Economy news
The US May Need to Re-Energize Its Fight Against Inflation
There is growing evidence that market participants, policymakers and even a few economists have been hasty to declare victory on behalf of the US Federal Reserve in the fight against inflation.Now, an increasing number of economic data releases are g...
Millennials Have Accumulated Historic Debt of $3.8 Trillion
People born between 1981 and 1996, commonly referred to as millennials, have accumulated record-high debt of more than $3.8 trillion at the end of 2022, up a whopping 27% from 2019.During the COVID-19 pandemic, household debt was flat as government p...
Tech's AI Arms Race in Full Swing: Meta and Baidu Join in
Meta Platforms Inc said this past week it was releasing a new large-language model, the main software behind its artificial intelligence (AI) system. It signals a heating up of the AI “arms” race as technology companies scramble to integrate AI into...
Hong Kong Economy Expected to Grow Between 3.5% and 5.5%
Hong Kong’s COVID-ravaged economy will return to positive growth territory this year and expand by between 3.5% and 5.5%, as the city opens up and its major trading partner China’s economic prospects improve.The Asian financial hub was buffeted by a...
US Retail Sales Rebound Strongly
January retail sales in the US jumped by the most in almost two years, after two straight monthly declines. According to the Commerce Department, retail sales bolted 3% last month, the biggest increase since March 2021.Data reveals that American cons...
Tech Industry Faces Deep Layoffs
The tech industry is reeling from an economic downturn, with many major firms announcing significant layoffs. With two months of 2023 yet to be completed, 108,346 employees from 380 tech companies have been cut in widespread layoffs. This figure alre...
UK Inflation Falls But Remains High
The UK’s annual inflation rate slid for a third month in a row, with January’s figure relieving pressure on the Bank of England (BOE) to raise interest rates, even though inflation remains in double digits and is close to the highest it has been in f...
US Inflation Slows, But Still Too High for Comfort
The Consumer Price Index (CPI) in the US climbed 6.4% in January from a year ago. This reading showed a marginal slowdown from December's figure, making it the smallest annual increase since October 2021.A rebound in rent and gasoline prices ha...
Brazil President Lula da Silva Attacks Country’s Central Bank
Returning Brazilian President Luiz Inácio Lula da Silva has once again raised his concerns about Brazil's benchmark interest rate level, which stands at 13.75%, claiming it is a major drag on the country’s growth prospects.Elected on promises of grea...
China’s Economy Expected to Grow 5% This Year
China’s economy will expand by 5% in 2023, according to ratings agency Fitch, an improved forecast from the growth forecast of 4.1% the agency had made in December.New data reveals that consumption and activity in China are recovering faster than ini...
Treasury Yields Jump After Better-Than-Expected Jobs Report
US treasury yields jumped higher last Friday after a report showing that job growth surged in January, further exacerbating the Federal Reserve's attempts to soften the labor market to bring inflation down.The yield on 10-year treasury notes was up 1...
Apple Sales Show Large Quarterly Fall
Apple, the world’s most valuable brand, missed expectations for revenue and profit for the holiday quarter. Overall sales were about 5% lower than the year before, the first year-on-year sales decline since 2019. Explaining the results, CEO Tim...
Europe Reveals $272 Billion in Green Subsidies to Rival US
The EU this week unveiled plans for its “Green Deal,” a package designed to cut red tape and deliver tax breaks to companies adopting net-zero technologies. Europe’s plan comes in response to the Biden administration’s massive green subsidy program.T...
Markets Waiting on Bullish China Reopening
China intends to increase the retail price of gasoline and diesel this week in response to rising international oil prices. Gasoline and diesel prices will go up by 250 yuan (US$37) per ton and 240 yuan (US$36) per ton, respectively.Some analysts bel...
US Inflation and Consumer Spending Slowed in December
The Federal Reserve places great store in consumer spending as a barometer of how hot the economy is running. US consumer spending dropped in December, providing evidence that the Fed’s series of interest rate increases are cooling the economy.On Fri...