Macro

(Washington)

Many have been betting on multiple Fed rate hikes this year, and given the latest word out of the Fed, it looks like that might hold true. The minutes are out from the last Fed meeting, and they show that the central bank is close to pulling the trigger on another hike. So long as the economy remains on track, they will hike “soon” say the minutes. The Fed last hiked in March and said it expects two more hikes in 2017. The economy was not great in the first quarter and inflation has been sluggish, but central bankers have been bullish on the economy.


FINSUM: The Fed continues to be very positive on the economy, so it does seem like they will hike again soon. One wonders if it is will start to affect the housing market given inevitably rising mortgage rates.

Source: Financial Times

(Beijing)

In a major piece of news regarding one of the world’s largest economies, Moody’s has just cut its rating of China for the first time since 1989. The country saw its rating drop from A1 to Aa3. Moody’s said the country’s financial strength will wane as its debt continues to grow and its economic growth slows. The country’s credit rating is now the same as Japan, Saudi Arabia, and Israel. China’s total debt now amounts to 253% of GDP, up from 149% in 2008.


FINSUM: China seems to have been teetering on the brink for years, but at least from the outside, still appears to be carrying on just fine. It is very hard to predict how things will precede there as the economic, cultural, and political paradigms are simply so different.  

Source: Wall Street Journal

(London)

A deadly incident being treated as a terror attack struck the UK last night. Immediately following the end of an Ariana Grande concert (an American singer), fans leaving an arena in Manchester heard a reportedly “massive” explosion. So far the situation is short on details, but apparently there are currently 19 dead and a total of 60 wounded. If the incident does turn out to be a terror attack it will be the largest in the UK since the London tube bombings of 2005.


FINSUM: This is a high body-count attack and it may prove jarring for the UK people and impact the outcome of the election.

Source: Financial Times

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