The Tennessee Valley Authority (TVA) is set to raise its base electric rates by 4.5% starting October 1st, which will result in a $3.50 increase for the typical residential customer, due to higher inflation, interest rates, and power demand; local power companies like EPB are also expected to add their own rate increases once TVA ends pandemic credits granted to the distributors. Additionally, TVA's power demand is projected to double by 2050, triggering the need for new power generation and potentially more rate increases in the future.
The Bank of England is predicted to make only one more increase to Bank Rate, taking it to 5.50% in September, despite other major central banks halting rate hikes, as the BoE struggles to control inflation.
China is facing challenges in defusing risks from its local government debt without resorting to major bailouts, as many local government financing vehicles (LGFVs) are struggling to generate enough income to pay off their debts and are experiencing difficulty in accessing financing from banks and investors. If the debt restructuring efforts fail, it could have a significant impact on China's economic growth and pose risks to the country's financial system.
The Royal Bank of Canada (RBC) has cut around 1% of its workforce in recent weeks and plans to cut an additional 1-2% in the near future, revealed in its quarterly earnings report, despite reporting increased profits and revenue growth in various divisions of its business.
China's "Hunan model" of development finance in Africa focuses on industrial production, job creation, agricultural development, digital innovation, and green development, aiming to support the 2035 Vision for China-Africa Cooperation and establish new trade partnerships and markets. The model places Africa in a crucial position to grasp new opportunities and shape areas of cooperation with China and globally.
Despite aggressive interest rate hikes by the Federal Reserve, consumer spending in the U.S. remains strong, as seen in the success of the new Caesars casino in Danville, Virginia, which has exceeded expectations with over $50 million in bets since May.
China's decision to suspend reporting its July youth unemployment rate has sparked controversy and speculation that the government is trying to hide unfavorable statistics, particularly as young people in China face a dire employment situation due to the economic impact of COVID-19 and other factors.
Germany, once known as the "sick man of Europe," is facing a new economic downturn characterized by sticky inflation, falling output, and structural issues such as an aging population and high corporate tax rate, prompting concerns of a prolonged recession; however, the country's strong employment levels, record public finances, and adaptability through its Mittelstand of small and medium-sized businesses provide hope for recovery.
Nigeria's unemployment rate has dropped dramatically to 4.1% for the first quarter of 2023, highlighting an improvement in the job market; however, there are concerns about the quality and sustainability of employment under the new methodology used for data collection.
Ongoing recovery from the COVID-19 pandemic and short-term unemployment are contributing to Nevada having the highest unemployment rate in the nation, with every county in the state having a rate higher than the national average.
Global subsidies for fossil fuels have reached a record $7 trillion in 2022, with the costs driven by post-pandemic consumption growth and Russia's invasion of Ukraine, according to the International Monetary Fund, causing strain on budgets, pollution, and exacerbating global warming.
Despite attempts by the Federal Reserve to cool the economy and combat inflation, applications for unemployment benefits in the US declined last week, indicating a resilient labor market.
Cleveland-Cliffs has made a $7.3 billion offer for US Steel, highlighting the decline of legacy steelmakers and the rise of mini-mills that use electric-arc furnaces, which are greener and more profitable. US Steel may have to embrace new technologies or consider consolidation in order to compete.
A survey conducted in West Africa suggests that most people in the region approve of the recent coup in Niger and doubt the need for military intervention to reinstate the ousted president, Mohamed Bazoum, with a majority expressing concerns about the potential for a wider regional conflict. Furthermore, the survey highlights Russia's growing appeal in West Africa, particularly in Mali, where Russia is viewed as the most trusted partner.
Arm, the British chip designer, has published a prospectus for its IPO on the Nasdaq exchange next month, with an expected valuation of $60bn to $70bn, attracting interest from tech giants such as Amazon, Apple, and Nvidia.
Russia's mafia state is revealed following Prigozhin's death, while tensions within the BRICS bloc escalate and Ukraine's slow counter-offensive negatively impacts public sentiment.
Brexiteers' plan to restrict immigration from Europe to boost productivity in low-wage sectors has failed, as productivity in these sectors has not increased and there has been no significant automation boom. The experiment to replace cheap foreign labor with robots or higher-skilled immigrants did not work due to a lack of commitment, poor quality of British managers, weak investment, and uncertainty around labor supply. The government needs to provide more certainty on immigration and tax policy to address these issues.
American megachurches are thriving by downplaying denominations and focusing on brand identity, offering innovative and engaging services that attract a younger, more diverse congregation.
Saudi Arabia's Tadawul All Share Index has shown resilience by edging up 0.34 percent, with a total trading turnover of $1.34 billion and a mix of stock performances.
The employment rate in the Republic of Ireland has reached a record high of 74.2% in the second quarter of this year, indicating strong economic recovery since the pandemic, although the governing coalition faces challenges due to high housing costs.
Despite the Federal Reserve's interest rate hikes, new claims for unemployment benefits in the US declined last week, indicating a resilient labor market and raising hopes of avoiding a recession.
The number of Americans filing new claims for unemployment benefits has decreased for a second consecutive week, defying expectations of an increase in job losses despite the Federal Reserve's interest rate hikes.
The number of Americans applying for unemployment benefits fell to a three-week low of 230,000, indicating a strong labor market and low job losses in the resilient U.S. economy.
Turkey's central bank raised its key interest rate by 750 basis points to 25%, signaling a new determination to address inflation and enacting more orthodox policies, leading to a rally in the lira and positive market response.
The Bank of Canada may shift its focus from the output gap to labor market indicators, such as unemployment and wages, in order to make inflation forecasts and guide its interest rate decisions, according to a report by CIBC economists. The report suggests that the labor market has become a more reliable indicator of excess demand or supply, and forecasts that if the job market outlook suggests it's not necessary, there may be no more rate hikes this year and rate cuts in early 2024.
Americans continued to spend on dining out despite concerns about recession and inflation, with retail sales at restaurants and bars increasing by 11.8% in July and 9.5% in June compared to the same period last year, according to the Commerce Department. The strong consumer spending in this sector is seen as a positive sign for the economy and has been reflected in the earnings growth of restaurant companies.
The New Development Bank created by BRICS countries in 2015 can provide financial support for African countries' projects to address urgent challenges, according to former Brazilian President Dilma Rousseff.
Poland plans to increase spending on defense, health, social benefits, and public sector pay in 2024, as the ruling Law and Justice party focuses on security ahead of elections; however, economists warn that these big-spending policies may hinder the country's fight against inflation and raise the deficit to dangerous levels.
Saudi Arabia's Tadawul All Share Index closed slightly higher, with a total trading turnover of SR5.02 billion, while a mix of stock performances saw some stocks advance and others decline.
China's tourism industry is expected to grow faster than its GDP as Chinese consumers shift their spending from property to travel experiences, according to the CFO of Tongcheng Travel.
China's ban on seafood imports from Japan, prompted by concerns over radioactive contamination from the Fukushima nuclear plant, is seen as a political gesture with minimal economic impact due to Japanese seafood exports making up less than 1% of Tokyo's global trade dominated by cars.
China's ban on seafood imports from Japan, prompted by concerns about radioactive contamination, is seen as more of a political gesture than an economic blow, as marine products make up less than 1% of Tokyo's global trade dominated by cars, with the impact on Japan's total exports negligible.
The European Central Bank (ECB) faces a complex decision on whether to continue raising interest rates in September as eurozone businesses experience declines in outputs and new orders, with some experts suggesting a pause in rate hikes to ease pressure on the economy.
Chinese President Xi Jinping announced at the BRICS leaders' summit in South Africa that the group is inviting six countries to join and also launching a $10 billion special fund to bolster global development, emphasizing the expansion's vitality for cooperation and the common interests of emerging markets and developing countries.
The strong job market and rising wages are creating eager buyers in the housing market, making it a great time to sell your house.
Indian Prime Minister Narendra Modi addressed the 15th BRICS Summit and emphasized the potential for BRICS and friendly countries to strengthen a multipolar world, while announcing the admission of six new countries into the bloc starting next year. He also highlighted India's cooperation with Africa, the success of Chandrayaan-3, and India's growing trade partnership and investment in Africa.
Brazil is on track to surpass the United States as the world's top corn exporter due to a combination of a record harvest and improved logistics, with northern export routes becoming more competitive and cost-effective than traditional ports in the south.
Despite the Federal Reserve's aggressive interest rate hikes, U.S. consumer spending has not faltered, as seen in the success of the new Caesars casino in Danville, Virginia, which has exceeded expectations and attracted significant betting activity.
The BRICS group, consisting of Brazil, Russia, India, China, and South Africa, has invited Saudi Arabia, Iran, Egypt, Argentina, Ethiopia, and the United Arab Emirates to join in order to increase its global influence and economic clout, while also promoting an alternative to the US-centered international system.
Hungary is seeking an extension of the EU's ban on domestic sales of Ukrainian grain and is willing to reimpose a national import ban if the measure is not extended.
Oil and tech giants have become dominant players in the vital climate industry.
Hong Kong's exports continue to decline for the 15th consecutive month, with a 9% decrease in July, due to trade contraction with mainland China, the US, and Europe, affecting the city's economic recovery and prompting a downgrade in GDP forecast.
The Swedish economy is expected to experience a downturn over the next two years, with GDP forecasted to shrink in 2023 and 2024 due to low domestic demand and a slowdown in export growth, making it one of the worst-performing economies in the EU; however, there is uncertainty and the possibility of a milder downturn depending on the resilience of the economy. Furthermore, the Swedish krona is expected to continue weakening until mid-2024, and household incomes are projected to fall until 2025, but households are strengthening their financial positions and reducing debt.
Federal Reserve Chair Jerome Powell aims to bring inflation back down to its 2 percent target while avoiding causing a recession, as he addresses the uncertain economic outlook at the annual conference in Jackson Hole, Wyoming.
BRICS has officially invited six new countries, including Saudi Arabia, the UAE, Egypt, Argentina, Iran, and Ethiopia, to join the bloc, potentially expanding the alliance into an 11-member group called BRICS+, which could have a major impact on the global financial sector.
Appalachian regions relying on shale gas to replace losses from the steel industry are experiencing economic decline and job losses, indicating an unlikely future for the field, according to a study by the Ohio River Valley Institute. The study found that gas production has deteriorated and job growth has declined, with challenges in pipeline construction and a slowdown in global demand contributing to the downturn. The report suggests the need for local policymakers to explore new economic development strategies, particularly in clean energy transition.
China's commerce ministry spokesperson, Shu Jueting, expressed China's willingness to engage in comprehensive discussions with the United States to address economic and trade issues during the upcoming visit of U.S. Commerce Secretary Gina Raimondo.
Global investors are urging China to increase spending in order to revive its struggling economy and address the deepening property crisis, as modest interest rate cuts and vague promises of support have failed to restore confidence in the market. Investors are demanding more government stimulus before considering a return, and the lack of a policy response from Beijing has raised concerns among fund managers. The wishlist of investors includes increased government spending, particularly for local governments and banks, as well as measures to address the property sector crisis and improve communication regarding private business interests.
UAE President Mohammed bin Zayed Al Nahyan expresses eagerness to collaborate with BRICS for the benefit of all nations and people around the world.
Global investors are urging China's leadership to increase fiscal stimulus and spend more in order to revive the economy and address the property crisis, as they express frustration with the slow and insufficient measures taken by the Chinese government to boost growth.