BYD Buys China Manufacturing Business For USD 2.2 Bln
Electric vehicle maker BYD Co Ltd (002594.SZ) said its unit struck a deal with U.S.-based manufacturing firm Jabil Inc’s (JBL.N) Singaporean division to buy its mobility business in China for 15.8 billion yuan (USD 2.17 billion) today.
Canadian Economy Set To Experience Slowdowns
Canada’s second-quarter GDP report is due on Friday and is likely to show a sharp slowdown in economic growth, a Reuters poll of economists indicated, which could lead the Bank of Canada to pause its interest rate hikes despite recent hotter inflation data.
Oil Ticks Higher After With China’s Economical Support
Oil prices ticked higher today, along with equity markets, after China took steps to support its flagging economy, though investors remained worried about the pace of growth as well as further U.S. interest rate hikes that could dampen fuel demand.
Today’s News
The world’s top central bankers are stressing the need to keep interest rates high until inflation is contained and wrestle with deeper economic shifts that will disrupt their jobs.
At an annual Federal Reserve gathering in Jackson Hole, Wyoming, keynote speeches from Fed Chair Jerome Powell and European Central Bank President Christine Lagarde on Friday laid out the challenges that each of them faced in deciding if they should extend historic strings of rate increases that began last year. A fog of uncertainty remains at large at this point. However, they’ve also dropped a few clues for investors as to whether they would in fact do so in the coming months.
Appearing on a Saturday panel at the confab, hosted by the Kansas City Fed in the heart of Grand Teton National Park, Bank of England Deputy Governor Ben Broadbent said UK rates may have to rise further, while Bank of Japan Governor Kazuo Ueda reaffirmed the ongoing need for low rates there.
A key theme emerging from the formal conference proceedings and conversations on the sidelines was difficulties adapting to forces outside the control of monetary authorities. The attendees discussed topics including productivity and innovation, bond-market structure, global supply chains and rising public debt levels.
Other related news include:
Markets Are Prepped After Annual Jackson Hole Summit
Traders are girding for a cautious start to the week after U.S. and European policymakers signaled interest rates will likely stay higher for longer during their annual confab at Jackson Hole.
While the Australian dollar and the yen were little changed as trading got underway in Sydney, the Japanese currency lingered near its weakest this year. Australian bonds saw a muted start as investors also absorbed China’s latest efforts to support its equities market.
Asia Stocks Rise On China Turnaround
Asian stocks advanced after China pledges support for its equities market revived positive sentiment and as Jerome Powell said the Federal Reserve would “proceed carefully” on whether to raise interest rates again.
Chinese equities surged at the open as the government lowered stamp duty on stock trades for the first time since 2008 and has assured to slow the pace of initial public offerings. Shares also rose in Japan, South Korea and Australia. Contracts for U.S. benchmarks were marginally higher after both the S&P 500 Index and the Nasdaq 100 Index advanced Friday post Powell’s remarks.
Powell Leaves Traders In Doubt
Fed Chair Jerome Powell has the bond market exactly where he wants it: lacking conviction as to the Federal Reserve’s next steps.
It’s a scenario — evident in part through split futures positioning — that gives Powell and his colleagues leeway to quickly adjust policy in the coming months as economic data unfolds, without having to fret about potentially roiling the world’s biggest fixed-income market.
