The European Central Bank (ECB) held interest rates steady at 2% on Thursday amid significant economic uncertainty stemming from ongoing US-EU trade negotiations. While inflation met the 2% target last month, the ECB cited exceptional uncertainty, particularly concerning potential US tariffs on EU imports. ECB officials suggest their...
Existing US home sales dropped 2.7% in June to 3.93 million units, the slowest pace since September 2022, due to high mortgage rates (around 7%) and record-high median sales prices ($435,300). This marks a lackluster spring selling season, despite a 16% year-over-year increase in available homes. While inventory...
China's near-monopoly on rare earth element refining has given it significant leverage in global trade. This dominance, built over decades, involved initially chaotic, polluting domestic mining, followed by a government-led consolidation into six state-owned firms. China's recent restrictions on rare earth exports, implemented this spring, have disrupted global...
Argentine President Javier Milei's unconventional approach is revitalizing the nation's struggling economy. Since his December 2023 inauguration, Milei has tackled Argentina's long-standing economic woes, including shrinking GDP and massive public debt, particularly a $40 billion debt to the IMF. His unique policies, reminiscent of classical economic principles, offer...
US Treasury Secretary Scott Bessent anticipates extending the trade deadline with China beyond August 12th. Discussions in Stockholm next week will focus on extending a 90-day tariff suspension and broader issues. These include encouraging China to shift from manufacturing-heavy growth to a consumer economy, reducing reliance on sanctioned...
Moody's Analytics chief economist Mark Zandi warns of a significantly weakening housing market, poised to hinder overall economic growth. He cites slumping home sales, new home construction, and price declines as mortgage rates hover near 7%. Builders are reducing sales and delaying land purchases due to high costs....
President Trump's demand for a drastic Federal Reserve interest rate cut to 1% is deemed unrealistic by Wall Street experts. The current rate of 4.25%-4.50% would require a significant reduction, far exceeding the Fed's typical adjustments. Economists warn that such a move could trigger market turmoil, raise borrowing costs,...
India's reliance on discounted Russian oil could face consequences. The US has threatened secondary sanctions and tariffs on nations trading with Russia if a ceasefire isn't reached by September 2nd. The EU recently imposed an 18th sanctions package, including a lowered price cap on Russian oil and targeting...
Despite President Trump's tariffs, US retail sales rose 0.6% in June, exceeding economists' predictions. While inflation-adjusted growth was a more modest 0.3%, spending remained strong across various sectors, including restaurants and car dealerships. Although some businesses report slightly weakened spending and consumers seeking bargains, the low unemployment rate...
June's producer price index (PPI) remained unchanged, defying expectations of a 0.2% increase. Core PPI also mirrored this trend. While final demand goods prices rose 0.3%, this was offset by a decline in services. Year-over-year, headline PPI increased 2.3%, and core PPI rose 2.6%, both below May's figures....
