UK News Digest: Recession, a Shabby State of Affairs – and a Wait After a Fall
UK Chancellor Rishi Sunak’s promises have largely failed to materialize, with the UK falling into a recession. Labour MP Rachel Reeves demands an explanation, but Sunak and his deputy are absent. Journalist John Crace shares a personal anecdote, and SNP and Conservative MPs walk out during a debate on Gaza, highlighting the challenges in UK politics.
Many Americans Feel Economy is Rigged Against Them, Study Shows
Many Americans feel that the economy is rigged to benefit the rich, despite national indicators suggesting a strong economy. A project by the American Academy of Arts and Sciences revealed a prevailing sense of economic struggle and lack of support. Despite reports of declining income inequality, many individuals still feel that the underdog cannot get ahead, attributing this to a system driven by greed and profit.
Wage Growth Identified as Key Driver of Consumer Price Inflation
Confidential Treasury analysis reveals that wage growth is the primary driver of consumer price inflation, debunking claims of corporate profit gouging. Concerns are raised about the outlook for wages, productivity, and inflation, with potential implications for interest rates and inflation forecasts.
TD Securities Revises Cash Rate Calls for RBA and RBNZ
TD Securities economists revise cash rate calls for RBA and RBNZ, predicting RBA easing in November and RBNZ hike of 25 basis points. RBNZ expected to implement aggressive easing cycle, while RBA projected to make 100 basis points of cuts. Forward-looking statements provided for informational purposes only. Investing in open markets carries significant risks.
Producer Prices on the Docket — Data Week Ahead
Investors were cautiously optimistic ahead of the producer price report for January, with Futures on the Nasdaq 100 up 0.4% this morning. But indices quickly fell after the PPI was posted at 8:30 am ET.
Britain Enters Recession with Worst GDP Performance in Years
Britain has entered a recession with its worst GDP performance in years, as the economy contracted by 0.3% in the final three months of 2023. This news is a setback for Prime Minister Rishi Sunak and could impact the upcoming general election. Despite the recession, finance minister Jeremy Hunt remains optimistic about the economy’s future prospects.
Stock Market Plummets After Release of Hotter-Than-Expected Inflation Data
The stock market saw a significant drop as the Dow Jones Industrial Average lost 516 points, the S&P 500 and Nasdaq Composite also slid. The cause was hotter-than-expected inflation data for January, leading to concerns about the Federal Reserve’s rate cuts. Tech giants like Microsoft and Amazon suffered losses, while JetBlue Airways and Hasbro experienced individual challenges. Bitcoin also declined to $48,543.35 after the CPI report, impacting related stocks like Coinbase and Microstrategy.
Americans Unhappy as Inflation Erodes Standard of Living
Americans are feeling the impact of high inflation as the cost of living continues to rise, causing frustration and dissatisfaction. From groceries to utilities, prices have surged, prompting consumers to seek out cheaper alternatives. The result is a decline in consumer confidence, despite the economy’s overall growth and job creation.
Germany’s Economic Challenges and the Push for Innovation
Germany’s economy is facing challenges as it struggles to maintain its growth amidst various economic and structural issues. The country’s economy shrank by 0.3% last year, raising concerns about a potential recession in the coming months. The energy crisis, exacerbated…
US Consumer Confidence Hits Highest Level Since Dec. 2021
US Consumer Confidence Hits Highest Level Since Dec. 2021 US consumer confidence rose in January to its highest level for more than two years. The public’s optimism surpassed any point since the Federal Reserve began hiking interest rates. The Fed’s…