Mortgage payments in the US are at their highest since the mid-1980s, making housing deeply unaffordable, but surprisingly, rising mortgage rates have not led to a decline in house prices as supply of properties has fallen almost in lockstep with demand and locked-in homeowners have invested more in fixing up their current homes, leading to a robust housing market despite the economic challenges.
Latest results and forecasts from retailers indicate that U.S. consumer spending is under stress due to middle-income Americans spending less and struggling with debt, posing challenges for the retail sector during the back-to-school and holiday seasons.
The BRICS bloc of developing nations, including Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates, has agreed to expand in an effort to reshape the world order it sees as outdated and tilted against them. However, the expansion faces challenges due to differing interests and concerns among the member countries. Additionally, the idea of a BRICS trading currency called BRICKs is seen as flawed and unlikely to be successful. The notion that the GDP of the BRICS bloc will surpass that of the G7 countries is also disputed, with China's demographics and debt bubble being seen as potential obstacles.
The U.S. economy expanded at a 2.1% annual pace in the second quarter, downgraded from the initial estimate of 2.4%, but still demonstrating resilience in the face of higher borrowing costs and inflation concerns.
Goldman Sachs has lowered its odds of a US recession in the next 12 months to 15% from 20%, citing the resilience of the economy, supportive income growth, and a balanced labor market, with Chief Economist Jan Hatzius suggesting a soft landing is possible and that further rate hikes by the Federal Reserve are unlikely.
China has halved the stamp duty on stock trading in an effort to boost the struggling market, but analysts predict that the impact will only be short-term.
The Danish pharmaceutical company Novo Nordisk is driving the country's economic growth, with its profits and production of anti-obesity drugs contributing significantly to the GDP and employment rates.
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 Bank of Canada has decided to keep its benchmark interest rate at 5% amid signs of a slowing economy, but has not ruled out further rate hikes if inflationary pressures persist.
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.
The latest jobs report shows that the economy added 187,000 jobs in August, slightly above expectations, but wage growth and unemployment indicate a cooling economy.
The top 10 African countries with the best inflation rates in mid-2023 include Seychelles and Burkina Faso with negative inflation, and other countries such as Botswana, Niger, and Mali with relatively low inflation rates.
Treasury yields rose as traders priced in higher odds of a Federal Reserve interest-rate increase this year after a stronger-than-anticipated gauge of service-sector activity.
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, amid a crisis in China's property sector caused by debt defaults and unfinished homes.
China's economy is showing signs of slowing down, with indicators such as GDP growth, exports, consumer price index, youth unemployment, yuan depreciation, and a decrease in new loans pointing to potential trouble ahead.
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.
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 US economy grew modestly in July and August, with signs of consumers relying more on borrowing to support spending after depleting their savings, while inflation slowed due to decreasing price pressures in the goods sector, according to the Federal Reserve's Beige Book report.
Over half of U.S. small business owners believe the economy is already in a recession, though their own financial conditions remain strong and they have less concerns about the health of their banks, according to a survey by the National Federation of Independent Business.
China's share of US goods imports has dropped to its lowest level since 2006, as American companies reorganize supply chains to reduce dependence on China and shift to countries like Mexico and Vietnam.
Analysts warn that China's ban on Japanese aquatic products in response to the discharge of Fukushima nuclear waste water could have negative consequences for China's seafood sector and further strain bilateral trade between the two countries.
China's exports fell for the fourth consecutive month in August, indicating ongoing challenges for the economy despite a marginal improvement, as weak external demand and global supply chain disruptions continue to impact the world's second-largest economy.
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.
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.
German industrial production fell by 0.8% in July, slightly more than expected, highlighting the challenges faced by the sector due to a winter downturn and weak global economy.
China's leader Xi Jinping assures the BRICS group that China's economy remains resilient and its long-term growth fundamentals are unchanged, despite challenges such as a property slump and weak consumer spending.
Bankruptcies have increased by 17% in August, marking the 13th consecutive month of rising company failures, as businesses struggle to cope with the Federal Reserve's interest-rate hikes.
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.
Americans are experiencing a "vibecession" as consumer sentiment remains low despite a healthy market, but the link between sentiment and economic indicators has been severed since the COVID-19 pandemic, making predictions inaccurate.
US mortgage rates have decreased slightly for the second consecutive week, but they remain above 7%, causing home affordability to reach its lowest level in nearly four decades.
The Bank of Japan will maintain its current monetary policy approach as underlying inflation remains below the 2% target, despite core consumer inflation staying above target for the 16th straight month in July, according to BOJ Governor Kazuo Ueda.
The US economy has exceeded the Federal Reserve's estimate of its growth potential in recent years, with growth averaging 3% under President Joe Biden, but concerns about rising public debt and inflation, as well as the Fed's efforts to control them, may lead to slower growth in the future and potentially a recession. However, there are hints of improving productivity that could support continued economic growth.
The onshore yuan dropped to a 16-year low against the dollar, reflecting growing pessimism towards China's economy and financial markets.
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.
The Federal Reserve may be the cause of rising single-family home prices and the low supply of existing homes, which could lead to increased inflation and concerns about the Fed's response to the rising cost of living. Lowering interest rates and unlocking the supply of homes could help alleviate the issue.
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.
India's G20 presidency may be seen as a failure in terms of achieving global consensus, but it has been successful in boosting India's image, promoting its leadership in the "global south," and enhancing the personality cult of Prime Minister Narendra Modi domestically.
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 largest private property developer, Country Garden, has warned of default risks if its financial performance continues to deteriorate, following a record loss in the first half of the year. The company's net loss between January and June amounted to 48.9 billion yuan ($6.72 billion), compared to a net loss of 6.7 billion yuan in the second half of 2022 and a net profit of 612 million yuan in the first half of 2022. This comes as Chinese authorities are working to revive the troubled property market, which accounts for approximately a quarter of the country's economy.
The fall in the value of the Pakistani rupee against the US dollar is expected to cause a surge in inflation, with petrol and diesel prices projected to increase by over Rs13 per litre due to the exchange rate, potentially reaching double digits if the dollar continues to appreciate. Additionally, the rise in dollar value will also lead to further increases in electricity tariffs, making the lives of citizens more difficult.
The newly implemented rules in America that allow Medicare to negotiate drug prices could have damaging effects on innovation in the pharmaceutical industry and may discourage investment in new medicines, leading to fewer treatments in the future. Instead of focusing solely on price controls for drugs, regulators should address the issues within the rest of the supply chain, such as opaque middlemen and hospital mergers, to effectively lower healthcare costs.
The US has expanded restrictions on exports of Nvidia artificial-intelligence chips, including to the Middle East, in an escalation of its crackdown on China's technological capabilities.
India's 40 percent export duty on onions is raising concerns in the Arab world about the impact on food inflation and supply chains, as GCC countries heavily rely on Indian imports, and the duty could potentially lead to price fluctuations and shortages of the vegetable in the region.
The Bureau of Labor Statistics has revised down US job growth estimates by about 300,000 jobs, indicating weaker job growth than previously projected.
China's economic weakness will pose challenges for developing economies and regions that rely on it for growth, but the U.S. economy is well-positioned to withstand the resulting headwinds, according to U.S. Deputy Treasury Secretary Wally Adeyemo.
Japan's Prime Minister Fumio Kishida is planning to implement measures to support the fishing industry affected by China's ban on Japanese seafood, including additional funds from the government budget reserves, after visiting Tokyo's fish market.