The new finance minister of the United Kingdom, Rachel Reeves, is facing a significant challenge as she considers whether to approve inflation-busting pay increases for almost 2 million government employees. This move comes as two pay review bodies have recommended a substantial 5.5% wage rise for 460,000 teachers and 1.4 million staff in the state-run
Economy
The deteriorating commercial real estate (CRE) loans and high interest rates have raised concerns about defaults among U.S. banks. Many regional lenders have seen a surge in their provisions for credit losses in the second quarter. The shift has impacted office loans the most, with buildings remaining vacant due to the post-pandemic shift towards remote
European Central Bank policymakers have shown support for further interest rate cuts in order to combat high inflation following the COVID-19 pandemic. Francois Villeroy de Galhau and Gediminas Simkus have expressed confidence that inflation will reach the ECB’s target by next year. Villeroy stated in an interview that market expectations for interest rate cuts are
India’s central bank recently announced that the country’s natural rate of interest has been on the rise since the onset of the pandemic. This increase is expected to continue in the future, driven by the growth of potential output. The natural rate of interest is a crucial indicator associated with an economy operating at full
The recent request made by Senators Roger Wicker and Jim Risch to President Joe Biden regarding the Philippines’ standoffs with Beijing in the South China Sea highlights the escalating tensions in the region. Central to these tensions is the disputed Second Thomas Shoal, which has been a focal point of conflict between the Philippines and
Citizens Financial (NYSE:CFG) reported better-than-expected second-quarter profits, driven by a strong performance in capital markets that partially offset the impact of weaker lending activities. The U.S. economy’s resilience has led to an increase in corporate bond sales, resulting in higher fees for investment banks involved in underwriting these deals. Capital markets fees surged by 63%,
Argentina’s dollar-denominated bonds have been experiencing a sharp decline in value this week, as all restructured issues are down over 1 cent in price. The 2035 maturity bond has seen the most significant drop, with a decline of 1.7 cents, while the 2041 bond has dropped 1.5 cents to trade at 37.29 cents, the lowest
The dollar has been hovering around five-week lows due to Federal Reserve Chair Jerome Powell’s recent comments indicating a potential rate cut in September. Powell’s remarks regarding U.S. inflation readings and the need for sustainable price increases have shifted market expectations towards a rate cut. The dollar index, measuring the U.S. unit against its peers,
Pakistan’s benchmark share index experienced a significant increase of 1.44% on Monday, reaching a new record high following the announcement of a staff level agreement (SLA) between the International Monetary Fund (IMF) and Pakistan. This agreement entails a $7 billion, 37-month loan program that aims to provide much-needed financial stability to the country. The negotiations
China, the world’s second-largest economy, experienced a slowdown in the second quarter of the year. Official data revealed that the economy only grew by 4.7% in April-June, marking its slowest growth since the first quarter of 2023. This figure fell short of analysts’ expectations of a 5.1% growth, as projected in a Reuters poll. The
The attempted assassination of former President Donald Trump on Saturday has sent shockwaves across the world, with Asian markets being the first to feel the impact. Analysts are closely watching to see if this event will strengthen Trump’s election hopes, leading to potential ‘Trump-victory trades’ such as a stronger dollar and a steeper U.S. Treasury
The strategic region of the Pacific Islands Forum is facing a financial crisis as Western banks continue to exit the unprofitable market. This exodus is prompting concern that China could potentially fill the void, leading to a situation that has been described as “Armageddon” by an Australian official. The small island nations in this region,