The World Bank said yesterday it now expects the global economy to grow by 2.1% in 2023, as opposed to the 1.7% expansion projected in January, due to stronger-than-expected resilience in major economies. Thus, the institution’s analysts expect US GDP to grow by 1.1% this year (vs. 0.5%; January estimate) and that of the eurozone by 0.4% (vs. 0.0%; January estimate). In addition, China’s GDP is expected to grow by…
Bankinter : US non-farm job creation again beats forecasts: 339K vs 195K estimated and 294K previous (revised from 253K). The unemployment rate rebounds to 3.7% versus 3.5% estimated and 3.4% previous (a historical low). Average wages/hour decelerate (year-on-year) to +4.3% versus +4.4% estimated and previous. Assessment: Despite mixed signals from labour market figures, the labour market remains strong. The unemployment rate increased by three tenths and the number of unemployed…
Link Securities| China’s advance manufacturing activity index, the manufacturing PMI compiled by media group Caixin unexpectedly rose to 50.9 in May from 49.5 in April. The FactSet consensus of analysts had expected a lower reading of 49.4. An index reading above 50 points indicates expansion in activity from the previous month, while a reading below that level indicates contraction in activity. Production increased at its fastest pace in eleven months,…
Link Securities | US President Joe Biden and House Speaker Kevin McCarthy, a Republican, reached an agreement in principle this weekend to raise the country’s debt ceiling. The agreement is very much in line with press reports last Friday. The debt ceiling is suspended until 2025. Non-defence discretionary spending will remain more or less flat next year and rise 1% in 2025, before the limits are eliminated in 2026. Defense…
Franck Dixmier, Global CIO Fixed Income (Allianz GI) | Investors could be forgiven for thinking they have been here before. As the clock ticks down on the US debt limit deadline, markets are once again getting familiar with the intricacies of US politics. In what has become a semi-regular partisan wrangle, politicians in Washington are in talks over raising the federal debt limit before June, the month when the government…
The Spanish oil company’s first joint solar project in Chile, announced yesterday by the two companies REPSOL (REP) and Grupo Ibereólica, through their 50/50 joint venture Repsol Ibereólica Renovables Chile, has begun to feed electricity into the grid with the start-up of the first phase of the “Elena” photovoltaic plant, which will have a total installed capacity of up to 596 megawatts (MW). Specifically, the first phase of this facility,…
Alicia García herrero (Natixis) | During the past fifteen months after the outbreak of the Ukraine war, China and Russia’s trade value increased by 36.5% compared to pre-war levels, showing their much-enhanced ties in merchandise trade. Meanwhile, in addition to the upswing of the headline amount, some new patterns in their trade structure are also worth watching. For example, Russia has moved up rapidly in the rank of China’s external…
Bankinter: Good performance on Wednesday after the messages launched at the Shareholders’ Meeting. The highlights are: (i) Musk stated that he will remain at the helm of Tesla, dismissing rumours of his possible retirement now that he is also in charge of Twitter. (ii) Deliveries of the Cybertruck will begin this year. (iii) Tesla is working on the development of two new models. (iv) It will consider starting to announce…
Renta 4: The price reacts from levels of $60, historical lows of the stock during 2019, before emerging on the upside with the lockdowns of the pandemic. Although the stock is at the same levels as then, the company’s figures have nothing to do with those of that time, for example it has more than $5 billion, 25% of its capitalisation, in cash, without debt. In the short term it…
Norbolsa | After Tuesday’s meeting, both Biden and congressional leaders were optimistic about a deal to raise the debt ceiling “in the coming days” even though McCarthy insisted that positions are still far apart. For his part, Biden publicly stated that during the negotiations there was a general consensus that “default is not an option” and thus lowered fears of a worst-case scenario.