July 21, 2023
United States:
US Recession Becomes Closer Call as Economists Rethink Forecasts
Some of the forecasters who were first out of the box to predict a US recession are starting to hedge their bets as inflation ebbs and the economy remains resilient.
Deutsche Bank Vice Chair of Research Peter Hooper and Fannie Mae chief economist Doug Duncan now say it’s essentially a toss-up whether the economy suffers a recession or enjoys a soft landing and keeps growing, though both still believe a downturn is more likely than not.
Europe:
European Real Estate Gains Trigger Barclays Call For Caution
European property stocks are set for a fourth-straight week of gains amid easing interest rate expectations, but Barclays Plc analysts warn that investors are overly optimistic.
The Stoxx 600 Real Estate benchmark is poised to be the region’s top-performing sub-index this week, rising 3.8%. Markets have scaled back bets on Bank of England interest rate hikes amid signs inflation is cooling. That boosted sentiment toward a highly-leveraged sector that has been roiled by concerns around increased debt servicing costs and plunging asset values.
Asia:
China Introduces More Measures to Increase Car Consumption
China outlined a series of measures to increase car purchases, particularly for new-energy vehicles, as the world’s second-biggest economy struggles to escape the shadow of Covid and lift growth.
The National Development and Reform Commission, China’s main economic planning body, set out 10 steps, including lower costs for electric-vehicle charging and extending tax breaks, though it didn’t disclose specific figures.
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