Kaohoon Morning Brief – 30 September 2021

1) House passes debt-ceiling suspension bill to Senate

The standoff between the Democrats and Republicans continues as the House on Wednesday passed a bill to suspend the U.S. debt ceiling, but is expected to get a red light from the Senate run by Republicans as the country is moving toward its first default in the upcoming month with no solution in sight.

 

2) Powell expects inflation running into 2022, but will ease eventually

Federal Reserve Chairman Jerome Powell expects inflation running into 2022, but will ease eventually. The Fed’s inflation gauge rose 3.6% in July, matching the highest level since May 1991. Still, Powell said that 2022 should be quite a strong year for economic growth.

 

3) Fumio Kishida is set to become Japan’s next prime minister

Japan’s former Foreign Minister Fumio Kishida won the governing party leadership election of the Liberal Democratic Party on Wednesday. He is set to become the next prime minister to replace Prime Minister Yoshihide Suga, who stepped down earlier this month over rising criticism on his handling of the pandemic and the postponement of Olympic 2020.

 

4) China manufacturing PMI is likely to remain unchanged

China’s factory activity is likely to remain unchanged in September at 50.1, according to the poll. The 50.1 reading is the same as the August reading that fell from 50.4 in July as high raw material prices and power cuts to meet its emission policy continued to pressure