July 25, 2024
United States:
US Economy Grew Faster Than Expected Last Quarter on Firm Demand
Having boomed its way through 2023, the US economy is coming back to earth.
Companies are hiring fewer workers. Consumers are spending less. The housing market is all but paralyzed by the highest interest rates in decades. Manufacturing is struggling, with the exception of sectors benefiting from government incentives, such as semiconductors and electric vehicles. And even as inflation slows, business and households continue to complain of a sting from high prices.
Europe:
ECB May Cut Rates Twice More This Year, Says Portugal’s Raposo
The European Central Bank will probably be able to lower its deposit rate twice more this year provided price pressures slow in line with expectations, according to Clara Raposo, vice governor of the Bank of Portugal.
Raposo argued that receding inflation expectations should temper wage demand across the 20-nation euro zone, and the pace at which services costs increase should slow as a result.
Asia:
China Unexpectedly Cuts One-Year Policy Rate by Most Since 2020
The People’s Bank of China unexpectedly lowered the cost of its one-year policy loans by the most since April 2020, acting days after cutting a key short-term rate in a sign of greater support for the slowing economy.
The central bank decreased the rate of the medium-term lending facility by 20 basis points to 2.3%, according to a statement Thursday, the first reduction in almost a year. The cut followed the PBOC’s trim of the seven-day reverse repo by 10 basis points on Monday. The monetary authority has recently downplayed the MLF in favor of the short-term rate to guide markets in a way more similar to global peers.
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.
