Marketmind: Stagflation blues
Even by the conservative standards of global organisations, the International Monetary Fund is known for its cautious forecasts. So, when the Fund cut 2021 growth forecast on Tuesday and said it was growing more concerned about entrenched inflationary pressures, there is reason for investors to take notice.
Marketmind: Earnings face the inflation test
After weeks of debate about the supposedly transitory nature of higher inflation and its potential monetary policy implications, markets are about to find out how rising input costs impacted companies during the third 2021 quarter.
The UK is coping with rising inflation!
Public borrowing in the UK was almost a fifth lower last month than a year earlier when the economy was still recovering from the coronavirus pandemic, but growing inflation pushed loan prices higher. Borrowing – the difference between spending and tax receipts – was £22.8 billion in June, down £5.5 billion from the previous year, […]
Credit markets will withstand Evergrande shocks
LONDON, Sept 23 (Reuters Breakingviews) – Is China Evergrande (3333. HK) another Lehman Brothers moment? Not at all, according to the $40 trillion global corporate debt market. International credit investors have good reasons to be so nonchalant about the potential ripple effects of problems at the Chinese property behemoth with a $300 billion debt pile. Granted, Evergrande’s […]
Marketmind: Watch those spiralling gas prices
A massive week in monetary policy, with some 16 central banks holding meetings and possibly the first rate hike from a developed nation — Norway. Not to say others will follow any time soon; the Federal Reserve for instance may strees its own rate rises remain distant. Others such as Switzerland and Japan are likely to stay resolutely dovish.
Marketmind: Pandeconomics part 2
Slowly but surely, global policymakers are entering a new phase of their economic response to the pandemic.
Factbox: How the BOJ is quietly unwinding Kuroda’s ‘bazooka’ stimulus
After years of shock-and-awe monetary stimulus, senior Bank of Japan officials are quietly dismantling radical policies introduced by Governor Haruhiko Kuroda.
Marketmind: Transitory faith in transitory inflation
Say your economy is growing at about 5% annually, it just hit a 10-year inflation high of 3% read more amid labour shortages and enjoys negative yields on benchmark government bonds .
Shares lifted by prospect of lower rates for longer
Global shares posted their longest winning streak in three months on Monday, aided by the chance of low interest rates for longer in the United States and talk of more stimulus in Japan and China, while oil slid as the Saudis cut prices for Asian customers.
Euro zone Aug factory growth strong – as were price rises, PMI shows
Euro zone manufacturing growth remained strong in August but supply chain issues caused by the coronavirus pandemic continued to constrain supplies of the raw materials factories need, driving up prices, a survey showed on Wednesday.
