Overseas Headlines – December 9, 2022

December 9, 2022

 

United States:

Fed Expected to Keep Peak Rates for Longer, Dashing Hopes for 2023 Cuts

The Federal Reserve is set to disappoint Wall Street as it keeps rates at their peak throughout 2023, dashing hopes markets have priced in for rate cuts in the second half and making a recession very likely.

That’s the forecast of economists surveyed by Bloomberg ahead of a decision and forecasts due from the Federal Open Market Committee on Wednesday. Policymakers will raise rates by 50 basis points next week, following four consecutive 75 basis-point hikes, and by quarter points at the following two meetings, the survey found. Policymakers will announce their decision and forecasts at 2 p.m. in Washington.

https://www.bloomberg.com/news/articles/2022-12-09/fed-s-peak-rates-for-longer-seen-dashing-hopes-for-2023-cuts

Europe:

Euro-Zone Banks Return Another €447.5 Billion in ECB Funding

Euro-area banks are returning another €447.5 billion ($472 billion) in cheap loans to the European Central Bank after officials toughened the terms of the program to help fight double-digit inflation.

The repayment will shrink the outstanding amount of so-called TLTRO loans, which were used during the pandemic to keep credit flowing to households and businesses, by about 25%.

https://www.bloomberg.com/news/articles/2022-12-09/euro-zone-banks-return-another-447-5-billion-in-ecb-funding

Asia:

China’s Muted Inflation Leaves Room for Policy Stimulus

China’s factory-gate prices contracted again in November while consumer inflation eased as Covid disruptions suppressed demand, giving the central bank some room to ease policy as the economy tries to recover.

The producer price index fell 1.3% in November from a year earlier after declining by the same magnitude in October, the National Bureau of Statistics said Friday. Economists surveyed by Bloomberg had expected a 1.5% drop in prices.

https://www.bloomberg.com/news/articles/2022-12-09/china-s-factory-gate-prices-remain-in-deflation-in-november

 

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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.

2022-12-09T09:05:39-05:00