Latest Finance-Economy News
Wall Street Closes Lower Ahead of December 2025 Federal Reserve Meeting
Wall Street indices declined with the Dow Jones down 0.4% as investors prepared for the key Fed decision on interest rates. Market volatility spiked nearly 10%, and 10-year US Treasury yields reached a two-month high, reflecting uncertainty. Markets price in an 89.6% chance of a 25 basis point rate cut, potentially the third this year, though the Fed vote may be split.
Federal Reserve Expected to Proceed with Final 2025 Rate Cut Amid Divisions
BBVA Research highlights that the US Fed is poised to cut rates by 25 basis points for the third consecutive time in 2025, driven by concerns over a weakening labor market. Despite data lags, inflation remains stable, and the Fed balance of risks leans toward easing monetary policy.
Chinese Premier Criticizes US Tariffs as China’s Trade Surplus Surpasses $1 Trillion
The Chinese premier said that US tariffs have severely impacted the global economy, even as China's trade surplus exceeded $1 trillion, showcasing resilience despite continued trade tensions and export pressure to the US market.
US Manufacturing Contracts Again in November While Services Expand, Job Cuts Rise
Manufacturing sector shrank for the ninth consecutive month with falling new orders and employment, while production and services expanded modestly. November saw a 24% increase in layoff announcements attributed to restructuring and AI impacts, indicating mixed economic signals domestically.
Market Eyes Third Fed Rate Cut This Week Amid Labor Market Softness and Inflation Risks
Kiplinger reports near 90% probability of another 25 basis point Fed cut on December 10, likely signaling moves toward a 'neutral' rate. Job growth remains low compared to labor supply, unemployment rising slightly, and inflation risks have eased, possibly hinting at emerging deflation concerns.
Global and Regional Markets Start Week Cautiously Ahead of Central Bank Decisions
Asian and European markets showed mixed performances with investors cautious ahead of key policy announcements. China’s exports remain strong despite US-China trade frictions. Inflation continues to cool worldwide, but central banks remain wary of premature easing amid uneven regional economic conditions.
Philippine Economy Slows to 5.1% in 2025; Recovery Projected by 2027 with Reforms
The World Bank projects Philippine growth slowing due to domestic shocks and weak investment, though consumption remains resilient. Growth expected to rebound in 2026–2027 supported by easing inflation, robust employment, and government infrastructure projects alongside reforms improving investment climate.
Global Economy Remains Resilient Entering 2026 Despite Policy and Geopolitical Challenges
Analysts forecast continued global economic expansion at about 2.7-2.8% in 2026-2027, sustained by resilience in trade and investment despite frictions from policy shifts and geopolitical events. Optimism is tempered by inflation persistence and labor market uncertainties.
Hard-to-Abate Industrial Sectors Face Challenges but Progress Toward Net-Zero Continues
Recent assessments highlight ongoing efforts to decarbonize heavy industries critical for net-zero targets, yet industrial transition remains difficult. Investments and reforms in green technologies are key to balancing economic growth with climate goals globally.
Emerging Markets Focus on Building Resilience to Unlock Growth Potential
Collaborative initiatives among governments, businesses, and international banks target strengthening economic resilience in emerging markets to sustain growth amid external shocks. This ecosystem approach aims to mitigate risks posed by geopolitical shifts and market volatility.