The 10-year Treasury yield reaching 5% hinges on investors' belief in a strengthening economy and the Fed maintaining high interest rates, according to Bank of America researchers.
US durable goods orders increased 0.2% in August, with core capital goods orders jumping 0.9%, indicating underlying strength in the economy despite tightening monetary policy.
Italy's government, led by right-wing Prime Minister Giorgia Meloni, is facing challenges in balancing its budget and has significantly increased planned net spending, which could test investor confidence and raise concerns among European policymakers as it exceeds EU limits during a period of economic slowdown. Italy now forecasts a higher deficit compared to previous expectations, and it is struggling with anemic growth rates and a large debt burden. The government is grappling with limited funds for its spending commitments, including healthcare and tax cuts, while debt servicing costs and a contraction in GDP further add to the financial strain. The situation is drawing increased attention from market participants and the European Central Bank as Italy's economic policies come under scrutiny.
The resumption of student loan repayments will lead to a significant decrease in consumer spending, causing a contraction in real consumer spending growth and an increase in student loan delinquency rates, according to Fitch Ratings.
US mortgage rates surged to their highest level since 2000, leading to a decline in home-purchase applications, exacerbating the housing market's affordability crisis.
The Thai baht and Indonesian rupiah have weakened against the US dollar due to the dollar's strength and concerns about Pheu Thai's spending plans, while other Asian currencies have also seen losses.
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.
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.
Canada's second-quarter GDP report is expected to show a significant slowdown in economic growth, potentially leading to a pause in interest rate hikes by the Bank of Canada despite recent high inflation data.
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 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.
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 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, but it is still facing a crisis in China's property sector characterized by debt defaults and shattered consumer confidence in the country's economy.
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.
Profits at China's industrial firms fell for a seventh consecutive month in July, declining by 6.7% year-on-year, as weak demand and a faltering post-pandemic recovery continue to squeeze companies in the world's second-largest economy.
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.
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.
Oil prices are dipping due to the possibility of easing supply tightness through Iraqi exports and concerns over a faltering Chinese economy impacting demand.
Despite the Federal Reserve's interest rate hikes, new claims for unemployment benefits in the US declined last week, indicating a resilient labor market and raising hopes of avoiding a recession.
Cleveland Federal Reserve Bank President Loretta Mester believes that beating inflation will likely require one more interest-rate hike in the U.S. and then pausing for a while, although she may reassess her previous view of rate cuts starting in late 2024, and she aims to set policy so that inflation reaches the Fed's 2% goal by the end of 2025 to prevent further economic harm.
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.
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.
Israel has been ranked as the country with the highest cost of living among developed nations in 2022, with prices 38 percent higher than the average in OECD member countries, according to data from the Organization for Economic Cooperation and Development. The high cost of living is attributed to over-concentration in certain sectors, such as food and household goods, and structural problems like housing prices and heavy regulation. The Israeli government has formed a ministerial committee to tackle the issue, but the majority of the public believes that the government's lack of action is to blame.
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.
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.
Global investors are urging China's leadership to increase fiscal stimulus and spend more in order to revive the economy and address the property crisis, as they express frustration with the slow and insufficient measures taken by the Chinese government to boost growth.
Bank of Japan Governor Kazuo Ueda stated that underlying inflation in Japan remains below the bank's 2% target, leading to the decision to maintain the current approach to monetary policy, despite core consumer inflation staying above the target for the 16th consecutive month.
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.
US Federal Reserve Chairperson Jerome Powell emphasized the focus on high inflation in his speech at the economic policy symposium, indicating that interest rates will remain high for a while as the Fed continues to fight inflation; Powell believes that the Fed's role is to moderate demand to align with supply and that restoring price stability will take time.
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.
China's economy is facing a downward spiral due to a crisis in the debt-laden property sector, prompting seven city banks to reduce their growth forecasts for the country; concerns include falling into deflation, high unemployment rates, and the need for more proactive government support.
An economic crisis in China is unlikely to have a major impact on the US due to limited exposure in terms of investments and trade, and it may even benefit the US by lowering inflation, according to economist Paul Krugman.
China's economic struggles, including a real estate slump, high youth unemployment, and rising tensions with the West, could lead to deflation and sluggish growth, potentially impacting the global economy and causing a "new normal" of slower GDP growth worldwide.
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.
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.
Top central bankers, including Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde, emphasized the importance of keeping interest rates high until inflation is under control while also grappling with economic challenges and uncertainties at the annual Federal Reserve gathering in Jackson Hole, Wyoming.
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.
Russian President Vladimir Putin has acknowledged the rising risks of inflation and has urged the government and central bank to keep the situation under control, as soaring prices could pose a threat to living standards and his upcoming re-election bid, while Russia's budget is also strained due to its military operation in Ukraine.
Global subsidies for fossil fuels have reached a record $7 trillion in 2022, with the costs driven by post-pandemic consumption growth and Russia's invasion of Ukraine, according to the International Monetary Fund, causing strain on budgets, pollution, and exacerbating global warming.
The strong U.S. economic growth and potential rate hikes by the Federal Reserve could pose global risks, potentially leading to a significant tightening of global financial conditions and affecting emerging markets and the rest of the world.
Cleveland-Cliffs has made a $7.3 billion offer for US Steel, highlighting the decline of legacy steelmakers and the rise of mini-mills that use electric-arc furnaces, which are greener and more profitable. US Steel may have to embrace new technologies or consider consolidation in order to compete.
Federal Reserve Chair Jerome Powell warned that inflation and economic growth remain too high and interest rates may continue to rise and remain restrictive for longer, while U.S. stocks rebounded and European markets closed slightly higher. Meanwhile, U.S. Trade Representative Katherine Tai highlighted China's dominance in rare earth metals and the vulnerability of U.S. supply chains. Grocery delivery company Instacart filed paperwork for an IPO, and upcoming PCE and jobs data will provide insights into the Fed's rate decisions. Powell's ambiguous remarks at the Jackson Hole symposium led markets to focus on the prospect of a stronger economy rather than interest rate warnings.
According to a report by Knight Frank India and NAREDCO, India's real estate sector is projected to reach $5.8 trillion by 2047, contributing 15.5% to the country's total economic output, with private equity investments in the sector expected to surge to $54.3 billion.
Despite the fear of disruption, America's corporate giants have remained secure and have experienced little competitive disruption, with factors such as inertia, regulatory advantages, and the ability to adapt to digital technologies contributing to their endurance.