Page 16 - Global Economy

Global bond selloff upends markets as long term borrowing costs surge

Traders are bracing for an extended period of tight monetary policy, and demanding ever higher compensation to hold long-dated government debt

US Treasury 30-year bond yield rises 8 bps to hit highest level since 2007

Shorter-maturity Treasury yields had previously reached the highest levels since at least 2007, and extended their climb Tuesday

Inflation woes nix chances of India yield curve steepening: Traders

The government bond yield curve has remained flat for the past few weeks, with the four- and five-year yields at around 7.25% and the 10-year benchmark bond yield at 7.23%

Here's why a US recession may still be on the cards for its economy

A summer in which inflation trended lower, jobs remained plentiful and consumers kept spending has bolstered confidence that the world's biggest economy will avoid recession

US manufacturing sector eyes recovery, construction spending solid

Among the 11 industries reporting contraction were computer and electronic products, machinery as well as electrical equipment, appliances and components

US govt shutdown would be negative for credit rating, says Moody's

U.S. government services would be disrupted and hundreds of thousands of federal workers furloughed without pay if Congress fails to provide funding for the fiscal year starting Oct. 1

Inflation drops sharply in Europe, but higher crude oil prices loom

Inflation that has been plaguing Europeans declined sharply in September, strengthening hopes that consumers will eventually get relief from costlier groceries, vacations and haircuts and that the European Central Bank won't have to further restrict the economy by raising interest rates from already-record highs. The annual rate was 4.3% this month, a drop from 5.2% in August. But recently higher oil prices are casting a shadow over prospects for beating inflation back down to the central bank's target of 2%. Core inflation, which excludes volatile fuel and food prices, fell more than analysts expected to 4.5% from 5.3%, according to data released Friday by the European Union's statistics agency, Eurostat. The ECB closely watches this figure to assess how inflation is coming down. The fall in core inflation reinforces our view that the ECB has finished raising interest rates, said Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics. He predicted that the ...

Tight supply, inflation concerns keep crude oil investors on fence

By 1111 GMT, Brent crude futures were down 37 cents to $96.18 a barrel after rising to their highest level since last November earlier in the session. The November contract expires on Friday

ECB looks to leverage AI to better understand inflation after big misses

Joining the masses of firms already using AI, the ECB is now exploring ways to process and analyse millions of data points, including public price data, corporate statistics

JP Morgan Chief Dimon warns 7% US Fed rate still possible: Report

"We urge our clients to be prepared for that kind of stress," the JPMorgan Chase & Co. CEO said in an interview with the Times of India, saying a hard landing remains a risk for the US economy

India growing amid decelerating global growth: Triveni Turbine MD

India is registering growth amid a decelerating global economy, and the country is on the cusp of achieving a "psychologically important" USD 5 trillion mark, industrialist Nikhil Sawhney said on Tuesday. The government has set an ambitious target to make India a USD 5 trillion economy in the coming years. Addressing business leaders here at a session of All India Management Association (AIMA), Triveni Turbine's Vice Chairman and Managing Director Sawhney said, this is India's century and the numbers point towards a great future for India. The country has over a billion consumer base and a strong workforce. India is already the fifth-largest economy in the world and it is set to become the third-largest soon. "India's GDP is nearing USD 4 trillion and it is on the cusp of achieving a psychologically important USD 5 trillion mark. India's digital economy is on the steroids and is set to grow to USD 1 trillion by 2026," he said. At a time when the global economic growth is decelerat

Fed funds futures trade for December rate hike sees record volume

The fed funds futures market allows traders to place wagers on the precise timing of US central bank policy actions, and they did so to an eye-popping degree after this week's meeting

India slips one notch to 87th out of 165 nations on economic freedom index

India has fallen one notch to the 87th position out of 165 countries on the economic freedom index, according to a report released on Thursday. The country was at the 86th spot in previous year's rankings. The 'Economic Freedom of the World: 2021 Annual Report' by Canada's Fraser Institute has been released in India in conjunction with New Delhi-based think tank Centre For Civil Society. "From 1980 to now, India's rating has gone up considerably, from 4.90 to 6.62 but, our rank has fallen. This means while India is improving considerably in absolute terms but is not doing enough relative to other countries," it said. However, in South Asia, India is doing pretty well, as per the report. India reported marginal increase in the size of government (7.64 from 7.57) and and regulation of credit, labour and business (5.98 from 5.96), while it was down slightly in legal system and property rights (5.29 from 5.3) and freedom to trade internationally (6.19 from 6.27). A score closer to 10

US Federal Reserve policymakers expect 5.1% policy rate at end of 2024

The dialed back pace of anticipated policy easing next year goes hand in hand with what policymakers expect to be mixed progress toward the Fed's 2% inflation goal

Fed leaves rates unchanged at 5.25-5.50%, sees tighter policy through 2024

As they did in June, Fed policymakers at the median still see the central bank's benchmark overnight interest rate peaking this year in the 5.50%-5.75% range

Economy doing well even in unsupportive global environment: RBI MPC member

The Indian economy has started doing well even in an unsupportive global environment, as the Modi-led government implemented various reforms in the last nine years, resulting in improvements in key macroeconomic indicators, according to RBI Monetary Policy Committee (MPC) Member Ashima Goyal. But, there is still a long way to go to realise India's full potential, Goyal added. "The UPA government inherited a strong economy and benefitted from a high growth period. "But over-reaction to the global financial crisis after 2008 and many corruption scandals weakened the economy," she told PTI. Goyal was asked how she would compare the performance of the UPA government's ten years (2004-14) and the Modi-led NDA government's nine years in office. "The (Modi-led) NDA inherited double deficits (high fiscal deficit and high current account deficit), high inflation and weak banks, but has improved all these, and implemented other reforms so that the economy has begun to do well now even in a

Global economy to slow as rate hikes bite, says OECD chief economist

The European Central Bank delivered a 10th consecutive hike last week, though signalled that the peak may have been reached

Global debt hit record $307 trn in Q2 despite rising interest rate

The financial services trade group said in a report that global debt in dollar terms had risen by $10 trillion in the first half of 2023 and by $100 trillion over the past decade

Being 5th big economy 'impressive', per capita income must rise: Ex RBI Guv

While India becoming the fifth largest economy in the world is an 'impressive achievement,' there is a need to grow fast to increase the per capita income of the country from the present levels, former Reserve Bank of India Governor C Rangarajan said on Saturday. In his address at the 13th Convocation of the ICFAI Foundation for Higher Education, Rangarajan said post Covid-19 and the Russia-Ukraine war, there is a need to lay down a clear roadmap for India's future development and the first and foremost task is to raise the growth rate. Noting that India was today the fifth largest economy, he said, "this is an impressive achievement." "However, in relation to per capita income, it is a different story. In 2020, India's rank with respect to per capita income was 142 out of 197 countries. This only shows the distance we have to travel All the same, we have no choice but to grow fast, given the present level of per capita income," the former chairman of the Prime Minister's Economic

Global economy to weaken, economists confident of India growth: WEF study

Most economists expect the global economy to weaken in the coming year amid political and financial volatility, but a large majority of over 90 per cent are confident of moderate or strong growth in South Asia, notably India, a survey showed on Friday. At the same time, the outlook for China has dimmed following signs of deflationary pressures and fragility in the country's real estate market, the World Economic Forum's latest 'Chief Economists Outlook' report said. As the world grapples with political and financial volatility, almost six in 10 believe the global economic outlook will undermine progress towards meeting the UN Sustainable Development Goals (SDGs), with 74 per cent saying geopolitical tensions will have the same effect. As world leaders head to New York for the UN high-level week to discuss how to advance on the SDGs, the WEF report found that over 60 per cent of chief economists expect the global economy to weaken in the coming year amid uncertain domestic and ...