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U.S. core capital goods orders increase in April

New orders for U.S.-made capital goods rose less than expected in April, pointing to some moderation in business spending on equipment early in the second quarter, and headwinds are growing from rising interest rates and tightening financial conditions. Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, increased 0.3% last month, the Commerce Department said on Wednesday. These so-called core capital goods orders advanced 1.1% in March. Economists polled by Reuters had forecast core capital goods orders gaining 0.5%. Source: Reuters (Reporting by Lucia ...

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Key efforts to stabilize economy

China’s efforts to boost consumer spending, its effective investment and the measures taken so far to stabilize industrial and supply chains will all lend solidity to the macroeconomy amid headwinds like the resurgence of COVID-19 and external uncertainties, industry experts said on Tuesday. They reviewed announcements made after a recent State Council executive meeting that China will roll out a package of measures to stabilize economic performance. The package will be part of efforts to get the economy back on a normal track and keep major economic indicators within an ...

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Inflation and high commodity prices to hit MENA oil importing countries, IMF says

Inflation and the Ukraine war-driven surge in commodity prices will take a significant economic toll on Middle East and North Africa oil-importing nations, the International Monetary Fund has said. Rising prices come at a “precarious time”, given the diverging economic recovery in the region, Jihad Azour, director of the Middle East and Central Asia Department at the IMF, wrote in a blog post on Tuesday. “Higher inflation is one of the most direct impacts of rising commodity prices,” said Mr Azour, who co-wrote the blog with senior IMF economists Jeta ...

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German consumer morale inches up after falling to record low -GfK

German consumer morale is projected to inch up in June after falling to a record low in May, but high inflation and the war in Ukraine continue to weigh on household spending, a survey showed on Wednesday. The GfK institute said its consumer sentiment index, based on a survey of around 2,000 Germans, rose slightly to -26.0 points heading into June after hitting a revised all-time low of -26.6 points in May. The latest reading, based on a May 5-16 survey, was in line with analysts’ expectations, according to a ...

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Global banks pay price of Russia retreat

Leading international banks exposed to Russia booked more than 11 billion euros ($12 billion) in provisions in the first quarter to brace for potential losses. Following are details on actions taken by the banks most exposed: EUROPEAN BANKS RAIFFEISEN BANK INTERNATIONAL (RBI) RBI is assessing interest from potential buyers of its Russia unit – the country’s 10th-largest bank. Options include a full or partial sale, as well as a spin-off, but any decision may take time. Impairment losses more than quadrupled in the first quarter due to 301 million euros ...

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Euro zone’s overpriced housing market may sag if rates rise, ECB says

The euro zone’s overpriced housing market may sag if mortgage rates rise faster than inflation, exposing debt-fuelled bubbles in some countries, the European Central Bank said on Wednesday. In its Financial Stability Review, the ECB also warned about further falls in asset prices if the economic outlook deteriorates as a result of the war in Ukraine or inflation turns out to be much higher than expected. Euro zone house prices have been on a tear for years, even accelerating during the coronavirus pandemic as the ECB’s own ultra-easy policy pushed ...

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China pledges greater credit support to stabilize economy

Chinese authorities have pledged to increase credit issuance and enhance financial support for key businesses and fields. Strengthened financial support will be given for micro, small and medium-sized enterprises, green development, scientific and technological innovation, energy supply, water conservancy and infrastructure, among others, according to a meeting jointly held by the People’s Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission. Downward pressure on the economy continues to increase due to the unexpected factors at home and abroad, the meeting said, calling on the financial system to ...

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3 ways we can collaborate better for a stronger circular economy

Circular economy solutions are critical for sustainable growth and climate action. But the circular economy hasn’t hastened as only 8.6% of the world is currently circular. This proportion needs to almost double to shrink the global carbon footprint and tackle challenges such as waste and resource depletion. Collaboration between players is key but difficult to achieve. In the traditional economy, players at different ends of the value chain rarely engage with each other, so circular innovations are often costly with low levels of adoption. To make meaningful progress in circularity, ...

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IMF warns of further downside risks for global economy

The International Monetary Fund (IMF) on Tuesday warned of further headwinds for the global economy and spiralling inflation around the world due to the conflict in Ukraine, while voicing that China will remain an engine of growth after the “near-term headwinds”. “We are seeing additional weaknesses in the global economy. The war is creating immense stress around the world with higher commodity prices everywhere,” Gita Gopinath, the first deputy managing director of the Washington-based IMF told Xinhua during an exclusive interview at the World Economic Forum (WEF) in Davos, Switzerland. ...

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Israel, Turkey looking to expand economic partnership, FM says

Israeli Foreign Minister Yair Lapid said on Wednesday that Israel and Turkey are opening a new chapter in their relations after “ups and downs” and were working to expand economic partnerships. “The goal is to form and expand economic and civil cooperation between our countries to create business to business and people to people and to leverage our two countries, comparative advantages regionally and globally, even during the pandemic, and even in times of political tension,” Lapid said in a statement in Jerusalem alongside his Turkish counterpart Mevlut Cavusoglu. He ...

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China will strive for economic growth in second quarter, premier says

China will strive to achieve reasonable economic growth in the second quarter and stem rising unemployment, official Xinhua news agency quoted Premier Li Keqiang as saying on Wednesday. The cabinet announced a package of policy steps earlier this week, including broader tax credit rebates and postponing social security payments and loan repayments to support the economy. China will unveil detailed guidelines for implementing the package of policies by the end of May, Li said. “We must seize the time window and strive to drive the economy back onto a normal ...

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How China’s efforts are advancing global development

The World Economic Forum has been convening leaders to promote multilateralism and multistakeholder solutions to global challenges since its first Annual Meeting in Davos in 1971, more than 50 years ago. Multilateralism means not only agreeing on a set of global principles and rules, but also drawing on the diverse knowledge, strengths and perspectives from different sides to quickly turn new knowledge into collective action. At this year’s Annual Meeting, taking place in May 2022 after more than two years of the COVID-19 pandemic, alignment and cooperation across countries, companies ...

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Prices push value of G20 merchandise trade to new high in Q1 2022, while services growth slows

Following six quarters of sustained growth, the value of international merchandise trade for the G20 reached a new high in Q1 2022. Exports and imports increased by 3.6% and 5.8%, as compared to Q4 2021 and measured in current US dollars. The increase is largely explained by rising commodity prices, as the war in Ukraine and COVID-19 containment measures in East Asia placed further pressure on the prices of traded goods and on already strained supply chains. Growth in exports and imports of services for the G20 are estimated at ...

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US growth worries mount as housing transactions collapse

The housing market outlook was already darkening We wrote about our concerns for the US housing market last week, citing the surge in mortgage rates and the challenge of saving for a deposit in an environment where prices have risen 35% nationally over the past two years. We increasingly sense that we are moving from a situation of massive excess demand post pandemic to one where we could be soon experiencing excess supply. This led us to warn of the prospect of a transaction slowdown and potential price correction in ...

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German economy sees growth in Q1 despite war, pandemic

The German economy grew in the first quarter, in line with expectations, despite difficult economic conditions caused by the war in Ukraine and the pandemic, data showed on Wednesday. Europe’s largest economy grew by 0.2% quarter on quarter and by 3.8% on the year, adjusted for price and calendar effects, the Federal Statistics Office said. A Reuters poll had forecast growth of 0.2% and 3.7%, respectively. “Despite the difficult global economic conditions, the German economy started the year 2022 with slight growth,” said Georg Thiel, president of the statistics office. ...

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