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China needs more fiscal reforms to support economy- Goldman Sachs

Goldman Sachs analysts said that the Chinese government needs to undertake more fiscal reforms to help shore up economic growth in the country, with markets to focus largely on more measures from Beijing. GS analysts noted that while the policy initiatives undertaken so far marked some progress on Beijing’s end, markets were now awaiting much more measures from Beijing. Chinese stocks marked a stellar rally between February and May as Beijing ramped up its support for the economy, with measures ranging from increased monetary stimulus, easier lending conditions and more ...

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Economy, migration, war top voters’ concerns in EU election – survey

The economy, migration and international conflicts were the top concerns for voters in the European Union election, data from the bloc’s biggest member countries suggested. Provisional results in the European Parliament election on Sunday night showed gains for nationalist and euro-sceptic parties that campaigned on tickets including clamp-downs on migration, citizens’ economic woes and scrapping green policies. “Improving the economy and reducing inflation” ranked highest among citizens asked what was the most important thing influencing their vote, in a survey by polling platform Focaldata, shared with Reuters. “International conflict and ...

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ECB says many euro zone banks dragging their feet on loan-loss provisions

Many euro zone banks are still far from meeting accounting rules on the provisions needed to protect against loan losses, despite some progress in factoring in climate risks, the European Central Bank’s top supervisor said on Tuesday. A decade-old accounting standard designed to avoid a new banking crisis requires lenders to make an upfront provision when they make a loan, and then a fuller one if there are signs of potential default, rather than waiting for it to go unpaid. But euro zone banks are dragging their feet in applying ...

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UK economy slows to a halt in April in bad timing for Sunak

Wet weather helped bring Britain’s economic growth to a halt in April after a strong start to 2024, and the opposition Labour Party jumped on the figures to attack Prime Minister Rishi Sunak’s pre-election claims of a turnaround. Gross domestic product was flat in April – as economists polled by Reuters had forecast – after a 0.4% month-on-month rise in March, the Office for National Statistics said. The figures followed labour market data on Tuesday that showed falling employment and rising unemployment but continued strong wage growth. Financial markets showed ...

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China’s discount wars risk cementing frugal consumer mindset

An aggressive market grab by low-cost Chinese retailers has delivered bumper earnings for some firms but has also intensified a bruising price war, exacerbating deflationary fears in the world’s second-largest economy. From coffee to cars to clothes, China’s discount retailers have cut prices on just about everything as they chase a consumer whose confidence has been battered by a property crisis, high unemployment and a gloomy economic outlook. While the retail downshift has propelled revenues for firms like discount e-commerce platform Pinduoduo against larger rivals such as Alibaba, economists fear ...

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European elections: What a shift to the right could mean for the economy and markets

The results are clear. By a huge margin, the centre-right European People’s Party (EPP) will be the strongest political group in the next European Parliament, gaining almost 26% of the seats. Greens and Liberals (Renew) were the biggest losers. At the same time, both right-wing and nationalist party groups gained seats. The biggest increase in terms of percentages actually came from the so-called nonaligned parties, which do not form a political group in parliament. The gains of the latter were mainly a result of the German AfD, which until two ...

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Hamstrung at home, G7 leaders struggle to resolve global woes

Group of Seven (G7) leaders will fly to southern Italy this week for their annual summit in downbeat mood, confronting myriad woes at home even as they seek solutions for many of the world’s most pressing problems. U.S. President Joe Biden faces a polarized electorate and dismal approval ratings ahead of a re-election bid in November while British Prime Minister Rishi Sunak looks certain to lose power in a national vote next month. The leaders of France and Germany are reeling from heavy defeats in recent European elections, and opinion ...

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World Bank says global growth stabilizing but well below pre-pandemic levels

The World Bank on Tuesday said the U.S. economy’s stronger-than-expected performance has prompted it to lift its 2024 global growth outlook slightly but warned that overall output would remain well below pre-pandemic levels through 2026. The World Bank said in its latest Global Economic Prospects report that the global economy would avoid a third consecutive drop in real GDP growthsince a major post-pandemic jump in 2021, with 2024 growth stabilizing at 2.6%, unchanged from 2023. That’s up 0.2 percentage point from the World Bank’s January forecast, largely on the strength ...

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Markets underpricing summer UK rate cut as jobs market cools

The UK jobs market is cooling quite noticeably now, and that makes it all the more surprising that financial markets are pricing just a 7% probability of a rate cut next week and only 46% for August’s meeting. We think a summer rate cut is much more likely. The latest hiring figures tend to back that up, though of course there are still major question marks surrounding the quality of the data. Taken at face value, the rise in the unemployment rate from 3.8% at the end of last year ...

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Ukraine drums up support to shield and rebuild shattered cities

Ukraine and its allies drummed up support to protect Ukrainian cities from Russian missiles at a conference in Berlin on Tuesday and rallied international businesses to put their faith, and billions of dollars, into post-war reconstruction. Kyiv hopes the recovery conference will cement its credentials as a future member of the European Union that is worthy of huge injections of reconstruction financing – even as Russian forces continue to make slow advances in Ukraine’s east. Switzerland hosts an international conference this weekend to seek a path to peace in Ukraine, ...

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India cenbank likely to set cut-off yield on 10-year state bonds in 7.37%-7.41% band

Indian states will aim to raise an aggregate of 77.50 billion rupees ($928.2 million) on Tuesday through a sale of bonds maturing in six years to 25 years. The Reserve Bank of India will likely set cutoff yields for the 10-year bonds in the 7.37%-7.41% band, according to a Reuters poll of nine traders. Source: Reuters (Reporting by Dharamraj Dhutia ; Editing by Sonia Cheema)

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China’s central bank to return to gold buying as prices ease, analysts say

China, the biggest official sector buyer of gold, is expected to resume its bullion shopping spree once prices ease from the record highs hit in May, as the fundamental case for the metal remains, industry players said at a conference this week. After adding to its gold reserves for 18 consecutive months, official data from the People’s Bank of China (PBOC) showed its holdings were unchanged in May, sending global spot prices down sharply on Friday. “China’s data did show a pause,” David Tait, CEO of the World Gold Council ...

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Taiwan set to hold rates steady amid persistent inflation worries: Reuters poll

Taiwan’s central bank is expected to keep its policy interest rate unchanged this week and to stay the course until late next year as it deals with persistent concerns over inflation, according to economists in a Reuters poll. The central bank, in a surprise move at its last board meeting in March, hiked the benchmark discount rate to 2% from 1.875%, wary of continued inflationary pressures and ahead of a rise in electricity prices. At its next quarterly meeting on Thursday it is expected to keep the rate steady, according ...

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Rise in UK jobless rate muddies Sunak’s message to voters

Britain’s labour market showed more signs of cooling in April as the unemployment rate rose, an awkward development for Prime Minister Rishi Sunak ahead of the July 4 election, despite another month of robust wage growth. “The last parliament has been dismal for employment, and today’s figures are the worst since the pandemic,” said Tony Wilson, director of the non-partisan think tank, the Institute for Employment Studies. The jobless rate for the three months to April rose to 4.4% from 4.3% between January and March, the highest reading since the ...

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Fed’s new economic projections may come with a dose of maybe, maybe not

Updated economic projections from Federal Reserve officials this week are expected to show fewer interest rate cuts than policymakers anticipated three months ago, faster expected inflation, and slower growth, a pinpoint economic outlook that will carry the weight of the U.S. central bank’s authority. It may also come with what amounts to a consumer warning from Fed Chair Jerome Powell: Actual results may vary. With their forecasts stymied last year by faster economic growth and lower inflation than expected, and now by higher inflation and slowing growth, Fed officials of ...

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