Stock market will be second choice after bonds investment
Investment banks and asset managers have diverged on stock market and currency predictions for 2024, indicating a deep divide about whether the US economy will enter a recession. The world’s largest economy grew 5.2% in Q3, and investors are prepared for a rough start to the new year. Legal & General Investment Management chief investment…
Saudi Arabia and Russia calls agreements on OPEC+
Saudi Arabia and Russia have called for all OPEC+ members to join an output cut accord for the global economy, following a tumultuous producers’ club summit. The two countries commended the close cooperation between them and the successful efforts of OPEC+ countries in enhancing global oil market stability. The Kremlin and Saudi Crown Prince Mohammed…
Pay later will be new problems on economic future
US banking regulators are investigating the “buy now, pay later” financing for retail shopping, warning that it raises risks for customers. The loans allow borrowers to pay off purchases in four or fewer interest-free payments, but can overextend naive borrowers. The warning comes as the holiday shopping season approaches, with a record number of low-income…
Oil prices rose due to supply reduction
Oil prices rose over 1% on Tuesday due to uncertainties over OPEC+’s voluntary output reduction, Middle East tensions, and positive economic signs in Europe. Brent futures increased 0.8% to $78.66 a barrel, while West Texas Intermediate crude futures rose 0.9% to $73.19. The Kremlin indicated that OPEC+ reduction will take time to take effect. The…
Bank of Ireland out from The AA partnership
Bank of Ireland has dissolved its agreement with The AA and will reduce its UK Post Office offering, focusing on savings products and discontinuing Post Office-branded mortgages and personal loans. The bank’s UK unsecured personal loans portfolio decreased to 1.3 billion euros in 2023.
Bank of China will lower interest rates
China plans to implement proactive fiscal policy next year to achieve stable growth, amid concerns about property developers’ debt issues spreading to other industries. Former People’s Bank of China statistics and analysis director Sheng Songcheng predicts a reduction in banks’ reserve requirement ratio (RRR) more than interest rates. China is expected to cut interest rates…
Lower Interest rate may far from The Fed schedule
Wall Street anticipates an interest rate reduction by May, possibly March, but most Federal Reserve officials have stated otherwise. While many authorities are more confident that interest rates will lower inflation, most are still considering another rate hike and suggesting rates will remain high for some time. Fed Chair Jerome Powell said it would be…
Britain will have a digital pound on digital wallets
British legislators have warned against offering a digital pound in large amounts to avoid bank runs and protect cash and user privacy. The Bank of England and finance ministry expect an electronic pound in the second half of the decade. The Treasury Select Committee suggested a limit of up to 20,000 pounds for bank-provided digital…