June 29, 2023
United States:
US First-Quarter GDP Revised Up to 2% on Exports, Consumers
US gross domestic product was revised up notably to a 2% annualized advance in the first quarter, data showed Thursday.
The government’s third estimate of GDP for the period reflected upward revisions to exports and consumer spending. Household spending, the engine of the US economy, rose at a 4.2% pace — the strongest in nearly two years — as services outlays were adjusted higher.
Europe:
ECB Hiking Critics Keep Up Political Heat From Portugal to Italy
Criticism of European Central Bank monetary tightening is persisting, with a new round of attacks on Thursday from southern Europe’s senior politicians.
Frankfurt officials haven’t properly understood the nature of inflation that the euro area is currently facing, Portuguese Prime Minister Antonio Costa told reporters in Brussels, while Italian deputy premier Antonio Tajani added criticism after an initial salvo earlier in the week.
Asia:
China’s Arsenal of FX Support Is Ready as Yuan Pessimism Lingers
China may need to dig deeper into its policy kit to arrest a slide in the yuan, if it is serious about quashing pessimism toward the managed currency.
The People’s Bank of China set a stronger-than-expected reference rate for a third time this week on Thursday, but it failed to prevent the yuan from extending a seven-month low. The currency has come under increasing pressure against the dollar amid mounting evidence the country’s economic recovery will be slower than anticipated and any stimulus modest.
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