Good day. Hoping to stoke economic growth, governments are
trying to raise vaccination rates to ease worries of consumers
about Covid-19 infection so they spend more on travel, dining out
and other activities that involve proximity to others. Also,
reducing case counts would mean fewer government shutdowns of
ports, factories and other operations critical to global supply
chains. That disruption, along with labor shortages and demand
driven by monetary and fiscal stimulus, may persist for some time,
adding to global inflation concerns. The Fed is expected to give
its latest view on inflation, along with other economic matters,
this week during its policy meeting.
Now on to today's news and analysis.
Vaccinations Boost the Global Economy, but May Not Cure It
The global recovery is slowing as Covid-19 resurges, spurring
governments to try to raise vaccination rates in hopes of fueling
stronger economic growth.
However, it isn't clear that higher vaccination rates alone will
do the trick. In Europe, growth has surged as rates have climbed
this year. But in the U.S., economic activity slowed notably
through the summer as the Delta variant of the virus spread,
despite rising inoculation rates.
Fedspeak Cheat Sheet: What Officials Said Before September
Federal Reserve officials have been teeing up a pullback in
their bond-buying stimulus in the weeks since their July FOMC
meeting. Here is a roundup of recent comments from Fed officials
ahead of September's policy meeting.
Derby's Take: More Rate Rises Seen Creeping Into Fed's Dot
By Michael S. Derby
Economists expect the Federal Reserve's so-called dot plot chart
to show a more hawkish monetary policy outlook when the central
bank releases it this week, compared with the Fed's last round of
forecasts in June. Read more.
Democrats Press Ahead With Debt-Limit Vote Amid Standoff With
A battle over raising the U.S. borrowing limit is expected to
ratchet up, with Democrats moving ahead with a vote in the face of
GOP opposition, raising doubts about whether Congress will act
before the government runs out of cash.
What the Infrastructure Bill Would Help Fix First
Officials across the U.S. are gearing up for a potential cash
infusion from the infrastructure bill, planning to speed up repairs
of bridges, fix battered rural roads and overhaul a key
distribution route for hot dogs and rice cakes.
Rust Belt City's Pitch for a Hot Housing Market: Free Homes
Houses are more expensive than ever, but the mayor of Monessen,
Pa., a town on a curve of the Monongahela River, is giving them
away for free, as many are in disrepair and have accrued thousands
of dollars in back taxes.
Key Developments Around the World
Covid-19 Lockdowns in Asia Deepen Commodity Supply-Chain
The recent surge in Covid-19 cases in Southeast Asia has
throttled ports and locked down plantations and processors,
sparking extended disruptions of raw materials such as palm oil,
coffee and tin.
China's Bid to Join Trade Group Puts Members in an Awkward
A decade ago, it was a trade club led by the U.S. seeking to
limit the influence of China's economic model. Now Washington is
out of the Trans-Pacific Partnership and Beijing wants in -- as the
group's biggest member.
Economic Meltdown Leaves Afghans Scrambling to Survive
While many Afghans watch anxiously to see how the Taliban will
govern, opponents and supporters alike agree Afghanistan faces an
economic crisis threatening to unspool whatever gains remain of
Financial Regulation Roundup
U.S. to Target Crypto Ransomware Payments With Sanctions
The Biden administration is preparing an array of actions,
including sanctions, to make it harder for hackers to use digital
currency to profit from ransomware attacks, according to people
familiar with the matter.
Democrats Seek Backup Plan on Taxing Capital Gains
Entrenched opposition from some Democrats to a White House plan
to tax unrealized capital gains at death has pushed the party to
look for alternative methods of collecting additional taxes from
wealthy Americans' appreciating assets.
Hong Kong Considers Allowing SPAC Listings
Hong Kong is considering whether to allow listings of
blank-check companies, potentially opening the doors to a wave of
Chinese-focused deals involving special-purpose acquisition
Kyrgyzstan Blocked From London Gold Trading Over Missing
The organization that oversees London's gold trading has blocked
metal mined in Kyrgyzstan from entering the city's market, dealing
a blow to the central Asian nation's bullion-dependent economy.
Tuesday (all times ET)
Time N/A: U.S. Federal Reserve begins two-day policy meeting;
National Bank of Hungary releases policy statement; Bank Indonesia
releases policy statement; Central Bank of Nigeria releases policy
3:05 a.m.: European Central Bank's de Guindos speaks at virtual
Financial Times conference on strengthening Europe's financial
3:30 a.m.: Riksbank releases interest-rate decision and monetary
8:30 a.m.: U.S. Commerce Department releases August housing
12:15 p.m.: European Central Bank's Enria speaks virtually at
Spanish Banking Association conference
Time N/A: Central Bank of Brazil releases policy statement; Bank
of Japan releases policy statement
6:30 a.m.: European Central Bank's Enria speaks via webcast at
Financials CEO Conference organized by BofA Securities
10 a.m.: National Association of Realtors releases August U.S.
2 p.m.: U.S. Federal Reserve releases policy statement and
2:30 p.m.: Fed's Powell holds virtual press conference
Inflation Is All Over the Place
In the short term, inflation will probably calm down as supply
chains and travel return to normal, but there is a decent chance
that it takes much longer than the Federal Reserve hopes, James
Another Trade War, Another Stalemate?
It is a risky time to launch a trade war, as supply chains are
snarled, shipping costs are through the roof and the Delta variant
is ravaging economies, but the world just might get one anyway,
Nathaniel Taplin writes.
U.S. companies have sold more than $786 billion of junk-rated
bonds and loans so far in 2021, according to S&P Global Market
Intelligence's S&P. That tops the previous high for a full year
in data going back to 2008.
Natural-gas prices have surged, prompting worries about winter
shortages and forecasts for the most expensive fuel since frackers
flooded the market more than a decade ago.
U.S. consumer sentiment remained broadly unchanged in early
September, staying at subdued levels after August's big drop
triggered by rising Covid-19 cases due to the spread of the Delta
variant, with the preliminary estimate of the University of
Michigan's index of consumer sentiment at 71.0, compared with 70.3
last month. (Dow Jones Newswires)
Italy is making Covid-19 health passes mandatory for all workers
in the private and public sectors, in one of the toughest
vaccine-promoting measures adopted by any major Western country.
Economic activity in Mexico likely slipped 0.2% in August after
a 1% increase in July, statistics institute Inegi said, noting
services were likely flat while industrial production likely
decreased by 0.5%. (DJN)
Peru will see GDP growth of 3.4% in 2022, down from a previously
projected 4.5%, as private investments are seen dropping off as
companies hold off on projects amid political uncertainty, the
country's central bank said. (DJN)
(END) Dow Jones Newswires
September 20, 2021 09:11 ET (13:11 GMT)
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