The Bank of Japan's (BOJ) expansionary monetary policy faces new challenges as the legacy of “Abenomics” clouds the path to an interest rate hike. With reflationary candidate Sanae Takaichi emerging as a key figure in the Liberal Democratic Party leadership race, expectations for tighter monetary policy are compromised. Takaichi openly opposes rate hikes, arguing...
The U.S. Department of Justice has filed a lawsuit against Visa, accusing it of monopolizing the debit card market and violating antitrust laws. Visa, which processes more than 60% of debit transactions in the U.S., has been singled out for entering into agreements that eliminate competition and charging high fees to merchants, generating approximately $7 billion...
The oil industry is undergoing a significant transformation thanks to technological advances that enable the extraction of crude oil from fields previously considered unattainable, especially those of ultra-high pressure. An outstanding milestone in this context is the Anchor project, developed by Chevron and TotalEnergies in the Gulf of Mexico, where the...
Gold prices hit record highs driven by expectations of further U.S. interest rate cuts. The golden metal rose 0.3% to $2,638.31 an ounce, benefiting from the Federal Reserve's decision to cut rates and the possibility of further cuts. Tensions in the Middle East and mixed economic signals in major economies also contributed to gold demand.
On the other hand,...
European stock markets started the week with mixed results, influenced by the recent interest rate cut by the U.S. Federal Reserve (Fed) and China's monetary policies. The German DAX and the UK's FTSE 100 posted modest gains of 0.1%, while the French CAC 40 fell by 0.2%. The Fed's decision to cut rates by 50 basis points, a larger-than-expected cut, generated...
Mercedes-Benz shares fell more than 7% after announcing a cut in its profit forecast due to economic weakness in China. The company adjusted its adjusted return on sales forecast for its auto division to between 7.5% and 8.5%, down from the previous range of 10%-11%. The slowdown in consumption and problems in the Chinese real estate sector have reduced demand for...
The recent 50 basis point reduction by the Federal Reserve (Fed) has had a significant impact on global financial markets, including the Ibex 35. This cut, which comes on top of 18 similar occasions since the turn of the century, seeks to stimulate the economy in times of economic uncertainty. For the Ibex 35, the Fed's move has generated positive momentum.
The...
Inflation in the UK remained stable in August at 2.2%, according to data from the Office for National Statistics (ONS). However, rising prices in the services sector have raised concerns for the Bank of England (BoE). This increase in the services sector, which is a key indicator of domestic price pressures, rose to 5.6% from 5.2% in July, exceeding market...
Ubisoft is recently facing a series of challenges. Along with other video game companies such as Epic Games and Electronic Arts, Ubisoft has been the subject of a complaint by the European Consumers' Organization (BEUC). The complaint alleges that these companies mislead gamers, especially children, by selling virtual currencies in games, leading to excessive...
The dollar has traded near its lowest levels of the year on Monday, with a 67% probability that the Federal Reserve will make a 50 basis point cut in interest rates. The move could weaken the dollar against other currencies, especially the yen. The euro has held at $1.1123, while the British pound has reached $1.3203. The Dollar Index has settled at 100.7, near...
Economic Challenges for Norway
The recent increase in interest rates by the Federal Reserve (Fed) and the European Central Bank (ECB) has had a significant impact on financial markets and the global economy. Simultaneously, Norway faces similar economic challenges to Saudi Arabia due to its dependence on oil and its large sovereign wealth fund. The Norwegian...
Gold has reached record highs, surpassing $2,570 per ounce, driven by the expectation of interest rate cuts by the U.S. Federal Reserve and the recent tightening by the European Central Bank, which reduced rates by 25 basis points. This expansive monetary policy environment has favored gold, seen as a safe haven asset in times of economic uncertainty. In addition,...
European stock markets, boosted by the ECB's recent meeting, have managed to ward off the fears that plagued markets in early September. Although the recent rebound has helped the indices to stay away from the August lows, it is not yet a definitive recovery. The declines at the beginning of the month have proved too deep to be considered a simple consolidation,...
UniCredit SPA (Ticker AT: CRDI.IT) has taken a significant step by acquiring a 9% stake in Commerzbank AG (CBK.GE), sparking speculation about a possible merger between the two European giants. This move marks a milestone in UniCredit's ambition to consolidate its presence in the European banking market. Commerzbank’s shares have risen by more than 18% since the...
Roche (ticker: ROG.SW) is losing ground on the stock due to the side effects of its new weight loss pill, CT-996, which is still in the testing phase. After a rally that boosted its shares 40% between May and September, the Swiss drugmaker has seen an 11% drop in its shares in September alone, including a decline of up to 6.75% on the U.S. stock market.
The...
In the first presidential debate of 2024, Kamala Harris and Donald Trump highlighted their differences in economic policies. Harris proposed an "opportunity economy" approach, aiming to increase the child tax credit to $6,000 and offer tax deductions for small businesses. Trump defended his tariffs as necessary protection for the U.S. economy and linked...
The recent correction of the S&P 500 presents itself as a buying opportunity, with no signs of a 2000 dotcom-like bubble and projections to reach 6,000 points by the end of 2024. In this context of volatility, especially in the wake of Nvidia's results and doubts about artificial intelligence, it is recommended to adopt tactical strategies to manage...
Investors anticipate a more hawkish Fed policy compared to the ECB, which significantly impacts the EUR/USD. The euro has rebounded nearly 5% from April lows, reaching levels near $1.12, a level not seen since July last year. This rise reflects the expectation that the ECB will maintain a moderate stance, with a 25 basis point cut at the next meeting and possible...
