The recent sell-off on Wall Street has sent shockwaves across global markets, with traders seeking refuge in safe-haven assets like the Japanese yen. This surge in the yen’s value has been accompanied by a decline in riskier currencies such as the Australian dollar and sterling. The catalyst for this shift was soft U.S. manufacturing data,
Economy
The recent news that Volkswagen is considering closing factories in Germany for the first time raises concerns about the mounting price pressure the carmaker faces from Asian rivals. This move represents a significant shift in strategy and marks the first major clash between Chief Executive Oliver Blume and the influential unions at VW. The potential
European Central Bank policymakers are currently facing a rift when it comes to their outlook on economic growth. This division within the ECB could potentially shape the ongoing debate regarding the rate cut decision for the coming months. Some members are concerned about the possibility of a recession, while others are more focused on the
As per the forecasts by economists, Bank Negara Malaysia (BNM) is anticipated to maintain its key interest rate at the current level of 3.00% through 2025. The decision to keep the interest rate stable reflects the country’s robust economic growth and manageable inflation rate. Despite inflation hovering around 2.0%, the Malaysian ringgit has shown significant
Brazil’s Finance Ministry has presented a series of tax proposals aimed at taxing big tech companies and implementing a global minimum tax on multinational corporations in order to reach its fiscal goals for 2025. These measures are part of a larger effort to align with global discussions on tax cooperation and address revenue shortfalls in
Investors are being advised by Bank of America Securities to consider hedging against the potential volatility that may arise from a strong nonfarm payrolls figure later this week. The nonfarm payrolls report has once again become the most crucial data release for the stock market, according to analysts at BOA Securities. They have pointed out
The latest decision by the local power regulator in Brazil, Aneel, to impose an additional charge on electricity bills due to low reservoir levels at hydroelectric plants has raised concerns among Brazilians. This move comes at a time when the country is experiencing a dry season and has led to consumers having to pay more
In recent years, Chinese lenders have played a significant role in providing loans to African countries, fueling infrastructure development and economic growth on the continent. A recent independent study has revealed some interesting trends in Chinese lending to Africa, indicating a shift in China’s strategy and priorities. While Chinese lending to Africa saw a significant
China’s manufacturing sector has hit a six-month low in August, according to an official factory survey. The official purchasing managers’ index (PMI) fell to 49.1 from 49.4 in July, below the 50-mark that indicates a contraction in the sector. This decline has led to expectations that policymakers will need to introduce fresh stimulus measures, with
In a recent statement made by deputy governor Andrew Abir, it was revealed that the Bank of Israel is not expected to reduce short-term interest rates at its upcoming policy meetings in 2024. This decision comes as a response to increasing price pressures and ongoing geopolitical risks in the region. The central bank has maintained