Latest Finance-Economy News
Asia Stocks Rise as US CPI Backs Fed Rate Cut Bets
Asian markets opened higher following US CPI data that reinforced expectations for Federal Reserve rate cuts. Stocks staged a comeback with Treasury gains, while Japan's inflation held steady at 3%. BOJ decision and signals from Governor Ueda remain in focus amid positive sentiment.
EU Agrees €90B Loan to Ukraine Without Russian Assets
The EU finalized a €90 billion loan package for Ukraine, avoiding the use of frozen Russian assets. This deal aims to support Ukraine amid ongoing tensions, as highlighted in Bloomberg's Daybreak Europe. European leaders consider further lending from seized Russian funds.
Japan Inflation Steady at 3%, BOJ Policy in Spotlight
Japan's inflation rate remained at 3%, drawing attention to the Bank of Japan's upcoming decision and Governor Ueda's signals. Markets await clarity on monetary policy amid steady price pressures. JPMorgan analysts note positive economic outlook for Japan.
Fed Funds Rate Cut to 3.5-3.75%, FOMC Minutes Awaited
The Fed lowered rates to a three-year low of 3.5-3.75% in December, with minutes from the meeting due next week. Policymakers expect only one more cut in 2026 amid concerns over labor market and inflation. Flash PMI shows low hiring but tariff-related price spikes.
Euro Area GDP Growth Revised Up, Domestic Demand Drives Expansion
Eurosystem projections raised euro area GDP growth forecasts, driven by rising real wages, employment, and government spending on infrastructure. Lower energy prices and reduced trade uncertainty contribute positively. Services expand while industry remains subdued due to tariffs.
Global Economic Sentiment Turns Positive, Recession Fears Recede
McKinsey's December outlook shows executives optimistic for 2026, with brighter views on domestic economies and company profits. Trade policy concerns ease, boosting confidence in demand and AI investments. Nearly 70% now see recession as likely but demand-led.
India GDP Surges 8% in Early FY 2025-26 on Consumption Boom
India's real GDP grew 8% year-over-year in the first half, fueled by 7.5% private consumption and 7.6% capital formation. RBI rate cuts and tax relief enhance disposable incomes amid declining inflation. High-frequency indicators signal robust rural demand.
Global Growth to Accelerate to 3.4% in 2025, Then Moderate
KPMG forecasts global economic growth at 3.4% for 2025, slowing to 3.2% in 2026. Europe faces 1.6% growth with ECB cycle complete; US benefits from AI and tax refunds. Mexico and Turkey improve in business rankings.
US Trade Deficit Decreases in September 2025
The US goods and services trade deficit narrowed in September per BEA data. Upcoming Q3 GDP second estimate on Dec 23 will provide further insights into economic performance. This follows resilient demand trends.
US Forecasters Trim 2025 GDP Growth to 1.9%
Professional forecasters revised 2025 US real GDP growth down to 1.9% from earlier 2.1% predictions. Outlook for 2026 remains under scrutiny amid mixed labor and inflation signals. St. Louis Fed highlights past performance accuracy.
UK PMI Signals Growth, Potential for More BOE Cuts
Flash UK PMI for December shows business growth accelerating post-Budget uncertainty clearance. Inflation eases to 3.2%, paving way for Bank of England rate reductions in 2026. Households gloomier but firms report stronger orders.