Oil prices increase as China takes steps to support its economy, but concerns about global growth, US interest rate hikes, and Chinese manufacturing data persist.
Oil prices inched up on Monday as China implemented measures to support its struggling economy, although concerns about economic growth and potential US interest rate hikes continue to weigh on investor sentiment. The move by China to halve stamp duty on stock trading and the soft-landing scenario for the US economy helped boost oil prices, while the possibility of a hurricane hitting Florida could lead to short-term support for the oil price. However, the anticipation of easing sanctions on Iran and Venezuela has weakened the narrative of tightening supply.
China Evergrande Group, the heavily indebted real estate developer, is set to resume trading on Monday after a 17-month suspension, following a reported loss of $4.5 billion in the first half of the year.
Global investors are skeptical of China's ability to stabilize its financial markets, with many predicting that economic pressures will cause the offshore exchange rate of the yuan to reach record lows.
Japan has complained to the Chinese government after businesses and institutions received abusive phone calls from numbers with Chinese dialing codes, following Japan's decision to release treated radioactive water from the Fukushima nuclear power plant into the Pacific.
China's property developers facing financial distress raises concerns about a debt crisis, potentially leading to a broader financial crisis, according to analyst Charlene Chu.
Federal Reserve Chair Jerome Powell warned that inflation and economic growth remain too high and interest rates may continue to rise and remain restrictive for longer, while U.S. stocks rebounded and European markets closed slightly higher. Meanwhile, U.S. Trade Representative Katherine Tai highlighted China's dominance in rare earth metals and the vulnerability of U.S. supply chains. Grocery delivery company Instacart filed paperwork for an IPO, and upcoming PCE and jobs data will provide insights into the Fed's rate decisions. Powell's ambiguous remarks at the Jackson Hole symposium led markets to focus on the prospect of a stronger economy rather than interest rate warnings.
El Niño is emerging as a major economic and political risk in India, with below-normal rainfall and the potential for intensifying dry conditions, which could impact crop yields and exacerbate food inflation ahead of the 2024 national elections.
Argentina's government announced a series of benefits, including cash payments for pensioners and loans for workers, in an effort to mitigate the economic crisis caused by inflation and currency devaluation.
US imports of consumer goods, particularly home electronics, experienced a significant decline in the second quarter of 2023, following the end of the Covid-induced work-from-home electronics boom, while US manufacturing also slowed, indicating challenges in stimulating demand; however, claims that this decline in imports is solely due to re-shoring are false, as imports from US allies such as Mexico, Vietnam, and India have increased in tandem with China's declining exports to the US.
Investor Kevin O'Leary warns that the US housing market will face "real chaos" in September due to the dire situation created by high mortgage rates and the troubled banking market.
Apple CEO Tim Cook speaks at the Taiwan Semiconductor Manufacturing Company facility under construction in Phoenix.
Argentina's government has announced a series of benefits, including financial aid for pensioners, tax relief for self-employed workers, and funding for farmers, in an attempt to ameliorate the effects of the country's severe economic crisis.
China's economy is facing multiple challenges, including tech and economic sanctions from the US, structural problems, and a decline in exports, hindering its goal of becoming a top global exporter and tech power, which could have long-lasting effects on its status in international relations and the global economy.
Asian markets will be influenced this week by key economic indicators, growth-supportive policies, and diplomatic signals from China, as well as reacting to the Jackson Hole speeches by global policymakers, with a focus on China's manufacturing and services PMIs and efforts to reverse the country's economic slump, while facing headwinds from tightening financial conditions and rising US Treasury yields.
Africa's potential for economic growth is hindered by macroeconomic factors and a struggling mining sector, but the continent's large population and rich resources offer opportunities for transformation and development; countries with higher exports, such as Cameroon, Ethiopia, Zambia, Tanzania, and Kenya, are among the most respected countries in Africa.
China's economic slowdown is causing alarm across the world, as it is expected to have a negative impact on global economic growth, leading to reduced imports and trade, falling commodity prices, a deflationary effect on global goods prices, and a decline in tourism and luxury spending.
Consumers Energy expects to restore power to most customers affected by the recent tornadoes and thunderstorms in Michigan by the end of Sunday, with the hardest-hit communities having power restored by the end of Monday.
Top central bankers, including Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde, emphasized the importance of keeping interest rates high until inflation is under control while also grappling with economic challenges and uncertainties at the annual Federal Reserve gathering in Jackson Hole, Wyoming.
Australians are facing increasing mortgage stress, with 1.5 million borrowers at risk, as the number of households falling behind in repayments rises, indicating a growing cost-of-living crisis and potential financial challenges ahead.
The BJP and AAP are in a dispute over the redevelopment work done for the G20 summit, with the BJP claiming the credit for the work funded by the Centre and the AAP accusing the BJP of trying to steal credit.
The rise of social media has led to the rejection of long-established economic principles, resulting in negative consequences such as homelessness caused by minimum wage increases, higher debt due to low interest rates, inflation resulting from reckless decisions made by the Federal Reserve, and the failure of statist policies.
Israel has been ranked as the country with the highest cost of living among developed nations in 2022, with prices 38 percent higher than the average in OECD member countries, according to data from the Organization for Economic Cooperation and Development. The high cost of living is attributed to over-concentration in certain sectors, such as food and household goods, and structural problems like housing prices and heavy regulation. The Israeli government has formed a ministerial committee to tackle the issue, but the majority of the public believes that the government's lack of action is to blame.
Video-streaming platforms have reassured the government of their commitment to responsible content creation and self-regulation amid growing scrutiny and concerns about regulations for OTT platforms in India.
India has become the first country to surpass pre-COVID tourism numbers in Australia, with 383,000 Indian tourists visiting the country between July 2022 and June 2023, thanks in part to the ICC T20 World Cup and eased visa norms.
Malawi is making progress in restructuring its $1.2 billion external debt, with discussions underway to reach sustainable levels and alleviate the impact of foreign currency shortages on the government's operations.
Malawi's central bank has stated that the country is making progress in restructuring its $1.2 billion external debt, with negotiations with creditors showing positive results and the government remaining optimistic about reaching acceptable terms. The lack of foreign currency has constrained debt servicing and affected the government's operations, leading to severe shortages of vital imports and long queues at fuel stations.
The Brics summit in South Africa resulted in the addition of six new member countries, including Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE, with discussions covering various topics such as terrorism, multilateral reform, and trade. The expansion has been received with mixed reactions, with some seeing it as a revitalization of the group and others fearing it will deepen existing challenges.
The US Dollar performed well against major currencies, with the British Pound, Euro, and Canadian Dollar underperforming, while the Chinese Yuan and Australian Dollar fared better; the Federal Reserve's indication of a higher terminal rate and potential further borrowing cost increases contributed to the market sentiment, leading to lower US equity markets; upcoming economic data includes consumer confidence, inflation gauges from key European countries, and manufacturing PMI gauges from China.
India has seen an increase in its tariffs and trade policy measures in recent years, reversing the trend towards liberalization and increasing trade restrictions, which is a global phenomenon as many countries are adopting industrial policies to promote domestic production and exports; however, the effectiveness of these policies and their impact on economic growth and job creation remain to be seen.
Indian Prime Minister Narendra Modi warned that a new model of colonialism may arise if countries with large reserves of critical and rare earth minerals do not consider these resources as a global responsibility, highlighting concerns about the unequal distribution of these minerals and their increasing importance in various sectors.
The BRICS 2023 Summit saw the expansion of the alliance with the addition of six countries, potentially leading to a shift in the global economic order and significant de-dollarization efforts, while notable absences by Vladimir Putin and Chinese President Xi Jinping raised concerns, and China and India made progress in their border talks.
Canadian real estate and the economy are facing challenges, with slowing growth, high debt for millennials, increased fixed-rate mortgages, rising housing prices as an inflation risk, and low mortgage growth prompting concerns.
While Greece aims for a primary budget surplus of 2.1-2.5% of GDP in the coming years, the EU calls for a minimum surplus of 2.3% to reduce the country's debt, with the government focusing on pro-growth policies and reforms instead of handouts and tax cuts.
India is transitioning from an offline, low-productivity economy to an online, high-productivity economy driven by digital public infrastructure, according to Infosys co-founder Nandan Nilekani.
The Bank of England may have to increase interest rates if the US Federal Reserve decides to raise rates to cut inflation, in order to prevent the pound from weakening and inflation from rising further.
China's economic difficulties can be attributed to its reliance on authoritarianism and central planning, which has led to wasted capital, labor, and diverted efforts, creating significant problems and holding back the economy. The Biden administration's adoption of industrial policies and top-down planning in its economic scheme, known as "Bidenomics," bears similarities to China's flawed approach.
According to a report by Knight Frank India and NAREDCO, India's real estate sector is projected to reach $5.8 trillion by 2047, contributing 15.5% to the country's total economic output, with private equity investments in the sector expected to surge to $54.3 billion.
US Federal Reserve Chairperson Jerome Powell emphasized the focus on high inflation in his speech at the economic policy symposium, indicating that interest rates will remain high for a while as the Fed continues to fight inflation; Powell believes that the Fed's role is to moderate demand to align with supply and that restoring price stability will take time.
Shiv Sena president Uddhav Thackeray criticized the National Democratic Alliance (NDA) calling it an "amoeba" with no definite shape, and urged Telangana Chief Minister K Chandrasekhar Rao to clarify his stand on supporting the INDIA alliance or the Bharatiya Janata Party (BJP). Thackeray also appealed to the people to join the INDIA alliance for protecting democracy and the Constitution.
Canada's second-quarter GDP report is expected to show a significant slowdown in economic growth, potentially leading to a pause in interest rate hikes by the Bank of Canada despite recent high inflation data.
China Evergrande Group, the world's most-indebted property developer, reported a narrower net loss for the first half of the year due to increased revenue, but it is still facing a crisis in China's property sector characterized by debt defaults and shattered consumer confidence in the country's economy.
U.S. trade chief Katherine Tai has expressed concerns to India over its new licensing requirements for the import of laptops, tablets, and personal computers, citing potential adverse impact on U.S. exports and the need for stakeholder input.
Traders are expecting a volatile start to the week as policymakers from the US and Europe indicate that interest rates will likely remain higher for a longer period of time, leading to increased yields on bonds and a weakening of the yen.
Economist Jason Furman's belief that higher inflation stimulates investment is mocked by the reality of market dynamics, as evidenced by the fact that successful companies achieve massive valuations by lowering prices and providing more value to consumers.
Regulatory reforms in Turkey have led to significant investments in the country's solar energy industry, with nearly $10 billion invested in unlicensed solar production facilities and a total installed capacity of 13,500 MW.
U.S. Commerce Secretary Gina Raimondo arrived in Beijing for a visit focused on bolstering business ties between the U.S. and China, while emphasizing that national security trade measures are not open to discussion.
Mortgage rates have remained high despite bond yields and inflation being at average levels, largely due to the lack of refinancing activity and the longer duration of mortgage-backed securities, causing an unhealthy housing market.
An alarming 39% of Americans have skipped meals to afford housing payments, and here are five steps to get back on track: look into a forbearance plan, refinance your mortgage, set up automatic payments, downsize your home, and make a budget and stick to it.
There has been a surge in online scams in India, with individuals losing money to fraudsters who lure them with the promise of easy income through part-time employment or online tasks, emphasizing the need for vigilance and precautionary measures to avoid falling victim to these scams.