European Central Bank policymakers are facing a growing divide when it comes to their outlook on economic growth. While some fear a looming recession, others believe that inflation pressures are still a cause for concern. The recent interest rate cuts in June are seen as a temporary solution to the slowing price growth, but the
Economy
Volkswagen, Europe’s top carmaker, is facing mounting price pressure from Asian rivals, which has led to the consideration of closing factories in Germany for the first time. This move marks a significant clash between Chief Executive Oliver Blume and the unions that hold significant influence at VW. The decision to possibly shut down one large
Malaysia’s central bank, Bank Negara Malaysia (BNM), is expected to maintain its key interest rate at 3.00% through 2025, according to a recent poll of economists. Despite robust growth and well-controlled inflation, there is no immediate need for a rate cut. The Malaysian ringgit’s recent appreciation further supports the case for keeping rates steady to
Brazil’s Finance Ministry has put forward a plan to Congress that includes taxing big tech companies and implementing a global minimum tax of 15% on multinational corporations. The goal of these proposals is to secure the country’s fiscal position by 2025 in case of a revenue shortfall. The plan outlined by the Finance Ministry aligns
As per Bank of America Securities, investors are advised to consider hedging against the possibility of a significant nonfarm payrolls figure being released later in the week. This report is identified as a key source of potential volatility in the market, with analysts highlighting its importance in the current economic climate. S&P futures have shown
Brazil’s energy supply largely depends on hydroelectric plants, despite the growth of wind and solar power in recent years. This heavy reliance on hydroelectricity makes the country vulnerable to fluctuations in reservoir levels, especially during the dry season. Aneel, the local power regulator, has decided to activate the “red level 2” pricing system in September.
China’s lending to Africa has been a topic of interest in recent years, with a new independent study revealing some interesting trends. Last year saw a significant increase in Chinese loans to Africa, marking the first annual increase since 2016. This increase comes after a period of reduced lending due to the COVID-19 pandemic. Changing
China’s manufacturing sector experienced a significant slowdown in August, reaching a six-month low according to an official factory survey. The official purchasing managers’ index (PMI) declined to 49.1, below the 50-mark that separates growth from contraction. This unexpected decrease raises concerns and highlights the challenges faced by the manufacturing industry in China. The recent decline
The Bank of Israel is facing a challenging decision regarding its short-term interest rates in light of rising price pressures and persisting geopolitical risks. Deputy governor Andrew Abir has expressed that it is unlikely for the central bank to lower interest rates at its remaining policy meetings in 2024. Despite holding the benchmark interest rate
Poland’s largest opposition party, the nationalist Law and Justice (PiS), faced a major setback when the electoral commission announced its decision to revoke millions in state funding due to the misuse of public funds for campaigning. This decision came as a blow to PiS, which had emerged as the top party in the 2023 general