Overseas Headlines – June 17, 2022

United States:

US Factory Output Surprises With First Decline in Four Months

“US factory production unexpectedly declined in May for the first time in four months, restrained by ongoing supply challenges and hints of cooler demand for some big-ticket consumer goods. The 0.1% decrease followed 0.8% increases in the prior two months, Federal Reserve data showed Friday. Total industrial production, which also includes mining and utility output, rose 0.2% last month.”



Bank of England Should Go Faster on Rates, NatWest Chairman Says

“The Bank of England should raise rates more quickly to signal its willingness to tackle inflation over the medium term, according to NatWest Group Plc Chairman Howard Davies. The weakness of sterling is adding to global pressure from rising fuel and food prices, he said in an interview with Bloomberg TV Friday. “If you get a very sharp exogenous shock, like an oil price increase of the sort we’ve had, and the war, then you can’t expect central banks to deal with that instantly,” he said.”



China Budget Dilemma Is Whether to Boost Debt or Slow Growth

“China’s local governments are caught in an unexpectedly severe budget squeeze, creating a dilemma for officials over whether to boost debt or tolerate weaker economic growth. Maintaining the Covid Zero policy is both slowing the economy and also adding huge extra costs to government budgets, which have to pay for regular mass testing, quarantine hospitals, as well as food provision and other services during lockdowns in places like Jilin or Shanghai.”



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