U.S. Losing Steam Foretells Europe’s Future Headwinds: Eco Week
“Growth data on both sides of the Atlantic in the coming week will reveal the impact of a multitude of headwinds that hit the U.S. during the third quarter and will soon come Europe’s way. Buffeted by the delta variant, supply shortages and inflation, the world’s largest economy is projected by economists to have expanded by an annualized 2.8%, amid a sharp slowdown in spending by American consumers. That’s less than half the 6.7% gain of the previous three months.”
Europe’s Inflation Shock Fizzles in German Post-Crisis Pay Talks
“The prospect that Europe’s surging inflation could stoke pay is being put to the test in the region’s largest economy as 3.5 million Germans in the public sector struggle to secure significant raises in wage talks. With annual consumer prices rising there by 4% and heading even higher, a new round of negotiations on Nov. 1 will help show if the post-crisis landscape has bolstered bargaining power at the heart of the euro zone. The evidence so far doesn’t favor the workers.”
Chinese Economy Risks Deeper Slowdown Than Markets Realize
“China’s economy risks slowing faster than global investors realize as President Xi Jinping’s push to cut its reliance on real estate and regulate sectors from education to technology combine with a power shortage and the pandemic. Bank of America Corp. and Citigroup Inc. are among those sounding the warning that expansion will fall short this year of the 8.2% anticipated by the consensus of economists. The slump could last into next year, forcing growth below 5%, they warn. Outside 2020’s 2.3%, that would be the weakest in three decades.”
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