government spending on managing crises such as COVID-19 and the war in Ukraine, with significant cuts across departments and limited social reforms, leading to controversy among coalition partners and opposition parties.
Argentina should avoid dollarizing its currency and learn from Ecuador's experience, as it could lead to a prolonged period of economic weakness, according to economist Robin Brooks.
The cost of groceries has significantly increased, with a family now spending over $1,000 a month even after discounts and deals.
China's growing arsenal introduces new variables to the calculus of the cold war, while America and India grapple with truancy rates and the state of their technological backbone, respectively.
The Indian government is considering changing the country's name from 'India' to 'Bharat' through a constitutional amendment, which would serve as a symbolic representation of the nation's cultural identity and move away from the colonial legacy.
The IMF has rejected Pakistan's proposal for tariff adjustment or additional subsidy, making it more challenging for the country to manage its economic challenges amidst rising inflation.
Despite the Israeli shekel being the currency that has weakened the most since the COVID-19 pandemic, Finance Minister Bezalel Smotrich claims that the Israeli economy is showing resilience and stability. However, recent data suggests that Israel's economy is struggling to improve, with slow economic growth and decreased consumer spending. The government's pursuit of judicial reform is also causing concern among international credit rating agencies.
Billionaires' wealth has grown by 109% in the past decade, raising concerns about escalating wealth inequality and leading economists and millionaires to call on governments to impose taxes on the superrich.
The Federal Reserve is considering whether to raise the key interest rate even higher to combat inflation, but some members, like Raphael Bostic, believe it's unnecessary and recommend keeping the rate at its current level for an extended period. Bostic also emphasizes the strength and resilience of businesses and families, and the need to maintain a restrictive stance on interest rates to achieve the 2% inflation target.
U.S. stock futures decline as bond yields rise despite weak economic news from China and Europe.
European shares fall to one-week lows due to weak China and euro zone data, as concerns over slowing global growth increase.
Business activity in Britain's services sector declined in August, the first drop since January, due to higher interest rates dampening consumer and corporate demand, although the decrease was less severe than initially estimated.
The head of the International Energy Agency has called on the US and China to put aside their differences and collaborate on climate change, warning that geopolitical tensions are impeding the transition to clean energy. He also emphasized Africa's potential to play a significant role in the energy transition and urged the international community to support the continent in realizing its renewable energy potential.
The decline in euro zone business activity accelerated faster than expected last month, with the services industry falling into contraction, raising concerns of a possible recession.
U.S. Treasury yields rose as investors assessed the impact of recent economic data and speculated on the future of Federal Reserve monetary policy.
Consumer inflation expectations for the next 12 months were unchanged, while expectations for three years ahead increased slightly; expectations for nominal income growth over the next 12 months declined slightly, but expectations for nominal spending growth remained stable; expectations for economic growth over the next 12 months became slightly more negative, and expectations for the unemployment rate in 12 months' time remained unchanged; expectations for growth in the price of homes over the next 12 months remained unchanged, while expectations for mortgage interest rates 12 months ahead increased slightly.
The South African rand weakened due to the country experiencing the worst power cuts on record and ahead of the release of second quarter GDP data.
Retail sales in the UK increased by 4.1% in August, with non-food items experiencing the strongest growth due to higher spending on health and beauty, although clothing and footwear sales were weaker; however, the increase in sales was partly driven by rising prices, indicating that consumers are buying fewer items but spending more.
The debate over returning to the office continues, but it may be time to accept that the new normal has arrived, with workers having more flexibility and employers settling on three-plus days a week in the office; the real challenge now lies in the commercial office space sector.
Chief of Army Staff (COAS) General Asim Munir assured the business community that efforts will be made to bring foreign investment to revive Pakistan's economy, with a $25 billion investment discussed with Saudi Arabia in various sectors, including IT, minerals, agriculture, and defense, according to Federation of Pakistan Chambers of Commerce & Industry (FPCCI) President Irfan Iqbal Sheikh.
Goldman Sachs has lowered its probability of a U.S recession in the next 12 months to 15% due to positive inflation and labor market data, while also predicting a reacceleration in real disposable income and expecting the Federal Reserve to keep interest rates unchanged.
Japan has told the World Trade Organization that China's ban on Japanese seafood due to Fukushima nuclear plant water release is "totally unacceptable," and Japan may file a WTO complaint with support from the United States.
The Reserve Bank of Australia (RBA) kept interest rates steady at 4.10% for a third consecutive month, suggesting that the tightening cycle may be over as policymakers gain control over inflation.
The absence of President Xi Jinping from the G20 summit and the expansion of the Brics bloc highlight the declining interest of non-Western powers in Western-led institutions, signaling a shift towards alternative economic and financial arrangements.
The ECB expects core inflation to come down throughout the autumn as strong price increases from a year ago fall out of the data; however, energy and food prices are expected to remain bumpy, with inflation standing at 5.3% overall. The ECB emphasizes the need to contain the second-round effects of inflation and to make it clear that the current inflation episode is temporary. Additionally, the central bank does not believe that strategic price controls are the best way to fight inflation. The ECB's modeling approach is focused on assessing what is going on and using models to understand how it will play out, with the understanding that there are limitations to all models. Climate change and demographic transitions have implications for monetary policy, but the net impact on inflation is relatively contained. The ECB has managed to avoid peripheral spreads widening through its policy responses, including the pandemic emergency purchase program and pooled fiscal resourcing. In the future, short-term rates are expected to remain high for a while but come down in the later part of the decade, which helps contain spreads.
Investor sentiment on China weakens as new data reveals slowest expansion in services activity in eight months, dragging down markets and raising concerns about the country's economy.
Gold prices decline slightly as the dollar remains strong, with investors awaiting further signals on the U.S. Federal Reserve's monetary policy after an expected interest rate pause this month.
The expansion in non-oil business activity in Saudi Arabia eased in August due to slower output growth and concerns over market competition, according to a business survey.
The G20 Summit in Delhi will be attended by more than 40 world leaders, including President Joe Biden and UK Prime Minister Rishi Sunak, while Chinese President Xi Jinping and Russian President Vladimir Putin will not be present.
Chinese President Xi Jinping will not attend the G20 Summit in India, making him the first Chinese president to miss a leaders' summit since its inception in 2008, a move that could be seen as a snub to India and a show of solidarity with Russia's President Vladimir Putin, who is also skipping the event.
The caretaker government in Pakistan must seek approval from the International Monetary Fund (IMF) before providing any relief in electricity bills, as the country needs to maintain its IMF agreement to address its balance-of-payments challenges and regain the trust of investors, which is crucial for stabilizing the value of the rupee and preventing further depreciation. The depreciation of the rupee has significant implications for the electricity sector, leading to higher fuel import bills and capacity payment charges, resulting in higher electricity bills for consumers. The government relies on electricity bills to generate revenue through taxes and surcharges, exacerbating the financial burden on consumers. To address these challenges, the caretaker government should focus on enhancing revenue mobilization, reducing expenditures, and improving the inflow of dollars through exports and remittances. Additionally, the government should consider privatizing loss-making public-sector enterprises and reducing inefficiencies in the power system to lower the unit cost of electricity. The government should also secure pledges for flood rehabilitation and disaster preparedness projects to access funds from international financial institutions.
The International Monetary Fund (IMF) has rejected Pakistan's proposal for tariff adjustment or additional subsidy to provide relief in electricity bills, despite the government's claim of improved bill collection; Pakistan has requested the IMF to allow the staggering of upcoming quarterly tariff adjustments and Fuel Price Adjustments over the next four to six months.
Australia's export volumes increased in the second quarter due to a surge in foreign visitors, offsetting weak household consumption and providing a boost to economic growth.
Most Asian stocks fell on Tuesday due to concerns over slowing growth in China, a property sector meltdown, and hot inflation readings, which raised concerns over higher interest rates. Chinese stocks were the worst performers, with investors growing impatient with Beijing's slow approach to stimulus measures.
OpenAI CEO Sam Altman becomes the first person to receive an Indonesian golden visa, granting him priority security screening and other benefits in an effort to attract foreign investors to the country.
Asian equities fell as China's efforts to stabilize its economy and the Reserve Bank of Australia's policy meeting were awaited.