FirstFT: Central banks go for big raises to fight inflation

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A series of large rate hikes by the Federal Reserve pressure on central banks around the world to follow suit to counter rising inflation and a strong dollar.

An analysis by the Financial Times found that more than ever in this century, central banks are opting for significant rate hikes of 50 basis points or more, exposing the challenges of coping with price pressure and higher rates in the US.

The rise of the Fed, including its first 75 basis point hike since 1994, and concerns about the health of the global economy have strengthened the US dollar against almost all currencies. Since many goods on international markets are priced in dollars, a strong dollar adds to inflationary pressures by raising the cost of imports, creating what analysts have called a “reverse currency war” between monetary policy makers.

“We are seeing a frenzy fueling rate hikes,” said James Athey, senior portfolio manager at investment firm Abrdn. “This is the opposite of what we have seen in the last decade. . . At present, the last thing anyone needs is a weak currency.”

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India steps up crackdown on Chinese phone makers BUT a number of legal actions heightened trade tensions between Asia’s two largest countries. Oppo, Vivo and Xiaomi, which together control about 60% of the Indian smartphone market, have been accused by Indian regulators of tax evasion and illegal money transfers. The move comes as New Delhi seeks to strengthen its domestic tech sector and reduce dependence on China.

Bar chart of market share (%) showing that Xiaomi took the lead in the Indian smartphone market before losing ground

2. Hopes for economic growth in China are pinned on problematic financing mechanisms for local governments. LGFVs play a vital role in financing infrastructure development across China. they will need to speed up construction activity if the country hopes to reach its 5.5% economic growth target this year. Large investors have become reluctant to support LGFV, forcing them to approach retail investors directly.

Biden’s punching refutes Saudi-U.S. worries While the US President’s trip to Saudi Arabia included a summit with other Arab leaders, enduring legacy of his trip there may be images of him being punched by Crown Prince Mohammed bin Salman, the man US intelligence concluded authorized the operation that led to the assassination of Jamal Khashoggi.

Centaurus subvariant of coronavirus spreading across India and parts of Europe A sub-variant of Omicron BA.2.75, which is spreading rapidly in India and has been found in several European countries, may be better than other coronavirus strains. overcoming immunity due to previous infection and vaccines. The World Health Organization has said that, nicknamed the Centaurus, it has mutated in a way that could indicate a “serious immune evasion.”

5. BlackRock Founder Warns of Dangerous Impact of Food Inflation The destruction of arable land during the war in Ukraine has dangerous global consequences, BlackRock founder Larry Fink told the Financial Times. Dramatic oil price spikes have distracted investors, but a bigger problem emerges food prices that will have a long-term impact.

The next day

British Conservatives cut short list of candidates for prime minister Today there will be another vote to nullify Tory Parliamentary Candidate Pack aspires to be the country’s next prime minister. In addition, Britain’s ruling Conservative Party will hold a vote of confidence in itself today, which is expected to win.

Haleon opens on the London Stock Exchange consumer goods companies spun off from GSK, whose brands will include Sensodyne toothpaste and Advil and Panadol pain relievers, is expected to be valued at £45bn. Today it is planned to start trading on the London Stock Exchange.

Results Bank of America, Charles Schwab, Goldman Sachs and IBM released their second quarter results today.

presidential elections in india In India, indirect presidential elections are held by elected members of both houses of parliament, elected members of the 29 states and elected members of the union territories of Delhi and Puducherry.

What else do we read

The Sultan, his family and the $15 billion dispute over oil in Malaysia The heirs of the Sultanate of Sulu have arrested state energy assets in litigation 144 years of preparation. The Sultan’s descendants were seeking compensation for land that their ancestor had leased to a British trading company prior to the discovery of vast natural resources in Sabah, the state of Borneo in Malaysia.

An Aphoto collage including a royal photograph of the Sultan along with the Petronas logo and headquarters in a glass tower.

© FT montage

Personal branding makes us cringe, but it works Like networking, a personal brand is something that we are told that we should develop it. But most of us don’t because we’re embarrassed. Viv Groskop offers to parse the vague term into more tangible components: your professional reputation and fame.

Noubar Afeyan of Moderna on the race to create a Covid vaccine The chairman of the American Biopharmaceutical Group discusses his approach to combining science with entrepreneurship and how Moderna has chosen to fight Covid, which has required larger and faster clinical trials than ever before. transformed it into a $60 billion company..

For investors, the era of the Great Annoyance is coming Employment, inflation, bond yields and more data showed turbulence this year, and as volatility replaces predictable moderation, fund managers struggle to place accurate bets.

Church or sect? Inside the “world of illusions” of the Moonies Tetsuya Yamagami, the man suspected in the assassination of former Japanese Prime Minister Shinzo Abe, was reportedly seeking revenge against the Unification Church. Compound final controversy for the churchwho has built a vast multibillion-dollar business empire with interests ranging from a Brazilian soccer club to a California chinchilla ranch.

Food

When it comes to grilled meats, nothing beats juicy, smoky ribs. Cunning in learning how to cook it “low and slow”.

barbecue beef ribs on a cutting board

Cooking slowly and slowly © Alamy

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