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Good morning. Today’s prime story is on US inflation, which eased final month to its slowest rate in additional than two years.
US inflation fell sharply to 3 per cent in June, sending the greenback decrease and highlighting the Federal Reserve’s relative success at bearing down on value pressures.
The improved image in Wednesday’s information stands in sharp distinction to different superior economies, such as the UK the place the Bank of England is struggling to management inflation of 8.7 per cent. China’s economic system, in the meantime, teetered on the point of deflation in June, with flat annual CPI, including to requires extra stimulus.
The main US inventory indices hit 15-month highs; the two-year Treasury yield, which strikes with interest rate expectations, fell to a two-week low of 4.73 per cent; and the US greenback index, which measures the dollar towards a basket of six currencies, hit its weakest level in 15 months.
The annual enhance within the client value index slowed from 4 per cent in May to 3 per cent in June, the slowest rate of inflation since March 2021, in contrast with expectations of three.1 per cent.
“After a punishing stretch of high inflation that eroded consumers’ purchasing power, the fever is breaking,” mentioned Bill Adams, chief economist at Comerica Bank.
Here’s what I’m retaining tabs on at the moment:
Economic information: Monthly oil market experiences can be launched by the International Energy Agency and Opec. France has client value index and HICP inflation rate figures for final month, whereas ultimate June producer value index information is due from the US.
South Korea interest rate choice: Economists count on the Bank of Korea to hold rates at 3.5 per cent for the fourth straight assembly. (Bloomberg)
Meetings: The EU-Japan summit begins in Brussels, attended by European Council president Charles Michel, European Commission president Ursula von der Leyen and Japanese prime minister Fumio Kishida.
Thailand’s high-stakes vote for PM: Parliament will vote for brand spanking new prime minister. Pita Limjaroenrat, whose progressive Move Forward get together gained large in May’s basic election, faces various obstacles to turn out to be prime minister and supplant the military-backed authorities. (The Guardian)
Five extra prime tales
1. Elon Musk has launched xAI, a synthetic intelligence firm aiming to problem the dominance of ChatGPT proprietor OpenAI. The firm can be led by Musk, who has additionally secured hundreds of GPU processors from Nvidia, that are required to construct massive language fashions that devour huge quantities of content material. Here are more details on Musk’s plans for AI.
2. At Nato’s summit this week, allies have been cautious to stress their staunch help for Ukraine within the face of Russia’s invasion. But after Volodymyr Zelenskyy blasted Nato for its “absurd” lack of a transparent timeline for Ukraine’s entry, tensions started spilling into the open. Here’s more on the frustrations between Ukraine and its allies.
3. EY China has refused to pay charges owed to its world headquarters for greater than a 12 months in a dispute over IT providers. The Chinese arm says the providers can’t be totally used after Beijing tightened information safety guidelines, in accordance to folks accustomed to the matter. Read more on the tussle between EY’s global bosses and its semi-independent member firms in China.
4. Japanese regional banks have been accused by the nation’s monetary regulators of “gender-washing” in disclosures to buyers due to authorized ambiguity over management roles occupied by girls. Here’s what the Financial Services Agency’s survey revealed about female representation in management at regional banks.
5. North Korea has fired an intercontinental ballistic missile into waters between the Korean peninsula and Japan, days after threatening to shoot down US reconnaissance planes it accused of violating its airspace. Japan’s defence ministry mentioned the missile flew for about 74 minutes, the longest flight time for any North Korean long-range missile.
The Big Read
Four many years after Ronald Reagan rejected large-scale US authorities intervention within the economic system, Joe Biden is embracing it wholeheartedly with a raft of subsidies for home producers in strategic sectors, within the hope of making a whole lot of hundreds of recent jobs. Will the president’s insurance policies remodel the American economic system in a means that’s sturdy and have a tangible impact that resonates with voters?
We’re additionally studying . . .
Chart of the day
The yen strengthened previous ¥140 towards the greenback on Wednesday on bets from forex and bond merchants that the Bank of Japan may quickly start its pivot away from its ultra-loose financial coverage. The 3.5 per cent rise to ¥139.5 against the dollar in July set the Japanese forex on a tentative course for its finest month because the nation’s finance authorities intervened late final 12 months to prop up the forex.
Take a break from the information
Want some contemporary vogue inspiration for the summer time? FT’s deputy vogue editor Carola Long suggests looking to Ken, the actual type star of the upcoming Barbie film.
Additional contributions by Tee Zhuo and Gordon Smith