Economy

The Fed vs. Inflation
US central bank believes interest rates need to be raised again

US central bank officials anticipate another interest rate hike this year, according to minutes from the latest meeting.

"Participants emphasized, however, that they approach each meeting with an open mind," the minutes state.

Another hike this year was already anticipated by the market.

US inflation has remained above the 2 percent target for over five years, CNBC reports. In August, CPI-measured inflation stood at 3.4 percent, and core inflation—which includes energy and food prices—was also 3.4 percent. 

Stock Market Sentiment
US yields retreat following this evening's auction

US long-term yields retreated from multi-year highs following a strong auction of ten-year Treasury bonds. Demand—including from foreign investors—was unusually high, which eased concerns, CNBC reports.

The yield on the US 10-year Treasury note peaked at 5.35 percent on Wednesday—the highest level in 24 years. Subsequently, the yield fell to 5.28 percent.

Some of the rise in yields had been attributed to investors viewing the US as an uncertain investment destination due to its high national debt. That concern was allayed when it emerged that foreign central banks had purchased 80 percent of the bonds.  

EU Budget
Following EU budget dispute – new proposal expected this weekend

The EU is set to present a new compromise proposal regarding the long-term budget on Saturday. This was announced by Thomas Byrne, the EU Minister for Ireland—which currently holds the Council presidency—according to the news agency TT.

Following the acrimonious budget dispute, he does not expect everyone to be satisfied.

"But we hope that everyone can find something in the compromise that appeals to them," he said during a debate in the European Parliament in Strasbourg.

Ireland's compromise proposal is a development of the one drafted by Cyprus last spring and is expected to propose deeper cuts than its predecessor. That earlier version was heavily criticized by countries including Sweden and Germany, which favor a tighter budget, TT reports. 

EU-China Relations
Sources: EU seeks import cap on Chinese hybrid cars

The EU is preparing a proposal to limit imports of Chinese-made hybrid cars into the bloc, sources told Bloomberg. The measure under discussion is reportedly a time-limited tariff quota, where imports exceeding the cap would be subject to higher tariffs.

The measure could potentially be applied to other sectors with trade imbalances, according to the sources. 

Raids on beer giants in Japanese cartel scandal

Japanese competition authorities have raided the country's four largest beer manufacturers on suspicion of cartel activity, a source told AFP.

Representatives from Asahi, Kirin, Sapporo, and Suntory are believed to have met regularly over several years to discuss price increases.

These beer giants account for 90 percent of the Japanese market.