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US economic growth was even stronger in the third quarter than previously estimated, underscoring the economy’s remarkable resilience in the face of elevated inflation and high borrowing costs earlier this year. Gross domestic product, the broadest measure of economic output, rose at an annualized rate of 5.2% from July through September, according to the Commerce Department’s second estimate, released Wednesday morning. GDP is adjusted for inflation and seasonal swings. Wednesday’s latest reading reflects an even faster pace of growth than the blistering 4.9% rate the department initially estimated. It factors in greater business investment, government outlays, residential investment and inventory growth. Read more: CNN
China’s factory activity contracted for a second straight month in November, while non-manufacturing activity hit yet another new low for the year, signaling that the world’s second-largest economy is not yet out of the woods and may require more muscular policy support. The official manufacturing purchasing managers’ index unexpectedly fell slightly to 49.4 in November from 49.5 in October, according to data from the National Bureau of Statistics released Thursday. This was slightly worse than the median forecast for 49.7 in a Reuters poll. China’s official manufacturing PMI also came in below forecast last month. The official non-manufacturing managers’ index slipped to 50.2 in November from 50.6 in October, according to the same NBS release. This was the weakest reading since December 2022. Read more: CNBC
U.S. banks reported Wednesday a slowdown in profits in the third quarter of the year, as lower noninterest income and higher realized losses on bank investments took a toll. The U.S. Federal Deposit Insurance Corporation reported bank profits at $68.4 billion in the most recent quarter, down 3.4% from the prior quarter. Year over year, bank profits were down 4.6%, due in large part to banks setting aside more funds in provision expenses for potential loan losses, which were up 33.2% in the last four quarters. Noninterest income was down $4.1 billion, or 5.2%, in the third quarter, while realized losses climbed $3 billion, the FDIC said. The agency also reported that banks saw their unrealized losses on securities climb to $683.9 billion in the third quarter, a 22.5% jump driven primarily by rising mortgages rates that have reduced the value of mortgage-backed securities held by banks. However, the agency noted that despite these challenges, banks remain well-capitalized, the rate of deposit flight has steadied, and the level of noncurrent loans held by banks remained below pre-pandemic levels. Read more: Reuters
Singapore and Zurich tied for the world’s most expensive city this year, followed by Geneva, New York and Hong Kong, the Economist Intelligence Unit (EIU) said on Thursday as it cautioned that the global cost-of-living crisis was not yet over.On average, prices have risen by 7.4% year on year in local currency terms for over 200 commonly used goods and services, a drop from the record 8.1% increase last year but still “significantly higher than the trend in 2017-2021,” it said in a report. Singapore regained the top of the rankings for the ninth time in the past eleven years due to high price levels across several categories. The city state has the world’s highest transport prices, owing to strict government controls on car numbers. It is also amongst the most expensive for clothing, groceries and alcohol. Zurich’s rise reflected the strength of the Swiss franc and high prices for groceries, household goods and recreation, it said. Read more: Reuters
The lawsuit against the highly contentious Ugandan-Tanzania oil project has been rejected by a regional court in East Africa. Since the project’s (Eacop) conception, several environmental and human rights groups have objected to its initiation. These organizations have emphasized the humanitarian catastrophe that the project is sure to leave in its wake. The regional court dismissed the case on the grounds that the case was not within its jurisdiction. The court also disclosed that the case was brought in a little too late, according to a report by the East African news publication, The East African. According to the East African’s report, a panel of five judges at the Tanzanian court in Arusha ruled that the complaint filed in 2020 “cannot be adjudicated upon because it was filed outside the time period prescribed.” However, the organization that filed the petition against stakeholder in the oil pipeline project assured that they would not give up on the case as they gear up to appeal what they described as an “unjust” ruling. Read more: Business Insider
Staff and contractors at First Quantum Minerals Ltd.’s Panamanian copper mine staged demonstrations across the country Wednesday, demanding the government protect their jobs or ensure they receive compensation if they are laid off. Workers marched through city streets, blocking roads and waving flags, a day after the Supreme Court ruled the law governing a new contract for the Cobre Panama mine was unconstitutional. Some carried signs that read “You also use 100% Panamanian copper.” The backlash from members of the mine’s 7,000-strong workforce — as well as suppliers and contractors that account for a total of about 40,000 jobs — comes as anti-mining protesters celebrate President Laurentino Cortizo’s pledge to respect the court’s ruling and begin the process of closing the mine. While environmentalists and some other non-mining labor unions have held protests since Oct. 20 when Congress passed the new contract, workers are fighting to keep their jobs — or at least receive proper compensation. “This is a source of income for more than 40,000 households, and we don’t have a response as to what is going to happen to us,” union leader Michael Camacho told reporters. “We demand the government and the labor ministry respect our rights.” Read more: Mining
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