Financial Times (February 7)
“Investors are befuddled. Until a clear narrative on how the economy will fare emerges, markets will continue to whipsaw…. Markets are still digesting what it means for the US economic outlook, with a hard, a soft, and even a “no landing” scenario on the table, which have varying implications for investors and their positioning.”
Tags: Befuddled, Economy, Hard, Implications, Investors, Landing, Markets, Narrative, Outlook, Scenario, Soft, U.S., Whipsaw
Wall Street Journal (February 6)
“Today congestion has all but disappeared at U.S. ports, supply chains have almost returned to normal, and freight costs have fallen back to prepandemic levels. But in the aftermath of this disorienting and costly experience, it is critical to ask: What led to such a severe backup and what can be done to prevent a recurrence?” Until there are corrective measures like 24/7 port operation and automated container handling, “the system remains vulnerable to future supply disruptions that will harm the U.S. economy.”
Tags: 24/7 port operation, Automated container handling, Backup, Congestion, Costly, Critical, Disorienting, Economy, Freight costs, Ports, Prevent, Supply disruptions, U.S., Vulnerable
The Guardian (February 5)
“It is finally dawning on more and more people that leaving the EU was a colossal mistake.” Brexit has led to “supply chain disruptions, staffing shortages, higher food prices and extra red tape for business. Public opinion is shifting towards remorse. Instead of hurtling away from the EU into the swaggering prosperity promised by the Leave campaign, Britain is instead receding into a dark timeline of recession, strikes, and political instability. Last week, it was forecast that Britain will be the only G7 economy to shrink in 2023.”
Tags: Brexit, Disruptions, EU, Food prices, G7 economy, Mistake, Political instability, Public opinion, Recession, Red tape, Remorse, Shortages, Shrink, Staffing, Strikes, Supply chain
Reuters (February 4)
“The global trade war is taking an unexpected turn. Beijing may ban the export of technology used to make solar panels, an industry which China dominates by controlling at least 75% of its global supply chain. That has repercussions for the West’s drive to create its own green energy industry.” Any such move is more likely “to slow, not halt” the West’s solar push. “Losing access to Chinese solar technology, such as furnaces for melting silicon, would not be an insurmountable problem.”
Tags: Ban, Beijing, China, Export, Furnaces, Global trade war, Green energy, Repercussions, Silicon, Solar panels, Solar technology, Supply chain, Technology, Unexpected, West
The Economist (February 2)
The decisive election of Petr Pavel as the new president of the Czech Republic shows that “all is not lost for the centrist liberal consensus” and also indicates that populism in Europe is, at last, “losing its mojo.” Pavel’s win “marks another blow for the narrative of European politics shifting inexorably to extremes.”
Tags: Centrist, Consensus, Czech Republic, Decisive, Election, Europe, Extremes, Liberal, Mojo, Pavel, Politics, Populism, President
Pensions & Investments (February 2)
“Money managers in Europe still expect the U.K. economy to contract, despite the Bank of England’s latest 50-basis-point rate hike and a more subdued inflation forecast.”
Tags: 50-basis-point, BOE, Contract, Economy, Europe, Forecast, Inflation, Money managers, Rate hike, Subdued, U.K.
New York Times (February 2)
The “disconnect” between cautious Fed statements and “investor expectations” is rooted in the tension between current data and projections. “Many forecasters expect the labor market, as well as inflation in many kinds of services, to weaken this year as the full effect of the Fed’s rate moves plays out; the Fed, on the other hand, is waiting for clearer signs in the data.”
Tags: Data, Disconnect, Expectations, Fed, Forecasters, Inflation, Investor, Labor market, Projections, Rates, Services, Tension
Bloomberg (February 1)
“Shaky property markets across much of the world pose another risk to the global economy as higher interest rates erode household finances and threaten to exacerbate falling prices.” From the U.S. to China, Australia and New Zealand, the housing slide could “threaten to undermine consumer confidence and weigh on household spending.” Moreover, “investment too could take a hit as developers scale back projects in response to falling prices, waning demand and higher borrowing costs.”
Tags: Australia, China, Consumer confidence, Demand, Developers, Falling prices, Global economy, Household spending, Interest rates, Investment, New Zealand, Property markets, Risk, Shaky, U.S.
