May 13, 2024
United States:
Stubborn Inflation Poses Risk to Recently Upgraded US Forecasts for Economic Growth
So far, 2024 isn’t going quite how it was supposed to for the US economy: Inflation has been higher than expected and household spending seems to have lost some momentum.
Those trends represent a new risk for economic growth forecasts that were upgraded around the turn of the year, largely on the view that rapid disinflation would help bring about rising real incomes and lower borrowing costs.
Europe:
Euro-Zone Economy Seen Picking Up Pace as Germany Heals
The euro-area economy will expand more quickly than previously thought this year as the bloc’s biggest member exits more than a year of near-stagnation, a Bloomberg poll of analysts showed.
Output in the 20-nation currency union will rise by 0.7% in 2024 — more than the 0.5% advance that was forecast in the last monthly survey. Gross domestic product in Germany is now seen increasing by 0.2% compared with 0.1% before.
Asia:
BOJ Shouldn’t Delay Normalization Over Risks, LDP Official Says
The Bank of Japan should stay on course to normalize monetary policy based on developments in the economy without worrying too much about the potential impact of higher interest rates, according to a senior ruling party official.
“Japan should firmly handle macroeconomic policies and then deal with specific problems as they arise,” Takao Ochi, a Liberal Democratic Party lawmaker in the lower house, said in an interview on Friday.
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.
