The BRICS bloc, consisting of Brazil, Russia, India, China, and South Africa, is set to expand with the addition of six more countries, but the selection process and consensus among members will be a challenge, particularly due to the strained relationship between China and India; however, BRICS continues to grow in importance as its members' share in the global economy rises, and it presents opportunities for trade and cooperation among emerging economies.
Profits at China's industrial firms fell 6.7% in July, marking the seventh consecutive month of decline, as weak demand continues to hinder the country's post-pandemic recovery.
Goldman Sachs has lowered its probability of a U.S recession in the next 12 months to 15% due to positive inflation and labor market data, while also predicting a reacceleration in real disposable income and expecting the Federal Reserve to keep interest rates unchanged.
U.S. stock futures decline as bond yields rise despite weak economic news from China and Europe.
US payroll growth in the year through March may have been weaker than originally reported, with estimates suggesting there were 500,000 fewer jobs than previously stated, potentially impacting the Federal Reserve's decision on further rate hikes.
International investors are selling off Chinese stocks at a rapid rate, with $10.7 billion worth of holdings sold in 13 consecutive days, the longest streak since 2016, due to concerns over slowing growth and the potential impact of the country's property sector on the financial system.
India's forex reserves hit a two-month low as it experienced the largest weekly decline in over six months, dropping by $7.28 billion to $594.90 billion, with the decline attributed to the central bank's efforts to defend the rupee against global pressures.
The South African rand weakened due to the country experiencing the worst power cuts on record and ahead of the release of second quarter GDP data.
Federal Reserve Chairman Jerome Powell signaled at a conference of central bankers that more rate hikes could be on the way as the economy continues to run hot, despite a series of policy tightening measures, in an effort to combat persistent inflation.
The prospect of a prolonged economic slump in China poses a serious threat to global growth, potentially changing fundamental aspects of the global economy, affecting debt markets and supply chains, and impacting emerging markets and the United States.
The G20 Summit in Delhi will be attended by more than 40 world leaders, including President Joe Biden and UK Prime Minister Rishi Sunak, while Chinese President Xi Jinping and Russian President Vladimir Putin will not be present.
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.
The Pakistani rupee is expected to continue its decline against the US dollar, with analysts predicting an interest rate hike by the central bank in an attempt to prevent further depreciation.
Thousands of schools in England may need to close due to a "concrete crisis" caused by deteriorating Reinforced Autoclaved Aerated Concrete (RAAC) buildings, which have a lifespan of about 30 years and are now liable to collapse, prompting concerns over safety, repair costs, and the government's response.
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Pakistan's weekly inflation remained up at 0.05 percent week-on-week and 25.34 percent year-on-year, driven by rising food prices, particularly onions, pulse masoor, sugar, garlic, and eggs.
OpenAI CEO Sam Altman becomes the first person to receive an Indonesian golden visa, granting him priority security screening and other benefits in an effort to attract foreign investors to the country.
Keith McCullough, CEO of Hedgeye Risk Management, warns investors to be agnostic and open-minded in order to find opportunities in a challenging market environment, particularly due to the threat of stagflation, and suggests allocating investments to sectors such as health care, gold, Japan, India, Brazil, and energy stocks. McCullough criticizes the Federal Reserve for underestimating future inflation and urges investors to watch their actions rather than their words. He predicts that the Fed will tighten rates despite a low point in the U.S. economy, leading to a potential stock market crash. McCullough advises investors to own assets like gold and to be cautious with U.S. stocks, while favoring sectors that are accelerating, such as health care.
Oil prices dipped due to the possibility of Iraqi exports resuming and concerns over China's weakening economy impacting demand.
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.
Federal Reserve Chair Jerome Powell stated that the strength of the U.S. economy may require additional interest rate increases to control inflation, while also acknowledging the uncertain nature of the economic outlook.
The IMF has rejected Pakistan's proposal for tariff adjustment or additional subsidy, making it more challenging for the country to manage its economic challenges amidst rising inflation.
Chinese President Xi Jinping will not attend the G20 Summit in India, making him the first Chinese president to miss a leaders' summit since its inception in 2008, a move that could be seen as a snub to India and a show of solidarity with Russia's President Vladimir Putin, who is also skipping the event.
The caretaker Prime Minister of Pakistan, Anwaar-ul-Haq Kakar, stated that the interim government will focus on rationalizing expenditures, generating revenue, and developing human resources during its short constitutional period, with a specific focus on bringing the undocumented economy and people into the tax net and investing in human resources. Kakar also emphasized the importance of a long-term partnership with the United States and highlighted Pakistan's contribution to global peace and economy, while expressing the need for close cooperation between the two countries to tackle climate challenges.
Birmingham City Council has declared itself effectively bankrupt after being hit with equal pay claims worth up to £760 million, forcing it to cease all nonessential spending. The deficit arises from difficulties in paying the claims, and the city expects to have a deficit of £87 million for the 2023-24 financial year. The council's leader has stated that a new jobs model will be implemented to address the claims bill.
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.
Israel was named the OECD country with the highest cost of living in 2022, with prices 38 percent higher than the average for OECD countries. However, in a more recent monthly study, Israel fell to fourth place in terms of the cost of living.
China's property sector remains in crisis as 34 out of the top 50 developers have defaulted on debt, with $1.5 billion of combined bond payments due in September.
China's economy is showing signs of slowing down, including a decrease in GDP growth rate, declining exports, deflationary consumer price index, high youth unemployment, a weakening yuan, and a decrease in new loans, which could have global implications.
Indian Prime Minister Narendra Modi warned that there is a risk of a "new model of colonialism" if nations with critical minerals do not see it as a global responsibility, as the race to secure resources for energy transition goals intensifies. Modi emphasized the need for cooperation in the face of uneven geographical diversification and export restrictions imposed by countries like China.
Different regions of the world have varying approaches to returning to the office post-pandemic, with Asian and European workers largely going back to offices at a faster pace than their counterparts in the Americas, while the US lacks clear policies, leading to significant variations in remote work arrangements.
Japan has told the World Trade Organization that China's ban on Japanese seafood due to Fukushima nuclear plant water release is "totally unacceptable," and Japan may file a WTO complaint with support from the United States.
Goldman Sachs warns that a US government shutdown is likely to occur in 2023 due to lawmakers' failure to agree on a budget, which could negatively impact stocks and economic growth.
Fiona Scott-Morton, an American economist, turned down the role of chief competition economist at the European Commission due to concerns raised by the French government about her nationality, sparking a diplomatic furore surrounding the appointment.
The Federal Deposit Insurance Corp. is seeking buyers for $33 billion of commercial property loans from Signature Bank, with a majority being backed by multifamily properties in New York City, as part of its efforts to offload debt from the collapsed bank.
The Federal Reserve is considering whether to raise the key interest rate even higher to combat inflation, but some members, like Raphael Bostic, believe it's unnecessary and recommend keeping the rate at its current level for an extended period. Bostic also emphasizes the strength and resilience of businesses and families, and the need to maintain a restrictive stance on interest rates to achieve the 2% inflation target.
The Canadian economy unexpectedly contracted in the second quarter, indicating a potential shift back to the sidelines for the central bank and negative consequences for the Canadian dollar.
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.
Turkey's central bank raised its key interest rate by a significant 750 basis points to 25% in an effort to control inflation, marking a shift towards more orthodox policies under the new governor appointed by President Erdogan, Hafize Gaye Erkan. The move comes after years of unorthodoxy and slashing rates in line with Erdogan's belief that high rates fuel inflation, which triggered a currency crisis and a significant decline in the lira's value.
Oil prices surged by two per cent to their highest level since November after Saudi Arabia and Russia extended their voluntary supply cuts by three months, raising concerns about potential shortages during peak winter demand.
The US is seeking to understand the details of Huawei's chip technology, which has sparked Chinese nationalism and raised questions about the effectiveness of US restrictions on the country's tech sector.
Chinese property giant Country Garden narrowly avoids defaulting on its debt but still faces upcoming payment deadlines on billions of dollars it has borrowed, as slowing home demand in China has impacted its cash flow and wiped out its profit.