Global

Brazil's Monthly Inflation Rate Likely Eased in Mid-July. Brazil's inflation rate likely eased in the month to mid-July as economic growth has slowed, opening the door for a smaller interest rate hike by the central bank later this month. Consumer prices are expected to have risen 0.59% in the month to mid-July, down from an increase of 0.99% in the month to mid-June, according to the median of 26 forecasts. Trailing 12-month inflation probably remained far above the 4.5% official target, quickening to 9.23% from 8.80% in mid-June, according to the poll. (Reuters)

Asia

World Bank Raises Vietnam's 2015 Growth Forecast to 6.0-6.2%. The World Bank on Monday revised its forecast for Vietnam's economic growth this year to 6.0-6.2%, from 6.0% previously, citing robust private consumption and investment. The bank also lowered Vietnam's 2015 annual inflation forecast to 2.5% from an initial projection of 4.5%, underpinned by low global energy and food prices. (Reuters)

Taiwan June Export Orders Fall for 3rd Month, China Demand Slumps. Taiwan's export orders fell for a third straight month in June on weak demand from China and other emerging markets in a worrying sign for global technology demand. June exports contracted 5.8%, roughly in line with a median 5.62% fall forecast by economists. Orders from Taiwan's two biggest export markets were mixed; with China down 11.5% from a year earlier while those from the United States rose 5.8%. Taiwan's export orders are a leading indicator of demand for Asia's exports and for hi-tech gadgets. (Reuters)

China to Host Key Meeting to Discuss Economy in October. China's ruling Communist Party will meet in October to discuss economic development and the next five-year plan, state media said on Monday, as the government seeks ways to boost an economy that is expected to post its weakest growth in a quarter century. Such meetings are typically held once a year and tend to map out key policies for the years ahead. (Reuters)

China's Been Hoarding Gold And It Isn't Likely to Stop. With China’s been the second-biggest buyer of gold over the past six years, analysts and traders say the purchases will continue. The People’s Bank of China said that it owns about 1,658 metric tons, implying purchases of 100 tons a year. The stockpile may eventually reach more than 5,000 tons. The country is using the metal to diversify foreign-exchange reserves as policy makers push for the yuan to be added to the International Monetary Fund’s basket of currencies. (Bloomberg)

Australia Banks Told to Raise US$7bil Under New Capital Rules. Australian banks have one year to raise US$7bil under new rules requiring a bigger cash buffer, a move widely expected to hit profits and push up mortgage rates, slowing a real estate rush that has economists warning of a property bubble. The financial regulator also said large banks may have to raise more in future as the country shifts from letting property lenders decide cash reserves to making them follow global standards. The Australian Prudential Regulation Authority's (APRA) July 2016 deadline for banks to have cash reserves at 25% of mortgage books, from 16% now, adds urgency to a sector-wide restructuring that has already seen lenders raising billions of dollars in preparation. (Reuters)

USA

Fed's Bullard Says Better Than 50% Chance of Fed Hike in September. There is a better than 50% chance that the Federal Reserve will raise interest rates in September. St. Louis Fed President James Bullard said the Fed should get ahead of the curve, as inflation will rise and labor market slack will end. (Reuters)

U.S. Companies Less Optimistic About Future Sales. U.S. businesses' outlook on sales in the coming months has darkened after sales growth slowed in the second quarter, according to a survey released Monday. More companies expect to cut back on their investment in equipment and buildings in the July-September quarter. 59% of businesses expect their sales to grow in the next three months, down from the 71% who forecast sales growth three months ago. Just 46% of firms said their sales rose in the April-June quarter, down from 49% in the first quarter. And 18% said sales fell, the most in more than a year. (AP)

Survey Shows Growing U.S. Shortage of Skilled Labor. U.S. employers are finding it increasingly difficult to find skilled workers, according to a survey published on Monday, suggesting upward pressure on wage growth down the road. 35% of the 112 economists who participated reported their firms had seen shortages of skilled labor during the quarter ending in July. That compared with only 25% in the April survey. Although job growth has accelerated and the unemployment rate has dropped to seven-year lows, that has not been accompanied by strong wage growth. (Reuters)

Fed Directs 8 Biggest US Banks to Hold Extra Capital. Federal regulators are directing the eight biggest U.S. banks to hold capital at levels above industry requirements to cushion against unexpected losses and reduce the chances of future taxpayer bailouts. The eight banks together will be required to shore up their financial bases with about $200 billion in additional capital. The requirements also are aimed at encouraging the Wall Street mega-banks to shrink so they pose less risk to the financial system. The banks include JPMorgan Chase, Citigroup and Bank of America. (AP)

Clinton to Push Revamp of Capital-Gains Tax Rates. Hillary Clinton will propose a revamp of capital-gains taxes that would hit some short-term investors with higher rates, part of a package of measures designed to prod companies to put more emphasis on long-term growth, a campaign official said. The proposal is designed to tackle what Mrs. Clinton, some economists and some on Wall Street consider the overly short-term focus of corporate strategy. The Democratic presidential candidate’s plan would create a sliding scale with at least three new rates that change depending on how long an investment is held, the official said. (WSJ)

Europe

Greece Said to Order Creditor Payments as Banks Reopen. Greece gave the order to repay 6.8 billion euros ($7.4 billion) to creditors after last week’s tentative bailout deal, as Greek banks reopened three weeks after closing to prevent economic collapse. The payments ordered Monday by the Greek government include money owed to the European Central Bank, the International Monetary Fund and Greece’s central bank. Greek financial markets remain closed. Banks now replace the daily cash withdrawal limit of 60 euros with a weekly limit of 420 euros. (Bloomberg)

French Central Bank Urges Savings Accounts Rate Cut. France's central bank called on Monday for the regulated rate on popular tax-free savings accounts to be cut to 0.75% from a record low 1.0% currently. The Finance Ministry traditionally backs the Bank of France's proposed rate, but during the last year has overruled the central bank over concerns about savers' purchasing power eroding with returns at historically low levels. Data on Wednesday showed that annual inflation held steady in June at only 0.3% over 12 months. (Reuters)

London Housing Demand Intensifies Squeeze on First-Time Buyers. First-time home buyers in London are getting more and more squeezed out of the market as prices soar while demand shows no sign of abating. Asking prices for homes with no more than two bedrooms, typically targeted by those looking to get on the property ladder, surged 1.1% in July to an average 449,766 pounds ($703,000). Across all homes in the capital, the average increase was 0.2%. An imbalance between supply and demand, along with record-low borrowing costs, is keeping upward pressure on house prices across the U.K. (Bloomberg)

German PPI Dips 0.1% in June. Germany's producer price index declined 0.1% in June, official data showed. This was below forecasts for 0.0%. (Stock Market Wire)

Currencies

Rate-hike View Lifts U.S. Dollar to 3-month High. The dollar reached its highest in nearly three months against a basket of currencies on Monday on a rise in U.S. bond yields as traders built bets the Federal Reserve would raise interest rates later this year. The dollar index was up 0.2% at 98.035 in late trading after touching 98.088 earlier, which was the highest since April 23. The dollar was also steady against the euro at $1.08280 in the wake of a debt deal that will keep Greece in the euro zone for now. The dollar reached 124.390 yen, a 4-1/2-week peak in European trading before scaling back to 124.265 yen, up 0.1% from Friday. (Reuters)

Commodities

Gold Slumps to 5-Year Low after Early Asia Rout. Gold prices plunged more than 4% to five-year lows on Monday as a sudden bout of selling across Shanghai and New York markets during the illiquid early Asian trading hours triggered a mini flash crash, deepening bullion's biggest rout in years. Spot gold prices were 2.8% lower at $1,102.05 an ounce by 3:54 p.m. EDT (1954 GMT), down for the sixth straight session, after falling as far as $1,088.05 an ounce, the lowest since March 2010. Spot platinum fell for the fifth straight session, paring losses after dropping 5% to a fresh 6-1/2-year low of $942.49 an ounce. Palladium was down 1.3% at $606 while spot silver was down 0.7% at $14.76 an ounce. (Reuters)

Oil Prices Dips Below $50 on Ample Supply, Strong Dollar. Oil futures fell on Monday and U.S. crude slipped below $50 a barrel intraday as ample supply, the prospect of more Iranian crude for export and a strengthening dollar combined to pressure prices. U.S. refined-products futures also oscillated. An increasing supply of refined products, especially diesel fuel being offered by Saudi Arabia, helped push U.S. ultra-low diesel futures to multi-month lows intraday, adding to bearish concerns about prices in the oil futures complex. Brent crude fell 45 cents to settle at $56.65 a barrel, having traded between $56.33 and $57.44. U.S. crude fell 74 cents to settle at $50.15, having fallen to $49.85, its first time below $50 since April. (Reuters)