Key Economic Events You Need to Know: What’s Been Happening in the World?
Global Economy Weekly Roundup
As we wrap up another week, the global economy is facing significant events and crucial data.
The United States and China continue to take the spotlight, with investors closely monitoring the American economic resilience, the Fed’s monetary policy, and China’s growth trajectory.
1.
USA: Signs of Economic Slowdown?
In the US, the core consumer price index, which excludes food and energy costs, rose by 0.3% in March, breaking a streak of three higher-than-expected values.
This raised concerns about entrenched inflation.
Reports this week have indicated a slow start to the economy in the second quarter, suggesting a cooling demand that could pave the way for a Fed interest rate cut by the year’s end.
2.
USA-China Trade Tensions
President Joe Biden imposed additional tariffs on Chinese exports to the US, particularly doubling tariffs on electric vehicles to 100%.
The Chinese automotive industry’s expansion faces resistance, with Biden stating, “We will not let China flood our market,” with an eye on crucial November election votes from Michigan, the heart of the US auto industry.
3.
China: Economic Decisions Amid Real Estate Concerns
To support the Chinese real estate market, President Xi Jinping’s government is easing mortgage rules and encouraging local governments to buy unsold homes amid worries about the sector’s economic growth slowdown.
Bloomberg Economics suggests that the economic weight of the real estate sector in China could decrease to about 16% of the GDP by 2026, potentially putting around 5 million people at risk of unemployment or income reduction.
4.
Anglo American’s Strategic Moves on Metals
Anglo American plans to spin off its business and reject a revised takeover bid from Bhp valued at £34 billion ($43 billion).
The company will divest its coking coal assets and spin off the De Beers’ platinum and diamond divisions.
Anglo is also evaluating options for its nickel business to focus on copper, iron ore, and crop nutrients, with its headquarters in London and 45,000 employees in South Africa.
