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☆ The Perils of the Fed’s Vast Bond Holdings
▼ + stars: | 2024-05-03 | by ( Jeff Sommer | More About Jeff Sommer | ) www.nytimes.com time to read: +2 min

But even after two years of quantitative tightening, the amount of bonds and securities that the Fed still retains is stupendous. Quantitative tightening is a perilous operation. Earlier attempts — notably, in 2019 — disrupted financial markets. The slow pace of quantitative tightening is partly responsible for the Fed’s inability to contribute to the national budget. That’s because the Fed has also raised interest rates, which move in the opposite direction of bond prices.

Persons: — Organizations: Fed, Treasury, Silicon Valley Bank Locations: United States

The order by the Hong Kong High Court also is not a remedy for the crisis of confidence haunting China’s financial markets. Markets in both Hong Kong and Shanghai fell Tuesday while share prices of property developers sank. State-owned Chinese banks and other domestic entities own most of the debt owed by Chinese property developers. David Goodman, director of the University of Sydney’s China Studies Center, said he thinks China’s property debt burdens are unlikely to precipitate a major financial crisis. “The fact of the matter is that the Chinese financial system is not as open or as marketized (as in the United States),” he said.

Persons: Brock Silvers, haven't, Silver, ”, Seng, David Goodman, —, Soo Organizations: Evergrande, Hong Kong High, Kaiyuan, ”, Sunac China Holdings, F Properties, Shanghai, Swiss Re Institute, Swiss, University of Sydney’s China Studies Center Locations: BANGKOK, Hong Kong, China, Beijing, Shanghai, Guangzhou, United States, U.S, Singapore

☆ Evergrande, the massive Chinese real estate developer with $300 billion in debt, is ordered to liquidate by a Hong Kong court
▼ + stars: | 2024-01-29 | by ( Clare Jim | Xie Yu | ) www.businessinsider.com time to read: +3 min

A Hong Kong court on Monday ordered the liquidation of real-estate developer China Evergrande Group. Evergrande is the world's most indebted developer with more than $300 billion of total liabilities. AdvertisementA Hong Kong court on Monday ordered the liquidation of China Evergrande Group, a move likely to send ripples through China's crumbling financial markets as policymakers scramble to contain the deepening crisis. Evergrande had been working on a $23 billion debt revamp plan with the ad hoc bondholder group for almost two years. Before Monday, at least three Chinese developers have been ordered by a Hong Kong court to liquidate since the current debt crisis unfolded in mid-2021.

Persons: —, Evergrande, Hui Ka Yan, Linda Chan Organizations: Monday, China Evergrande, Service, Hong, China Evergrande Group, Hong Kong High, Evergrande Locations: Hong Kong, Beijing, China

HONG KONG (AP) — Asian markets opened the week on a positive note, with Chinese regulators announcing measures to support the country’s teetering stock markets while heavily indebted property developer China Evergrande was ordered to undergo liquidation. China's securities regulator announced on Sunday that beginning Monday, China will suspend the lending of specific shares for short selling, a move to support the country’s declining stock markets. The Federal Reserve’s meeting this week will likely end with no change to interest rates, but traders are split on whether it could begin cutting rates in March. It's trying to slow the economy and hurt investment prices enough through high interest rates to get inflation fully under control. Traders are betting the Fed will cut interest rates as many as six times this year, according to data from CME Group.

Persons: China Evergrande, Evergrande, Australia’s, It's Organizations: China Evergrande, Hong, Hong Kong High Court, Dow Jones, Nasdaq, Intel, Fed, Treasury, Traders, CME Group, New York Mercantile Exchange, Brent, U.S Locations: HONG KONG, China, Hong Kong, Shanghai, South Korea, Bangkok

BANGKOK (AP) — China’s leaders launched a barrage of new policies this week to prop up languishing financial markets and rekindle growth in the world’s second-largest economy. The moves to support lending and spending with billions of dollars of fresh cash gathered pace when the central bank cut bank reserve requirements and issued new rules to encourage banks to lend more to property companies. HOW IS THE CHINESE ECONOMY DOING? The Chinese economy grew at a 5.2% annual pace in 2023, exceeding the government's target, and many indicators including factory output and retail sales show signs of improvement. The moves to put more money into the economy and encourage bank lending might not go far enough, many analysts said.

Persons: —, Premier Li Qiang, ”, It's, Pan Gongsheng, ” Stephen Innes Organizations: State Council, Economic, People's Bank of China Gov, Management Locations: BANGKOK, United States, China, Premier, Davos, Switzerland, Hong Kong, Beijing

☆ I’ve never gotten as much feedback on any segment in my life — Cramer says about bootingTesla from the Magnificent Seven
▼ + stars: | 2024-01-26 | by ( Kevin Stankiewicz | In Kevinstankiewicz | ) www.cnbc.com time to read: +2 min

CNBC's Jim Cramer said he's never received more executive feedback on a "Mad Money" segment than he has for his Thursday night commentary in which he booted Tesla from the "Magnificent Seven" after the electric vehicle maker's disappointing earnings report and 2024 outlook. This was the most feedback I've ever had from a piece from CEOs," Cramer said Friday on "Squawk on the Street," the morning financial markets show he co-hosts on CNBC. He's been the lone host of "Mad Money," an evening program, since 2005. The colloquial moniker for the group of technology stocks came into being on Wall Street last year amid their strong outperformance compared with the broader market. Shares of Tesla tumbled 12% Thursday, their worst day in more than a year, as Wall Street digested the results and earnings-call commentary.

Persons: CNBC's Jim Cramer, he's, Tesla, I've, Cramer, He's, Elon Musk, Jim Cramer's Organizations: CNBC, Apple, Nvidia, Microsoft, Club

☆ US job openings hit more than 2-1/2-year low as labor market cools
▼ + stars: | 2023-12-05 | by ( Lucia Mutikani | ) www.reuters.com time to read: +6 min

Economists polled by Reuters had forecast 9.30 million job openings in October. Job openings decreased by 168,000 in the finance and insurance industry, while real estate, rental and leasing had 49,000 fewer positions. The job openings rate dropped to 5.3% from 5.6% in September. "The current state of the labor market suggests no further recalibration is necessary to bring the labor market back into balance," said Nick Bunker, director of economics research at Indeed Hiring Lab. They also described the labor market as remaining "very competitive," and "trying to get to full staff levels."

Persons: Brian Snyder, Rubeela Farooqi, Nick Bunker, Conrad DeQuadros, November's, Bill Adams, Lucia Mutikani, Chizu Organizations: Taylor Party, Equipment Rentals, REUTERS, Labor, Survey, Labor Department's Bureau of Labor Statistics, Reuters, Treasury, Brean, Institute for Supply Management, PMI, United Auto Workers, UAW, Comerica Bank, Thomson Locations: Somerville , Massachusetts, U.S, WASHINGTON, White Plains , New York, South, Midwest, New York, East, Dallas

☆ UBS sees shift in new billionaires away from entrepreneurs to inherited wealth
▼ + stars: | 2023-11-30 | by ( ) www.reuters.com time to read: +3 min

The number of billionaires rose by 7% to 2,544 people globally, UBS said in its 2023 Billionaires Ambitions Report, with their total worth rising by 9% to an estimated $12 trillion. For the first time since the study started in 2015, billionaires accumulated more wealth via inheritance than through their own business activities. Among the 137 new billionaires, a total of $150.8 billion was inherited by 53 heirs over the last year, exceeding the 84 new self-made billionaires' total of $140.7 billion, the bank said. The study highlighted a trend away from self-made billionaires, created by the tech industry boom and symbolised by the rise of Tesla boss Elon Musk and Amazon founder Jeff Bezos. Still, despite the large inherited wealth, this did not necessarily mean a new generation of super-rich 20 somethings.

Persons: Denis Balibouse, Benjamin Cavalli, Cavalli, Elon Musk, Jeff Bezos, Michael Viana, King Charles, John Revill, David Evans Organizations: UBS, Credit Suisse, REUTERS, Rights, UBS Global Wealth Management, Amazon, Thomson Locations: Swiss, Zurich, Switzerland, flotations

☆ Barclays reveals 10 debt-laden global stocks at risk from higher interest rates
▼ + stars: | 2023-11-28 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Barclays has identified the European stocks that are most at risk of taking a hit to profits over rising interest payments for debt over the next two years. During the coronavirus pandemic, central banks cut interest rates to historic lows, enabling companies to borrow debt at very favorable rates. The table below shows the 10 stocks Barclays expects to have the biggest increase in interest costs through to 2025. Since interest costs are integral to real estate business models, the impact on margins and profits could be much more severe, the bank's analysts said. The Barclays team is confident that while interest rates can hurt company bottom lines, there was "scant" evidence that showed there was systemic risk.

Persons: Fastighets Balder, Castellum, Vonovia, Matthew Joyce, Zoso Davies Organizations: Barclays, Premier, Whitbread, BASF, Dassault Systemes Locations: Swiss

☆ Rich countries are stumbling into a debt trap
▼ + stars: | 2023-11-03 | by ( Felix Martin | ) www.reuters.com time to read: +7 min

Unlike many corporations and households, the U.S. government did not lock in the low interest rates of the last decade by issuing long-dated debt, preferring instead to skew funding towards bills and short-term bonds. The second route out of the debt trap is to target the primary fiscal surplus, choosing a combination of spending cuts and tax hikes that will stabilise the public debt. That leaves the third route to debt sustainability – keeping real interest rates low. But in the short run, it allows a government to tame the debt ratio without fiscal austerity, and even if growth is sluggish. Governments are indeed stuck in a classic debt trap.

Persons: Joe Biden, Fumio Kishida, Volodymyr Zelenskiy, Kacper, Everett Dirksen, you’re, Dirksen’s, Stanley Druckenmiller, Joe Biden’s, Peter Thal Larsen, Thomas Shum Organizations: Japan's, NATO, REUTERS, Reuters, Congressional, Office, International Monetary Fund, U.S, Treasury, Reuters Graphics Reuters Graphics, Medicaid, Federal, Bank of Japan, Thomson Locations: Ukraine, Vilnius, Lithuania, Illinois, U.S, Britain

☆ Ray Dalio says this 1 question will help you uncover someone's true motives: 'This applies to everything'
▼ + stars: | 2023-10-19 | by ( Ashton Jackson | ) www.cnbc.com time to read: +3 min

Almost everyone has an ulterior motive, according to billionaire investor Ray Dalio — and figuring it out comes down to asking yourself one simple question. "This applies to everything: when you're buying something, asking for advice, reading the newspaper, watching the news, etc.," he wrote. "That is because most people (though not all people) are trying to sell you something that will help them get the things they want." As for seeing things from a "higher level," Dalio has long attributed that ability to his success at evaluating financial markets. "I call this ability to rise above your own and others' circumstances and objectively look down on them 'higher-level thinking,'" Dalio wrote on Facebook a year later.

Persons: Ray Dalio —, Dalio, Diane Dreher, " Dreher Organizations: Bridgewater Associates, Pew Research Center, Psychology Today, YouTube, Facebook, CNBC, Global Locations: U.S

☆ Fed's Powell to take the stage amid a suddenly choppy landscape
▼ + stars: | 2023-10-19 | by ( ) www.reuters.com time to read: +4 min

U.S. Federal Reserve Chairman Jerome Powell holds a press conference after the release of the Fed policy decision to leave interest rates unchanged, at the Federal Reserve in Washington, U.S, September 20, 2023. Powell's appearance comes less than 48 hours before the beginning of the traditional quiet period ahead of the rate-setting Federal Open Market Committee's meeting on Oct. 31-Nov. 1. Many in the poll offered the caveat that if progress on inflation stalls out or reverses, the Fed would not hesitate to resume raising rates. Waller said as much on Wednesday: "If the real economy continues showing underlying strength and inflation appears to stabilize or reaccelerate, more policy tightening is likely needed despite the recent run-up in longer-term rates." Reporting by Dan Burns and Ann Saphir; Editing by Andrea RicciOur Standards: The Thomson Reuters Trust Principles.

Persons: Jerome Powell, Evelyn Hockstein, Powell, Philip, Jefferson, Krishna Guha, Christopher Waller, Waller, Dan Burns, Ann Saphir, Andrea Ricci Organizations: Federal, Federal Reserve, REUTERS, U.S, Economic, of New, Fed, Thomson Locations: Washington , U.S, New York, of New York, U.S

REUTERS/Brendan McDermid Acquire Licensing RightsCompanies Champion Trust Llc FollowNEW YORK, Oct 12 (Reuters) - Sam Bankman-Fried's confidant Caroline Ellison will take the stand again at the FTX founder's trial on Thursday, where she could face questions about why she cooperated with prosecutors against her former boss and romantic partner. Bankman-Fried's attorney Mark Cohen is expected to continue cross-examining Ellison, whom he questioned for a few minutes on Wednesday before jurors went home for the day. FTX collapsed and declared bankruptcy in November 2022, shocking financial markets and destroying Bankman-Fried's reputation. A third cooperating witness, former FTX engineering chief Nishad Singh, is also expected to testify at the trial, which could last up to six weeks. Reporting by Jody Godoy in New York Editing by Noeleen Walder and Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

Persons: Caroline Ellison, Sam Bankman, Brendan McDermid, Ellison, Fried, Mark Cohen, FTX, Gary Wang, Nishad Singh, Jody Godoy, Noeleen Walder, Matthew Lewis Organizations: Alameda, Federal Court, REUTERS, Bankman, Alameda Research, Prosecutors, Stanford University, Manhattan U.S, Thomson Locations: New York City, U.S, Alameda, New York

☆ Asian shares rally as markets wager on Fed pivot; US inflation in focus
▼ + stars: | 2023-10-12 | by ( Stella Qiu | ) www.reuters.com time to read: +4 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) gained 0.7% to the highest level in three weeks. Tokyo's Nikkei (.N225) rallied 1.3% for a third straight day, climbing away from its five-month low hit last week. U.S. Fed Governor Christopher Waller on Wednesday said higher market interest rates may help the Fed slow inflation, and let it "watch and see" if its own policy rate needs to rise again or not. With the long-awaited pivot for the Fed in sight, traders are bracing for the all-important U.S. consumer inflation report later in the day. Stakes are higher because a producer price inflation report came in hotter than expected on Wednesday.

Persons: HSI, Christopher Waller, Waller, Philip Jefferson, Lorie Logan, Alan Ruskin, payrolls, Brent, Stella Qiu, Shri Navaratnam Organizations: SYDNEY, Federal Reserve, Tokyo's Nikkei, Central Huijin Investment, Federal, U.S, Fed, Dallas Fed, Markets, FedTool, Deutsche Bank AG, Saudi, . West Texas, Thomson Locations: Asia, Pacific, Japan, U.S, Saudi Arabia, Israel, Palestine

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. The Labor Department report showed U.S. consumer prices rose 0.4% in September versus estimates of a 0.3% rise, according to economists polled by Reuters. Prices rose to 3.7% against estimates of 3.6% in the 12 months through September. Core CPI, which excludes volatile food and energy prices, rose 0.3% in line with estimates. Reuters GraphicsAnother set of data showed jobless claims rose 209,000 for the week ended Oct. 7, lower than an estimated 210,000 rise.

Persons: Brendan McDermid, Israel, Hogan, Riley, Susan Collins, Atlanta's Raphael Bostic, Kan, advancers, Shashwat Chauhan, Ankika Biswas, Johann M Cherian, Arun Koyyur, Shounak Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Labor Department, Reuters, CPI, Traders, Federal, Boston, Public, Dow Jones, NYSE, Thomson Locations: New York City, U.S, Gaza, Bengaluru

According to the minutes, "several participants" felt that "the focus of monetary policy decisions and communications should shift from how high to raise the policy rate to how long to hold the policy rate at restrictive levels." For now, "all participants agreed that policy should remain restrictive for some time" until it is clear inflation "is moving down sustainably toward its objective." The release on Thursday of the consumer price index report for September could add to the impetus for the Fed to remain on hold. Waller said that if recent month-to-month inflation trends continue, it would mean "we're pretty much back to our target." Reporting by Howard Schneider; Additional reporting by Ann Saphir; Editing by Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

Persons: Philip Jefferson, Christopher Waller, Waller, Paul Ryan, Howard Schneider, Ann Saphir, Paul Simao Organizations: U.S, Treasury, U.S . House, Investors, Fed, Thomson Locations: U.S, Utah

☆ Bank of England to leave rates on hold through mid-2024, cut in Q3
▼ + stars: | 2023-09-26 | by ( Shaloo Shrivastava | ) www.reuters.com time to read: +4 min

A pedestrian walks past the Bank of England in the City of London, Britain, September 25, 2023. Last week, the Bank surprised markets by not raising rates, sending sterling to a six-month low, but signalled rates would remain higher for longer. Still, over 40% of economists, 15 of 37, who answered an extra question said the BoE should hike rates again this year. Sixteen economists predicted Bank Rate at 5.00% in the third quarter, 10 forecast 4.75%, six said 4.50%, one expected 4.25% and one 3.75%. The European Central Bank was predicted to cut rates in the third quarter next year but the Federal Reserve might start in the second quarter, separate Reuters polls showed.

Persons: Hollie Adams, The BoE, BoE, James Smith, James Rossiter, Shaloo Shrivastava, Anitta Sunil, Purujit Arun, Jonathan Cable, Bernadette Baum Organizations: Bank of England, City of, REUTERS, Rights, Bank, Monetary, The, ING Financial Markets, TD Securities, European Central Bank, Federal Reserve, Thomson Locations: City, City of London, Britain

A view shows the placards of the political parties in front of the European Central Bank (ECB) building in Frankfurt, Germany, September 14, 2023. The central bank for the 20 countries that use the euro has already raised interest rates 10 times to record levels but inflation remains well above its 2% target. ECB President Christine Lagarde said last week that policymakers had not discussed the bond-buying schemes at their latest policy meeting. She described the PEPP as the ECB's "first line of defence" to preserve policy transmission - central bank jargon for bond market stability in the most indebted countries. Slovenian central bank governor Bostjan Vasle recently backed selling bonds bought under the ECB's older Asset Purchase Programme, which is less flexible than the PEPP.

Persons: Wolfgang Rattay, Christine Lagarde, Bostjan Vasle, Peter Kazimir, Catherine Evans Organizations: European Central Bank, REUTERS, Central Bank, Reuters, ECB, Thomson Locations: Frankfurt, Germany, Italy, FRANKFURT, Athens, Slovenian, PEPP, Sintra

And with China's post-COVID recovery running into the ground and suffering a deepening real estate bust, western investment curbs throw more sand in the wheels. A question now is whether a retreat of western money from emerging markets at least partly explains both their recent underperformance and that of western government bonds, in which emerging central banks and sovereign funds are heavily invested. The picture has not been much better in aggregate emerging bond indices, even if they have done marginally better than developed world counterparts, and worries over emerging high-yield and property linked bonds are rising. Have global investors high-tailed it from emerging markets already? If western money grows more wary and is increasingly warned off China and other selective emerging investments, will there be a mutual pullback of official emerging money from western bond markets?

Persons: Aly, Joe Biden, Morgan, Biden, crumb, Mike Dolan, Richard Chang Organizations: REUTERS, U.S, U.S ., Bank of, Institute for International Finance, Treasury, Reuters, Twitter, Thomson Locations: Shanghai, Shenzhen, China, Ukraine, Washington, Russia, United States, Beijing, Moscow, Taiwan, Brazil, India, South Africa, Hong Kong, Saudi Arabia, South Korea

Aug 16 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. The word 'crisis' should always be used responsibly and judiciously when covering financial markets, business and economics, but are we at that point now with China? The People's Bank of China may have finally pulled the interest rate lever, but it had the expected impact of slamming the exchange rate. Compare and contrast China with Japan, as per Tuesday's bumper Q2 GDP data, and the U.S., where figures on Tuesday showed a surge in retail sales. Here are key developments that could provide more direction to markets on Wednesday:- New Zealand interest rate decision- China house prices (July)- Japan tankan surveys (August)By Jamie McGeever; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

Persons: Jamie McGeever, Zhang Dandan, JP Morgan, Josie Kao Organizations: Peking University, People's Bank of, Atlanta, Thomson, Reuters Locations: China, New Zealand, Japan, Asia, People's Bank of China, U.S, Hong, Zealand

Their data showed mercury contamination from informal gold mining making its way into the biodiversity hotspot's mammals — from rodents to ocelots to titi monkeys. Leaders from the eight countries around the Amazon meeting in Brazil next week will discuss how to end illegal gold mining. While the scientists began testing for mercury at Los Amigos in 2021, some of the samples were gathered as early as 2018. During Reuters' visit to Los Amigos, scientists caught rodents in metal traps baited with peanut butter and snagged birds and a bat in mist nets floating through the forest. In 2021, mining arrived on Los Amigos' doorstep.

Persons: Conservación Amazônica, Mrinalini Erkenswick, Erkenswick Watsa, biogeochemist Jacqueline Gerson, there's, it's, Gideon Erkenswick, Jorge Luis Mendoza Silva, Caroline Moore, Moore, Chris Sayers, Jake Spring, Gloria Dickie, Marco Aquino, Oliver Griffin, Katy Daigle, Suzanne Goldenberg Organizations: Los, Biological, Amigos, Reuters, San Diego Zoo Wildlife Alliance, Projects International, Los Amigos, University of Colorado, REUTERS, Gold Council, USAID, Peruvian, Nature Communications, San Diego Zoo Wildlife, University of California, Thomson Locations: Peru, Peruvian, Peru's, de Dios, Madre de Dios, Brazil, Colombia, California, University of Colorado Boulder, Los Amigos, Dios, Latin America, Congo, Indonesia, University of California Los Angeles, London, Lima, Bogota

☆ What to expect from the Fed’s decision on rates
▼ + stars: | 2023-07-26 | by ( Bryan Mena | ) edition.cnn.com time to read: +8 min

Fed Chair Jerome Powell’s remarks during an annual gathering of central bankers and economists in Wyoming next month could shed more light on what to expect for the September decision. There are three possibilities for what the Fed might do moving forward, according to economists: a second consecutive rate hike in September, one in November, or no more rate hikes after July. The Commerce Department releases the June reading of the Fed’s favorite inflation measure Friday. The Fed held rates steady for nine straight meetings over the span of a year the last time it paused a rate-hiking campaign in 2006. Nearly all of the Fed’s decisions have been unanimous since the central bank began lifting rates in March 2022, with the exception of two meetings early in the Fed’s current inflation battle.

Persons: it’s, Jerome Powell’s, It’s, haven’t, inflation’s, Ben Bernanke, Raphael Bostic, there’s, hawkish, “ Powell, ” Seema Shah, Powell, Christopher Waller, you’re, ”, José Torres, ” Powell, Jerome Powell Organizations: DC CNN, Federal, Fed, Commerce Department, Market Committee, Atlanta Fed, Asset Management, CNN, ”, The Labor Department, Interactive Locations: Washington, Wyoming, —

☆ What to expect from this week’s Fed meeting
▼ + stars: | 2023-07-25 | by ( Bryan Mena | ) edition.cnn.com time to read: +8 min

After the Fed’s July monetary policy meeting, which concludes on Wednesday, investors will be looking for more details around that potential hike. That’s why the Fed is trying to retain the option of another rate increase in case inflation proves to be more resilient than expected. Fed Chair Jerome Powell’s remarks during an annual gathering of central bankers and economists in Wyoming next month could shed more light on what to expect for the September decision. There are three possibilities for what the Fed might do moving forward, according to economists: a second consecutive rate hike in September, one in November, or no more rate hikes after July. Whatever the Fed decides to do won’t come without a vigorous debate, and perhaps even a dissent, though the Fed has a tradition of collegiality.

Persons: —, it’s, Jerome Powell’s, It’s, haven’t, inflation’s, Ben Bernanke, Raphael Bostic, there’s, hawkish, “ Powell, ” Seema Shah, Powell, Christopher Waller, you’re, ”, José Torres, ” Powell, Jerome Powell Organizations: DC CNN, Federal, Fed, Commerce Department, Market Committee, Atlanta Fed, Asset Management, CNN, ”, The Labor Department, Interactive Locations: Washington, Wyoming, —

Both theory and past practice suggest that higher interest rates weigh on investment and consumption, crimping companies’ profit and forcing them to reduce hiring or lay off staff. It could also be that higher interest rates weigh on prices by pushing up borrowing costs and weakening financial markets, without requiring widespread layoffs. But economic forecasters have wrongly anticipated layoffs and higher unemployment for much of the past year. Until disinflation becomes less immaculate, the central bank has the unholy problem of choosing between lessons from history and those of the last 12 months. The U.S. unemployment rate dipped to 3.6% in June, the BLS announced on July 7.

Persons: Jerome Powell, Donald Trump, Joe Biden, Powell, There’s, Ben Winck, Francesco Guerrera, Peter Thal Larsen, Sharon Lam, Streisand Neto Organizations: Reuters, Federal Reserve, Wall, U.S, Fed, UBS –, Bank of International, Workers, United, Refinitiv, Consumer, of Labor Statistics, BLS, Thomson Locations: U.S, United States, payrolls, Washington, London

☆ China economic data likely to show recovery is fading quickly
▼ + stars: | 2023-07-16 | by ( ) www.reuters.com time to read: +4 min

Producer prices fell at the fastest pace in over seven years in June and consumer prices teetered on the verge of deflation, data showed earlier in the week. Authorities are likely to roll out more stimulus steps including fiscal spending to fund big-ticket infrastructure projects, more support for consumers and private firms, and some property policy easing, policy insiders and economists said. The central bank cut the RRR - the amount of cash that banks must hold as reserves - in March. China also cut its benchmark lending rates by a modest 10 basis points in June, the first such reduction in 10 months. But the central bank is likely to be wary of cutting lending rates further.

Persons: Kevin Yao, Kim Coghill Organizations: Reuters, Authorities, Thomson Locations: BEIJING, China, Beijing, COVID

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