Economy
Wall Street banks clash over Fed’s GSIB capital surcharge reform
JPMorgan and Bank of America warn of $22 billion in lost capital relief as Goldman Sachs and Morgan Stanley stand to gain. Fed faces mounting pressure ahead of 2027 House oversight shift.
U.S. new home sales fall 10.5% in July as mortgage rates weigh
Sales pace drops to 607,000 units, the lowest since January, while median price falls to $393,800. Consumer buying plans decline to five-year low.
U.S. July PCE inflation data meets expectations, Fed rate path in focus
Core PCE rose 0.2% month-on-month and 3.3% year-on-year in July, aligning with forecasts as markets await Fed commentary. Analysts see steady rates in September, with December hike odds rising.
Italy extends diesel tax cut through early September
Cabinet approves €130 million revenue loss to sustain €17 per liter duty reduction until September 5. Government signals potential targeted aid for lower-income households after expiry.
Colombia struck by 5.1-magnitude quake, no damage reported
A tremor near Los Santos in Santander province registered 5.1 on the Richter scale Wednesday morning, prompting evacuations in Bogotá. Authorities reported no structural damage.
U.S. mortgage rates steady near 6.66% as housing market cools
30-year fixed mortgage averages 6.66% for the week ended Aug. 27, unchanged from the prior week, while 15-year rates rise to 5.98%. Freddie Mac chief economist cites resilient economy and improving supply.
UAE probes Banque Misr UAE after U.S. blocks dollar clearing over Iran ties
Central Bank of UAE launches urgent review of Egypt’s state-owned lender’s Emirati operations following U.S. action citing alleged Iranian financial channel links. Investigation covers transactions over the past two years.
Warsh at Jackson Hole: Fed keeps September rate hike in play, prioritizes inflation
Fed policymaker Kevin Warsh signals readiness to raise rates if inflation fails to cool, while Truist Wealth warns of shifting market dynamics. Treasury yields flatten on hawkish tone.
Mexico posts $8.93 bln current account surplus in Q2, central bank says
Second-quarter surplus contrasts sharply with a revised $18.23 bln deficit in Q1, driven by trade and remittance flows. Central bank data released Tuesday.
Boston Fed's Collins signals near-term rate hike if inflation progress stalls
Boston Federal Reserve President Susan Collins warns rates may need to rise soon if sustained disinflation evidence fails to materialize. Her remarks precede a key Fed symposium.
Boston Fed's Collins signals near-term U.S. rate hike unless inflation keeps falling
Fed official warns rates may need to rise soon if sustained disinflation evidence fails to materialize despite recent progress.
Swiss lawmakers propose restricting 13th pension to domestic retirees
Motion would exclude foreign-based recipients from the supplemental December payment, citing cost-of-living disparities and limited savings potential. Federal council opposes proposal on legal grounds.
Mexico reports $8.93 billion current account surplus in Q2
Surplus reverses Q1 deficit as inflows strengthen; surplus equals 1.65% of GDP, central bank data shows.
U.S. consumer confidence falls to 89.4 in August, lowest since January
Index drops to 89.4 from revised 90.2 in July, with inflation expectations rising to 5.8% over the next year. Conference Board cites deteriorating labor market and business outlook.
U.S. consumer confidence hits seven-month low in August: Conference Board
Index falls to 89.4 as inflation outlook worsens and labor market sentiment sours, according to the Conference Board's latest survey.
U.S. new single-family home sales drop 10.5% in July to 607,000 units
Decline follows June's downward revision and exceeds Reuters' 620,000-unit consensus estimate as high mortgage rates and elevated prices curb demand.
U.S. consumer confidence falls for second straight month in August
Conference Board index drops to 89.4 from downwardly revised 90.2 in July, as persistent inflation and elevated energy costs weigh on sentiment.
Jackson Hole focus shifts to who bears the cost of rising U.S. deficits
Annual Fed gathering examines fiscal dominance risks as budget gaps exceed 4% of GDP for five straight years. Central bank independence and inflation history frame the debate.
Bessent warns disorderly yen moves could destabilize global markets
A senior executive cautions that sharp, unmanaged fluctuations in the yen could disrupt international financial stability.
Druckenmiller criticizes US Treasury plan to suppress bond yields
Investor Stanley Druckenmiller argues that government efforts to artificially lower long-term U.S. Treasury yields will fail, citing a long-standing principle that markets ultimately prevail. The criticism comes as yields hit multi-decade highs amid rising debt and investor demand for higher compensation.
Brazil’s central bank to auction $1 bln spot FX and reverse swap on Thursday
The Banco Central will conduct two simultaneous auctions totaling up to $2 billion, aiming to tighten dollar liquidity and stabilize the exchange rate.
U.S. mortgage delinquencies fall in July, foreclosures rise
National delinquency rate drops to 3.39% as serious delinquencies and foreclosure starts increase year-over-year. Louisiana reports highest non-current rate, Idaho the lowest.
What UK households expect from the Budget
The upcoming UK Budget will be scrutinised for measures addressing household finances amid cost-of-living pressures.
U.S. consumer confidence falls to 89.4 as uncertainty weighs
Index declines from 90.2 to 89.4 in August, missing forecasts of 90.3 and signaling caution amid persistent inflation and growth concerns.
U.S. new home sales drop to 607,000 in July, missing forecasts
July new home sales fell 10.5% to 607,000 units, missing expectations of 620,000, as rising mortgage rates and construction costs weighed on demand.