China's largest property developer, Country Garden, is on the brink of default after reporting a huge loss, exacerbating the real estate crisis and posing a risk to the country's fragile economy.
US wholesale inflation in August exceeded expectations with a 0.7% increase, driven by a surge in energy costs and gasoline prices, providing the Federal Reserve with new data to consider in its decision on interest rates.
A potential strike at major US automakers could have far-reaching economic consequences, including the threat of job losses, reduced spending, disruptions to car component suppliers, and higher prices for consumers, potentially impacting the US economy as it faces other challenges such as high oil prices and a federal government shutdown.
Japan's plan to release treated wastewater from the Fukushima nuclear plant into the ocean has caused a political feud with China, which has banned imports of Japanese seafood and promoted unfounded claims about contaminated fish, likely driven by anti-Japanese sentiment and political tensions between the two countries.
The Federal Reserve faces a critical decision at the end of the year that could determine whether the US economy suffers or inflation exceeds target levels, according to economist Mohamed El-Erian. He suggests the central bank must choose between tolerating inflation at 3% or higher, or risking a downturn in the economy.
China's property sector continues to struggle with deepening falls in new home prices, property investment, and sales in August, despite recent support measures, adding pressure to the country's economy.
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.
U.S. job growth is slowing down but remains steady, with the unemployment rate settling at 3.5% in July and predictions that the August jobs report will show similar results, although concerns remain regarding potential slowdowns and negative growth.
The European Central Bank (ECB) has raised interest rates to a record high of 4% in an attempt to combat rising inflation, but suggests that this increase could be the last for the time being. The ECB expects inflation to fall in the coming years, but acknowledges that higher rates have impacted economic growth projections for the eurozone.
Canadian Prime Minister Justin Trudeau has warned grocery chains that they could face new taxes if they don't address rising food prices, stating that profits should not be made at the expense of struggling families.
The Federal Reserve's preferred measure of inflation, the PCE price index, increased in July, suggesting a higher likelihood of further interest rate hikes this year.
U.S. retail sales rose more than expected in August due to higher gasoline prices, but underlying spending on goods slowed as Americans faced increased inflation and borrowing costs, while the trend in underlying spending on goods was not as robust as initially thought in July. Despite this, overall consumer spending is expected to remain strong, driven by spending on services.
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The Tadawul All Share Index in Saudi Arabia showed resilience by closing higher, with robust market activity and a mix of stock performance.
Federal Reserve Chair Jerome Powell warns that inflation remains too high and more interest rate hikes could be possible, causing financial stress for consumers, particularly lower-income workers.
Long-term mortgage rates increased due to rising inflation and a strong economy, with 30-year fixed-rate mortgages at an average of 7.18%, according to the Freddie Mac survey.
The sale of anti-obesity drugs in Denmark, particularly Ozempic and Wegovy, has significantly boosted the country's economy and prevented it from entering a recession, with the pharmaceutical industry adding almost two percentage points of growth to the GDP in the first half of 2023. The success of these drugs has also made Novo Nordisk, the company behind them, the highest valued company in Europe.
The new drug-pricing rules in America, allowing Medicare to negotiate prices with drugmakers, could have damaging effects by setting prices too low and deterring innovation.
Arm shares surged 25% on its first day of trading on Nasdaq, boosting US stocks, while the European Central Bank's rate decision also contributed to positive market sentiment.
Federal Reserve Chair Jerome H. Powell stated in a speech at the Jackson Hole symposium that the central bank is prepared to raise interest rates further if needed, signaling that they do not believe inflation is fully under control. The Fed will proceed cautiously and assess economic data as they determine whether to make further policy adjustments.
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The Birmingham City Council, the largest local authority in Europe, has declared bankruptcy and suspended all spending except for essential services due to a lack of resources, with critics blaming the Pakistani and Bangladeshi population for negatively impacting the council's balance sheets.
The South African rand weakened against the dollar after mining figures showed a drop in production, contradicting analysts' predictions of an increase.
US mortgage rates have slightly decreased after five consecutive weeks of increases, but still remain above 7% due to inflation concerns. The combination of high rates and low housing inventory is making it more difficult for potential homebuyers to enter the market, leading to lower home sales.
The potential government shutdown threatens to deprive the Federal Reserve of crucial data on the labor market and inflation, which could hinder its ability to make informed decisions about the economy and interest rates.
India's Finance Minister Nirmala Sitharaman expressed optimism about achieving a 10.5% growth target this fiscal year and prioritized economic growth over taxing diesel vehicles.
The number of corporate bankruptcies in the United States is increasing, with over 400 companies going under so far in 2023, the highest rate since 2010, due to overstretched balance sheets and multiple interest rate hikes. Consumer discretionary and industrial sectors have been most affected, and there has been a rise in billion-dollar bankruptcies, including Bed Bath & Beyond and Silicon Valley Bank's parent company. However, some companies have managed to withstand the rising borrowing costs and economic uncertainty through cost-cutting measures and price hikes.
GCC inflation remains below the global average due to factors such as reduced food costs, declining energy prices, and tighter monetary policies, according to an analysis by investment service provider Kamco Invest. The housing sector in the Gulf countries experienced inflation, while the communication and education sectors saw a decline in inflation rates.
With major oil exporters joining BRICS, analysts suggest that the adoption of local currencies for trade among BRICS countries, rather than the US dollar, is becoming more natural, potentially reducing transaction costs and weakening the role of the petrodollar.
The average rate on 30-year fixed-rate mortgages decreased to its lowest point in three weeks, with most loan types experiencing a double-digit decline.
J.P.Morgan and ANZ have raised their 2023 economic growth forecast for China to 5% and 5.1% respectively, citing a notable recovery in retail sales and a rise in service activity.
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Belgium is reviewing the potential health concerns associated with the iPhone 12, following France's suspension of sales due to reported violations of radiation exposure limits. Apple is contesting France's findings and claims that the iPhone 12 meets radiation standards certified by international bodies. Other European countries, such as Germany and the Netherlands, are also examining the issue.
US stocks slumped as reports of China's recovering economy caused concern, potentially impacting global stock exchanges, while the US auto workers' strike and oil price rallies also contributed to market fluctuations.
The success of the global economy in the coming months rests heavily on the ability of the US Federal Reserve to achieve a "soft landing" in managing growth-inflation dynamics, as many other major economies are facing their own challenges and cannot serve as alternative engines for global growth.
China's real estate market is facing a potential crisis as Country Garden, once the country's largest property developer, experiences financial strains and missed payments, raising concerns about its impact on the Chinese economy and global stability.
India successfully used its G20 presidency to showcase its rising power status, bridge the gap between the West and the Global South, and highlight Prime Minister Modi's leadership, but the summit itself did not deliver concrete outcomes on key issues such as climate change and multilateral development bank reform.
The caretaker government has increased the price of petrol and high-speed diesel (HSD) in response to rising international oil prices, with petrol now costing Rs331.38 per litre and HSD priced at Rs329.18 per litre.
The caretaker government of Pakistan has increased petrol and diesel prices by over Rs14 due to the rising trend of petroleum prices in the international market and exchange rate variations.
The Central Bank of Russia has raised its key lending rate to 13% in an effort to combat inflation and stabilize the struggling ruble, which has weakened significantly against the dollar due to decreased exports and increased imports. The country also faces challenges with low unemployment and a brain drain of talent to other former Soviet states. However, the Russian government remains optimistic about economic growth forecasts for 2023.
Mortgage rates for home purchases and refinancing have fluctuated, with rates for 30-year terms increasing and rates for 10-year and 15-year terms decreasing. Borrowers have the option to choose a term that aligns with their financial goals and preferences.
Global stock markets are expected to experience a correction in the coming months, although analysts predict marginal gains by the end of 2023, as concerns about underperformance persist and money market rates overshadow the appeal of equities.
The South African rand strengthens against the dollar as market sentiment improves ahead of a speech by the U.S. Federal Reserve Chair, which could signal future interest rate hikes in the U.S.
The August jobs report is highly anticipated as investors assess the health of the labor market amidst rising interest rates and inflation, with projections indicating an increase in hiring and a steady unemployment rate, but potential disruptions from ongoing strikes and bankruptcies could affect the data. The report is closely watched by the Federal Reserve for signs of labor market softening as they grapple with inflation, and while the labor market has remained tight, there are indications of a gradual slowdown. Job openings have decreased, along with resignations, pointing to a labor market that is cooling.
US retailers are expected to hire the lowest number of seasonal workers since 2008 due to increased labor costs and shaky consumer confidence.
The International Monetary Fund (IMF) plans to advise China to address issues such as weak domestic consumption, the troubled real estate sector, and local government debt, in order to boost both Chinese and global growth, according to IMF Managing Director Kristalina Georgieva. The IMF will urge China to shift its growth model away from debt-driven infrastructure investment and real estate and focus more on domestic consumption. China's aging population, falling productivity, and problems in the real estate sector are factors hindering its growth rate. The IMF is set to release new global growth forecasts, reflecting concerns about low GDP growth worldwide, with the United States being the only major economy to have recovered pre-pandemic levels. China's growth rate is crucial for both Asia and the rest of the world, given its significant contribution to global growth. However, there is a trend of some outflow from China, which needs to be monitored.
A study shows that over 60% of Americans are living paycheck to paycheck despite the Federal Reserve's efforts to control inflation, as prices for goods and services continue to rise.