July 28, 2023
United States:
Key US Inflation, Wage Measures Cool in Boost for Soft Landing
Key measures of US inflation and labor costs cooled significantly in recent months, adding to growing optimism that the economy may be able to avoid a recession.
The employment cost index, a broad gauge of wages and benefits, increased 1% in the second quarter, marking the slowest advance since 2021, according to Bureau of Labor Statistics figures released Friday.
Europe:
European Banks Unleash $5 Billion in Buybacks on Rates Boost
Europe’s biggest banks announced new share buybacks worth $5 billion this week as they continue to benefit from higher interest rates.
Spanish lender Banco Bilbao Vizcaya Argentaria SA unveiled a program of as much as €1 billion ($1.1 billion), with Standard Chartered Plc leading in the UK with a $1 billion buyback.
Asia:
BOJ’s Surprise Foreshadows End to Key Anchor for Global Yields
The Bank of Japan finally appears to be preparing for an end to its controversial yield curve control program, a policy that has helped provide an anchor for interest rates around the world.
BOJ Governor Kazuo Ueda surprised investors on Friday by announcing the central bank would allow yields to rise above a ceiling it now calls a point of reference. That paves the way for a future normalization of policy that has implications for a wide range of global assets and for markets heavily exposed to Japanese money, even if investors need not panic for now.
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