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The second-quarter reading was far lower than the Bank of Canada's (BoC's) forecast for a 1.5% annualized GDP growth as well as the 1.2% gain expected by analysts. The quarterly slowdown was largely due to declines in housing investment and smaller inventory accumulation as well as slower international exports and household spending, Statistics Canada said. The central bank hiked its benchmark overnight rate to a 22-year-high of 5.0% in July, the tenth increase since March of last year. The high interest rate environment has coincided with falling housing investment, which recorded its fifth consecutive quarterly decrease in the three months ended in June. The housing investment decline was led by a sharp drop in new construction as well as a fall in renovation activities, Statscan said.

Persons: Stephen Brown, Andrew Kelvin, Statscan, downwardly, Doug Porter, Ismail Shakil, Steve Scherer, Dale Smith, Fergal Smith, Nivedita Balu, Mark Porter Organizations: Bank of Canada's, North, Capital Economics, Bank of Canada, Statistics, BoC, Reuters, TD Securities, Money, Canadian, BMO Capital Markets, Thomson Locations: OTTAWA, North American, Statistics Canada, Canada

☆ UK house prices fall by most since 2009, Nationwide says
▼ + stars: | 2023-09-01 | by ( David Milliken | ) www.reuters.com time to read: +2 min

Prices dropped by 0.8% in August alone, the largest monthly fall since March, after a 0.3% decline in July, Nationwide's figures showed. The Bank of England has raised interest rates 14 times since December 2021 to 5.25%, and financial markets expect another rate increase this month to 5.5%. However Andrew Wishart, senior property economist at Capital Economics, said he expected house prices had another 5% to fall, taking the total peak-to-trough decline to 10.5%. "We think the August data marks the start of a significant further drop in house prices," he said, pointing to weakness in the latest Royal Institution of Chartered Surveyors survey, which shows the most widespread price falls since 2009. The poll showed respondents expected house prices to be unchanged in 2024 and to rise just over 3% in 2025.

Persons: Alishia, Robert Gardner, Gardner, Andrew Wishart, David Milliken, Sarah Young, Mike Harrison Organizations: REUTERS, Nationwide, The Bank of England, BBC, Capital Economics, Royal Institution, Chartered Surveyors, Thomson Locations: South London, Britain

☆ 6 things to know about the job market right now: It's 'near-perfect,' economist says
▼ + stars: | 2023-09-01 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Job growth is slowingThe U.S. economy added 187,000 jobs in August, the Labor Department said Friday. Job growth is clearly losing momentum: The three-month average in August was 150,000 jobs added, versus 201,000 in June, for example, Bunker said. Further, monthly job growth still exceeds U.S. population growth, economists said. Unemployment is up — but not for bad reasonsThe unemployment rate jumped to 3.8% in August from 3.5% in July, the U.S. Labor Department said Friday. There were about 8.8 million openings in July, the fewest since March 2021, according to Labor Department data.

Persons: Mario Tama, Bunker, Julia Pollak, Lat, Aaron Terrazas, Andrew Hunter, Pollak, —, Zandi, Andrew Patterson, Hunter Organizations: Getty, Labor Department, Yellow Corp, U.S . Labor Department, Capital Economics, Workers, Vanguard, White House Council, Economic, CEA Locations: U.S, Hollywood

☆ India’s economy grows at fastest pace in a year
▼ + stars: | 2023-08-31 | by ( ) edition.cnn.com time to read: +2 min

India’s economy grew at its quickest pace in a year in the April-June quarter, buoyed by strong services activity and robust demand, but a drier than normal monsoon season could restrain future growth. India’s Chief Economic Adviser V. Anantha Nageswaran maintained his 6.5% growth forecast for the full year. Thamashi De Silva at Capital Economics said India’s GDP data was strong despite policy tightening by the Reserve Bank of India. Food prices climbIndia’s retail inflation in July rose to its highest in 15 months as vegetable and cereals prices skyrocketed. “High food inflation for a prolonged period could weigh on consumption growth,” said Rajani Sinha, Chief Economist, CareEdge Ratings.

Persons: Anantha Nageswaran, ” Nageswaran, Thamashi De Silva, ”, Madan Sabnavis, “, Suvodeep Rakshit, Nageswaran, Rajani Sinha Organizations: Gross, Capital Economics, Reserve Bank of India, Bank of Baroda Locations: India

☆ China PMI: Factory activity contracts for fifth straight month. Demand for services is also slowing
▼ + stars: | 2023-08-31 | by ( Laura He | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —Factory activity in China contracted for a fifth straight month in August, adding pressure on Beijing to roll out more stimulus measures to bolster the faltering economy. It was the third straight month that the index had improved from the previous month, and was better than economists were expecting. The non-manufacturing PMI, which measures business activity in services and construction, stood at 51 this month, down from 51.5 in July, according to the NBS. “The PMI surveys suggest a slight improvement in economic activity in August,” wrote analysts from Capital Economics. Some of these moves may have started to bear fruit this month, analysts said.

Persons: ”, Si Wei, Robert Carnell Organizations: Hong Kong CNN — Factory, government’s National Bureau of Statistics, PMI, NBS, Capital Economics, ING Group, Capital Locations: Hong Kong, China, Beijing, —, Lianyungang, Jiangsu province, Asia, Pacific

Analysts polled by Reuters prior to the data had estimated on average a draw of 3.3 million barrels. The offshore Gulf of Mexico accounts for about 15% of U.S. oil output and about 5% of natural gas production, according to the Energy Information Administration (EIA). Oil major Chevron Corp CVX.N evacuated some staff from the region, but production was continuing at the sites its operates in the Gulf of Mexico. Oil supply is expected to remain tight as analysts expect Saudi Arabia, the world's biggest oil exporter, will extend its voluntary output cut into October. However, worries about fuel demand and the mixed economic situation in China, the world's biggest oil importer, kept a lid on prices.

Persons: Lucy Nicholson, Toshitaka Tazawa, Yuka Obayashi, Trixie Yap, Christian Schmollinger, Kim Coghill Organizations: REUTERS, Brent, . West Texas, U.S, American Petroleum Institute, Reuters, Fujitomi Securities Co, Hurricane, Energy Information Administration, . Oil, Chevron Corp CVX.N, Capital, Thomson Locations: Bakersfield , California, SINGAPORE, U.S, Gulf, Mexico, Gulf of Mexico, Saudi Arabia, Asia, Gabon, China, Tokyo, Singapore

☆ Short U.S. housing correction likely over; tight supply to keep prices high: Reuters poll
▼ + stars: | 2023-08-30 | by ( Prerana Bhat | ) www.reuters.com time to read: +4 min

After falling nearly 7% from a cycle high in June 2022 - well short of predictions made late last year for a 12% peak-to-trough fall - average house prices started rising again in February and are now only around 1% below their peak. "While we expect house prices to lose some of their recent momentum, the worst of the correction appears to have passed and we don't expect further sustained declines," said Andrew Burrell, chief property economist at Capital Economics. Average house prices were forecast to stagnate in 2024 despite predictions for a rate cut by the middle of the year. They were forecast to average 4.17 million units in the second half of this year, lower than 4.27 million in the previous poll. Despite a near 45% pandemic-era rise in house prices and the market starting to climb again, respondents were equally split on what would happen to purchasing affordability for first-time homebuyers over the coming year.

Persons: Octavio Jones, Andrew Burrell, Brad Hunter, Hunter, Prerana Bhat, Indradip Ghosh, Pranoy Krishna, Ross Finley, Sharon Singleton Organizations: REUTERS, Reuters, Federal Reserve, Capital Economics, Hunter Housing Economics, Thomson Locations: Tampa , Florida, U.S

That’s almost three times what Russia spent on defense in 2021, before its full-scale invasion of Ukraine in February 2022. Those figures are likely to underestimate the total spent on Russia’s war effort. He said that before the war Russia would typically splash around 3-4% of its annual gross domestic product on defense but now it could be anywhere between 8% and 10%. Russia’s exports are still greater than the value of its imports, despite a boost to the latter from the hefty military spending. Rising military spending is, on the other hand, boosting Russia’s industrial output and, with it, GDP.

Persons: London CNN —, Vladimir Putin, Putin, That’s, Richard Connolly, Janis Kluge, Irina Okladnikova, Liam Peach, it’s, Peach, Kluge, “, ”, —, Maksim Konstantinov, Alexandra Suslina, Suslina, Alexandra Prokopenko, Prokopenko, — Anna Cooban, Tim Lister, Olesya Dmitracova Organizations: London CNN, Reuters, Stockholm International Peace Research Institute, Royal United Services Institute for Defence, Security Studies, German Institute for International and Security Affairs, Capital Economics, CNN, “, ZUMA, International Monetary Fund, Carnegie Russia Eurasia Center, International Energy Agency, West Locations: “, Ukraine, Russia, Stockholm, Moscow, “ Russia, Russian, Saint Petersburg, Soviet, Berlin

☆ Canadian economy set to show marked slowdown in second quarter, giving central bank cause to pause
▼ + stars: | 2023-08-27 | by ( Fergal Smith | ) www.reuters.com time to read: +3 min

[1/2] Condominium and office towers are seen on the mountain-backed skyline of Vancouver, British Columbia, Canada September 30, 2020. The GDP report will be the last major piece of domestic data before the Canadian central bank makes its next policy decision on Sept. 6. The central bank has said it would study economic data closely before determining whether it raises interest rates further. The BoC has projected 1.5% growth for the third quarter, matching its second-quarter estimate. Some argue that the composition of growth in the second-quarter data, including the split between internal and external demand, could also be a consideration.

Persons: Jennifer Gauthier, Carlos Capistran, Bank of America Merrill Lynch, Benjamin Reitzes, we've, Stephen Brown, Andrew Grantham, Fergal Smith, Denny Thomas, Jonathan Oatis Organizations: REUTERS, Rights, Bank of Canada, BoC, Bank of America, BMO Capital Markets, Money, North, Capital Economics, CIBC Capital Markets, Thomson Locations: Vancouver , British Columbia, Canada, Canadian, Mexico, North America

The Ifo institute said on Friday that its business climate index stood at 85.7, down from 87.4 in July. Reuters Graphics"The German economy is not out of the woods yet," Ifo president Clemens Fuest said. The economy then posted zero growth in the second quarter compared to the previous three months, separate data from the statistics office showed on Friday. The Ifo survey showed sentiment among German managers had become more pessimistic across all sectors in August. The Ifo survey chimed with flash PMI data released on Wednesday, which showed that German business activity contracted at the fastest pace for more than three years in August.

Persons: Annegret, Clemens Fuest, Christian Lindner, Klaus Wohlrabe, Claus Niegsch, Niegsch, Andrew Kenningham, Carsten Brzeski, Maria Martinez, Friederike Heine, Mark Potter, John Stonestreet Organizations: REUTERS, Reuters, . Finance, DZ Bank, Reuters Graphics, Capital Economics, Thomson Locations: Berlin, Germany, BERLIN, Europe

CNN —One year after catastrophic floods devastated swathes of Pakistan, some 4 million children in the South Asian nation remain without access to safe water, the United Nations children’s agency has warned. “Vulnerable children living in flood-affected areas have endured a horrific year,” Abdullah Fadil, UNICEF Representative in Pakistan, said in the statement. “The climate-related disaster deepened pre-existing inequities for children and families in affected districts,” UNICEF said in the statement. Children pick vegetables from water at a flooded market after heavy rainfall in Lahore on June 26, 2023. Fadil from UNICEF said the agency has called on the government of Pakistan and its partners to “increase and sustain investment in basic social services for children and families.”He added: “We cannot forget the children of Pakistan.

Persons: ” Abdullah Fadil, “, Asim Hafeez, Dera Allah Yar, Fida Hussain, Imran Khan, Khan, ”, Stephen Innes, Arif Ali, Fadil Organizations: CNN, United Nations, UNICEF, UNICEF Representative, Bloomberg, Getty, International Monetary Fund, World Bank, Capital Economics, Analysts Locations: Pakistan, Karachi Division, Sindh province, Pakistan’s, Dera, Jaffarabad district, Balochistan, AFP, Asia, Lahore, South Asia, Afghanistan, India

☆ Egypt hopes BRICS entry will lure foreign cash, but analysts counsel patience
▼ + stars: | 2023-08-25 | by ( Patrick Werr | ) www.reuters.com time to read: +3 min

The bloc, which includes Brazil, Russia, India, China and South Africa, on Thursday invited Egypt and five other countries to join, and Egypt immediately welcomed the offer. "The group's aim of reducing dollar transactions will lower the foreign currency pressure in Egypt," the cabinet said in s statement on Thursday. Monica Malik of ADCB said BRICS membership may eventually help Egypt attract more investment. "Egypt has two deep needs - FDI and a cheaper debt burden - and BRICS membership can help with both," Robertson said. The BRICS group on Thursday also invited Saudi Arabia, Iran, Ethiopia, Argentina and the United Arab Emirates to join.

Persons: Egypt Mostafa Madbouly, MARCO LONGARI, Abdel, Fattah, Sisi, Monica Malik, ADCB, Charles Robertson, " Robertson, Robertson, James Swanston, Patrick Werr, Nafisa Eltaher, Sarah El Safty, Giles Elgood Organizations: Rights, New Development Bank, FIM Partners, United, Capital Economics, Thomson Locations: Egypt, Sandton, Johannesburg, South Africa, Rights CAIRO, Brazil, Russia, India, China, Ukraine, Saudi Arabia, Iran, Ethiopia, Argentina, United Arab Emirates, Saudi, UAE

Bank Indonesia's logo is seen at its headquarters in Jakarta, Indonesia, January 17, 2019. Bank Indonesia (BI) plans to issue new rupiah-denominated securities, using its holdings of government bonds as the underlying asset, as a new monetary instrument aimed at attracting foreign portfolio capital flows, Governor Perry Warjiyo said. BI kept the benchmark 7-day reverse repurchase rate (IDCBRR=ECI) at 5.75% for its seventh straight monthly policy review, as widely expected by economists surveyed by Reuters. Guarding the rupiah "is our way to protect the domestic economy, inflation and growth from global spillovers," Warjiyo told reporters. Inflation slowed in July to 3.08%, roughly the midpoint of the central bank's 2% to 4% target range.

Persons: Willy Kurniawan, Perry Warjiyo, Warjiyo, Radhika Rao, Shivaan Tandon, Bank Danamon, Fransiska Nangoy, Bernadette Christina Munthe, Stefanno Sulaiman, Ananda Teresia, Gayatri Suroyo, Martin Petty, Kim Coghill, Kirsten Donovan Organizations: REUTERS, Bank Indonesia, BI, Reuters, Securities, U.S, Treasury, DBS Bank, Capital Economics, Bank, Thomson Locations: Jakarta, Indonesia, JAKARTA, Asia's, China

☆ VIEW Turkey cements policy shift with super-sized rate hike
▼ + stars: | 2023-08-24 | by ( ) www.reuters.com time to read: +5 min

A logo of Turkey's Central Bank is pictured at the entrance of its headquarters in Ankara, Turkey October 15, 2021. "We should recall that sudden changes in interest rates usually have a delayed effect. "This was also the steepest rate hike since the CBT management reshuffle after the elections in May. We think the strong rate hike meant to address market concerns that the CBT wanted to avoid significant rate hike." TIMOTHY ASH, BLUEBAY ASSET MANAGEMENT, LONDON"Really solid move by the CBRT (central bank) to hike policy rates arguably above expectations by 750bps to 25%."

Persons: Cagla, GRZEGORZ DROZDZ, TIMOTHY ASH, 750bps, Hatice Karahan, Hatice Gaye, PIOTR MATYS, Governor Erkan, Erdogan, LIAM PEACH, Erkan, OZKARDESKAYA, SWISSQUOTE Organizations: Turkey's Central, REUTERS, Reuters, Thomson Locations: Ankara, Turkey, Turkish, EMERGINGMARKETWATCH.COM, SOFIA, GENEVA

☆ Analysis: With central banks' job half done, global inflation talk is shifting
▼ + stars: | 2023-08-23 | by ( Balazs Koranyi | ) www.reuters.com time to read: +6 min

"It may just be lucky that a global demand slump or non-policy related domestic forces are driving inflation lower." This disconnect led the German central bank to issue a warning to peers this week that a tough task may still lie ahead for policymakers. "The impression took hold that inflation rates will nonetheless persist for longer above the rates targeted by central banks," the Bundesbank said. Indeed, longer-term inflation expectations for the U.S. and the euro zone remain above the banks' 2% targets. But even in the best case, weaker growth will reduce demand for imports and complicate the global outlook.

Persons: JACKSON, Steve Englander, Piet Haines Christiansen, Philip Lane, Lane, Niels Graham, Julian Evans, Pritchard, Balazs Koranyi, Dan Burns, Toby Chopra Organizations: Standard Chartered, The Bank of England, ECB, Reserve Bank of Australia, Reserve Bank of New, Danske Bank, U.S, People's Bank of, Atlantic Council, Capital Economic, Thomson Locations: , Wyoming, Jackson Hole , Wyoming, Britain, Australia, New Zealand, German, Europe, Reserve Bank of New Zealand, Jackson, People's Bank of China, China

As of January 2023, residential mortgage debt stood at C$2.08 trillion ($1.53 trillion), according to the Canada Mortgage and Housing Corporation (CMHC). Mortgage rates tend to track moves in the bond market with a lag. At 6.79%, the five-year mortgage rate posted by major Canadian banks has climbed to its highest since November 2008, data from the Bank of Canada shows. When it is time for renewal, options for homeowners hoping to shop for better interest rates might be limited as they would have to re-qualify for the stress test at the latest interest rates with their new lender. "It certainly is going to be problematic for the Canadian economy if rates stay at this level."

Persons: that's, James Laird, Laird, Daniel Foch, Foch, Stephen Brown, Nivedita Balu, Fergal Smith, Denny Thomas, Jonathan Oatis Organizations: TORONTO, Bank of Canada, Canada Mortgage, Housing Corporation, Ratehub.ca, Bank of, Toronto Regional Real Estate Board, Greater Toronto Area, Reuters, North, Capital Economics, Thomson Locations: United States, Toronto, Greater Toronto, Canada, North America

☆ Germany’s economy hasn’t looked this weak since the start of the pandemic
▼ + stars: | 2023-08-23 | by ( Hanna Ziady | ) edition.cnn.com time to read: +2 min

That’s the lowest reading since May 2020, when the country began gradually lifting stringent pandemic restrictions. “Any hope that the service sector might rescue the German economy has evaporated. The figures add to evidence that Germany’s economy is sputtering again after it emerged from a winter recession in the second quarter by the narrowest of margins. “The downward pressure on the economy of the eurozone in August stems mainly from the German service sector,” said De la Rubia. “Activity has started to shrink while prices have shot up again, even picking up pace,” De la Rubia said.

Persons: stoking, ”, Cyrus de la Rubia, —, De la, “, De la Rubia, ” Andrew Kenningham Organizations: London CNN —, Hamburg Commercial Bank, P Global, P, European Central Bank, ECB, Capital Economics Locations: London CNN — Germany, Hamburg, Germany, Europe, “

☆ UK’s improving finances will bear no fiscal gifts
▼ + stars: | 2023-08-22 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Yves Herman/File Photo Acquire Licensing RightsLONDON, Aug 22 (Reuters Breakingviews) - Higher tax receipts helped Britain to borrow less than expected in July. The UK’s poor economic health leaves him with little room for fiscal giveaways ahead of a prospective 2024 election. Public sector net borrowing stood at 4.3 billion pounds in July, less than the 5 billion pounds expected by economists polled by Reuters. In the first four months of the fiscal year, borrowing was 11.3 billion pounds below the Office for Budget Responsibility’s forecast. The recent rise in bond yields will add around 18 billion pounds to debt interest spending by 2027/28, says Capital Economics.

Persons: Jeremy Hunt, Mairead McGuinness, Yves Herman, Hunt, Francesco Guerrera, EY’s loveless, Lisa Jucca, Katrina Hamlin Organizations: Financial Stability, Financial Services, Capital Markets, REUTERS, Reuters, Budget, Economics, Twitter, TPG, Thomson Locations: Brussels, Belgium

☆ Why inflation makes Britain’s debt the costliest among rich economies
▼ + stars: | 2023-08-22 | by ( Hanna Ziady | ) edition.cnn.com time to read: +4 min

Interest payable on UK central government debt hoovered up £7.7 billion ($9.8 billion) last month alone, hitting a record for July, the Office for National Statistics said Tuesday. That’s double the share in Italy, whose dependence on inflation-linked debt comes second only to that of the UK among advanced economies, according to Fitch Ratings. According to Fitch, Britain now spends more to service its debt than any other developed economy, as a percentage of government revenue. In a statement Tuesday, Hunt said: “As inflation slows, it’s vital that we don’t alter our course and continue to act responsibly with the public finances. Only by sticking to our plan will we halve inflation, grow the economy and reduce debt.”

Persons: That’s, ”, Ellie Henderson, Fitch, ” Ruth Gregory, Jeremy Hunt “, Gregory, Hunt Organizations: London CNN, National Statistics, United, Fitch, “, Investec, AAA, Capital Economics, CNN, Conservative Locations: Ukraine, United States, Italy, Fitch, Britain, London

Net borrowing, excluding state-owned banks, stood at 4.3 billion pounds ($5.49 billion) last month, less than the median forecast of 5.0 billion pounds in a Reuters poll of economists. In the first four months of the financial year, borrowing stood at 56.6 billion pounds. "As inflation slows, it's vital that we don’t alter our course and continue to act responsibly with the public finances," Hunt said in a statement after the data. Interest costs rose by 1.5 billion pounds compared with July last year to 7.7 billion pounds, the highest for July since records began in April 1997. The public finances were boosted by inflows of self-assessed income tax receipts which are typically strong in July, which stood at 11.8 billion pounds, 2.5 billion pounds more than in July last year.

Persons: Jeremy Hunt, Jessica Taylor, Handout, Hunt, Rishi Sunak, Liz Truss's, Ruth Gregory, Gregory, Gabriella Dickens, William Schomberg, Sachin Ravikumar, Andrew Heavens, Tomasz Janowski Organizations: REUTERS Acquire, Reuters, Bank of England, Conservative Party, Treasury, Capital Economics, Senior, National Statistics, Britain's, Thomson Locations: London, Britain

☆ Goldman Sachs: Is David Solomon on his way out? The CEO whisperer weighs in
▼ + stars: | 2023-08-21 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +9 min

New York CNN —David Solomon, CEO and president of Goldman Sachs, is getting bad press — a lot of bad press. And while shares of Goldman Sachs (GS) may be down by more than 5% this year, they’re still up by about 40% since he took over in 2018. Goldman Sachs did not respond to requests for comment for this article. Before the Bell: What is going on at Goldman Sachs? There have been articles purporting that former Goldman CEO Lloyd Blankfein isn’t happy with the job David Solomon has done and that he has offered to step in to help.

Persons: David Solomon, Goldman Sachs, Marcus, Solomon, they’re, Bell, Jeffrey Sonnenfeld, Lloyd Blankfein isn’t, that’s, Lloyd, he’s, That’s, David, ‘, Juliana Liu, Michelle Toh, ” Julian Evans, Pritchard, Zichun Huang, Hang, Lehman, Hillary, Eva Rothenberg, Harry Reid, Hilary Organizations: CNN Business, Bell, New York CNN, Financial Times, Yale School of Management’s, Leadership Institute, Nokia, BlackBerry, Microsoft, Goldman, People’s Bank of China, Reuters, Capital Economics, Hang Seng, The Bank of Korea, Bank Indonesia, country’s National Bureau of Statistics, Harry, Harry Reid International, San Diego International Locations: New York, Lloyd, China, Hong Kong, Shanghai, Asia, Las Vegas, California, Nevada, Southern California, Idaho

☆ China's central bank trims 1-year rate, but unexpectedly leaves 5-year rate unchanged
▼ + stars: | 2023-08-21 | by ( Clement Tan | ) www.cnbc.com time to read: +1 min

China's central bank cut its one-year loan prime rate Monday, while leaving its five-year rate unchanged. This was the second time China has cut this rate in three months. The PBOC left its five-year loan prime rate — the peg for most mortgages — unchanged at 4.2%, while economists expected a 15 basis point cut due to default risks from festering liquidity woes in the country's property sector. Country Garden is on the verge of default, while Evergrande filed last week for bankruptcy protection in a Manhattan court. "Hopes for a stimulus-led turnaround in economic activity largely depend on the prospect of greater fiscal support," he added.

Persons: Evergrande, China Julian Evans, Pritchard Organizations: People's Bank of China, Index, China Enterprises, CSI Locations: China, Manhattan, Hong Kong

☆ How soaring demand for Ozempic and Wegovy is altering Denmark’s economy
▼ + stars: | 2023-08-21 | by ( Anna Cooban | ) edition.cnn.com time to read: +3 min

Its maker, Novo Nordisk (NONOF), has raked in almost 49 billion Danish krone in profit ($7 billion) over the first six months of this year, up 32% from the same period in 2022. Novo Nordisk also produces Ozempic, a drug developed to treat type 2 diabetes but which contains the same active ingredient as Wegovy. Surging demandShares in Novo Nordisk have soared 34% since the start of 2023 to give the company a market capitalization of 2.2 trillion Danish krone ($322 billion). The stock shot up earlier this month after Novo Nordisk published the results of a five-year trial on the impact of Wegovy on cardiovascular disease. Novo Nordisk now expects its profits to grow by up to 37% this year, much higher growth than the maximum 19% rise it forecast in February.

Persons: Jens Naervig Pedersen, Pedersen, Jaap Arriens, ” Pedersen, “ We’ve, Andrew Kenningham, “, juggernauts Roche Organizations: London CNN, Nordic, Novo Nordisk, Danish, Danske Bank, European Central Bank, CNN, Capital Economics, AstraZeneca, Kaiser Family Foundation Locations: United States, Denmark, Danish, Europe

☆ Russia's economic woes have brought a flood of cash and sparked a real estate boom in the UAE
▼ + stars: | 2023-08-21 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Traders in the Gulf state have ramped up business in Russian oil and gold markets, the WSJ reported. Conversely, Russians are flocking to the UAE, bringing their wealth to its economy and sparking a real estate boom. That's as sanctions and trade restrictions have weighed heavily on Russia's economy, cutting it off from billions of its foreign reserves and crimping its energy trade. Russians were the third-largest group of real estate buyers in Dubai over the last quarter, the real estate firm Betterhomes told the Journal, up from the ninth-largest group in 2021. Russia's economy meanwhile is in a state of turmoil.

Persons: Betterhomes, Putin Organizations: Traders, Service, United Arab Emirates, UAE, Wall, Yale Locations: UAE, Gulf, Wall, Silicon, Russia, Ukraine, Dubai, Poland

☆ What's gone wrong with China's economy
▼ + stars: | 2023-08-21 | by ( Laura He | ) edition.cnn.com time to read: +8 min

It’s a far cry from global financial meltdown of 2008, when China launched the largest stimulus package in the world and was the first major economy to emerge from the crisis. It’s also a reversal from the early days of the pandemic, when China was the only major developed economy to dodge a recession. Property woesChina’s economy has been in doldrums since April, when momentum from a strong start to the year faded. While Evergrade is still undergoing a debt restructuring, troubles at Country Garden raised fresh concerns about the Chinese economy. Beijing has so far unveiled a steady incremental drip of measures to boost the economy, including interest rate cuts and other moves to help the property market and consumer businesses.

Persons: rekindling, Ying Tang, Morgan Stanley, Xi Jinping, It’s, what’s, Evergrande, Evergrade, ”, Julian Evans, Pritchard, Evans Organizations: Hong Kong CNN, UBS, Nomura, Barclays, Garden, Zhongrong Trust, CNN, Capital Economics, “, People’s Bank of China, National Health Commission, Moody’s Investors Service Locations: Hong Kong, China, Shanghai, It’s, doldrums, Beijing, United States, Europe

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