The federal budget deficit is expected to surge to more than $2 trillion this year, nearly doubling last year's deficit, due to increased government spending, high interest payments on the national debt, and rising inflation, leading to concerns about the sustainability of such spending and its impact on future generations.
The BRICS Alliance has expanded its membership to include Saudi Arabia, Argentina, Egypt, Ethiopia, the United Arab Emirates (UAE), and Iran, which will collectively represent 43% of global crude oil production and control a combined 29% of global GDP, leading to potential geopolitical implications and a higher level of economic dominance.
The UK economy is facing crucial weeks ahead as data releases will determine if the country can overcome the challenges of the past few years, with anticipation for a return to economic growth and higher wages while managing inflation and borrowing constraints.
Turkey's central bank raised interest rates to 25 percent, the highest level since 2004, in an effort to curb inflation and stabilize the country's economy.
The South African government is implementing urgent cost-cutting measures, specifically targeting the civil servant wage bill, in an effort to address runaway spending and a potential debt default, as the country's fiscal deficit for 2023 is expected to be higher than forecasted and its debt has already surpassed the desired limit.
A post-pandemic global economy characterized by record levels of government debt, geopolitical tensions, and weak productivity gains may lead to a slow-growth future that hinders development in some countries even before it begins, as discussed at a symposium organized by the Kansas City Federal Reserve.
The Birmingham City Council in England has declared itself bankrupt due to financial difficulties, with the main causes being equal pay claims and excessive spending on projects such as an IT system and the Commonwealth Games bid. The council has issued a Section 114 notice, halting all but essential spending. The Conservative government has refused to provide further funding, stating that it's the responsibility of local councils to manage their own budgets.
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.
Indian Prime Minister Narendra Modi called for global reforms and urged world leaders at the G20 summit to make global structures, including the UN Security Council, reflective of current realities and emphasized the need for India's permanent membership at the UNSC.
The BRICS bloc, consisting of Brazil, Russia, India, China, and South Africa, has announced the admission of six new members, including Iran, Saudi Arabia, Egypt, Ethiopia, Argentina, and the United Arab Emirates, to expand its influence in the Global South and establish itself as a counterweight to the G7.
Egypt's annual inflation rate reached a record high of 39.7% in August due to rising prices across various sectors and the devalued Egyptian pound, exacerbating the economic pressures faced by millions of Egyptians.
China's economic weakness may pose challenges for developing economies and regions that rely on it, but the US economy is well positioned to navigate these headwinds with its investments and resources, according to US Deputy Treasury Secretary Wally Adeyemo.
Chinese President Xi Jinping's decision to skip the G20 Leaders' Summit in India is not viewed as a snub by the Indian government, with External Affairs Minister S Jaishankar praising China's role in the summit and dismissing any notion of offense.
Canada's second-quarter GDP report is expected to show a significant slowdown in economic growth, potentially leading the Bank of Canada to pause its interest rate hikes despite recent inflation data.
Most stock markets in the Gulf ended higher in response to Friday's rise in oil prices, except for the Saudi index which closed lower.
Rice prices in Asia have surged to their highest level in almost 12 years due to India's rice export ban and adverse weather conditions, leading to concerns about food price volatility and potential shortages of other food commodities in the region. Factors such as extreme climate events, the onset of El Niño, trade restrictions, and protectionist food policies are contributing to the situation. While most Asian countries can withstand a supply shock in rice, there are concerns about the impact on overall farm output and consumer price inflation, particularly for vulnerable populations.
Ethiopia completes the final filling of its controversial dam on the Nile River's main tributary despite external pressure, causing ongoing friction with downstream nations Egypt and Sudan.
The global food commodity prices declined by 2.1 percent in August, driven by falling prices of essential food items, excluding rice and sugar, according to the latest report from the FAO.
Jim Cramer anticipates that Federal Reserve Chair Jerome Powell's speech at Jackson Hole may signal further interest rate hikes, potentially causing stocks to decline, but advises investors to keep strong companies like Apple and Nvidia and seek opportunities for discounted stocks.
Six new countries, including Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates, are set to join the BRICS economic grouping, leading to concerns about the potential impact on the Western world's sustainability goals and the global financial system.
The United States, Saudi Arabia, India, and other nations are discussing a potential infrastructure deal that would connect Middle Eastern countries with South Asia through railways and ports, with the aim of improving trade and countering China's Belt and Road initiative.
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.
Sibanye Stillwater remains in the running to acquire Mopani Copper Mines in Zambia, despite the sale process exceeding the expected completion date. The South African mining company is seeking to expand its copper portfolio as part of its strategy to focus on metals necessary for the green revolution.
US Commerce Secretary Gina Raimondo's upcoming trip to China coincides with China's economic slowdown, giving her an opportunity to pursue better market access for American companies, but she may also face pressure to help stabilize China's faltering economy by easing some of the US restrictions.
Consumer confidence in the US fell in August due to concerns about inflation, reversing the optimism from the past two months, according to The Conference Board's Consumer Confidence Index.
Asian markets are expected to have a nervous open as concerns grow over last week's equity selloff, tightening financial conditions, and a wave of economic data from China.
The South African rand weakened ahead of the BRICS summit and monthly inflation figures.
The economic uncertainty in China has led middle-class consumers to shop at wholesale markets for cheaper goods, impacting the luxury industry and highlighting the weakness in household demand in the country's struggling economy.
Even as the United States tries to reduce its reliance on Chinese goods, research suggests that global supply chains remain deeply interconnected, with Chinese products making their way into America through other countries. Changes in trade relationships and supply chains have caused China's share of US imports to decline, but countries like Vietnam and Mexico have seen an increase in imports from China, indicating that Chinese firms are still heavily involved in the supply chains. This reshuffling of supply chains has led to higher prices for goods and calls into question whether the US has truly lessened its dependence on China.
Two major cities in eastern China, Jinan and Qingdao, have lifted all restrictions on home purchases and selling in an effort to attract buyers and revive the frozen property market.
Mortgage rates reach their highest level since 2001 due to strong economic data, which will limit the ability of many potential home buyers to enter the market.
Stock prices in Asia were mostly higher as investors awaited updates on U.S. inflation and China's economic data, while concerns about rising oil prices and possible higher interest rates weighed on markets.
India's ban on exporting non-basmati white rice due to rising prices has sparked fears of global food inflation and led rice-dependent countries to seek exemptions, potentially impacting the livelihoods of farmers and causing market reverberations.
Investors are expecting Federal Reserve Chair Jerome Powell to take a hawkish tone on interest rate policy in his upcoming speech, as the US economy continues to perform well and inflation remains elevated.
Germany is predicted to experience a prolonged recession this year, making it the only major European economy to contract in 2023, according to the European Commission, with its growth expectations also being cut for 2024; this is attributed to struggles following Russia's invasion of Ukraine and the need to end energy dependency on Moscow.
U.S. Commerce Secretary Gina Raimondo has stated that American companies are viewing China as "uninvestible" due to fines, raids, and other risky actions taken by the Chinese government, presenting a bleak picture of American firms' perception of doing business in China.
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.
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.