June 14, 2023
United States:
US Producer Prices Decline by More Than Forecast on Cheaper Gas
US producer prices declined in May, restrained by a drop in the cost of gasoline and underscoring a continued easing in supply-side inflation.
The producer price index for final demand decreased 0.3% from a month earlier, according to data out Wednesday from the Bureau of Labor Statistics. From a year ago, the PPI rose 1.1%, the smallest advance since the end of 2020.
Europe:
ECB’s €500 Billion Payoff Puts Italian Banks in the Firing Line
The European Central Bank is about to test the resilience of the continent’s banking industry by making lenders repay about half a trillion euros in cheap pandemic-era loans — in one go.
While the €4 trillion or so of excess liquidity sloshing around the financial system should limit the overall impact of the giant repayment, individual firms and countries could be strained, economists and analysts say. Smaller Italian lenders are the biggest concern, with Greek banks not far behind.
Asia:
Chinese Investors Shift More Cash Abroad in Blow to Local Stocks
Chinese investors are shifting more money into overseas assets as the Federal Reserve’s interest-rate hikes add allure to dollar deposits and bonds, putting pressure on slumping local stocks.
Outflows have been growing this year through two key channels that allow investors to buy assets abroad through licensed institutions. That’s straining regulatory quotas as local firms and onshore units of global giants like JPMorgan Chase & Co. and BlackRock Inc. race to tap the demand.
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