UK PMI data suggests a 0.2% decline in GDP in Q3, indicating a potential recession as factory output slumps and the economy faces higher interest rates.
South Africa has signed deals with China to upgrade its energy sector, including nuclear power plants, as the country aims to address its energy crisis and boost its economy.
The Saudi government's efforts to diversify the economy away from oil and promote private sector growth are showing progress across four dimensions: exports, output, government revenue, and employment, although oil remains a dominant force in the economy.
Germany's business activity has seen a sharp decline, leading to concerns of a recession, as the country's Purchasing Managers' Index (PMI) dipped to its lowest level in over three years. This decline in activity is impacting the wider eurozone economy as well, with the region at risk of slipping into recession. This economic downturn is accompanied by a worrying uptick in inflation and slow growth, particularly in Germany.
Bath & Body Works warns of a steeper decline in annual sales as consumers cut back on purchasing pricier home fragrances and personal care products due to high inflation and tight budgets.
India is expected to ban the export of sugar for the upcoming season due to a lack of rain and reduced cane yields, which could increase prices and lead to further inflation on global food markets.
The New Development Bank of the BRICS group will not be announcing new members at the BRICS Summit in South Africa, according to Leslie Maasdorp, the bank's Chief Financial Officer, who stated that the process of ratifying new countries is happening without the bank's involvement.
Chinese President Xi Jinping has urged the BRICS bloc of emerging markets to expedite its plan to expand its membership, aiming to increase the group's influence on the global stage, with about 20 countries including Saudi Arabia, Indonesia, and Egypt expressing interest in joining the group.
Indian Prime Minister Narendra Modi expressed his support for the expansion of BRICS membership, while Chinese President Xi Jinping called for the process to be accelerated, potentially boosting the group's global influence and countering the dominance of the Group of Seven. Several nations have shown interest in joining, with China taking the lead in pushing for expansion. However, India has advocated for a cautious approach due to concerns that the bloc may become influenced by its neighbor.
The UK and eurozone economies are at risk of recession due to a significant slowdown in private sector activity, with the UK experiencing its poorest performance since the Covid lockdown and Germany being hit particularly hard; the US is also showing signs of strain, with activity slowing to near-stagnation levels.
Some states are offering sales-tax-free periods for back-to-school shopping, providing families with the opportunity to save money on items like clothing, shoes, electronics, and school supplies; three states, Connecticut, New Jersey, and Florida, still have ongoing sales tax holidays.
Russian President Vladimir Putin criticized Western sanctions and called for member countries of the BRICS group to move away from the US dollar during an economic summit in South Africa, despite the arrest warrant issued against him by the International Criminal Court.
China has promised extensive cooperation in the energy sector with South Africa and advised streamlining tender processes and relaxing BEE policies to make cooperation easier, according to Chinese officials at the BRICS summit in Johannesburg.
Mortgage rates topping 7% have led to a significant drop in mortgage applications for home purchases, with last week seeing the smallest volume in 28 years. The increase in rates, driven by concerns of high inflation, has priced out many potential buyers and contributed to low housing supply and high home prices. As a result, sales of previously owned homes have declined, and homeowners are reluctant to sell their properties due to the higher rates. Some buyers are turning to adjustable-rate mortgages to manage the increased costs.
Inflation rates in Gulf Cooperation Council (GCC) countries have been lower than in other Middle Eastern and global counterparts due to factors such as reduced food costs and declining energy prices, although housing inflation in the Gulf remains notable, according to an analysis by Kamco Invest.
Saudi startup FlyAkeed has raised $15.2 million in a series A funding round led by Sanabil Investments, with participation from Elm Co., Artal Capital, and Al Rajhi Partners. The travel technology startup plans to use the funds to strengthen its presence in Saudi Arabia and the Gulf Cooperation Council countries, as well as develop fintech solutions for user experiences and cost management tools for business trips.
The Reserve Bank of India (RBI) has instructed certain banks to stop opening new arbitrage positions in the non-deliverable forwards (NDF) market in order to minimize volatility, although swap arbitrage positions are still allowed.
The ruling party in a country is manipulating media coverage, offering incentives to voters, and preventing opposition rallies due to decades of ineffective leadership; in addition, a correspondent visits fire-damaged Lahaina in Hawaii and explores the emergence of self-pitying British lawmakers.
The minimum wage has become increasingly irrelevant in the current labor market as companies are offering much higher wages to attract workers, rendering the minimum wage meaningless in many industries and locations.
Recession fears return as a key business survey shows a significant contraction in the UK economy, signaling the detrimental effects of interest rate rises on businesses and heightening the risk of a renewed economic downturn.
The US economy continues to perform well despite the Federal Reserve's interest rate hikes, leading to questions about whether rates need to be higher and more prolonged to cool inflation and slow growth.
Argentina should consider pegging its currency to Brazil's real instead of the US dollar, as it would help address economic problems such as exchange-rate instability and hyperinflation, according to an economist.
Mali's new law allowing the government to increase its ownership of mines is expected to deter future investment, while existing mining operations may be shielded by previous conventions and seek international arbitration if necessary.
Euro zone business activity declined more than expected in August, particularly in Germany, while some inflationary pressures returned, posing a challenge for the European Central Bank's efforts to control inflation without causing a recession.
Former St. Louis Fed chief James Bullard warns that stronger economic growth in the US may necessitate higher interest rates to combat inflation.
Ukraine plans to defy the Russian blockade and reopen the Black Sea grain route.
The euro zone's business activity contracted in August, reaching its lowest level since November 2020, raising concerns about the region's economic growth and leading to speculation about the European Central Bank's next steps.
The Federal Reserve faces new questions as the U.S. economy continues to perform well despite high interest rates, prompting economists to believe a "soft landing" is possible, with optimism rising for an acceleration of growth and a more sustainable post-pandemic economy.
Chinese group tours have resumed in Japan after pandemic-era restrictions were lifted, but the economic impact may be limited due to a cooler Chinese consumer sentiment, increased availability of high-end brands in China, and concerns over Japan's plan to release treated Fukushima wastewater into the sea.
Wall Street slightly increased ahead of Federal Reserve Chair Jerome Powell's upcoming speech, with futures for the Dow and S&P 500 rising 0.2%; traders hope Powell will indicate that the Fed is done raising interest rates and may cut them next year.
Saudi Arabia emerged as the top global export destination for Dubai Chamber of Commerce members in the first half of 2023, with exports valued at 35 billion dirhams ($9.53 billion), according to official data.
Lebanon's political elites are resisting tough reforms demanded by the IMF and implementing a "shadow plan" to avoid the burden of bailing out the financial system, ultimately placing the responsibility on ordinary Lebanese citizens already suffering from poverty, according to economic experts and former officials. The elites fear that implementing the IMF reforms would expose their networks of corruption and patronage and force them to bear the cost of repairing the financial crisis.
Hong Kong retail and property sector leaders are supporting extended operating hours for shopping centers and advocating for more consumption vouchers to revitalize the city's nightlife, while also calling for additional incentives to encourage people to dine out and shop at night.
German business activity contracted at its fastest rate in over three years in August, with both the services and manufacturing sectors experiencing a downturn, as rising interest rates, customer uncertainty, and high inflation weighed on demand for goods and services.
German business activity, particularly in the services sector, experienced its sharpest decline since May 2020, leading to concerns about the country's outlook for the remainder of the year and potential stagflation, as both manufacturing and services sectors are contracting.
China has initiated a nationwide inspection of the illegal and improper utilization of the national medical fund to protect its vital funds.
The minimum wage is becoming increasingly irrelevant as a result of a hot job market that has led to higher pay across industries and rendered the minimum wage largely meaningless in many states, with few workers earning the federal minimum wage.
The UK risks falling behind the US and EU in transitioning to a net zero economy unless the government increases green investment by creating a national investment fund and taking a stake in future companies, according to the left-leaning Institute for Public Policy Research. The thinktank proposes a Dragons' Den approach to supporting enterprises and highlights the need for a strategic industrial policy to drive the net zero transition.
Lebanon's political elites are trying to avoid implementing tough IMF reforms and instead are pursuing a "shadow plan" that shifts the burden of bailing out the financial system onto ordinary Lebanese citizens already impacted by the economic crisis, say experts and former officials. The reforms not only pose a financial burden on the elites but also threaten the corrupt networks that have allowed them to exploit the system for years.
Lebanon's political elites, seeking to avoid the tough reforms demanded by the IMF, are deliberately implementing a "shadow plan" to undermine the recovery effort and shift the burden onto the already struggling Lebanese people, jeopardizing the country's chances for economic revival and international investments.
China should continue to prioritize the principle of "houses are for living in, not for speculation" to prevent potential negative impacts on economic and social development, according to an editorial in the state-run Economic Daily, as the country faces a downturn in the property sector and potentially unwinding some curbs.
China's economy is facing challenges with slowing growth, rising debt, tumbling stock markets, and a property sector crisis, and some analysts believe that heavy-handed government intervention and a lack of confidence are underlying causes that cannot be easily fixed. However, others argue that China's problems are solvable and that it remains a superpower despite its considerable problems.
Pakistani authorities have requested the IMF to review the condition of keeping the difference between interbank and open market dollar rates below 1.25% due to the continuous fall in the exchange rate.
UK banks may be allowed to award bigger bonuses from January, but many top bankers are reluctant to trade fixed salaries for uncertain rewards, potentially undermining Britain's attempt to attract more financial industry talent. The removal of the bonus cap is part of the UK's post-Brexit plan to ease regulations and compete with other global financial centers. However, the focus on bonuses is seen as politically toxic and could face opposition amid a cost of living crisis and public-sector labor disputes. Additionally, it remains uncertain whether EU banks based in the UK would still be subject to the bonus cap, potentially impacting London's access to the EU financial sector.
India stocks are expected to trade only slightly higher by year-end, with analysts predicting a potential correction due to tightening global financial conditions.
Chinese tech giant Huawei is reportedly building secret semiconductor-fabrication facilities in China to bypass U.S. sanctions and acquire American chip-making equipment indirectly, according to a warning from the Semiconductor Industry Association.
China's hydroelectric generation has been limited by a persistent drought, leading to increased reliance on coal-fired power generation, as heavy rain brought by Typhoon Doksuri caused severe flooding in the northern part of the country.
Argentina's Economy Minister Sergio Massa announced that the World Bank and Inter-American Development Bank have approved loans worth $1.3 billion for Argentina, with the purpose of financing development projects and strengthening reserves at the Central Bank.
The income gap in Japan remains near a record high, with the pandemic having a significant impact on temporary workers, according to a government survey conducted in 2021.
US President Joe Biden and other world leaders are set to visit India in September for the G20 Summit, with multiple hotels in Delhi-NCR being earmarked for attendees.