China, being the world’s second-largest economy, plays a significant role in the global market. However, recent data on China’s manufacturing activity in May has raised concerns. The official manufacturing purchasing managers’ index (PMI) dropped unexpectedly to 49.5 in May from 50.4 in April. This decline indicates a contraction in the sector, reflecting challenges such as
Economy
The recent election projections in South Africa have sent shockwaves through the financial markets, causing a significant decline in the country’s currency, stocks, and bonds. The African National Congress (ANC) is facing the possibility of losing its parliamentary majority for the first time in 30 years, signaling a major shift in the political landscape of
The recent shift to faster trade settlements in the U.S. and other countries has been met with a mix of optimism and challenges. On Tuesday, U.S. trading moved to a one-day settlement cycle (T+1) from the previous two-day cycle, marking a significant change in the market infrastructure. While market participants have reported a generally smooth
Thailand’s central bank Deputy Governor, Alisara Mahasandana, emphasizes that interest rates are not a key factor for boosting the economy. This statement goes against the common belief that adjusting interest rates can significantly impact economic growth. While interest rates do play a role in influencing borrowing and spending decisions, Alisara suggests that there are other
New Zealand’s central bank recently implemented new restrictions on housing finance lenders to control the amount of debt relative to borrowers’ incomes. This decision comes amidst concerns about default risks in the country’s volatile housing market. Starting from July 1, banks are required to adhere to these new rules for new lending on residential properties,
The Governor of the Bank of Japan (BOJ), Kazuo Ueda, emphasized the cautious approach that the central bank will take towards inflation-targeting frameworks. He acknowledged that Japan faces some challenges that are particularly difficult due to years of ultra-easy monetary policy. Ueda mentioned in his speech at a BOJ-hosted seminar in Tokyo that Japan has
The U.S. inflation data, specifically the personal consumption expenditures (PCE) price index, is set to be released this week and will be closely monitored for clues on the direction of interest rates in the coming months. This data is crucial in determining whether the Federal Reserve will maintain its current interest rate trajectory or opt
As French President Emanuel Macron embarks on a three-day state visit to Germany, the longstanding relationship between the European Union’s two biggest powers is under scrutiny. Macron’s visit comes at a crucial time as the EU prepares for upcoming parliamentary elections, with both countries eager to demonstrate unity in the face of major challenges facing
In the midst of a prolonged economic crisis with high inflation, Argentine President Javier Milei is pushing for significant tax reductions as part of a broader strategy to reduce state intervention in the economy. This move comes as the country grapples with economic challenges, including inflation rates nearing 300% and strict capital controls that have
The recent meeting of finance leaders from the Group of Seven (G7) advanced nations in Stresa, Italy, reaffirmed their commitment to warn against excessively volatile currency moves. This commitment is crucial as it serves as a signal to global markets regarding the group’s stance on currency market stability. The G7 ministers’ statement following the meeting