December 5, 2023
United States:
Fed Could Use ‘Loaded Gun’ to Aid Economy, Apollo’s Zelter Says
The US Federal Reserve’s decision to keep rates high means it has a “a loaded gun that they can use as needed” if economic conditions worsen, according to James Zelter.
“Concern about a slowdown has been on everybody’s mind the last six to seven months,” the Apollo Asset Management co-president said in an interview on Bloomberg TV. “The Fed’s done a really nice job of maintaining higher rates.”
Europe:
Schnabel ECB Rate U-Turn Prompts Market Bets on Earlier Cut
One of the European Central Bank’s most hawkish officials said inflation is showing a “remarkable” slowdown, a U-turn prompting markets to ramp up bets on an interest-rate cut as early as March.
Executive Board member Isabel Schnabel, speaking in a Reuters interview, said that the consumer-price data released last week now make another hike in borrowing costs “rather unlikely,” and refused to be drawn on the prospect that a reduction could even transpire within six months.
Asia:
Moody’s Cuts China Credit Outlook to Negative on Rising Debt
Moody’s Investors Service cut its outlook for Chinese sovereign bonds to negative, underscoring deepening global concerns about the level of debt in the world’s second-largest economy.
Moody’s lowered its outlook to negative from stable while retaining a long-term rating of A1 on the nation’s sovereign bonds, according to a statement. China’s usage of fiscal stimulus to support local governments and its spiraling property downturn is posing risks to the nation’s economy, the grader said.
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.
