Fears of recession spreading in Fed?

According to Neel Kashkari, President of Federal Reserve of Minneapolis, if the Fed hikes the interest rates too aggressively, the risk of recession in the United States rises significantly. He also points out at supply side of the markets and industries and is worried whether tightening policy and rate hikes will not be too much.

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India starts the test of digital rupee

The Reserve Bank of India will start testing its central bank digital currency (CBDC) on December 1st. The testing will run in Mumbai, New Delhi, Bengaluru and Bhubaneswar. Some of the major banks, such as the State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank, will participate.

EU economic sentiment jumps

After going down for eight months, the EU economic sentiment indicator went up by one point in November 2022 to reach 93.7. The result slightly exceeded forecasts of 93.5, but it remained close to its lowest level in two years. Rising interest rates, high inflation, and a worsening energy crisis during the winter all put a damper on sentiment.

BoJ will test digital yen in 2023 ๐Ÿ’ก

The Bank of Japan (BoJ) is collaborating with three unnamed major banks to try out digital yen in 2023. They will focus on any problems that could arise during deposits and withdrawals. The experiment will also test if the CBDC can operate during natural disasters and in areas without internet access.

US initial jobless claims rise

The number of Americans submitting new unemployment compensation claims increased by 17,000 to 240,000 in November. This is significantly more than the predicted 225,000, and the highest in 3 months as the labor market is stressed by the current economic situation.

Donald Trump back on Twitter

Elon Musk ran a poll on whether Donald Trump’s Twitter account should be reinstated. After the poll showed yes, Donald Trump is back on the platform. Moreover, countless others whose accounts were suspended before Musk’s takeover are back.

Home sales slide since February

Existing house sales in the US fell 5.9% to 4.43 million in October. Except for a small decline at the start of the pandemic, this is the lowest number in 11 years, falling below market expectations of 4.38 million. Due to rising mortgage rates, this is the ninth consecutive month that sales have decreased.

More market movers

India starts the test of digital rupee

The Reserve Bank of India will start testing its central bank digital currency (CBDC) on December 1st. The testing will run in Mumbai, New Delhi, Bengaluru and Bhubaneswar. Some of the major banks, such as the State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank, will participate.

CAD weakens after GDP results

The Canadian dollar weakened aboveย $1.35โ€”a level not seen since early November after the GDP results. The Canadian economy increased by 2.9% annually in Q3ย of 2022, beating expectations for a modest 1.5% growth.

Spain’s inflation slides lower ๐Ÿ“‰

Spain’s annual inflation fell to 6.8% in November 2022, moving further away from July’s 38-year high of 10.8%. Inflation remained below market expectations at 7.4%. The slowdown in the inflation rate was mainly led by declines in the cost of fuel and electricity.

EU economic sentiment jumps

After going down for eight months, the EU economic sentiment indicator went up by one point in November 2022 to reach 93.7. The result slightly exceeded forecasts of 93.5, but it remained close to its lowest level in two years. Rising interest rates, high inflation, and a worsening energy crisis during the winter all put a damper on sentiment.

BlockFi files for bankruptcy ๐Ÿ’ฅ

BlockFi officially filed for bankruptcy on Monday. It has become the latest crypto company crippled by the collapse of FTX. It was functioning since 2017 with more than 450,000 clients.

Pinduoduo reports great earnings ๐Ÿ”ฅ

Pinduoduo (PDD) stock jumped 15% in the pre-market after quarterly results. The company reported much higher earnings per share of 8.62 instead of 4.79. The forecasted revenue for Q3 was $30.71 billion, but the firm surprised the market with $35.5 billion revenue.

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Italy plans 50% windfall tax for energy firms

Italy plans to impose a one-off windfall tax of 50% on the extraordinary income of its energy companies in 2023.