Overseas Headlines – April 27, 2023

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.

https://www.bloomberg.com/news/articles/2023-04-27/us-economic-growth-slows-to-1-1-as-business-investment-slumps

 

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.

https://www.bloomberg.com/news/articles/2023-04-27/deutsche-bank-steps-up-cost-savings-after-traders-trail-peers

 

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.

https://www.bloomberg.com/news/articles/2023-04-27/darkening-gloom-in-chinese-stocks-puzzles-wall-street-veterans

 

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2023-04-27T09:06:42-05:00