China's President Xi Jinping reassured the BRICS group that China's economy is resilient and its long-term growth remains unchanged, despite challenges such as a property slump and weak consumer spending.
China is facing challenges in defusing risks from its local government debt without resorting to major bailouts, as many local government financing vehicles (LGFVs) are struggling to generate enough income to pay off their debts and are experiencing difficulty in accessing financing from banks and investors. If the debt restructuring efforts fail, it could have a significant impact on China's economic growth and pose risks to the country's financial system.
Malawi's central bank has stated that the country is making progress in restructuring its $1.2 billion external debt, with negotiations with creditors showing positive results and the government remaining optimistic about reaching acceptable terms. The lack of foreign currency has constrained debt servicing and affected the government's operations, leading to severe shortages of vital imports and long queues at fuel stations.
Evergrande Group, the highly indebted Chinese real estate developer, has reported a narrower net loss for the first half of the year thanks to a rise in revenue driven by the property market's short-term boom, despite the company facing financial struggles and applying for bankruptcy in the US.
US mortgage rates reached their highest level since 2001, with the 30-year fixed-rate mortgage averaging 7.23%, as indications of ongoing economic strength are expected to keep rates high in the short term.
India, the world's biggest exporter of rice, has imposed more restrictions on rice exports in an effort to prevent smuggling and cool local food prices ahead of a general election, further squeezing global supplies of the staple grain.
Asian markets will be influenced this week by key economic indicators, growth-supportive policies, and diplomatic signals from China, as well as reacting to the Jackson Hole speeches by global policymakers, with a focus on China's manufacturing and services PMIs and efforts to reverse the country's economic slump, while facing headwinds from tightening financial conditions and rising US Treasury yields.
Oil prices dipped as the market awaited a potential resumption of Iraqi oil exports through the Ceyhan oil terminal, which could ease supply tightness caused by OPEC+ production cuts, while concerns over the Chinese economy weighed on demand outlook.
Two Federal Reserve officials suggest that interest-rate increases may be coming to an end, but one of them believes that further hikes may still be necessary depending on inflation trends.
U.S. Commerce Secretary Gina Raimondo emphasizes the importance of a stable economic relationship between the United States and China during talks with Chinese officials, aiming to boost business ties despite challenges and disagreements.
Chinese property giant Evergrande's shares plummeted over 80% in Hong Kong after trading resumed following a 17-month suspension, reflecting the challenges faced by China's real estate sector amid a post-pandemic slump and a nationwide property crisis.
The number of Americans filing new claims for unemployment benefits has decreased for a second consecutive week, defying expectations of an increase in job losses despite the Federal Reserve's interest rate hikes.
China's new home prices are expected to show no growth in 2023, reflecting the pressure on the crisis-hit property sector and the need for policymakers to restore confidence in the economy.
Federal Reserve Chair Jerome Powell warned that inflation and economic growth remain too high, indicating that interest rates may continue to rise and remain restrictive for longer. However, markets rebounded, with US stocks rallying and Asian markets starting the week on a high note. The Hong Kong stock market saw contrasting performances, with China Evergrande Group plunging while Xpeng soared. US Trade Representative Katherine Tai highlighted China's dominance in rare earth metals, making US supply chains vulnerable. Investors will be watching for the Personal Consumption Expenditure report and the August jobs report to gauge the Fed's future rate decisions. Powell's ambiguous remarks left room for interpretation, with markets focusing on the positive outlook for economic growth rather than the cautionary tone on interest rates.
The Tadawul All Share Index in Saudi Arabia rose by 0.44 percent, while the Nomu parallel market saw an increase of 1.77 percent, and the MSCI Index climbed by 0.86 percent.
China's major state-owned banks are actively acquiring offshore yuan liquidity, raising the cost of shorting the Chinese currency and potentially stabilizing the yuan.
The British Virgin Islands (BVI) is facing challenges to its offshore financial industry due to global efforts to combat money laundering and tax evasion, resulting in a decline in the number of companies registered there; however, the BVI is seeking to diversify its financial and corporate services and promote tourism to sustain its economy.
Arm Holdings, backed by SoftBank Group, plans to choose a US IPO as it faces a 1% decline in annual revenue, indicating a slowing smartphone market, and its stock market launch is expected to revive a lacklustre IPO market.
BRICS has officially invited six new countries, including Saudi Arabia, the UAE, Egypt, Argentina, Iran, and Ethiopia, to join the bloc, potentially expanding the alliance into an 11-member group called BRICS+, which could have a major impact on the global financial sector.
The global economy may face slow growth due to record levels of government debt, geopolitical tensions, and weak productivity gains, which could hinder development in some countries even before it begins.
Fannie Mae economists warn that the US housing market will continue to struggle even if the country avoids a recession, as high mortgage rates and tight financial conditions weigh on home sales.
Asian markets rose on Monday after Federal Reserve chief Jerome Powell indicated a cautious approach to interest rate hikes, and Chinese shares surged following a cut in the duty on trades by the government.
Chinese blue chips rally as Beijing introduces measures to support the market, including reducing stamp duty on stock trading and approving the launch of retail funds, while US Commerce Secretary Gina Raimondo begins talks with Beijing to boost business ties.
Lebanon's political elites are trying to avoid implementing tough IMF reforms and instead are pursuing a "shadow plan" that shifts the burden of bailing out the financial system onto ordinary Lebanese citizens already impacted by the economic crisis, say experts and former officials. The reforms not only pose a financial burden on the elites but also threaten the corrupt networks that have allowed them to exploit the system for years.
Global shares rise as investors are relieved by the Federal Reserve's cautious approach to interest rates, with Japan's Nikkei 225 and Hong Kong's Hang Seng among the indices posting gains.
China's ban on seafood imports from Japan, prompted by concerns about radioactive contamination, is seen as more of a political gesture than an economic blow, as marine products make up less than 1% of Tokyo's global trade dominated by cars, with the impact on Japan's total exports negligible.
Shark Tank star Kevin O'Leary predicts "real chaos" in the US economy within months due to rising interest rates and mortgage costs, which pose a major threat to households and small businesses. O'Leary argues that the neglect of small and mid-sized firms in favor of large companies will lead to a rebalance and potential economic turmoil.
Gas prices in California have risen to $5.26 per gallon, an increase of nearly $0.40 in the past month, and could be further impacted by Tropical Storm Hilary, potentially causing refinery shutdowns and further price increases.
US President Joe Biden and other world leaders are set to visit India in September for the G20 Summit, with multiple hotels in Delhi-NCR being earmarked for attendees.
Arm, the British chip designer, has published a prospectus for its IPO on the Nasdaq exchange next month, with an expected valuation of $60bn to $70bn, attracting interest from tech giants such as Amazon, Apple, and Nvidia.
China's economic slowdown is causing alarm worldwide, with countries experiencing a slump in trade, falling commodity prices, and currency depreciation, while global investors are pulling billions of dollars from China's stock markets and companies are reporting earnings hits.
Thousands of flights were cancelled in the UK due to a network-wide airspace failure caused by technical issues, with the effects expected to last for days.
Turkey's central bank raised its key interest rate by 750 basis points to 25%, signaling a stronger determination to address inflation and leading to a rare lira rally in response.
The South African rand weakened in response to higher U.S. Treasury yields and concerns over further U.S. interest rate hikes, as stated by Federal Reserve Chair Jerome Powell, which typically has a negative impact on risk assets.
Japan is unlikely to intervene in the market unless the yen weakens past 150 to the dollar and becomes a major political issue, according to a former central bank official, who also noted that the benefits of a weak yen are becoming clearer due to the re-opening of Japan's borders.
Brazil's finance minister has proposed using Chinese yuan guarantees to reduce trade risks with Argentina, as the country faces a dollar shortage and its currency, the peso, continues to perform poorly in the global market.
The expansion of BRICS to include Iran, Saudi Arabia, Egypt, Ethiopia, Argentina, and the United Arab Emirates will make the bloc represent 46 percent of the world population and 37 percent of global GDP, but China's economic dominance within the group raises questions about whether it will truly be an "equal partnership."
China's economy is facing challenges, with youth unemployment at a record high, mismatched skills in the job market, and the risk of falling into the middle-income trap, jeopardizing President Xi Jinping's goal of turning China into a high-income nation.
Higher inflation and the COVID-19 pandemic have pushed nearly 68 million people in Asia into extreme poverty, undermining progress towards eliminating poverty, according to a report by the Asian Development Bank.
China property-market pessimists are overlooking the underlying demand, as evidenced by strong sales by state-backed property developers and rising rents, according to veteran economist Hong Hao of Grow Investment Group.
The number of corporate bankruptcies in the US is increasing at the fastest pace since 2010, with over 400 corporations going under so far in 2023, reflecting overstretched balance sheets and rising interest rates.
The minimum wage is becoming increasingly irrelevant as a result of a hot job market that has led to higher pay across industries and rendered the minimum wage largely meaningless in many states, with few workers earning the federal minimum wage.
Saudi Arabia's Tadawul All Share Index has shown resilience by edging up 0.34 percent, with a total trading turnover of $1.34 billion and a mix of stock performances.