November 11, 2022
United States:
BofA Says Tech Stocks Are at Risk Even as Inflation Shock Over
A long-awaited cooling in US inflation should be good news for tech stocks. Bank of America Corp. strategists say otherwise.
Although an “inflation shock” — the main market narrative of 2022 — is now over, a sharp rise in services and wage costs will continue to weigh on the growth shares, strategists led by Michael Hartnett warned. They expect the so-called FAANG group of companies to underperform in the next few years.
Europe:
EU Says Recession Is Here and Inflation Shock Will Linger On
The euro zone faces a grim winter as a recession bites just as double-digit inflation grips the region and war rages nearby, according to the European Commission.
European Union officials in Brussels on Friday slashed their forecast for growth next year, predicting barely any expansion, and raised all their projections for consumer prices. They reckon the economy is now shrinking and will keep contracting during the first quarter.
Asia:
China Ramps Up Property Support With $56 Billion in New Funding
Chinese regulators told the nation’s second-tier banks to dole out another 400 billion yuan ($56 billion) of financing for the property sector in the final two months of the year, adding to a raft of support measures that have stoked recent gains in the beleaguered industry’s stocks and bonds.
The money — in the form of loans, mortgages and bond investments — adds to the $85 billion of net financing that the country’s six largest lenders were told to extend in September, people familiar with the matter said, asking not to be identified as the matter is private.
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