Things like volatile food and energy prices, so called Core Inflation was 4. 7 , the lowest since october 2021. The good news is that inflation has drifted down from last summers a0 year highs, but it is still well above what the Federal Reserve thinks of as normal prices and with the overall trend heading in the right direction, policy makers, well, they may feel that they dont need to raise Interest Rates further. The us central bank, you may recall, raised its benchmark Interest Rate to more than 5. 25 percent, the highest level in 22 years, all in a bid to cool the economy and ease the pressures pushing up prices. So while its too early to say Mission Accomplished from the white house to wall street, there is a sense that progress is being made in the Worlds Largest economy. Chinas E Commerce Giant Alibaba reported its strongest quarterly Revenue Growth in almost two years, pushing its us listed shares up more than 4 . Earlier this week, the latest data showed Consumer Prices falli
Great to have you with us. How do you think this is going to impact already difficult relations with china . , already difficult relations with china . V. Already difficult relations with china . ,. ,. , already difficult relations with china . ,. ,. ,. ,. China . Thats a great question. We have been playing china . Thats a great question. We have been playing pingpong china . Thats a great question. We have been playing pingpong withl have been playing ping pong with china fork some time now between us export control measures, weve seen china taking matches against us Companies Like macron, and it has imposed recent Export Controls on gallium and germanium, which we need for some of our Technology Sector is. I think that we are already at an increasingly fraught relationship with china. That being said, china in the broader Business Community have been on notice that this measure is likely to come down the pipe and we watch this plant a tenant legislative and administrative disgrac
Higher housing, cars and food costs but once his take out Core Inflation was 4. 7 , the lowest since october 2021. The good news is that inflation has drifted down from last summers 40 drifted down from last summers a0 year highs but its still well above what the Federal Reserve thinks of as normal prices. With the overall trend heading in the right direction, policymakers may feel that they dont need to raise Interest Rates further. Us central bank, you may recall, raised its benchmark Interest Rate to more than five and a quarter , the highest in 22 years, all in a bid to call the economy and ease the pressure is pushing up prices. Cool. Qualities too early to say mission accomplished, from the white house to wall street there is a sense that progress has been made in the Worlds Largest economy. Chinas e commerce Giant Alibaba reported its strongest quarterly Revenue Growth in almost two years, pushing its us listed shares up by more than a . Earlier this week the latest data shows C
The value of imports also fell by more than expected. Down 12. 4 onjuly a year ago, but that partly reflects a fall in the price of commodities such as crude oil. The figures will concern chinas government who are grappling with economic growth. The quarterly Growth Figure was just 0. 8 in the april tojune period as the country continued its post covid recovery. And last month chinas struggles were cited as a key concern for the Global Economy when the International Monetary fund updated its Global Growth forecast for this year to 3 . David woo is a former imf economist and wall street strategist, hejoins me now from tel aviv. Its a grim picture for china, isnt it . The third consecutive month of decline. Whats going wrong for them . ,. , decline. Whats going wrong for them . ,. ,. ,. , them . Some people are going to say its ust them . Some people are going to say its just basically them . Some people are going to say itsjust basically a them . Some people are going to say itsjust bas
And early noughties. Now this comes hot the heels of Dissapointing China Trade data on tuesday showing exports sank at their fastest rate since the pandemic. Global demand for chinese made goods is falling, down more than 14 in the year tojuly. But domestic demand is down too with imports also falling by more than 12 in the same period. Joining me now is janet mui, head of market analysis, Rbc Brewin Dolphin where is this deflation coming from . Good morning, thanks for having me. So, this Deflation Data is mostly coming from food. And also commodities prices like raw materials, energy etc. Actually, if you look at the underlying deflation, things Like Services and tourism and leisure, hotels. Actually, they are up, the Core Inflation is up from 0. 4 to 0. 8 . But obviously, its still pretty muted. Overall, it is a concern that china prices are contracting and it could be lasting for a while as well. , ~ , could be lasting for a while as well. , ~ ,. ,. , well. How likely is it that ch