Category: Economy
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EU Leaders Set to Reach Deal on €50 Billion Aid for Ukraine, Resolving Hungary’s Concerns
”’ Hungary’s Concerns and US Influences Hungary, led by Prime Minister Viktor Orban, who has close ties with Moscow, has expressed skepticism about the amount of aid and its allocation within the EU budget. As per EU regulations, all 27 EU member states, including Hungary, must unanimously agree on the budget. An EU agreement is […]
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Yellen Expects Soft Landing, Sees Inflation Falling, Consumer Confidence Rising
Yellen Predicts Continual Decline in Inflation US Treasury Secretary Janet Yellen expressed her confidence in the declining trend of inflation during an interview with CNBC. According to Yellen, there is still progress to be made for the Federal Reserve to achieve its 2% inflation objective. However, she believes that by the end of 2024, inflation […]
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Argentines Brace for Austerity Measures and Currency Devaluation Impact
Impact on Argentines and Economy On the streets of Buenos Aires, Argentines are grappling with the ramifications of major austerity measures and a more than 50% devaluation of the local peso currency. This shock plan, unveiled by the government of new libertarian President Javier Milei, aims to stabilize the economy and has garnered support from […]
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German Coalition Agrees on Budget as Government Plugs 17 Billion Euro Gap
Wrangling Follows Constitutional Court Ruling German Chancellor Olaf Scholz’s three-way coalition has reached an agreement on the budget for next year after a month of negotiations that ensued following a constitutional court ruling that disrupted the government’s financial plans. In an effort to address a 17 billion euro ($18.33 billion) funding gap, the government intends […]
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Argentina Implements Drastic Economic Changes, Receives Cautious Investor Approval
Positive Market Reception to Key Changes The eagerly anticipated changes, revealed by Economy Minister Luis Caputo on Tuesday, did not disappoint investors. The measures included a remarkable 50% reduction in the official peso rate, significant cuts to energy subsidies, and the cancellation of public works tenders. While trading of Argentine debt and equities experienced muted […]
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China’s November Bank Lending Falls Short of Expectations as Economy Struggles
Modest Policy Easing Expected Despite Feeble Recovery New bank lending in China experienced a smaller-than-expected increase in November, signaling a feeble recovery in the country’s second-largest economy. Despite the central bank’s accommodative policies, Chinese banks extended 1.09 trillion yuan ($151.73 billion) in new yuan loans last month, falling short of analysts’ expectations. This figure is […]
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Argentina Implements Bold Economic Shock Therapy to Tackle Worst Crisis
Verisk Maplecroft Analyzes the Repercussions Verisk Maplecroft has offered insights into Argentina’s latest move. They observe that the reordering of economic variables, along with the accumulated inflation and inflationary inertia that have been suppressed through price controls, will continue to affect consumers with triple-digit inflation until 2024. Nonetheless, by aligning the official FX rate closer […]
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UK Economy Contracts in October, Testing Bank of England’s Resolve
GDP Falls by 0.3% in October Britain’s economy experienced a contraction in October, according to official data released on Wednesday. This development puts the Bank of England’s commitment to maintaining high interest rates to the test. The Office for National Statistics reported a 0.3% decrease in Gross Domestic Product (GDP) compared to September, which differed […]
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Central Banks May Soon Grapple with Inflation Undershoot, Warns Expert
A Surprising Twist in the Inflation Reading Despite the prevailing euphoria surrounding disinflation and interest rate easing, it is also essential to acknowledge the stumbling blocks inherent in the journey towards achieving the desired 2% inflation target. Tuesday’s news brought with it the revelation of a somewhat unexpected, albeit minor, increase in the monthly U.S. […]
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Powell’s Pivot: All Eyes on Fed Chief as Rate Decision Looms
Federal Reserve Rate Decision and Chairman Powell’s Language in Focus The upcoming Federal Reserve rate decision is widely expected to be a non-event, shifting the focus to Chairman Jerome Powell’s language and the central bank’s dot plot for future policy. Although Tuesday’s U.S. inflation data did little to change expectations for next year’s rate cuts, […]