Category: Economy
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Japan Cuts Spending for 1st Time in 12 Years as Central Bank Contemplates Policy Shift
Fiscal Plan Reflects Debt-Dependence and Rising Borrowing Costs One significant aspect of the fiscal plan is the estimated reliance on debt, accounting for 31.2% of the budget. This means that new bond sales constitute one-third of total budgetary funding. With super-low interest rates prevailing for more than two decades, fiscal discipline has weakened, leading to […]
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0DTE Options: Fueling Market Decline and Raising Volatility Concerns
0DTE Options Significantly Impacting the Market The increased popularity of 0DTE options among retail and institutional investors has made them a major market mover this year. Although options trading volume reached record highs, the growth in 0DTE contracts far outpaced all other expiry terms. Cboe data from August revealed that these short-dated contracts accounted for […]
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Argentine Stocks Dip as Protests Escalate Against Presidential Decree
Focus on Congressional Response and Investor Confidence As bond spreads narrow to their tightest levels since early February, investors are becoming more confident in the government’s ability to meet debt obligations. However, the fate of the presidential decree lies in the hands of the legislative Bicameral Commission and both houses of congress. According to Bruno […]
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US Inflation Data to Determine Federal Reserve’s Room for Interest Rate Cuts
Focus on U.S. Core PCE Print for Inflation Insight The market’s attention is now on the U.S. core personal consumption expenditures (PCE) print, which serves as the Federal Reserve’s preferred gauge of underlying inflation. This data will provide clues about the pace of inflation in the world’s largest economy. Analysts expect the core PCE price […]
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Japan’s Core Inflation Eases, Raising Doubts Over BOJ Policy Tightening
Introduction Japan’s core consumer price index (CPI) inflation eased in November, raising doubts about the Bank of Japan’s (BOJ) plans to tighten its ultra-loose policy. The core CPI, which excludes volatile fresh food prices, rose by 2.5% year-on-year, in line with expectations but slower than the previous month’s reading of 2.9%. This marked the slowest […]
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Brazil Sets New Regulations to Curb Sky-High Credit Card Interest Rates
Introduction BRASILIA (Reuters) – Brazil’s National Monetary Council, the country’s top economic policy body, has implemented regulations to address the issue of skyrocketing interest rates and financial charges associated with revolving credit card lines. These regulations, which were passed into law in October, aim to limit the interest rate to twice the initial debt amount. […]
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US Unemployment Claims Rise Only Slightly, Indicating Momentum in Economy
Economic Momentum Grows as Year Draws to a Close The latest data from the Labor Department suggests that the US economy is gaining momentum as the year comes to an end. The number of Americans filing new claims for unemployment benefits increased by a small margin last week. However, this was offset by positive indicators […]
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Biden Administration Pushes for Seizure of Russian Assets to Aid Ukraine
Reconsidering Existing Authorities and Seeking Congressional Action Until recently, Treasury Secretary Janet L. Yellen maintained that seizing the funds was not legally permissible in the United States. Top American officials also expressed concerns about the potential impact on the global financial system. However, the administration, in collaboration with the Group of 7 industrial nations, is […]
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Brazil’s Central Bank Maintains Easing Pace Despite Lower Inflation, Promises Further Rate Cuts
Inflation Expectations and Rate Cuts Brazil’s central bank emphasized its commitment to maintaining an easing pace in future policy meetings, despite recent downward surprises in current inflation. While inflation for the quarter ending in November was 40 basis points lower than expected, the central bank stated that expectations for the coming years remain above the […]
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China Strengthens Grip on Rare Earths, Bans Export of Extraction Technology
China Strengthens Protective Measures for Strategic Metals China, as the world’s leading rare earth processor, has taken another significant step in safeguarding its dominance in strategic metals by imposing a ban on the export of technology utilized in the extraction and separation of these essential resources. The country’s commerce ministry initiated public consultation in December […]