Hot Chinese Waters
The second-largest global economy, China, currently faces a deflating property bubble, local governments struggling with debt payments, and a banking system exposed to these issues.
Go Deeper (3 min read)China's Gradual Recovery
Official figures indicate that China's retail sales contracted by 0.2% in 2022, a stark contrast to the 8% growth recorded in 2019.
Go Deeper (3 min read)Where Are Rates Going?
The threat of a bond selloff looms large, casting doubt on hopes for a soft economic landing. The surge in long-term interest rates, reaching levels not seen in 16 years, raises concerns, especially as the exact triggers behind this move remain unclear.
Go Deeper (4 min read)Households Are Not Cooling Down
By now, consumers were expected to reduce their spending for several reasons. Interest rates have risen, inflation remains high, pandemic-related savings have dwindled, and the labor market is showing signs of cooling.
Go Deeper (3 min read)Peak Europe?
The European Central Bank (ECB) has hiked interest rates by a quarter of a percentage point to a historic high but indicated that borrowing costs in the eurozone may have reached their zenith, causing the euro to plummet.
Go Deeper (2 min read)More from Markets
Powell Is Walking A Fine Line
Federal Reserve Chair Jerome Powell presented his case for maintaining current interest rates, while keeping the option open to raise them later this year if economic conditions fail to subdue inflation.
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Going Long On China?
Researchers at JPMorgan Chase estimated last month that China's overall debt, encompassing households, companies, and the government, had surged to 282% of the country's annual economic output.
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Deflation? The First Signs
China's economy has entered a period of deflation as consumer prices experienced their first decline since early 2021.
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A $ 12 Trillion Problem
China's "basket of measures" to address the risks posed by local government debt is anticipated to encompass a range of strategies, including special bond issuance, debt swaps, loan extensions, and a measure that Beijing has been reluctant to embrace: tapping into the central budget.
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China, The New Japan?
In the early 1990s, Japan captured the American imagination, but its remarkable rise turned into a prolonged decline, mainly due to demography.
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Rates At 22-Year High
The Federal Reserve made a unanimous decision to raise the benchmark federal-funds rate by a quarter-percentage-point, bringing it to a range between 5.25% and 5.5%.
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