Global central bank umbrella body, the BIS, eased its hardline stance on inflation on Monday, calling recent progress encouraging, but stressed that central banks were not out of the woods yet. Global economic data has begun to show a clear trend that multi-decade highs in inflation — caused by the rebound from the COVID-19 pandemic and spike in energy prices — are in the rear-view mirror. Money markets are pricing in over 100 basis points of rate cuts from both the U.S. Federal Reserve and European Central Bank next year, ...

In his keynote speech at the Greater Bay Area Conference on Nov 22, Hong Kong Chief Executive John Lee Ka-chiu thanked member countries of the Association of Southeast Asian Nations for their support of Hong Kong’s bid for accession to the Regional Comprehensive Economic Partnership. It is vital to appreciate that the Hong Kong Special Administrative Region’s accession would help to accelerate momentous opportunities for businesses, people and geopolitics. The RCEP, which took effect in January 2022 and comprises the 10 ASEAN member states, the Chinese mainland, Japan, the Republic ...

For the past 15 years, since the Global Financial Crisis, central banks have claimed they could generate demand and economic growth via stimulus. Some $73tn of spending later, it is finally becoming clear to some of them, at least, that they can’t. Now, we all have to start picking up the pieces of the problems they have created. European Central Bank President, Christine Lagarde, recognised the issue in August last year: “We have to pay attention to traditional indicators while also monitoring empirical data and what we expect to happen ...

The euro zone is a tale of two interest rates: the official one set by the central bank, and the ones earned by companies and individuals on their investments. The first is at record levels to cool the economy and curb inflation. That’s pushed up the private sector’s interest income, supporting growth. As more debts come due for refinancing next year, though, the economy may fare worse than expected. European citizens and corporations have been quietly stashing money in financial assets since the economic crisis of 2008. In the first ...

China’s uneven recovery this year has raised the question of whether the Chinese economy is losing steam. Many observers believe that a lack of reform is one of the key reasons for the country’s sluggish recovery. The geopolitical tension between China and the United States has only aggravated the situation, with international investors worrying whether China will continue to open up to the outside world. However, neither of these concerns is warranted if one scrutinizes what is happening in China. China’s uneven recovery is a short-term phenomenon related to policy ...

Investor morale in the euro zone improved at the start of December for the third month in a row, although it remained uncertain whether this was the start of a long-term trend reversal, a survey showed on Monday. Sentix’s index for the euro zone rose to -16.8 points from -18.6 in November, falling short of the -16.4 December reading forecast in a Reuters poll of analysts. Sentix Managing Director Manfred Huebner said Germany struggled to keep up with even these moderate improvements, with expectations in the euro zone’s largest economy ...

White House budget director Shalanda Young warned in a letter to Republican House Speaker Mike Johnson and other congressional leaders on Monday that the United States was running out of time and money to help Ukraine fight its war with Russia. President Joe Biden’s administration in October asked Congress for nearly $106 billion to fund ambitious plans for Ukraine, Israel and U.S. border security. Republicans control the House of Representatives with a slim majority, and funding for Ukraine has become politically controversial with some right-leaning lawmakers. Young said in a ...

Recent inflation data was “good news” and “a positive surprise”, but any future decisions on monetary policy would have to depend on the reality on the ground, ECB Vice-President Luis de Guindos said on Monday. Euro zone inflation tumbled to 2.4% last month, coming well below expectations for the third straight month, fuelling market bets that European Central Bank interest rates will come down much quicker than the bank now guides. De Guindos said that central banks needed to be cautious and that “it was too early to declare victory”. ...

German businesses, which have been struggling with high inflation, energy price fluctuations and geopolitical instabilities for months, are rather pessimistic for 2024 and do not expect a recovery, a study seen by Reuters showed on Monday. Only 23% of companies were optimistic about next year, while 35% had negative expectations, according to the survey of more than 2,200 firms by the Cologne-based German economic institute (IW). The situation had deteriorated in the construction and industrial sectors in particular, the institute found. Germany’s long period of job creation had probably come ...

An China-EU summit will be held on Thursday in Beijing, China’s foreign ministry said on Monday, where leaders of both sides will discuss strategic and global economic issues of common interest. “China and Europe are partners, not rivals … our common interests far outweigh our differences,” foreign ministry spokesperson Wang Wenbin said at a regular press briefing. Chinese President Xi Jinping will meet with President of the European Council Charles Michel and President of the European Commission Ursula von der Leyen, Wang said. “We will explore ways to solve problems ...

New orders for U.S.-made goods fell more than expected in October to mark the biggest monthly drop in roughly three and a half years, constrained by weakening demand for durable goods and transportation equipment and bolstering the view that high interest rates are beginning to bite into spending. Factory orders fell 3.6% after a downwardly revised 2.3% in September, the Commerce Department’s Census Bureau said on Monday, the biggest monthly drop since April 2020. Economists polled by Reuters had forecast orders would decline 2.8%. Orders advanced 0.5% on an annual ...

The U.S. Federal Reserve’s pledge in 2020 to sustain “broad-based and inclusive” employment through loose monetary policy was considered a bold response to the pandemic, putting its muscle behind the idea that low unemployment and low inflation could coexist. The ensuing inflation surge has put that view under a spotlight, with scrutiny likely to intensify over the next year as Fed officials prepare for a broad policymaking review that Chair Jerome Powell has said will commence in late 2024. There’s been no suggestion the Fed will drop language added to ...

A mix of global economic unease and geopolitical uncertainty means optimism is in short supply among bankers from the City of London to Frankfurt’s ‘Mainhattan’ financial district. Even rainmakers renowned for seemingly conjuring deals from nowhere are struggling to see ways to work their magic and drag investment banking revenues out of the doldrums. Finance executives, consultants and headhunters interviewed by Reuters predict subdued deal flows, modest bonuses for most and heavy job cuts in 2024. “2023 will ultimately be one of the lowest corporate finance fee pools in modern ...

As organizations transition towards increasingly sustainable and socially responsible business methodologies, they recognize the imperative to engage professionals adept at addressing and navigating environmental, social, and governance (ESG) challenges. Consequently, companies spanning various sectors are consistently posting ESG* roles, with each quarter since 2022 seeing more than 25,000 job postings from around 8,000 recruiters, reveals the Job Analytics Database of GlobalData, a leading data and analytics company. Sherla Sriprada, Business Fundamentals Analyst at GlobalData, comments: “This sustained focus on ESG-related recruitment reflects a broader shift towards sustainable and responsible business ...

Tight credit spreads and strong investor demand for highly-rated bonds has prompted some U.S. companies to refinance debt maturing in the next few years rather than wait for expected U.S. interest rate cuts in 2024 to lower borrowing costs. November saw a sharp rise in refinancing activity as Treasury yields fell and average spreads on investment-grade debt – the premium charged over Treasuries – touched 111 basis points or the lowest level this year, according to ICE BAML data. A BMO Capital Markets report noted that 29% of new bonds ...