Credit ratings will have a downgrade due to many factors
2024 may be a significant year for sovereign credit ratings due to record debts, increasing borrowing rates, sputtering GDP, and multiple wars. The US and China are facing downgrade warnings, with the US potentially losing its triple-A rating. Fitch and S&P Global are also monitoring the November presidential election. Turkey may receive its first upgrade…
Housing project and rental vacancy rate rose in US
US single-family homebuilding reached a 1-1/2-year high in November, with single-family home permits reaching a record high since May 2022. The rise is likely due to a scarcity of housing units relative to demand, with the Census Bureau reporting an 18.0% increase in single-family housing starts. The Federal Reserve maintained interest rates unchanged and suggested…
Nippon Steel plans to increases its production in US
Nippon Steel has won an auction to buy 122-year-old U.S. Steel for $14.9 billion in cash, defeating Cleveland-Cliffs and ArcellorMittal. The purchase price of $55 per share is 142% higher than Aug. 11, the penultimate trading day before Cleveland-Cliffs’ $35 cash-and-stock bid. The decision hurts ArcelorMittal, which coveted U.S. Steel. Nippon and ArcelorMittal’s Alabama operation…
UBS CEO not convinced inflation is under control
UBS CEO Sergio Ermotti expressed doubts about central banks controlling inflation, despite recent Federal Reserve Chair Jerome Powell’s suggestion of US interest-rate rises ending and lower rates coming. The European Central Bank will wait for data before making a dovish stance, similar to the Fed. Ermotti also announced that UBS will remove 3,000 Swiss positions…
US SEC decline Coinbase Global’s requests
The SEC refused Coinbase Global’s request for new digital asset sector guidelines, which the exchange challenged in court. The panel voted 3-2 against proposing new rules, disagreeing with Coinbase’s claim that current crypto restrictions are “unworkable.” Coinbase filed a court petition to review the SEC’s judgment, which is the latest in a ongoing battle between…
Russian central bank has raised its interest rate to 16%
Russian central bank Governor Elvira Nabiullina raised its key interest rate by 100 basis points to 16%, signaling the completion of its tightening cycle. The bank has hiked rates by 850 basis points since July, including an emergency boost in August. Medium-term pro-inflationary risks are significant, and stabilizing inflation near 4% would require high rates…
Money market fund asset has sky rocket to a new records
Investors are considering investing nearly $6 trillion in cash on the sidelines to boost assets, as the Federal Reserve’s response to rising inflation has led to a surge in money market fund assets. The total money market fund assets reached a record $5.9 trillion on December 6, according to the Investment Company Institute. However, the…
Russia’s inflation may reach 8% this years
Russian President Vladimir Putin has suggested that annual inflation in Russia may reach 8% this year, a day before the central bank is likely to raise interest rates to curb rising costs. Labor shortages, credit growth, rising government spending, and a weak rouble create inflationary pressure. Most analysts predict the Bank of Russia to raise…