The preliminary estimate of eurozone consumer-price inflation is expected to show that the headline rate accelerated in August, driven largely by higher fuel costs. It will be the final inflation release before the European Central Bank’s 9–10 September policy meeting.

A poll of economists forecast that annual headline inflation rose to 3.3% from 2.9% in July. More encouragingly, the less volatile core rate is expected to remain unchanged at 2.5%.

Oil prices are around 1% higher than they were at the end of last month and are expected to have been the main catalyst for the renewed acceleration in headline inflation. That modest net rise, however, masks considerable volatility during the period as the US and Iran exchanged threats—and, more recently, missiles. (LS – Continue Reading)

Finance Minister Satsuki Katayama and US Treasury Secretary Bescent met in Asheville, North Carolina, in the southern US where the G20 finance ministers and central bank governors meeting is being held. An insider revealed. It appears that they discussed exchange rate trends, including the effects of the yen purchase intervention that Japan and the U.S. coordinated on July 31 for the first time in 28 years. This is my first time meeting face-to-face after a coordinated intervention. Mr. Becent also held talks with Kazuo Ueda, Governor of the Bank of Japan.

On the 31st, in a US TV interview, Mr. Bescent said, "I believe the Japanese government and the Bank of Japan will take measures that could lead to a stronger yen," expressing his expectations for a rate hike. Regarding the recent yen rate, he pointed out that it is "quite restrained" and suggested that it is not a "disorderly movement." (Kyodo – Continue Reading)

US Treasury Secretary Scott Bessent reportedly told Russian Finance Minister Anton Siluanov that no sanctions relief or new agreements with Moscow were possible, as long as the war in Ukraine continues.

The two officials met on the sidelines of a Group of 20 finance leaders’ gathering in Asheville, North Carolina.

Bessent’s remarks came as Siluanov’s first in-person appearance at the summit since Russia’s invasion of Ukraine in 2022 drew objections from other European leaders. European governments have planned to expand sanctions to further squeeze Moscow’s economy and finances. (CNBC – Continue Reading)

The Trump administration reached agreements for most-favoured-nation drug pricing with nine pharmaceutical companies, including Teva Pharmaceuticals, Astellas Pharma, and BridgeBio.

The agreements provide for all state Medicaid programs to pay prices for prescription drugs that match the lowest prices paid by other developed nations, the White House said Monday, adding that the agreements also guarantee MFN pricing for all new medicines the companies bring to market. (WSJ – Continue Reading)