Economy Financial News

By Lucia Mutikani

By Howard Schneider

UBS Private Wealth Management financial adviser Sarah Ponczek and Lou Basenese discuss how rising interest rates and inflation are impacting markets on 'Mornings with Maria.'

Federal Reserve officials in December concluded that interest rate cuts are likely in 2024, though they appeared to provide little in the way of when that might occur, according to minutes from the meeting released Wednesday. At the meeting, the rate-setting Federal Open Market Committee agreed to hold its benchmark rate steady in a range between 5.25% and 5.5%. Members indicated that they expect three quarter-percentage point cuts by the end of 2024. However, the meeting summary noted a high level of uncertainty over how, or if, that will happen. «In discussing the policy outlook, participants viewed the policy rate as likely at or near its peak for this tightening cycle, though they noted that the actual policy path will depend on how the economy evolves,» the minutes stated. Officials noted the progress that has been made in the battle to bring down inflation.

The EUR/USD’s sluggish start to the year continued in the first half of Wednesday’s session, with investors showing a preference for the US dollar ahead of key data releases from the world’s largest economy.

Aluminium has successfully replaced timber in house construction, significantly contributing to the prevention of tree cutting. It is used in aircraft making for its light-weight tensile strength, and the same applies to renewable energy projects. As India witnesses increased government spending on infrastructure, our challenge lies in finding the extent to which aluminium usage can be expanded in these projects.

improvement in factory employment. The Institute for Supply Management (ISM) said on Wednesday that its manufacturing PMI increased to 47.4 last month after being unchanged at 46.7 for two straight months. It was the 14th consecutive month that the PMI stayed below 50, which indicates contraction in manufacturing. That is the longest such stretch since the period from August 2000 to January 2002.

smartphone industry, Xiaomi India President Muralikrishnan B said on Wednesday as he pointed to the pace of economic growth, positive consumer sentiments, as well as the 5G devices uptick. Terming India as a market of multitudes, Muralikrishnan asserted that there is an opportunity to have compelling 5G offering at every price point.

With U.S. Federal Reserve officials expecting to cut interest rates in 2024, there are steps investors can take now to prepare.

Richmond Federal Reserve President Thomas Barkin on Wednesday expressed confidence that the economy is on its way to a soft landing, but obstacles remain that will require caution from him and his fellow policymakers.

In December, more than 190 governments at the United Nations climate conference approved an agreement calling for a transition away from fossil fuels to combat global warming. The COP28 conference was widely viewed as a turning point in the fight against global warming. The effort will require a massive amount of technology, but much of it is too expensive and won’t come down in price without public subsidies and investment, said Boston Consulting Group Global Chair Rich Lesser.

2023 was a roller coaster of a year for the markets, fuelled by rate-cut expectations from the US, the UK and Europe, global tensions erupting in the Middle East and, not least of all, disappointing news from China’s economy.

Yogi Adityanath on Wednesday said that while every countryman is happy to see the state's progress, the world is surprised because there was an atmosphere of disappointment, frustration and anarchy here before 2017. «Every countryman is today happy to see the progress of Uttar Pradesh and the world is surprised because before 2017, there was an atmosphere of disappointment, frustration and anarchy here,» Adityanath said at a programme here. The BJP came to power in 2017 after removing Akhilesh Yadav led Samajwadi Party government.

Main kuchh bhi achha lage isliye nahin karta, lekin achha ho isliye karta hoon. Growing up in poverty and having had the good fortune of being connected to people at the grassroots gave me an insight into how reforms should focus on improving the lives of the people, and not on mere headlines," he told the publication.

₹24,300 crore of foreign exchange in the supply year 2022-23, said Union Petroleum Minister Hardeep Puri on Wednesday. Public sector oil marketing companies (OMCs) have saved about 509 crore litres of petrol on account of ethanol blending during the ethanol supply year 2022-23, besides leading to an expeditious payment of about ₹19,300 crore to farmers. It is estimated that a net reduction of net carbon dioxide to the tune of 108 lakh metric tonnes was seen during the period.

BEIJING (Reuters) — China on Wednesday said a situation in which national security restrictions severely impede global growth due to «the politicisation of economic and trade issues» would be «immoral and unsustainable». after a International Monetary Fund warning.

Investing.com — The U.S. dollar steadied near two-week highs in early European trade Wednesday ahead of the release of the minutes of the Federal Reserve’s December meeting.

Investing.com — European stock markets steadied Wednesday, with the risk rally that dominated sentiment at the end of last year pausing as investors digested key economic data. 

(Reuters) — Some of China's top banks have sharpened scrutiny of smaller peers' asset quality and have tightened standards for interbank lending, three sources said, in an effort to curb credit risk as a deepening property debt crisis ripples through the economy.

By Laura Sanicola and Trixie Yap

A survey of factory managers in China shows manufacturing contracted in December in the latest sign the world's second-largest economy remains sluggish