September 11, 2024
United States:
Core US Inflation Picks Up, Damping Odds of Outsize Fed Cut
Underlying US inflation unexpectedly picked up in August on higher prices for housing and travel, undercutting the chances of an outsize Federal Reserve interest-rate cut next week.
The so-called core consumer price index — which excludes food and energy costs — increased 0.3% from July, the most in four months, and 3.2% from a year ago, Bureau of Labor Statistics figures showed Wednesday. The three-month annualized rate advanced 2.1%, picking up from 1.6% in July, according to Bloomberg calculations.
United Kingdom:
UK Economy Stagnates for Second Month in Setback for Starmer
The UK economy stagnated for a second month in July, suggesting that a rapid recovery from recession is now losing momentum in a blow for Prime Minister Keir Starmer.
Gross domestic product was unchanged after flatlining in June, the Office for National Statistics said Wednesday. Economists were forecasting a 0.2% increase. Declines in production and construction were offset by the powerhouse services industry.
Asia:
China’s Bond Intervention Sinks Short-End Rates, Boosts Trading
China’s intervention in the nation’s government bond market is leading to abnormalities across the curve, from a surge in trading of non-benchmark “special” securities to a slump in yields on short-maturity debt.
Transaction volume of a 10-year bond the central bank may have sold in order to intervene in the market surged eightfold on Tuesday and it’s now the second most actively traded sovereign note, according to official data. Meanwhile, suspected buying by the authorities sent one-year yields below the overnight borrowing rate.
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