June 27, 2024
United States:
Americans’ Pandemic Savings Are Gone — And the Economy Is Bracing for Impact
The pandemic savings cushions that helped Americans weather high prices in recent years have worn through, contributing to a loss of consumer firepower that’s rippling through the economy.
Delinquencies are rising. Executives are flagging caution among shoppers in recent earnings calls, and retail sales barely increased in May after falling the month prior. Economists forecast solid inflation-adjusted consumer spending in data out Friday, helped by lower gasoline prices, but that would follow an outright decline in April.
United Kingdom:
BOE Warns on ‘Struggling’ Private Equity-Backed Firms
The Bank of England warned that more private equity-backed firms are “struggling” as higher interest rates put pressure on the opaque industry that has swollen to $8 trillion globally.
In its twice-yearly Financial Stability Report, the BOE also rebuked lenders and others in the private equity market for poor risk management practices, in an escalation of the UK’s bid to tame risks in the sector.
Asia:
South Korea Asks Banks for Help When Won’s Trading Hours Extend
South Korea urged local banks and financial companies to actively participate in trading the onshore won when hours extend next week.
Domestic institutions “need to play a leading role in active market making during the extended hours” to create “a virtuous circle in which other participants will find the Korean foreign-exchange market attractive,” said Choi Ji-young, the finance ministry’s deputy minister for international affairs, in a statement from a meeting with local market participants.
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