Overseas Headlines- August 31, 2020

August 31, 2020
United States:
Kashkari Says There’s No Urgency for Fed to Update Rate Guidance

“There isn’t any urgency for the Federal Reserve to offer more clarity on how long it will hold interest rates near zero at the moment because investors already understand the central bank won’t be tightening for a while, Minneapolis Fed President Neel Kashkari said. “Market expectations are that rates will be low for a long period of time, and so I don’t feel like there’s a burning pressure that we need to change our forward guidance today to change market expectations,” Kashkari said during an interview on the Bloomberg Odd Lots podcast with Joe Weisenthal and Tracy Alloway, recorded on Aug. 26 and published Monday.”



U.K. Tories Slam Tax-Hike Talk as Sunak Crunches on Budget Plans

“Lawmakers in Boris Johnson’s Conservative Party criticized the idea of increasing taxes to plug the country’s swelling budget deficit, after weekend reports suggested the Treasury is considering such plans in the autumn. Chancellor of the Exchequer Rishi Sunak faces a difficult challenge in the coming months, as he comes under increasing pressure to maintain spending to support Britain’s virus-ravaged economy, even with the national debt surpassing 2 trillion pounds ($2.7 trillion) for the first time in history..”




China’s Economic Recovery Continues on Strong Services

“Chinese economic activity continued to rebound in August, with a gauge of the services industry at the strongest level since early 2018 while the expansion in manufacturing activity slowed slightly. The non-manufacturing gauge rose to 55.2 from July’s 54.2, the National Bureau of Statistics said Monday. The official manufacturing purchasing managers’ index moderated to 51 from 51.1 a month earlier. A reading above 50 indicates conditions improved from a month earlier.”


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