Weekly Digest: Japan earthquake,French inflation up, US bankruptcies on the rise
Japan hit by devastating earthquake on New Year’s Day, Wall Street's shaky start, rising French inflation, debate over U.S. monetary policy, surges in bankruptcies, a shift towards green finance, Red Sea supply chain crisis, the looming shadow of unpredictable economic trends, Holographic Elvis. And more.
??Quote of the week:
“This year, 60% of the world's GDP will be affected by elections, and no region will be spared. These political uncertainties could lead households and businesses to adopt a wait-and-see attitude, with the risk of a year without [economic] momentum," — Ludovic Subran, Chief Economist at Allianz.
Investment news
?? Wall Street’s shaky start to 2024: Wall Street faced another turbulent day on Wednesday, with the Dow Jones tumbling nearly 300 points and the Nasdaq Composite as well as the S&P 500 closing lower for the second consecutive day in 2024, reflecting investor uncertainty and reactions to Federal Reserve policy signals. Stocks picked up again on Thursday, confirming a rollercoaster start for the first week of the year. (CNBC)
???? ?? French inflation: Amidst rising energy and service costs, France witnessed a notable increase in inflation in December, hitting a 4.1% year-over-year rise, aligning with expert predictions and signaling a broader inflationary trend in the eurozone. Policymakers are particularly concerned about the rise in service inflation, which is considered a more accurate indicator of core domestic price pressures. As Europe braces for a potential mild recession, all eyes are on the evolving economic data and the ECB's response to these dynamic challenges. (Bloomberg)
?? Fed minutes reveal lower inflation fears and debate on “overly restrictive” policy. The Federal Reserve's meeting in December 2023 marked a significant moment in U.S. monetary policy. Key takeaways from the minutes of this meeting, led by Fed Chair Jerome Powell, suggest a growing consensus among policymakers about the declining threat of inflation and concerns over the current high interest rates' potential impact on the economy. (Reuters)
?? Bankruptcies on the rise: The United States witnessed a significant 18% surge in bankruptcy filings in 2023, driven by higher interest rates and the fading impact of pandemic-era financial safety nets, with expectations of a continued upward trend in 2024. Data from Epiq AACER, a bankruptcy data provider, revealed that the total number of bankruptcy filings, including both commercial and personal insolvencies, rose to 445,186 in 2023, up from 378,390 in 2022. (Reuters)
?? Apple’s 2024 challenge: this year will likely be a test for the tech giant’s strategy amid rising US-China tensions. Apple Inc.'s longstanding reliance on China for both manufacturing and market share is hitting a critical juncture in 2024 amidst the ongoing geopolitical power play. With growing competition from Chinese tech giants and governmental pushback, Apple's ability to maintain its market position while navigating these geopolitical waters will be a key storyline to watch for Apple investors. (Bloomberg)
?? Green Gains: In a groundbreaking shift, the world's leading banks raked in an impressive $3 billion from green debt financing in 2023, surpassing their earnings from traditional fossil fuel investments, signaling a significant turn towards sustainable finance. This environmental finance surge of about $3 billion in fees outdid the earnings from fossil-fuel transactions, which stood at less than $2.7 billion. (Bloomberg)
Image of the week:
Opinion
领英推荐
Will 2024’s economy be as unpredictable as 2023’s? For Betsey Stevenson, professor of public policy and economics at the University of Michigan and ex-chief economist at the US Department of Labor, as we venture into 2024, the economic landscape remains as unpredictable as ever, with potential recessions looming and yet, surprisingly, reasons for optimism and celebration. Predicting recessions is notoriously difficult, as 2023 demonstrated. Many anticipated a downturn due to the longevity of economic growth, but unexpected events, like the pandemic, often turn predictions upside down. This year, the uncertainty continues with numerous potential global factors at play. A combination of luck and skill played a role in how the US, and the world, managed to balance growth, low unemployment, and (sometimes relatively) controlled inflation. While the possibility of a recession in 2024 remains, the start of the new year brings with it a sense of achievement and cause for celebration for the American economy. (Bloomberg)
What else is happening
???? Japan Earthquake: As Japan grapples with the aftermath of a devastating New Year's Day earthquake, thousands of rescuers are engaged in a critical race against time, striving to find survivors before the crucial 72-hour window closes on Thursday afternoon. The earthquake, which claimed at least 81 lives, has triggered a frantic search for survivors. Prime Minister Fumio Kishida emphasized the government's commitment to rescue efforts, stating that all resources are being mobilized to reach those trapped in collapsed structures. (Reuters)
?? Red Sea supply chain crisis: The escalating crisis in the Red Sea, involving attacks by Iran-backed Houthi militants, has forced a significant redirection of global trade, resulting in skyrocketing shipping costs, additional surcharges, and prolonged shipping times delays, fueling worries about a knock-on effect on global inflation. The Red Sea is a crucial maritime route for global trade, due to the threat of attacks, shipping carriers have diverted more than $200 billion in trade from this key Middle Eastern trade route. The impact is so significant that it's raising alarms about potential delays in the delivery of spring and summer products, especially those shipping to and from China. (CNBC)
?? ?? Climate displacement. As climate change intensifies, millions in Asia are being forced to abandon their homes, facing a future of displacement and uncertainty. In 2022 alone, a staggering 32.6 million internal displacements occurred due to disasters, a figure that overshadows the 28.3 million displaced by conflict and violence. This surge in displacement is 41% higher than the past decade's annual average, according to the Internal Displacement Monitoring Centre. (CNBC)
And?finally...
?? AI…elvis? The spirit of Elvis Presley, the undisputed king of rock'n'roll, is set to captivate audiences once again, this time through an innovative hologram concert experience, "Elvis Evolution," premiering in London with further shows planned for Las Vegas, Tokyo, and Berlin. This cutting-edge hologram is described as an immersive experience with a blend of AI and holographic technology based on a compilation of thousands of personal photos and home-video footage of the iconic musician. (Guardian)
?
See you next week!
Your GOLD AVENUE Team.