April 27, 2023
United States:
US Economic Growth Slows to 1.1% While Inflation Accelerates
US economic growth slowed in the first quarter by more than expected as tepid business investment and a pullback in inventories tempered a pickup in consumer spending.
Gross domestic product rose at a 1.1% annualized rate on the back of the strongest consumer spending in nearly two years, the Commerce Department’s initial estimate showed Thursday. The Federal Reserve’s preferred underlying inflation metric accelerated to a one-year high.
Europe:
Deutsche Bank Plans More Job Cuts After Traders Trail Peers
Deutsche Bank AG plans to cut about 800 senior back-office staff as Chief Executive Officer Christian Sewing steps up cost reductions amid a slowdown in the trading business that has fueled much of the lender’s growth.
Deutsche Bank announced the steps alongside first-quarter earnings that showed revenue from fixed-income trading slumped 17%, one of the worst performances among the investment banks that have reported results so far. The decline was offset by a 35% jump in revenue at the corporate bank, allowing the lender to post its strongest top line since 2016.
Asia:
Darkening Gloom in Chinese Stocks Puzzles Wall Street Veterans
Confidence is in short supply among Chinese investors these days, confounding analysts who say reasons to own the market are finally coming true.
The MSCI China Index’s valuations are shrinking and 12-month rolling returns are negative, a sign investors are pricing in an earnings contraction. Recession-proof trades are gaining traction, with a defensive strategy of buying dividend payers suddenly among the year’s most profitable.
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.