Germany's economy is in a recession, with zero growth since the third quarter of 2022 and a cumulative drop of 0.5% in GDP, which is likely to continue for another half year, impacting other European economies; the country's poor performance can be attributed to its energy policy and investors are also affected.
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.
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 accuracy of Nigeria's unemployment rate has come under question after the National Bureau of Statistics (NBS) reported a drop from 33.1% to 4.1%. Many stakeholders, including the immediate past CEO of NBS, Dr Oyeyemi Kale, have criticized the new methodology, arguing that it is out of touch with reality and fails to capture the true extent of unemployment in the country. The NBS now counts individuals working as little as one hour a week or engaged in low-productivity activities as employed, a definition that has been widely criticized as unrealistic.
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.
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.
The South African rand weakened by 1% against the US dollar on the last day of the BRICS summit, due to the strength of the dollar ahead of the Federal Reserve's Jackson Hole symposium, while most emerging market currencies were also affected by concerns over hawkish posturing by central bankers.
Japan may be reaching an inflection point in its battle with deflation as price and wage rises broaden, potentially leading to an end to prolonged stagnation and a phase-out of fiscal and monetary support, according to the government's annual economic white paper.
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.
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.
The federal oversight board managing Puerto Rico's finances has reached an agreement with bondholders to reduce the island's power company's debt by 80%, in an effort to end the lengthy process of restructuring and provide reliable energy to support Puerto Rico's economic growth and stability; however, this may result in a rise in electric bills for consumers.
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.
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.
The Federal Reserve faces new questions as the U.S. economy continues to perform well despite high interest rates, prompting economists to believe a "soft landing" is possible, with optimism rising for an acceleration of growth and a more sustainable post-pandemic economy.
South Africa's finance minister says that the BRICS grouping will not replace international payment systems like SWIFT but will explore creating one that strengthens trade in local currencies.
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.
China's economy is struggling due to an imbalance between investments and consumption, resulting in increased debt and limited household spending, and without a shift towards consumption and increased policy measures, the economic slowdown may have profound consequences for China and the world.
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.
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.
The Biden administration has identified 10 expensive prescription drugs, including blood thinners, diabetes treatments, and cancer drugs, for price negotiations with pharmaceutical manufacturers in an effort to reduce Medicare drug costs and ease the financial burden on beneficiaries, although the fate of the negotiation plan is uncertain due to ongoing lawsuits.
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.
Javier Milei, the radical presidential front-runner in Argentina, may need time to fulfill his campaign promises of scrapping the peso currency and reducing taxes on grains if elected, according to advisers, who suggest he could use executive decrees to avoid congressional obstacles.
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.
China's central bank has cut a key interest rate in an attempt to counter the post-Covid growth slowdown, as activity has been dragged down by uncertainty in the labor market, global economic sluggishness, weakening demand for Chinese goods, and financial troubles in the real estate sector.
The Federal Reserve's long-held belief that the US economy had reached its long-term growth potential of 1.8% is being challenged as strong growth continues, driven by unexpected labor force growth, manufacturing construction, and potential improvements in productivity, prompting a larger conversation about the country's economic potential.
Canada's housing minister, Sean Fraser, has suggested the possibility of capping foreign student visas due to the immense pressure they have put on housing markets in recent years.
Canada's main stock index, the S&P/TSX Composite Index, is expected to rise 3.5% by year-end due to concerns over China's slowdown and higher borrowing costs, but it may experience a correction, according to a Reuters poll of portfolio managers and strategists.
Zillow Group Inc. is offering mortgages with just a 1% down payment in an effort to attract homebuyers in the most unaffordable market in decades, offering to pay 2% of the down payment at closing.
U.S. job openings reach lowest level in nearly 2.5 years in July, signaling a slowdown in the labor market and potential impact on interest rates.
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.
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.
China's largest banks are preparing to cut interest rates on existing mortgages and deposits in an effort to stimulate consumer spending and support economic growth; the move is part of the government's targeted measures to alleviate pressure on lenders' profit margins and encourage investment in the stock market.
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.
Nigeria's unemployment rate is reported as 4.1%, the lowest in years, but analysts argue that it is an undercount due to the country's new methodology that classifies the employed as those working for at least one hour a week.
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 economic problems are beginning to resemble Japan's long-lasting issues, as a real estate crisis, an aging population, surging youth unemployment, and high local government debts create a crisis of confidence, potentially leading to a "lost decade" of economic stagnation and deflation, while Japan shows signs of climbing out of its decades-long economic nightmare with rising inflation and a potentially optimistic outlook.
China's largest private real estate developer, Country Garden, is in financial trouble, missing bond payments and posting a record loss, signaling further concerns about the country's property sector as housing prices and foreclosures continue to rise, while other economic indicators, such as industrial output and retail sales, fall short of expectations; these developments are raising concerns about the overall health of China's economy and its future growth prospects.
India is expected to ban the export of sugar for the upcoming season due to a lack of rain and reduced cane yields, which could increase prices and lead to further inflation on global food markets.
Ongoing recovery from the COVID-19 pandemic and short-term unemployment are contributing to Nevada having the highest unemployment rate in the nation, with every county in the state having a rate higher than the national average.
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China's property crisis, led by embattled property giants like Evergrande, is causing devastating consequences for small businesses and suppliers who are owed large sums of money, putting both market confidence and debt repayments at risk. The crisis has affected the entire industry and could worsen if immediate actions are not taken to prevent contagion and spillover fears. The Chinese government is urged to abandon restrictive measures on real estate credit, carry out bankruptcy proceedings for developers with capital-outflow problems, and stop intervening in the market to stabilize home prices. The outlook for Chinese developers is deteriorating, particularly for distressed developers, while state-owned developers have a stable outlook. The Chinese housing market is facing a severe crisis that is worse than Japan's market in the early 1990s, posing challenges in filling the gap in spending left by the collapsing housing market.