Norway's sovereign wealth fund, the world's largest owner of equities, is preparing for lackluster market performance due to persistent inflationary pressures and a cautious approach by central banks in cutting interest rates, according to CEO Nicolai Tangen. Tangen also highlighted climate effects, geopolitics, and trade routes as factors contributing to an uncertain market outlook.
The recent attacks on ships using the Red Sea trade route are expected to cause disruptions, push up prices, and impact economic growth, although not to the same extent as during the COVID-19 pandemic, according to economist Mohamed El-Erian. The attacks by Houthi rebels in Yemen have prompted several shipping firms to stop using the route, forcing vessels to be rerouted around Africa's Cape of Good Hope and adding significant delays to cargo shipments.
Iran is experiencing a significant infrastructure deficit of $500 billion, which the government fails to address, leading to declining resources, imbalances in the economy, and shortages that will require larger budgets; without substantial investment, the country's system could collapse within a few years.
Oxfam predicts that the world could see its first trillionaire within a decade, as the majority of the population becomes poorer, according to their annual inequality report.
Jeffrey Gundlach warns that the S&P 500 is a risky investment and predicts a 75% chance of a recession, along with higher inflation, interest rates, and unemployment than expected.
Funeral costs in the UK have increased to an average of over £4,100, putting financial strain on families, as they have risen at nearly twice the rate of inflation, according to a new report by SunLife. The cost of a basic funeral has risen by 126% since 2004, significantly more than the rate of inflation over the same period, resulting in funeral costs being over £1,000 higher than they would have been if they had kept pace with inflation.
China's exports fell for the first time since 2016 due to declining demand and rising interest rates in foreign markets, as well as economic challenges such as a slowing economy and restricted access to emerging technology, while the US remains China's top export destination.
Germany is facing the possibility of its first two-year recession since the early 2000s, with its economy shrinking in 2023 due to higher energy costs and weaker industrial demand, leading to a predicted year of stagnant growth in 2024 and a heightened risk of negative output.
Goldman Sachs is more optimistic than most about the U.S. economy's growth, expecting a 2% GDP expansion by the end of 2024, and provides 10 reasons why they're confident, including positive consumption growth, manageable corporate bankruptcies, and the ability of banks to withstand the challenges in commercial real estate.
Taiwanese investments in mainland China hit a 22-year low in 2023, while mainland investment in Taiwan also experienced a significant decline, highlighting the impact of political tensions and global supply chain shifts on both sides of the strait.
The World Economic Forum's annual meeting in Davos has brought together world leaders to discuss important global issues, and attendees are captivated by the stunning beauty of the Swiss ski resort.
Asian markets show mixed performance during holiday-thinned trade, with Japan and India seeing gains while Hong Kong and China experience slight declines.
Germany's economy contracted by 0.3% in 2023, marking the first decline since the pandemic began, sparking concerns of a wider economic contraction in the euro area.
BlackRock Vice Chairman Philipp Hildebrand warns that investors' expectations of US interest-rate cuts may be excessive as inflation turns out to be stickier than anticipated.
Slow growth in China, weak currency in Japan, and major elections are predicted to shape the trajectory of Asia's economy in 2024, according to top business minds in the region.
The COVID-19 pandemic has propelled remote work into the mainstream, and economist Adam Ozimek believes that remote work will continue to evolve and shape the labor market and economy in the long run. Hybrid work is not a substitute for full remote work, as it does not offer the same level of geographic flexibility. Ozimek also highlights the positive economic spillovers and convergence that remote work can bring to different regions, making the country more equal geographically. In the case of Philadelphia, the shift to remote work has already led to an equalization between the downtown and suburban economies, making the post-pandemic adjustment easier in the city. Cities can offset the decline in demand for living in downtown areas by increasing supply and building more residential and office spaces.
The two richest billionaires in Ireland have more wealth than the bottom half of the country's population, according to a report by Oxfam, which also highlights the need for an "extreme wealth tax" and greater government action to reduce wealth inequality.
European stock markets edge higher as U.S. holiday and World Economic Forum in Davos limit activity; German GDP expected to show contraction, global economy faces subdued growth prospects and uncertainty, Atos stock slumps, U.S. banking sector in focus, oil prices rise amid tensions in the Middle East.
Interest rates have eased in Ghana as the treasury bills auction was oversubscribed by 46.7%, indicating a positive economic outlook and a decline in inflation.
China's economic growth is projected to slow to 4.6% in 2024 and further cool to 4.5% in 2025 due to deflationary pressures and a property slump, increasing the pressure on policymakers to implement more stimulus measures.
Pablo Escobar's four African hippos brought to Colombia have become an invasive species, disrupting the ecosystem and endangering residents, leading the government to consider sterilization, relocation, and euthanasia as measures to manage the growing population.
Despite experts predicting a recession, 2023 ended up being a year of economic growth, highlighting their incorrect forecasts.
The International Monetary Fund (IMF) has warned that almost 40% of jobs worldwide could be impacted by artificial intelligence (AI), which is likely to exacerbate inequality, particularly in advanced economies, and called for governments to implement social safety nets and retraining programs to offset this impact.
China's central bank has decided to hold its key interest rate, as concerns about yuan volatility and limited room for policymakers to support the economy persist. Weak credit numbers and disappointing economic data have added to expectations for more aggressive measures, but the central bank seems constrained in its options.
The GDP gap in Pakistan persists and is attributed to archaic mindsets, policy issues, and a lack of competitiveness in the global market, hindering the country's economic potential.
Consensus is emerging in Pakistan on the important issues of holding elections as scheduled, implementing long-term policies, and ensuring stability and progress through democratic processes.
The inflow of remittances to Pakistan has shown a worrisome decline, raising concerns about the impact on the economy and the country's financial position, with factors such as the increasing cost of living in Gulf countries and political and economic instability contributing to this decline.
Investor Ruchir Sharma predicts that 2024 will be the biggest year for democracy, with many leaders facing low approval ratings and a high risk of losing re-election, while politicians' increased spending in election years may lead to higher budget deficits and investor pushback; he also anticipates a backlash against immigration and a slowdown in the global economy, with Europe potentially bouncing back and China fading economically. Additionally, Sharma suggests that the dollar decline could accelerate, AI stocks may face a reality check, and there will be a shift of capital from China to other emerging markets.
Pakistan is preparing for a 5% increase in fertilizer prices, as provinces refuse to share the burden of a Rs32 billion subsidy for imported urea, leading the caretaker Prime Minister to decide that farmers should bear the extra cost, potentially resulting in higher food commodity prices for consumers.
Overseas investors have resumed selling China onshore equities in the new year due to pessimism over the country's sluggish economic recovery.
China is facing a period of disinflation and potential deflation due to the implosion of its property sector and weak domestic demand, leading to pressure on Beijing to take decisive action to avoid prolonged stagnation and debt, similar to Japan's experience.
The combined wealth of the world's five richest men has more than doubled since 2020, while billions of people have become poorer, according to Oxfam, which is calling for measures to rein in corporate power and address growing inequality.
The rate of Nigerians leaving the country for better opportunities abroad is concerning due to factors such as a struggling economy, brain drain in the healthcare sector, and high unemployment rates, among others, and the government needs to take action to address these issues before it's too late.
A recent survey found that the majority of Americans feel negative emotions, such as anger and anxiety, while grocery shopping due to the effects of inflation, with food prices increasing by 33.7% since the start of 2021. Despite President Biden's claims of economic improvement, many Americans doubt the state of the economy and feel financially strained, with only 14% reporting economic help during the Biden administration.
The commercial real estate market in the US, particularly in New York City, is facing a crisis as office occupancy rates hit all-time lows and interest rates spike, resulting in a potential $1.5 trillion in commercial real estate loans expiring in the next two years and office building prices plummeting by up to 40% since the pandemic, which could have significant economic consequences for cities and banks.
Artificial intelligence will impact 60 percent of jobs in advanced economies, according to IMF Managing Director Kristalina Georgieva, who emphasizes that AI can either eliminate jobs or enhance productivity and income. The IMF highlights the need for policy measures to address the digital divide and income disparities exacerbated by AI.
China needs to prioritize sustainable economic growth and technological advancements in order to overcome challenges and revive its economy, as the global economy has been hindered by various factors including the COVID-19 pandemic and trade wars, leading to lower growth rates for most nations.
The Canadian government plans to lower the maximum interest rate on loans to 35%, which could result in millions of borrowers losing access to credit and turning to payday lenders with even higher interest rates.
The first major repayment deadline for the Canada Emergency Business Account (CEBA) loans is approaching, potentially straining small businesses and the economy as loan repayments could further slow economic recovery from the pandemic.
India is poised to become a $35-trillion economy in the next 24 years, with global interest in investing and a thriving MSME sector fueled by digitization and infrastructure investments.
Despite positive economic indicators such as low inflation, job growth, and rising incomes, surveys show that Americans are discontent with the state of the economy, with many attributing this sentiment to factors such as stagnant wages, increased costs, partisan bias, and negative news coverage.
The current popular outlooks on the economy and financial system are flawed due to their ignorance of the long-term nature of the inflation cycle and the accumulated damage it has caused, highlighting the need for unpopular actions to address and reverse it.
Argentina's President, Javier Milei, is facing opposition from trade unions and other groups as he implements austerity measures, labor reforms, and anti-corruption measures to restore the country's economy, while also facing challenges in Congress and a worsening recession.
The ongoing decline of the Nigerian naira against major currencies, along with a scarcity of forex, is causing concern among businesses and raising economic uncertainties, with experts predicting that the naira may conclude the year within the range of N1,500 to N1,800 against the dollar, leading to an anticipated 18-month economic recovery period.
Fresh investment plans in India decreased by almost half in the last quarter of 2023, with public capital expenditure projects dropping by nearly 60% and private sector outlays falling by 35%. Proposed investments in manufacturing also declined sharply, especially in critical sectors like automobiles, steel, and cement. The decline in investment can be attributed to factors such as below-normal monsoon, upcoming national elections, reduced capex initiatives at the state level, global slowdown, and uncertain geopolitical scenario.
The price of eggs in Lahore, Pakistan has reached an unprecedented high of 400 PKR per dozen due to the failure of the local administration to enforce government rates, revealing the concerning state of the country's economy and prompting efforts to stabilize prices and address economic disparities.
The Federal Reserve is expected to start cutting interest rates around mid-year 2024, but the cuts will be slow and gradual, with bond and mortgage rates moving earlier in anticipation of the change. The risk of recession has fallen and employment data supports the view that recession is unlikely, while the inflation data suggests the Fed's work is almost done. However, there is no urgency to cut rates, and caution will be exercised. In the long term, mortgage rates are expected to decrease to about six percent as the spread between mortgage rates and Treasury bond rates returns to its historical average.
Four in 10 councils in England are at risk of going bankrupt within the next five years due to the funding crisis, which could lead to higher tax bills for households, with surging social care costs and government funding cuts being major contributors to the problem.
Voters express concerns about the economy under President Biden, citing high grocery prices and mortgage rates, while some still plan to support him in the 2024 election.
The price of eggs in Lahore, Pakistan, has reached 400 PKR per dozen, while onions are being sold for 230-250 PKR per kg, exceeding the government's fixed rates, as the country's total debt burden rises to 63,399 trillion PKR.