Economy

Fed vs. inflation
The market expects the Fed to raise the US interest rate this fall

The market is increasingly expecting the US central bank Federal Reserve to raise its interest rate after the oil rally of recent days, which is expected to boost inflation, notes CNBC.

According to CME Group's Fedwatch tool, investors are pricing in a 25-basis-point interest rate hike in September to 83 percent, up from 53 percent a week ago.

At the same time, bets on a rate hike in September are increasing sharply on the betting platform Kalshi.

The fixed income market is also giving the same signal. On Thursday, the US ten-year Treasury yield climbed above 4.71 percent for the first time since January last year, a sign that investors are preparing for higher interest rates.

The Fed's target rate is in the range of 3.50-3.75 percent.

Germany's growth
Gloomy forecast for German growth

The German economy is expected to grow by only 0.9 percent annually until 2045. This is according to a study conducted by the research institute Prognos, which Süddeutsche Zeitung has access to.

In all likelihood, the German economy will grow very slowly until the middle of the century, the newspaper writes.

The prerequisite for growth to even reach this level is that German companies integrate digital solutions, AI and other technical innovations into their production to a significantly greater extent than before.

According to the study, the chemical, metal and cement industries, among others, are under particular pressure as a result of climate change and high energy intensity. The automotive and transport sectors are also undergoing profound changes driven by the transition to electric power.

Earthquakes in Venezuela
Earthquakes in Venezuela estimated to cost 191 billion

The twin earthquakes in Venezuela are estimated to have caused damage to buildings and infrastructure worth 19.6 billion dollars, equivalent to 191 billion kronor. This is according to preliminary calculations from the World Bank, reports Bloomberg.

The damage corresponds to 18 percent of the country's GDP and almost half of the costs relate to destroyed homes.

So far, nearly 5,400 people have died and just over 16,700 have been injured in the earthquakes in northern Venezuela on June 24 this year.

The World Bank's new calculations are clearly lower than the UN's estimate of approximately 37 billion dollars, the news agency notes.