After four consecutive months of growth, orders for commercial equipment received by US factories unexpectedly stopped growing in July, indicating that capital investment for several months has come to a halt. According to data released by the US Department of Commerce on Wednesday, core capital goods orders were basically flat in July, and were revised up to an increase of 1% in the previous month. The index excludes aircraft and defense supplies and is regarded as a barometer of commercial equipment investment. Durable goods orders fell by 0.1% month-on-month, reflecting a decrease in commercial aircraft orders.

Philip Lane, chief economist of the European Central Bank, told Reuters that the European Central Bank is ready to deal with any market disruptions that the Fed may start to reduce QE. “The European Central Bank is not a passive bystander,” Lane said in an interview. "If the spillover effect affects the financing situation in the Eurozone, we are willing and able to take appropriate actions, as we have already demonstrated." Lane emphasized that policymakers are determined to maintain a favorable financing environment in the Eurozone, implying that once the anti-epidemic emergency bond purchase plan expires, it will take a certain amount of time to decide how to proceed with bond purchases.

Canadian Prime Minister Justin Trudeau promised on Wednesday that if he can be re-elected in the September 20th general election, he will impose a 3% surcharge on the portion of Canadian banking and insurance profits that exceed 1 billion Canadian dollars (793 million US dollars). . According to financial disclosure information, the total net profit of the six largest Canadian banks in 2020 will exceed 40 billion Canadian dollars. Trudeau announced the news during the Vancouver campaign.

The Iranian parliament approved the majority of President Ibrahim Leahy’s cabinet members and appointed an anti-Western conservative as the foreign minister to lead the resumption of negotiations on the 2015 nuclear agreement. The world's major powers are observing when Tehran plans to resume negotiations in order to resolve the deadlock with the United States. The US-Iran confrontation brought the two countries to the brink of war and stifled Iran’s oil exports.

With the delta virus variant causing a record number of new cases and putting tremendous pressure on the medical system, Prime Minister Yoshihide Suga expanded the epidemic emergency to eight other regions, covering a total of more than 70% of the Japanese population. Yoshihide Suga said on Wednesday that eight regions, including Hokkaido and Aichi Prefecture, will be in a state of emergency from Friday until September 12. When this order comes into effect, 21 regions in Japan will be in a state of emergency, including Tokyo and Osaka, accounting for 79% of the Japanese economy. "In most regions, we have seen an unprecedented surge in new cases," Suga Yoshihide said at a press conference. "The highly contagious delta is spreading and becoming more difficult to control."

US companies that transfer profits overseas may face more severe penalties. This plan by the Democrats in the Senate has released the clearest signal ever that large companies may need to pay higher taxes next year. According to the draft legislation released on Wednesday, Ron Wyden, chairman of the Senate Finance Committee, proposed a vision to reform the global tax system for multinational corporations. Democrats said that the tax system for multinational corporations has allowed them to transfer profits and jobs outside the United States for decades. 

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