|
|
|
|
|
|
|
|
Fitch Cuts Global Growth Outlook in Latest Downgrade to Capture Mideast Impact
|
|
|
- Fitch Ratings cut its global growth forecast to 2.4% for 2026, citing the U.S.-Iran conflict’s oil shock and higher energy costs.
- Fitch raised its 2026 average Brent crude forecast to $87 a barrel from $70, due to the prolonged Strait of Hormuz closure.
- Fitch lowered U.S. and eurozone growth forecasts but raised China’s to 4.6% for 2026, partly due to an AI spending boom.
|
|
|
Eurozone Economy Shrank in First Quarter as Iran War Darkens Outlook Ahead
|
|
|
- The eurozone’s economy contracted 0.2% in the first quarter of 2026, revised from earlier growth, complicating the ECB’s task.
- The Q1 contraction was largely due to Ireland’s GDP falling 12.1% and France’s GDP contracting 0.1%.
- Economic indicators suggest Q2 struggles, with private-sector activity falling sharply in May and input costs rising.
|
|
India’s Central Bank Holds Rates as Iran Crisis Keeps Risks High
|
|
|
- The Reserve Bank of India held its policy repo rate at 5.25% on Friday, pausing for a third time to gauge Middle East conflict impact.
- The RBI monetary committee voted unanimously to maintain a neutral monetary policy stance amid geopolitical uncertainty.
- The Indian rupee shed over 6% against the dollar in 2026, hammered by high oil prices threatening to swell India’s import bill.
|
|
BOE Survey Finds Businesses Expect to Raise Prices at Faster Rate
|
|
|
- U.K. businesses expect to raise prices at a faster rate over the next 12 months, while wage increases are seen slowing, according to a Bank of England survey.
- Chief financial officers expect wages to rise by 3.4% over the next 12 months, a slowdown from 4.3% in the year to May.
- A Bank of England survey found 57% of businesses intend to raise prices due to the Middle East conflict, with 68% expecting lower profit margins.
|
|
Food Prices Mostly Stable in May But Middle East Conflict Threatens Broader Shock, UN Says
|
|
|
- The United Nations’ Food and Agriculture Organization warned of a potential “systemic” agrifood shock amid rising fertilizer costs and Middle East disruptions.
- Cereal prices rose 2.6% in May on harvest concerns and higher costs, while sugar climbed 7.5% to its highest level since October.
- Vegetable-oil prices fell 4.6% in May, their first monthly decline this year, and dairy prices decreased 0.5% amid improved supply.
|
|
Japan Prime Minister Says Will Defend Yen by Strengthening Economy
|
|
|
- Japan’s Prime Minister Sanae Takaichi stated the country aims to defend the yen’s credibility by strengthening its economy.
- The yen weakened to near 160 against the dollar despite Japan spending over $73 billion on intervention between April 28 and May 27.
- Finance Minister Satsuki Katayama reiterated the government is ready for appropriate forex action, communicating closely with U.S. authorities.
|
|
U.S. Jobless Claims Rose Last Week
|
|
|
- U.S. jobless claims rose to 225,000 in the week through May 30, higher than the 212,000 reported a week earlier.
- Continuing claims were 1.78 million in the week through May 23, down from a revised 1.79 million a week earlier.
- The Labor Department will release the May employment report Friday; ADP reported private companies added 122,000 jobs in May.
|
|
Irish Economy Likely to Pull Eurozone Into Contraction
|
|
|
- The Irish economy contracted significantly in the first three months of the year, with gross domestic product 12.1% smaller.
- The contraction was led by a decline of more than one-third in factory output, according to the Central Statistics Office.
- The scale of the Irish decline suggests figures released Friday will record a decline in output across the eurozone in the first quarter.
|
|
Technology Sector Leads U.S. Layoff Plans
|
|
|
- AI was the leading reason for employers’ job cuts for the third month in a row, with the tech sector announcing 38,242 cuts in May.
- U.S. employers announced 97,006 job cuts in May; overall layoffs this year are down 43% from 2025.
- U.S. employers announced 80,472 planned hires through May, a historically low figure by pre-pandemic standards.
|
|
Eurozone Retail Sales Fell in April
|
|
|
- Eurozone retail sales fell 0.4% in April, exceeding expectations, as rising energy prices from the U.S. and Israel’s war with Iran eroded spending.
- Consumer confidence remains near 2008 lows, and economists increasingly expect the eurozone economy to contract in the second quarter.
- Annual inflation accelerated to 3.2% in May, with core inflation also rising, reinforcing expectations for a European Central Bank rate hike.
|
|
|
About Us
|
|
WSJ Pro Central Banking brings you news and analysis from a global team of reporters and editors at The Wall Street Journal and Dow Jones Newswires. Send your tips, suggestions and feedback to service@dowjones.com. An artificial-intelligence tool created these summaries, which are based on the text of the article and checked by an editor. Read more about how we use artificial intelligence in our journalism.
|
|
|
|
Access WSJ.com and our mobile apps.
Subscribe
|
