June 18, 2024
United States:
US Industrial Output Rises More Than Forecast in Broad Advance
US industrial production increased in May, helped by a pickup in factory output in a positive sign for a manufacturing sector that has been struggling for momentum.
The 0.9% increase in production at factories, mines and utilities followed no change a month earlier, Federal Reserve data showed Tuesday. The gain exceeded all forecasts in a Bloomberg survey of economists.
United Kingdom:
BOE Losses on QE Over Three Times Greater Than Fed, Analyst Says
The Bank of England is losing over three times more on its quantitative-easing program than the US Federal Reserve, according to new research that threatens to reignite the political debate over the cost of more than a decade of BOE stimulus.
Christopher Mahon, head of dynamic real return at asset manager Columbia Threadneedle, said losses on the portfolio of government bonds the BOE bought between 2009 and 2021 amount to 4.7% to 4.9% of gross domestic product. That compares with 1.3% to 1.5% at the Fed and 3.2% to 3.4% at the European Central Bank.
Asia:
BOJ’s Ueda Keeps July Rate Hike Door Open Amid Skepticism
Bank of Japan Governor Kazuo Ueda kept the door open to a possible interest rate increase in July, defying market skepticism over the potential for such action after the bank said it would take another big step toward quantitative tightening next month via a cut in its bond buying.
“The reduction of bond buying and a policy rate hike are separate issues,” Ueda said Tuesday in response to questions in parliament. “There is a good chance for the policy rate to be raised, depending on data and information over the economy, inflation and financial conditions.”
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