Singapore seen keeping monetary policy unchanged as inflation risks linger

Singapore's central bank is widely expected to keep monetary policy unchanged next week and hold off easing settings amid inflation and growth uncertainties caused by geopolitical tensions. Of the 10 analysts polled by Reuters, nine expect the Monetary Authority of Singapore (MAS) to hold off making changes to its policy at the scheduled review next Monday. "Oil prices have climbed from recent geopolitical tensions in the Middle East, while extreme weather conditions are still holding sway over food prices, which remain above pre-pandemic levels," said Moody’s Analytics economist Denise Cheok.

Fitch says decarbonisation of world economy progressing far too slowly

Decarbonisation of the global economy is progressing too slowly and while there has been improvement among big developed economies, emerging markets have failed to make reductions, Fitch Ratings warned in a report published on Wednesday. World CO2 emissions rose by 1.8% last year compared to world gross domestic product growth of 2.9%, the report said. Fitch noted that while emissions from 10 developed economies fell to their lowest since 1970, emerging markets as a whole failed to make any progress towards decarbonisation -- with CO2 emissions and GDP of 10 emerging markets tracked by Fitch increasing by 4.7% last year.

Geopolitical risk premium in oil market slips slightly, Goldman Sachs says

Oil prices steadied in Asian trading as traders weighed developments in the Middle East conflict against continued bearish expectations for demand. Goldman Sachs still expects a peak upside of $10-$20 per barrel for Brent in the case of disruptions in Iranian production as the development of the conflict remains uncertain. The call options implied volatility skew jumped to mid-April levels last week, while Brent implied volatility surged above its model-implied fair value for the first time this year, Goldman said.

New Zealand Steps Up Pace of Rate Cuts as Economy Weakens

(Bloomberg) -- New Zealand’s central bank cut interest rates by half a percentage point, stepping up the pace of easing as policymakers become more concerned about the economic slowdown.Most Read from BloombergUrban Heat Stress Is Another Disparity in the World’s Most Unequal NationFrom Cleveland to Chicago, NFL Teams Dream of Domed StadiumsSingapore Ends 181 Years of Horse Racing to Make Way for HomesChicago’s $1 Billion Budget Hole Exacerbated by School TurmoilShould Evictions Be Banned After

Fed Vice Chair Jefferson: Sept rate cut was 'timely'

"It was timely and consistent" with the Fed's two mandates of attaining 2% inflation and maximum employment, Jefferson said at Davidson College in North Carolina. The Fed's success in meeting the first mandate by bringing down inflation, he said, allowed the U.S. central bank "to pay increased attention to the other side of the mandate." Jefferson voted in September with the majority of his colleagues to reduce the Fed's policy rate, marking a turning point in what had been a two-year battle against inflation that took U.S. borrowing costs to their highest levels in decades.

Fed Vice Chair Jefferson: rate cut aimed at keeping US job market strong

"The FOMC has gained greater confidence that inflation is moving sustainably toward our 2% goal," Jefferson said, referring to the rate-setting Federal Open Market Committee, of which he is a member. "To maintain the strength of the labor market, my FOMC colleagues and I recalibrated our policy stance last month."

Guggenheim CIO Says Inflation of Up to 4% Could Be a New Normal

(Bloomberg) -- While price pressures have eased dramatically in the past two years, the war against inflation isn’t over just yet — and factors from spending on pricey artificial intelligence technology to nearshoring may be to blame. Most Read from BloombergUrban Heat Stress Is Another Disparity in the World’s Most Unequal NationFrom Cleveland to Chicago, NFL Teams Dream of Domed StadiumsSingapore Ends 181 Years of Horse Racing to Make Way for HomesChicago’s $1 Billion Budget Hole Exacerbated b

Mexico Needs Private Investment in Energy, Economy Minister Says

(Bloomberg) -- Mexico’s new president plans to lay out clear rules for private investment in the power sector, a top cabinet official said, acknowledging that the state has insufficient resources to expand renewable energy use and address electricity supply and distribution problems.Most Read from BloombergUrban Heat Stress Is Another Disparity in the World’s Most Unequal NationFrom Cleveland to Chicago, NFL Teams Dream of Domed StadiumsSingapore Ends 181 Years of Horse Racing to Make Way for Ho

Wall Street closes higher on tech buying as investors wait on inflation data

(Reuters) -Wall Street's benchmarks finished up on Tuesday, recouping some of the previous session's losses, as investors bought back in to technology stocks and investors shifted their focus to upcoming inflation data and the start of third-quarter earnings season. All three of the main indexes suffered a sell-off on Monday, falling roughly 1% each, as they were pressured by surging Treasury yields, escalating Middle East tensions, and a re-evaluation of U.S. rate expectations. The easing of Treasury yields somewhat on Tuesday, however, meant investors were drawn to high-growth stocks, which benefit from lower debt costs to fuel their growth, such as technology companies.

Biden's grade on the economy jumps to an A