- Chinese authorities scrapped their plans to buy stocks on a large scale to prop up the ailing equities market, the Financial Times reports. State investment funds and institutions have so far poured around $200 billion in the stock market without being able to stop the fall. The Chinese government will now focus on punishing those it sees responsible for "destabilizing the market." Asian stocks were set for their worst monthly drop in three years on Monday.
- Federal Reserve officials have signaled that their plans to raise interest rates before the end of the year are unchanged despite global market woes, the Wall Street Journal reports after the Jackson Hole annual meeting. "There is good reason to believe that inflation will move higher as the forces holding inflation down -- oil prices and import prices, particularly -- dissipate further," Fed Vice Chairman Stanley Fischer said at the weekend symposium.
- Japan's industrial output unexpectedly fell in July, signaling that the economy's troubles could be set to continue despite record money-printing. The 0.6% decline in output in July was much worse than the median estimate by an economists poll for a 0.1% increase, and follows a 1.1% rise in June.
- France's economy minister Emmanuel Macron said the eurozone needs to evolve to include fiscal transfers among members or risk destroying itself. He made the remarks in an interview with a German newspaper. German politicians are strongly opposed to fiscal transfers, because they believe Germany will end up covering the budget gaps of weaker members of the currency union.
- Italian energy company Eni (E) said it discovered a giant gas field in the Mediterranean Sea off the coast of Egypt, which would give a much-needed boost to the country's fragile economy. Eni said the discovery could become "one of the world's largest natural gas finds" and that the field could hold as much as 5.5 billion barrels of oil equivalent and could offer an alternative supply to Europe, lessening its reliance on Russian gas.
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