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China Steps In to Rescue Stocks, But the Market Continues to Fall

The Communist Party uses a “national team” of state-owned investment funds to stem the market rout. But this time, investors are not sure it will work.

© Florence Lo/Reuters

President Xi Jinping of China has convened senior leaders to set the government’s agenda, but the economy is likely to take a back seat to politics.
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The Fed Is Expected to Hold Rates Steady. Warsh Will Have to Explain Why.

Inflation is moving in the wrong direction and the labor market remains stable, a combination that bolsters the case for higher interest rates.

© Athit Perawongmetha/Reuters

Kevin M. Warsh, chairman of the Federal Reserve, said that the central bank had more work to do to tame inflation, but that there was no urgency to raise rates at consecutive meetings.
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The Fed Is Expected to Hold Rates Steady. Warsh Will Have to Explain Why.

Inflation is moving in the wrong direction and the labor market remains stable, a combination that bolsters the case for higher interest rates.

© Athit Perawongmetha/Reuters

Kevin M. Warsh, chairman of the Federal Reserve, said that the central bank had more work to do to tame inflation, but that there was no urgency to raise rates at consecutive meetings.
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Brazilian Markets Convulse After Unexpected Election Result

President Luiz Inácio Lula da Silva’s re-election victory prompted a sharp reversal in financial markets that had expected his opponent to win.

© Amanda Perobelli/Reuters

Brazil’s president, Luiz Inacio Lula da Silva, celebrating on Monday after his victory in the presidential runoff election.
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Meta and SpaceX to Raise Billions More to Fund A.I. Ambitions

The race to build artificial intelligence infrastructure is consuming increasingly enormous amounts of cash at the biggest tech companies.

© Gabriela Bhaskar/The New York Times

Mark Zuckerberg, chief executive of Meta. The company aims to raise up to $95 billion to invest in A.I. infrastructure.
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What’s Riding on Anthropic Going Public? Nearly Everything.

Anthropic sits atop a pyramid of business partners and suppliers, making it a barometer of the broader economy. Its initial public offering will have widespread implications.
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How Worried Should We Be About the Economy? Let’s Look at 2008.

It’s not impossible to spot the characteristics of a brewing financial crisis. We can look to 2008 for clues.

© Illustration by Andrei Cojocaru; photos by Getty Images

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Stocks See Steepest Decline in Months Amid A.I. Worries

The S&P 500 index fell over 1.4 percent, its largest daily decline since July, while the tech-heavy Nasdaq slumped nearly 2.5 percent, that index’s biggest one-day decline since June.

© Angela Weiss/Agence France-Presse — Getty Images

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French borrowing costs overtake US amid budget turmoil

France’s bond market hit by another bout of selling as country recovers from weekend protests

French borrowing costs continued to rise on Thursday, as investors fret that France’s government is struggling to pass a federal budget after public protests gripped the country.

France’s bond market was hit with another bout of selling, with the difference between French and German 10-year borrowing costs – a metric for the risk premium attached to French debt – rising to its highest level in almost 15 years.

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© Photograph: Telmo Pinto/NurPhoto/Shutterstock

© Photograph: Telmo Pinto/NurPhoto/Shutterstock

© Photograph: Telmo Pinto/NurPhoto/Shutterstock

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Takaichi’s next vote is in the bond market

Sanae Takaichi has done something few Japanese leaders manage. She’s reached her first anniversary in office more popular than her predecessors, and she looks well placed to keep the job. In a country that has burned through five prime ministers in a decade, this counts for a lot. Popularity, though, is only one of two […]

The post Takaichi’s next vote is in the bond market appeared first on Asia Times.

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How Mark Zuckerberg Pushed Meta to Shield Him From California’s Proposed Wealth Tax

The billionaire told Meta’s board that he planned to list his Silicon Valley home for sale. The company remade its stock structure to help him pay the tax if voters pass it.

© Victor Llorente for The New York Times

Mark Zuckerberg, the chief executive of Meta, at his home in Lake Tahoe, Calif. He has another California home in Palo Alto, close to Meta’s headquarters.
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French borrowing costs hit 24-year high as civil unrest and budget fears spook markets

Yield on 10-year government bonds passes 5% amid failure to pass budget and fallout from violent street protests

France’s borrowing costs have climbed above 5% for the first time in 24 years as political concerns and the government’s failure to agree a much-delayed budget spook the financial markets.

With some civic buildings still smouldering from recent riots, a fresh bout of selling pushed up the yield – or interest rate – on bonds issued by the second largest economy in the eurozone.

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© Photograph: Michel Euler/AP

© Photograph: Michel Euler/AP

© Photograph: Michel Euler/AP

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France hit by debt sell-off as violent protests unnerve investors

Difference between French and German borrowing costs widens after public buildings burned and shops looted

France has been hit by a fresh wave of selling in its bond and stock markets after violent protests over the weekend led to thousands of arrests and left public buildings burned and hundreds of shops looted across the country.

The chaos has spooked investors as analysts worried that it would undermine Paris’s efforts to cut spending and reduce its debt.

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© Photograph: SDIS 87/AFP/Getty Images

© Photograph: SDIS 87/AFP/Getty Images

© Photograph: SDIS 87/AFP/Getty Images

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Hot US inflation singes Asia as higher-for-longer Fed rates loom

TOKYO — An unwelcome blast of US inflation is blowing across Asia’s markets. September’s hotter-than-expected price data revived concerns that the Federal Reserve will keep rates higher for longer, threatening fresh pressure on currencies, capital flows and economic growth across the region.

Last month’s 3.7% year-on-year increase in consumer prices didn’t just exceed forecasts. It ensured the Fed is on an even bigger collision course with both the bond market and US President Donald Trump’s White House. It’s arguably the last thing both Trump and US Federal Reserve Chairman Kevin Warsh wanted to see less than three weeks ahead of the mid-term elections.

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The post Hot US inflation singes Asia as higher-for-longer Fed rates loom appeared first on Asia Times.

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