WASHINGTON (AP) — White House says deals struck to reduce cost of 10 drugs, saving taxpayers and Medicare recipients billions of dollars.
Recent market history shows the Federal Reserve typically only starts interest cuts with 50 basis point reductions when the economy is significantly weakening.
The Consumer Price Index (CPI) increased 2.5% over the prior year in August, a deceleration from July's 2.9% annual gain in prices.
Business confidence at big Japanese manufacturers sank to a seven-month low in September, with managers across a wide range of sectors citing soft Chinese demand as a concern, a Reuters monthly poll showed on Wednesday. The mood at non-manufacturers fell for a third consecutive month, to a one-year-low, according to the Reuters Tankan survey, suggesting a gloomy sentiment after the Bank of Japan (BOJ) raised interest rates in July. The Reuters Tankan, which closely tracks the BOJ quarterly business survey, showed the sentiment index for manufacturers was at plus 4 in September, down sharply from August's plus 10 and the lowest since February's minus 1.
STORY: Volkswagen has scrapped decades-old jobs guarantees - setting the stage for possible layoffs, and a bitter battle with unions. The move covers six plants in Germany, where jobs had been protected until 2029. It comes after the car giant warned it could shut factories in the country for the first time in its 87-year history. That news sent shockwaves through Germany’s vast auto sector, and prompted concern at the highest levels of government. But VW says it has to act amid mounting competition from Asian rivals with lower costs. The company also faces huge costs making the transition to new-technology vehicles. And it’s operating amid a difficult economic climate, with growth uncertain and energy prices high. However, the head of the VW works council has promised fierce resistance to any cuts. Unions have also proposed a shift to four-day weeks instead of job losses - replicating an earlier cost-cutting drive from the 1990s. If the two sides cannot agree by next June, then labor agreements in place prior to 1994 would come into force. Unions say that would actually result in pay rises and other benefits - but would also permit redundancies. The works council called for a negotiated settlement, saying VW would otherwise press ahead with layoffs as soon as next summer, while facing higher costs for those staff that remain. It also called for an early start to this year’s pay negotiations, ahead of possible strikes penciled in for late November.
WASHINGTON (Reuters) -The number of Americans filing new applications for unemployment benefits increased marginally last week, suggesting that layoffs remained low even as the labor market slows. Other data on Thursday showed producer prices rising slightly more than expected in August amid a rebound in the cost of services, including guest house rentals. The combination of a fairly stable labor market and still-high inflation further diminished the chances of the Federal Reserve cutting interest rates by 50 basis points next Wednesday, when the U.S. central bank is expected to start its long-awaited easing cycle.
Europe's main stock markets and the euro climbed Thursday as the European Central Bank cut interest rates for the second time this year.The Fed is yet to join other central banks around the world who have now started to cut borrowing costs after they hiked aggressively when inflation soared as nations emerged from Covid lockdowns.
U.S. wholesale price increases mostly slowed last month, the latest evidence that inflation pressures are cooling enough for the Federal Reserve to begin cutting interest rates next week. The Labor Department said Thursday that its producer price index — which tracks inflation before it reaches consumers — rose 0.2% from July to August. Excluding food and energy prices, which tend to fluctuate from month to month, so-called core wholesale prices moved up 0.3% from July and have risen 2.3% from August 2023.
The services sector grew 0.1% in July but both production and construction fell by 0.8% and 0.4% respectively.
The European Central Bank (ECB) has moved to cut borrowing costs again as the inflation threat continues to abate while economic growth falters. The main deposit facility rate was reduced - as it was in June - by 0.25 percentage points to 3.50%. The move was widely flagged and anticipated by financial markets though reaction in the money sphere was muted due to a lack of guidance from the ECB on its likely future path for rates.
Former President Donald Trump has proposed roughly $6.5 trillion in tax cuts, while Vice President Kamala Harris has proposed $4.2 trillion in cuts. WSJ’s Richard Rubin breaks down the very different tax plans from the two candidates.
LONDON (Reuters) -Britain's economy stagnated for a second month running in July as manufacturing output dropped sharply, an inauspicious start for the new government of Prime Minister Keir Starmer who wants to accelerate the pace of growth. Economic output showed no change in month-on-month terms in July, as it did in June, data from the Office for National Statistics showed on Wednesday. Modest growth in the services sector, which expanded by 0.1% in July, was offset by declines in manufacturing and construction.
OKAYAMA, Japan (Reuters) -The Bank of Japan must raise interest rates to at least 1% as soon as the second half of next fiscal year, hawkish policymaker Naoki Tamura said on Thursday, reinforcing the bank's resolve to persist with steady monetary tightening. It was the first time a BOJ policymaker publicly specified a level the central bank should eventually target in pushing up short-term borrowing costs. Tamura said the likelihood of Japan's economy sustainably achieving the BOJ's 2% inflation was improving, suggesting that conditions for additional rate hikes were falling into place.
Wednesday’s inflation figure of 2.5% for August — the lowest rate since February 2021 — gives the Federal Reserve the go-ahead signal on cutting rates when it meets on Sept. 18, according to economists. “All clear for launch,” Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance, said on Wednesday. “The Fed has the green light to cut 25 bps next week, given that the inflation report was in line with expectations.” Observers may find the inflation rate for August disappoint
The latest RICS residential market survey showed that buyer demand and sales activity had also been on the rise in August.
U.S. consumer prices rose slightly in August, but underlying inflation showed some stickiness amid higher costs for housing and other services, further dashing hopes of a half-point interest rate cut from the Federal Reserve next week. The mixed inflation report from the Labor Department on Wednesday followed data last week showing the labor market still cooling in an orderly fashion in August, defying fears of a sharp deterioration, with the unemployment rate retreating from a near three-year high touched in July. Financial markets boosted the chances of a quarter-point rate cut next Wednesday and sharply lowered the probabilities of a 50 basis point reduction.
Many experts believe the latest jobs market data should keep the Bank of England on track to cut rates again in November.
The Consumer Price Index report shows inflation slowed for a fifth consecutive month in August as gas, used car prices decline.
Rate cuts are likely coming, but the size of them remains a mystery.
With less than three months until Election Day, voters everywhere are still trying to figure out which U.S. presidential candidate to vote for -- and how their policies could affect taxes. The outcome...
France superstar joined Real Madrid this summer
