European Commission President Ursula von der Leyen announced a loan of up to 35 billion euros ($39 billion) for Ukraine during a visit to Kyiv on Friday, saying it was needed to defend the country against Russian attacks and help it get through the winter. Standing beside her at a joint press conference, Zelenskiy said the loan wouldbe used for energy, air defences and arms procurement, and urged allies to approve by the end of the year a “victory plan” he has drawn up. Visiting Kyiv at the start of ...

Our world is undergoing a profound transformation with far-reaching consequences for our economic, social and environmental systems. This new era, being called by many as the Intelligent Age, is driven by unprecedented advancements in AI, robotics, biotechnology, quantum computing and digital infrastructure. Just as the transition from an agricultural society to an industrial one transformed the global landscape, the Intelligent Age will redefine how we live, work and interact with the world around us. Harnessing this revolution to address pressing challenges and seize its incredible opportunities requires collective effort and ...

The US Federal Reserve’s decision to cut interest rates for the first time in four years is unlikely to have a major impact on China’s ongoing economic growth and market stability, as the world’s second-largest economy remains on a growth track with a slew of policy measures set to further boost the rebound, Chinese economists said on Thursday. While the precise impact of the US Fed’s move on the global economy remains to be seen, the rate cut, which is aimed at stabilizing the US economy, in theory is generally ...

Republican presidential candidate Donald Trump said on Thursday the U.S. Federal Reserve’s decision to cut interest rates by half of a percentage point was “a political move.” “It really is a political move. Most people thought it was going to be half of that number, which probably would have been the right thing to do,” Trump said in an interview with Newsmax. The Federal Reserve on Wednesday kicked off what is expected to be a series of interest rate cuts with an unusually large half-percentage-point reduction. Trump said last month ...

China unexpectedly left benchmark lending rates unchanged at the monthly fixing on Friday, despite the Federal Reserve delivering an outsized interest rate cut earlier this week. The one-year loan prime rate (LPR) CNYLPR1Y=CFXS was kept at 3.35%, while the five-year LPR CNYLPR5Y=CFXS was unchanged at 3.85%. In a Reuters survey of 39 market participants conducted this week, 27, or 69%, of all respondents expected both rates to be trimmed. Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of ...

Federal Reserve rate cuts will relieve pressures on the U.S. housing market, but mortgage rates are unlikely to fall below 5.0% before 2027, Fitch Ratings says. The 30-year fixed mortgage rate and the 10-year Treasury yield have already priced in the 50bp Fed rate cut, and even with further cuts, declines in the 30-year mortgage rate to around 5.0% are contingent on the spread over 10-year Treasuries reverting to the 10-year pre-pandemic average of 1.8pp. The 10-year yield has less room to decline following the rate cut after declines this ...

The European Central Bank will have better quality information in December to make a call on a possible interest rate cut but it is also keeping the door open on October, ECB Vice President Luis de Guindos told Portugal’s Expresso in an interview. “It’s true to say that in December, we will have more information than in October,” Expresso quoted de Guindos as saying on Friday. “We will have more information and a new round of projections. But, you know, we have left the door totally open. We want to ...

The National Development and Reform Commission (NDRC), China’s top economic planner, said Thursday that it is intensifying efforts to spur investment and consumption in its bid to bolster domestic demand. Specifically, the NDRC will continue to support government investment in guiding and driving social investment, while also encouraging private businesses to participate in major national projects, said spokesperson Jin Xiandong during a press conference. The NDRC will offer more high-quality projects to private investors, prudently promote government-private investment cooperation, and accelerate the regular issuance of real estate investment trusts to ...

British retail sales rose by a stronger-than-expected 1%in August and growth in July was revised up, official figures showed on Friday. Economists polled by Reuters had forecast a monthly rise of 0.4% in sales volumes last month. The Office for National Statistics said sales volumes in July rose by a revised 0.7%, up from a previous estimate of a 0.5% month-on-month increase. Some supermarkets and clothing retailers reported a boost because of warmer weather and end-of-season sales, the ONS said. Sterling rose immediately after the figures were published. Followinga surge ...

The BoE is much more cautious than the Fed What was striking about today’s Bank of England decision is how different the messaging was compared to the Federal Reserve yesterday. The Bank has kept rates on hold in an 8-1 vote and the language in the statement makes it abundantly clear that it’s not in any hurry to lower rates. By promising a “gradual approach” to rate cuts, the Bank is effectively endorsing quarterly rate cuts of 25 basis points. That suggests the next cut is highly likely in November. ...

The European Central Bank is hoping for more cross-border bank consolidation to improve the valuation of lenders and efficiency in the sector, ECB Vice President Luis de Guindos told Portugal’s Expresso in an interview. UniCredit,Italy’s second-largest bank took a 9% stake in Commerzbank CBKG.DE last week, catching German authorities off guard and getting a hostile reception from local management, who want to fend off any takeover attempt. It will now be up to the ECB to decide whether to allow UniCredit CRDI.MI to increase its stake. De Guindos’ comments may ...

British consumers have turned more pessimistic after warnings by new Prime Minister Keir Starmer about the economy and the public finances which might entail tax increases, according to a survey published on Friday. The GfK Consumer Confidence Index, the longest-running measure of British consumer sentiment, dropped to a six-month low of -20 in September from August’s -13, which was the joint-highest in nearly three years. The seven-point drop was the biggest since April 2022, shortly after Russia’s invasion of Ukraine. A Reuters poll of economists had pointed to another reading ...

Social investments and reforms in key areas can boost employment, social inclusion, competitiveness and economic growth. This is the main finding of the Commission’s 2024 Employment and Social Developments in Europe (ESDE) report. Reforms and financial support for early childhood education and care, skills development, lifelong learning, vocational training and certain job support schemes are particularly promising. The latest ESDE report shows that investments have had a positive effect on income, employment levels, social inclusion and the fight against poverty, helping to reduce social and economic gaps across the EU. ...

Profound shifts in the world economy could make inflation volatile for years to come, complicating efforts to control prices, but sticking with inflation-targeting regimes is still the best option, European Central Bank President Christine Lagarde said on Friday. Economic shifts from deglobalisation and protectionism to vast advances in technology have puzzled economists over the past decade, and most failed to predict the recent surge in inflation, leaving central banks behind the curve and rushing to control prices. Lagarde, who took control of the ECB only months before the onset of ...

China’s fiscal revenue in the first eight months of 2024 was down 2.6% from a year earlier, unchanged from July’s seven-month reading, finance ministry data showed on Friday, as pressure mounts on policymakers for more stimulus to lift up the economic outlook. Fiscal expenditure grew 1.5% in the January-August period, down from a 2.5% increase in the first seven months. In August alone, fiscal revenue went down 2.8% year-on-year, worsening from the 1.9% decline seen in July. Fiscal spending decreased by 6.7%, a sharp reversal from a 6.6% jump in ...