International News 13/09
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US Inflation Rises Moderately in August
The US Consumer Price Index (CPI) saw a slight increase in August, indicating a marginal rise in inflation. However, core inflation was slightly higher than anticipated, which may reduce the probability of a 50 basis point interest rate reduction by the Federal Reserve next week. The latest data from the US Department of Labor's Bureau of Labor Statistics shows that the consumer price index rose by 0.2% in August, resulting in an annualised increase of 2.5%, the lowest since February 2021. Economists had forecast a 0.2% increase in the CPI and a 2.6% annual rise. While inflation remains above the US central bank's target of 2%, it has slowed significantly, allowing policymakers to shift their focus towards the labour market to sustain economic growth. The nonfarm payrolls figure fell below expectations in August, but the unemployment rate fell from 4.3% in July to 4.2%, reducing the likelihood of a larger interest rate cut and increasing the likelihood of a smaller one.
https://internasional.kontan.co.id/news/inflasi-as-naik-moderat-pada-agustus
Warren Buffett offloads Bank of America shares worth US$ 228.7 million
Warren Buffett's Berkshire Hathaway has sold $228.7 million worth of Bank of America (BofA) shares, representing a further reduction in its holding in the second-largest US bank. Berkshire sold approximately 5.8 million BofA shares between 6 and 10 September. This brings the total value of shares sold since mid-July to approximately $7.19 billion, with 174.7 million shares sold in total. Notwithstanding the aforementioned sales, Berkshire remains BofA's largest shareholder with a stake of 11.1%. The company is obliged to report sales on a regular basis until its holding falls below 10%. Warren Buffett first invested in BofA in 2011, when Berkshire purchased $5 billion worth of preferred shares. The recent sale of shares follows a period of more than a year during which Mr Buffett expressed positive views about BofA and its CEO, Brian Moynihan. Mr Moynihan stated that Mr Buffett has been a highly beneficial investor for the bank, but declined to comment on the rationale behind the share sale.
Oil prices drop to 3-year low
On Tuesday, Brent oil prices reached their lowest point since December 2021, falling below $70 per barrel. One of the key factors contributing to this decline was OPEC's revision of its oil demand projections for 2024 and 2025. In its report released on Tuesday, OPEC revised its forecast for global oil demand in 2024, reducing the projected increase from 2.11 million barrels per day to 2.03 million barrels per day. Additionally, OPEC reduced its 2025 oil demand growth projection from 1.78 million barrels per day to 1.74 million barrels per day. Furthermore, weak petroleum imports in China due to a decrease in domestic demand also had an impact on the oil market. The possibility of a global economic slowdown is being increasingly considered by investors, which is leading to concerns about the future demand for oil. As a result, energy stocks experienced the largest decline among the S&P 500 sectors on Tuesday.
https://internasional.kontan.co.id/news/harga-minyak-bumi-turun-ke-level-terendah-3-tahun-terakhir