Global stocks mixed…FED set to raise rates…Airbnb worries in Paris
SINGAPORE (AP) – European markets were flat Wednesday following a day of gains in Asia as traders awaited an expected interest rate hike by the U.S. Federal Reserve. Futures point to opening gains on Wall Street. Benchmark U.S. crude oil inched ahead to continue above $72 per barrel. The dollar eased against the yen nd weakened against the euro.
WASHINGTON (AP) – The Federal Reserve is set to raise interest rates for a third time this year and possibly modify the likely direction of rates in the months ahead. The big question is whether the strong U.S. economy, which has been fueled this year by tax cuts and increased government spending, could weaken next year, especially if President Donald Trump’s trade fights begin to inflict damage and the benefits of tax cuts start to fade. If the Fed finds that prospect likely, it might signal Wednesday that it expects to slow its rate increases next year.
FRANKFURT, Germany (AP) – A simulation carried out by economists at the European Central Bank finds that a fierce global trade war would hurt the United States economy significantly, making households poorer and destroying jobs, while China would not suffer as much. In research published Wednesday, the economists said that stock and bond markets could be hurt by a general loss of confidence in the economy. One particular conclusion was that the country starting the trade war would wind up worse off than before.
PARIS (AP) – The spectacular growth of Airbnb in Paris – the top worldwide location for the internet giant – is also raising alarms in the French capital. Some Parisians and officials at City Hall blame the site for driving Parisian families out of the city center, leading to school closures and concerns that the French capital is losing its life and charms. Paris, long one of the world’s top destinations, is still grateful for the billions of euros (dollars) that tourists pump into the French capital’s economy and the 300,000 jobs they sustain. But Parisians and City Hall officials also are expressing deep qualms about having so many visitors directly in their midst, no longer largely corralled in hotels.
BANGKOK (AP) – The Asian Development Bank says trade conflicts, rising debt and the potential impact from rising interest rates in the U.S. will likely dampen growth in the coming year. In an update of its regional economic outlook report, the Manila, Philippines-based regional lender said Wednesday that it expects economic growth in Asia to remain at a robust 6.0 percent in 2018 but to slip to 5.8 percent next year. China’s economy is expected to expand at a 6.6 percent annual pace this year but slow to 6.3 percent in 2019.