Macro Briefing: 11 August 2023

* Biden says China’s economic woes are a “ticking time bomb”
* One of China’s largest property developers warns of a hefty loss
* Britain’s economy grew more than expected in Q2
* Record hot ocean temps could turbocharge hurricanes, NOAA scientists warn
* US jobless claims rise to 5-week high but not enough to raise concern
* US headline consumer inflation picks up as core CPI holds steady in July:

US core consumer inflation’s 3-month annualized pace fell to 3.1% in July, the lowest in two years and down sharply from 5% in June. The drop suggests that the Federal Reserve will leave interest rates unchanged at its next policy meeting on Sep. 20. “My God, that’s incredible,” says Laurence Meyer, a former Fed governor, of core CPI’s sharp decline for the 3-month change. “There’s absolutely no question that core inflation has turned the corner faster” than the Fed anticipated, he tells The Wall Street Journal. Y-Parthenon senior economist Lydia Boussour also reads the latest inflation data as encouraging, telling Yahoo Finance: “The July CPI report offered more convincing evidence that inflation pressures are abating.”

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