Economy

Annual shop price deflation of 0.6% in the 12 months to November followed a 0.8% drop in the 12 months to October, the BRC said.Its measure of shop price inflation dropped between May 2023 and July this year after which it fell further into deflation, until now.”With significant price pressures on the horizon, November’s figures may signal the end of falling inflation,” Helen Dickinson, BRC’s chief executive, said. Official figures last week showed consumer price inflation rose to 2.3% in October, largely reflecting a surge in household energy prices.The Bank of England this month cut interest rates to 4.75% from 5% but said it was likely to move only gradually with further cuts. On Monday, BoE Deputy Governor Clare Lombardelli expressed concern about the risk of stronger price growth than forecast.The BRC’s Dickinson said prices would increase as stores pass on higher staffing costs including in finance minister Rachel Reeves’ budget last month. Reeves on Oct.30 announced a 25 billion-pound ($31.53 billion) rise in social security contributions by employers alongside a 6.7% uplift in the minimum wage.The BRC survey showed food inflation fell to 1.8% from 1.9% in October. Prices of non-food items fell by 1.8%, a less severe drop than October’s 2.1% decrease.A separate survey from British supermarket Asda on Monday said a drop in households’ disposable income and rising inflation could subdue Christmas spending. ($1 = 0.7930 pounds) More

Kashkari said policymakers were still considering a 25 bps rate reduction in the Fed’s final meeting for the year. “It’s still a reasonable consideration,” he told Bloomberg TV. “Right now, knowing what I know today, still considering a 25-basis-point cut in December — it’s a reasonable debate for us to have.”Kashkari’s comments come amid some doubts over whether the Fed will cut rates again in December, especially as recent economic readings showed stickiness in inflation and resilience in the U.S. economy. The labor market was also seen running strong in recent weeks.Fed Chair Jerome Powell had struck a cautious note during a recent address, sparking more doubts over a December cut, which will bring the Fed’s total rate cuts to 1% in 2024. Traders were seen pricing in a 61.3% chance for a 25 basis point cut in December, and a 38.7% chance rates will remain unchanged, according to CME Fedwatch.  More

Speaking to reporters in Brasilia, Haddad said the last step remaining before publicly announcing the package’s measures would be discussing it with leaders in Congress. Expectations regarding the package have been driving volatility in trading of the Brazilian real in the last few weeks, as investors wait to see if the measures would address concerns over Brazil’s fiscal stability. “(The announcement) is now dependent on the presidential palace getting in touch with the Senate and the lower house,” Haddad said, adding measures already in Congress could be added to the deal. Haddad confirmed that he still believes the package could be approved by Congress this year. More

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Unifor, which represents more than 3,600 members at the railroad’s Council 4000 and Local 100 committees, said members voted “overwhelmingly” in favor of the strike action. “CN is committed to reaching negotiated agreements with Unifor that are good for employees, customers, and the economy,” said Ashley Michnowski, a spokesperson for Canadian National. Unifor, which represents CN Rail’s car technicians and heavy duty mechanics among other workers, said negotiations with the railroad will resume from Nov. 30 to Dec. 8 in Montreal. The union had initiated negotiations with CN Rail in September, with bargaining priorities that included higher wages, addressing concerns about the pension plan and job security for its members. More

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(Reuters) – A look at the day ahead in Asian markets. Donald Trump’s pick to be U.S. Treasury Secretary proved to be a balm for the bond market, while the dollar followed yields lower in a move poised to influence trading in Asia on Tuesday.The choice of prominent investor Scott Bessent made late on Friday, rippled through markets on Monday, after days of speculation over who Trump would choose to be essentially the highest-ranking U.S. economic official. Treasury yields, which move opposite to prices, fell sharply, with the benchmark 10-year yield touching its lowest level in more than two weeks. Treasury yields had been rising at a torrid pace, partially due to concerns that Trump’s presidency would dramatically widen the federal deficit.But Bessent was seen as someone who might moderate any negative impact of Trump’s fiscal policies. Some strategists said his nomination was a relief as he understands markets and his appointment could reduce the severity of potential tariffs, which are favored by Trump.The dollar index, which has surged since early October, pulled back sharply on the day. A weaker dollar could offer some relief to emerging market countries that have borrowed heavily in the U.S. currency, amid concerns about a rising dollar under Trump.  The removal of uncertainty over the Treasury secretary position combined with lower bond yields boosted equities. MSCI’s gauge of stocks across the globe was up about 0.4%, while the U.S benchmark S&P 500 closed up 0.3%.     The spotlight was on U.S. small-cap stocks, with the Russell 2000 hitting a record intraday high for the first time in three years.Some investors say small caps could be in the sweet spot, as Trump’s push for lower taxes and reduced regulations favors smaller companies, while the Fed’s lowering of interest rates also stands to help smaller companies that tend to rely more on debt financing.Not everything was rosy in equities, as Chinese shares fell amid concerns about a trade war hurt risk appetite. The Shanghai Composite Index touched its lowest in about a month.Elsewhere, signs of a ceasefire deal between Israel and militant group Hezbollah in Lebanon prompted a pullback in oil prices and gold, with the Treasury secretary news also dulling the precious metal’s allure.With the Thanksgiving holiday in the U.S. coming on Thursday, trading was expected to thin out, even as central bank decisions in New Zealand and South Korea and inflation data in the U.S. were set to provide some excitement later in the week.Here are key developments that could provide more direction to markets on Tuesday:- Singapore manufacturing output (Oct)- Hong Kong export/import data (Oct)- Fed meeting minutes More