August 30, 2023
United States:
US Second-Quarter Growth Rate Cut to 2.1% on Business Spending
The government’s main measure of US economic activity in the second quarter was revised lower, as more moderate business investment than initially reported outweighed stronger consumer spending.
Gross domestic product rose at a revised 2.1% annualized pace in the second quarter, below the government’s previous estimate. The downward revision to GDP reflected less inventory and nonresidential fixed investment. Household spending, the engine of the US economy was revised higher, to a 1.7% pace.
Europe:
Stubborn Inflation in Germany and Spain Keeps ECB on Alert
Inflation slowed less than expected in Germany and quickened in Spain, offering European Central Bank officials a partial picture of the region’s price pressures as they judge whether to raise interest rates again.
The numbers published Wednesday point to the possibility of a robust outcome when the euro-zone report is released the following day — data policymakers have highlighted as crucial to their Sept. 14 decision.
Asia:
China Moves to Stabilize Finances of Troubled Shadow Bank
China has asked two of the nation’s biggest financial firms to examine the books of Zhongrong International Trust Co., potentially paving the way for a state-led rescue of the troubled shadow lender, according to people familiar with the matter.
Citic Trust Co., a unit of conglomerate Citic Group Corp., and CCB Trust Co., backed by China Construction Bank Corp., will lead the effort to stabilize operations at Zhongrong, said the people, who asked not to be identified discussing a private matter. It couldn’t immediately be determined what might result from their involvement, though a similar examination by Citic of Huarong Asset Management Co. led to a $6.6 billion bailout of the bad-debt manager in 2021.
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