Overseas Headlines – July 16, 2021

United States:

Gain in U.S. Retail Sales Underscores Solid, Steady Consumer

“U.S. retail sales rose unexpectedly in June, reflecting fairly broad gains across spending categories and wrapping up a solid quarter for household demand. The value of overall retail purchases advanced 0.6% last month following a downwardly revised 1.7% drop in May, Commerce Department figures showed Friday. Excluding autos, sales jumped 1.3% in June.”



BOE Asset-Buying Risks Stoking Prices, Inequality, Lords Say

“The Bank of England’s asset-buying program risks stoking inflation, widening inequality and has done little to boost economic growth since it began over a decade ago, members of Parliament’s upper chamber concluded. The House of Lords Economic Affairs Committee, which includes former BOE Governor Mervyn King, also said quantitative easing poses a “serious danger” to the public finances because debt held by the central bank is sensitive to the interest-rate increases that may be needed to stop prices rising too quickly.”



China Growth Forecasts Raised as Consumer Spending Strengthens

“China’s better-than-expected economic data in June and a stronger pickup in consumption prompted several economists to raise their growth forecasts for the rest of the year. Standard Chartered Plc, JPMorgan Chase & Co and ING Bank NV upgraded their projections, citing surprisingly strong activity last month and the central bank’s shift away from a policy tightening bias.”



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