January 28, 2025
United States:
US Core Capital Goods Orders Increase by More Than Forecast
US orders for business equipment rose in December by more than forecast, while bookings for overall durable goods unexpectedly declined on a steep drop in aircraft.
Core capital goods orders, a proxy for investment in equipment that excludes often-volatile aircraft and military hardware bookings, increased 0.5% last month after an upwardly revised 0.9% increase in November.
Europe:
Euro-Zone Banks Tighten Firms’ Credit Standards Most Since 2023
Banks in the euro area tightened credit standards for companies by the most since 2023, according to the European Central Bank — dashing hopes for a quick recovery in corporate lending that could support investment.
The trend in the fourth quarter “was mainly owing to banks in Germany and France in an environment of increased political uncertainty, whereas credit standards eased in Italy,” the ECB said Tuesday in its quarterly Bank Lending Survey.
Asia:
Record Break-Even Rate May Embolden BOJ to Raise Rates Further
An indicator of investors’ inflationary expectations in Japan has risen to a record high, which could encourage the Bank of Japan to continue raising interest rates, analysts say.
The break-even inflation rate (BEI) exceeded 1.6% level on Jan. 27, following the BOJ’s additional interest rate hike to 0.5% and upward revision of its price forecast.
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