August 8, 2023
United States:
US Bank Shares Drop After Moody’s Cuts Ratings, Warns on Risks
US bank stocks declined after Moody’s Investors Service lowered its ratings for 10 small and midsize lenders and said it may downgrade major firms including U.S. Bancorp, Bank of New York Mellon Corp., State Street Corp., and Truist Financial Corp.
Higher funding costs, potential regulatory capital weaknesses and rising risks tied to commercial real estate are among strains prompting the review, Moody’s said late Monday.
Europe:
ECB Says Consumer Inflation Expectations Fell Further in June
Consumer expectations for euro-area inflation fell in June but remained above the European Central Bank’s 2% target as officials ponder whether to continue their unprecedented bout of interest-rate hikes.
Expectations for the next 12 months declined to 3.4% from 3.9% in May, the ECB said Tuesday in its monthly survey. For three years ahead, they dropped to 2.3% from 2.5%.
Asia:
China’s Trade Plunges More Than Forecast in Blow to Recovery
China’s trade plunged in July as slowing global demand clouded the outlook for exports, while domestic pressures weighed on imports in a hit to the economic recovery.
Overseas shipments dropped 14.5% in dollar terms last month from a year earlier — the worst decline since February 2020 — while imports contracted 12.4%, the customs administration said Tuesday. That left a trade surplus of $80.6 billion for the month. The export and import figures were worse than what economists polled by Bloomberg had expected.
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