Bonds & Stocks
A deluge of bad news swept across global markets on Wednesday, driving European stocks to the biggest loss in two months, pushing copper below $8000 and snuffing out this year's gains in China equities. There were reasons for investors to be pessimistic in every region. In the US, there was little progress in debt-ceiling talks and investors are increasingly worried about a default. China's sputtering economy and worsening geopolitical ties also hurt sentiment. UK inflation came in higher than any economist prediction, fueling bets on further interest rate hikes.
Economy
Britain’s inflation rate remained much stronger than expected, with the fastest increase in services and core prices in more than three decades fueling a flurry of bets on more Bank of England interest rate rises. The Consumer Prices Index registered 8.7% in April, higher than any of the 36 estimates from economists or the 8.4% reading forecast by the central bank. Core prices excluding food, energy and tobacco accelerated to 6.8% last month from 6.2% in March.
World
Mars Inc., one of the world’s largest chocolate makers, has tapped US executive Anton Vincent to lead the company’s global ice cream effort and turn the business into a $1 billion brand by 2030. Vincent, who has been president of Mars Wrigley in North America for four years, has been given the added role with responsibility of expanding a $400 million business that includes frozen versions of its Twix and Snickers chocolate bars.