Financial Times (August 23)
“Closely watched gauges of long-term inflation expectations in Europe have reached their lowest levels for almost two years, in a sign that investors think central banks can keep lowering interest rates without risking a flare-up in price pressures.” Concerns are also easing in the U.S., with “markets pricing the average long-term inflation rate at 2.4 per cent, down from 2.6 per cent in July.”
Tags: Central banks, Concerns, Easing, Europe, Expectations, Flare up, Inflation, Interest rates, Investors, Price pressures, Risking, U.S.
Wall Street Journal (July 29)
The “post-covid factory boom Is running out of steam,” leaving U.S. manufacturers to rethink “their plans as they brace for an extended slump in demand.” Compounding factors include “higher interest rates, rising operating costs, a strengthening U.S. dollar and lower selling prices for commodities” as more executives forecast “challenging business conditions for the remainder of the year.”
Tags: Commodities, Demand, Dollar, Executives, Extended slump, Factory boom, Interest rates, Manufacturers, Operating costs, Plans, Post-Covid, Rethink, U.S.
Wall Street Journal (July 17)
“A clearer outlook on interest rates is giving bankers hope that dealmaking is emerging from a two-year slowdown.” Though up about 8% from a year ago, Q2 global M&A volumes “are still below those of the deal boom coming out of the pandemic,” with M&A activity “unlikely to kick into full gear until interest rates come down.”
Tags: 8%, Bankers, Boom, Clearer, Dealmaking, Emerging, Interest rates, M&A, Outlook, Pandemic, Q2, Slowdown
Bloomberg (July 13)
“Bond traders are ramping up bets that the Federal Reserve will cut interest rates by half a percentage point in September instead of the standard quarter-point increment.”
Tags: 50 bp, Bets, Bond traders, Cut, Federal Reserve, Interest rates, Ramping up, September, Standard
New York Times (July 9)
“The environment for building renewable energy projects has become much tougher since the coronavirus pandemic. According to industry estimates, the costs of developing an offshore wind farm — large ones run to billions of dollars — have risen 40 percent in recent years because of higher material and labor costs and interest rates.”
Tags: 0%, 4%, Building, Coronavirus pandemic, Costs, Developing, Environment, Interest rates, Labor, Material, Offshore, Renewable energy, Tougher, Wind farm
New York Times (June 6)
Office building losses are starting to “pile up, and more pain is expected.” The culprits? Weak demand for office space and interest rates and other costs that are higher than in many years. “The repercussions could extend far beyond the owners of these buildings and their lenders. A sustained drop in the value of commercial real estate could sap property tax revenue” that cities depend on and “hurt restaurants and other businesses that served the companies and workers who occupied those spaces.”
Tags: Cities, Costs, CRE, Culprits, Interest rates, Lenders, Losses, Office building, Office space, Owners, Pain, Pile up, Property tax, Repercussions, Restaurants, Weak demand
Institutional Investor (April 1)
“In March, the Bank of Japan made the seismic decision to raise interest rates for the first time in 17 years. The long-awaited shift to positive rates has excited some of the country’s leading chief executives.”
Tags: 17 years, BOJ, Chief executives, Decision, Excited, Interest rates, Japan, Leading, Long-awaited, March, Positive rates, Raise, Seismic, Shift
Business Insider (March 31)
Japan’s “stock market is ripping; the Nikkei recently exceeded the all-time highs it set 34 years ago. Analysts at Goldman Sachs are telling clients there’s still more upside to be had as corporate-governance reforms and a new era of sustainable inflation take hold. The Bank of Japan this month hiked interest rates above zero for the first time since 2007, a sign of confidence in the country’s recovery.”
Tags: Analysts, BOJ, Clients, Confidence, Corporate governance, Goldman Sachs, Highs, Inflation, Interest rates, Japan, Nikkei, Reforms, Ripping, Stock market, Upside
Bloomberg (March 28)
“The risks are piling up for Japan’s currency, stocks and bonds as the nation’s fiscal year draws to an end right when many global markets close for Easter — and less than two weeks after the central bank hiked interest rates.”
Tags: Bonds, Central bank, Currency, Easter, Fiscal year, Global markets, Interest rates, Japan, Piling up, Risks, Stocks
Professional Pensions (March 27)
“Market turmoil, inflation shocks, high interest rates, and rolling geopolitical crises spurred many investors to stay on the sidelines last year” across all asset classes. “Yet investor appetite remains strong,” especially for real assets. “Globally, nearly two-thirds of investors expect to increase their allocation to real assets over the next two years, with investors in Asia most likely to add to their portfolios.”
Tags: Allocation, Appetite, Asia, Geopolitical crises, Inflation, Interest rates, Investors, Market turmoil, Real assets, Sidelines
