Banco Central do Brasil aggressively hiked its benchmark interest rate by 1.5% to 7.75% (consensus was for a 1% hike to 7.25%) Last meeting the Brazilian Central Bank raised 100bp to 6.25% saying the underlying inflation is above the range compatible with meeting the inflation target.
The European Union has postponed the next round of negotiations for a free trade agreement with Australia for a month. The move clearly is in retribution for the cancellation of the French $90 billion submarine contract.
Banco Central do Brasil hiked its benchmark interest rate by 100bp to 6.25% widening the Brazilian Real spread to the US Dollar. The Brazilian central bank said the underlying inflation is above the range compatible with meeting the inflation target. Earlier in the day the US Federal Reserve left rates unchanged.
President Biden’s first major legislative initiative, the $1.9 trillion ‘American Rescue Plan’ stimulus bill passed a deeply divided Senate on Saturday in a vote 50-49. Democrats pushed through a loosely termed “pandemic aid plan” that includes an extraordinary increase in safety net spending.
Protesters and police continue to clash with no end in sight in Hong Kong. Protests turned violent over the weekend as the city braces for worse heading into China’s National Day this week. Riot police fired multiple volleys of tear gas while demonstrators hurled Molotov cocktails.
While the US media focuses on the Trump impachment over discussions he had with the Ukranian President over in Russia 20,000 protestors in Moscow demanded political prisoners be released. This was the first mass event agreed upon with the authorities after the general elections.
Russia’s energy giant Gazprom will begin gas supplies to China a month ahead of schedule from Dec. 1, 2019 the company said on Friday.
France’s market watchdog Autorite des Marches Financie (AMF) sees as the number risk for 2018 a brutal correction of stock prices. Goldman Sachs Bull/Bear Index is at the highest in almost 50 years. Analysts preach this time its different, is it?
Australia economically is resurgent however Australian politics are in chaos after Prime Minister Malcolm Turnbull resigned with a four way leadership showdown Friday. Australia has ruffled China with it’s 5G decision to block Chinese carriers.
Bored by Stormy US politics? Get ready for the Brazil Presidential elections in October. The leader in the polls is a former President is free now but may be locked up in prison. Donald Trump and Hilary Clinton must smile at former President Luiz Inácio Lula da Silva.