Author: Jack Mulligan

Full-year deficit narrows to 0.6% of GDP amid strong services India recorded a current account surplus of $13.5 billion in the January-March 2025 quarter, equivalent to 1.3% of GDP, the Reserve Bank of India reported. This marks a significant improvement from the $4.6 billion surplus (0.5% of GDP) in the same quarter of the previous year and a sharp reversal from the $11.3 billion deficit seen in Q3 FY2025. For the full fiscal year 2024-25, the current account deficit narrowed to $23.3 billion, or 0.6% of GDP, compared to $26 billion (0.7% of GDP) in FY2023-24. The decline was largely…

Consumer spending slowed more than expected, imports surged The U.S. economy contracted more sharply than previously estimated in the first quarter of 2025, as aggressive tariff policies and weak consumer spending weighed heavily on growth. According to the Commerce Department’s Bureau of Economic Analysis, gross domestic product (GDP) declined at a 0.5% annualized rate, revised from an earlier 0.2% drop. The downward revision was primarily due to a significant reduction in consumer spending estimates, now seen rising at just 0.5% instead of 1.2%. The decline marks the first contraction since early 2022 and follows 2.4% growth in the fourth quarter…

Adjusted data shows growth, but early buying and 2024 anomalies distort comparison U.S. new vehicle sales are expected to increase by 2.5% year-over-year in June to 1.25 million units on a selling day-adjusted basis, according to a joint report by J.D. Power and GlobalData released Wednesday. However, unadjusted figures show a 5.4% decline compared to 2024, revealing distortions driven by unique market forces and prior-year disruptions. Early buying and cyber incident skew data The sales landscape this year has been shaped in part by consumer fears over President Donald Trump’s tariff policy. Many buyers pulled forward their purchases to March…

Premier says domestic demand, reforms will sustain momentum Chinese Premier Li Qiang on Thursday reaffirmed that China remains the world’s most powerful engine of economic growth, citing ongoing reforms and a pivot toward consumption as key factors in maintaining momentum despite global headwinds. Speaking at the Asian Infrastructure Investment Bank’s annual meeting in Beijing, Li said the policy support introduced since late 2023 was beginning to lift domestic demand and stabilize the world’s second-largest economy. “We are strengthening macro policies, actively expanding domestic demand, and forcefully boosting consumption,” Li said. “The expansion and quality upgrading of China’s massive market will…

China’s premier calls for cooperation at World Economic Forum Chinese Premier Li Qiang emphasized the need for international collaboration on trade during his address at the World Economic Forum’s annual “Summer Davos” conference on Wednesday, pushing back against growing global protectionism and trade barriers. “Globalization will not be reversed,” Li said via official translation, urging countries to avoid politicizing trade or using it as a tool of national security policy. He called for nations to stay on the “right” path by continuing to engage in the global economy, describing international participation as a way to “reshape the rules and order.”…

Bank of Canada awaits stronger signals as CPI stays at 1.7% Canada’s annual inflation rate remained unchanged at 1.7% in May, according to Statistics Canada data released Tuesday. While aligned with economist forecasts, the muted figure may not be enough to justify a Bank of Canada rate cut in July without stronger disinflationary evidence in coming weeks. “Not bad, but should do better to convince the Bank to trim rates,” wrote BMO chief economist Doug Porter. The central bank’s next move, due July 30, hinges on forthcoming data including retail sales, employment, and updated consumer and business sentiment surveys. Key…

Fed holds firm as inflation lingers and unemployment rises A growing divide between President Donald Trump and Federal Reserve Chair Jerome Powell took center stage Tuesday as Powell defended the central bank’s cautious stance on interest rates before the Republican-led House Financial Services Committee. Trump, who has repeatedly demanded immediate rate cuts, intensified his public criticism overnight, declaring on social media that there is “no inflation” and the economy is doing “great.” He urged Powell to act now, saying rates could always be raised later if inflation returns. But Powell pushed back during his testimony, arguing that the Fed must…

Veteran executive inherits deep challenges and legacy of Marchionne Antonio Filosa officially began his tenure as CEO of Stellantis this week, stepping into the role with a bold declaration: “Mediocrity is not worth the trip.” The statement pays tribute to late Fiat Chrysler CEO Sergio Marchionne, a mentor whose influence looms large over the global automaker’s culture and expectations. Filosa, 51, brings 25 years of experience at the company, having worked his way up from a night shift paint shop supervisor to leading Jeep and, more recently, Stellantis’ Americas operations. His appointment comes after Carlos Tavares resigned amid plummeting profits,…

Rumors of BNY Mellon interest lift shares, but no deal in sight Northern Trust has confirmed its commitment to staying independent following a Wall Street Journal report that Bank of New York Mellon expressed interest in a potential merger. The report triggered a 6.5% surge in Northern Trust shares, reflecting investor speculation despite no formal offer being made. “Northern Trust is fully committed to remaining independent and continuing to deliver long-term value to our stakeholders,” a spokesperson said in a statement Monday. The rumored merger would mark a seismic shift in the custody banking and wealth management industry, combining two…

Modest iOS 26 upgrades and Siri delays fuel upgrade hesitancy Apple’s slow progress in artificial intelligence is raising concerns among analysts and investors, as the tech giant struggles to justify hardware upgrades and maintain its dominance in the smartphone market. At its June developer conference, Apple previewed iOS 26, the next major software update for iPhone. But unlike past years, the update lacked a compelling breakthrough. Its most notable changes were mostly cosmetic, and the much-anticipated overhaul of Siri—Apple’s AI assistant—has been delayed again. Several analysts have responded by cutting iPhone sales forecasts, citing the lag in AI capabilities as…