Fitch ratings has issued its latest ratings report on Australia, affirming Australia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘AAA’ with a Stable Outlook. Australia’s growth pre-pandemic was one of the strongest in the developed world. and it has recovered from the Pandemic strongly than most with a strong trade surplus. Australia saw a rapid rise in the working age population with fast net immigration accounting for over half of the expansion pre-pandemic help fuel the strength. Key Ratings Drivers … Continue reading “Fitch Ratings Affirmed Australia’s ‘AAA’ With a Stable Outlook”
Germany Inflation Continued to Ease in April, However Energy Prices Did Rebound
Germany’s consumer price inflation eased further to 7.2 percent year-on-year in April 2023, down from 7.4 percent the month before and slightly below market expectations of 7.3 percent. Well down from 8.7% just two months ago. The rate hit its lowest level since August 2022, but remained well above the ECB’s target of 2.0 percent. Energy inflation accelerated bounced to 6.8 percent from 3.5 percent in the previous period but it still down sharply from 19.1 percent in February. However, … Continue reading “Germany Inflation Continued to Ease in April, However Energy Prices Did Rebound”
Germany Inflation Fell Further in March as Energy Prices Slowed Sharply
Germany’s consumer price inflation eased further to 7.4% year-on-year in March 2023, down from 8.7% in the previous two months. Market expectations were 7.3%. The rate hit its lowest level since August 2022, but remained well above the ECB’s target of 2.0 percent. Energy inflation slowed sharply to 3.5 percent from 19.1 percent in February. However, food prices still remain elevated, increasing at a faster 22.3 percent, compared with a 21.8 percent rise the month before. At the same time, … Continue reading “Germany Inflation Fell Further in March as Energy Prices Slowed Sharply”
Standard & Poor’s Affirm Australia’s AAA Rating with a Stable Outlook.
The ratings agency S&P Global Ratings reaffirmed its AAA long-term sovereign credit rating and A-1+ short-term rating for Australia. S&P issued a note saying Australia should avoid a recession amid record low unemployment and elevated commodity prices, even as the economy slows this year amid higher interest rates. The RBA is expected to announce another 25 basis point increase in the official cash rate after its board meeting next Tuesday. S&P said Australia’s ratings were supported by “strong institutions, which … Continue reading “Standard & Poor’s Affirm Australia’s AAA Rating with a Stable Outlook.”
Germany Inflation Falls in December with Government Help on Natural Gas Bills
Germany’s annual consumer price inflation fell to 8.6% in December 2022, from 10% reported in November and below the market consensus of 9.1% preliminary estimates showed. Inflation has been running rampant mainly due to energy costs which has led the ECB to raise rates aggressively and has impacted the German Bund sending yields to levels not seen since 2011. It was the inflation lowest rate since August. The German government with a one-time payment in December lowered household natural gas … Continue reading “Germany Inflation Falls in December with Government Help on Natural Gas Bills”
S&P Global Ratings Settles Conflict of Interest Violations with SEC
The US Securities and Exchange Commission on Monday charged S&P Global Ratings with conflict-of-interest violations. The SEC said the ratings agency violated conflict of interest rules designed to prevent sales and marketing considerations from influencing credit ratings. In the same press conference, the SEC announced S&P Global had settled for $2.5 million quickly putting the story to bed would be the hope. There was no word on why the SEC has been deathly quiet on the FTX fraud, collapse and … Continue reading “S&P Global Ratings Settles Conflict of Interest Violations with SEC”
New Uruguay Center Right Government Faces Fiscal Challenges says Fitch
Fitch issued a note on Uruguay after the narrow victory of Luis Lacalle Pou of the center-right National Party after 15 years of rule by the center-left Frente Amplio. Pou faces the challenge of reducing a large fiscal deficit in the face of low growth.
Japanese Insurers Ratings Lowered By Fitch as Natural Disaster Risk Mounts
Fitch Ratings is out with a note lowering its outlook on Japanese insurers. They lowered their rating to stable from positive. See biggest risks for Japanese insurers will continue to stem from financial markets in 2020.
Germany Inflation Steady as Deflation Pressures Weigh
Germany’s states; Saxony, Brandenburg, Hesse, Bavaria, North Rhine Westphalia and Baden Wuerttemberg all released their monthly inflation rates showing continued deflationary pressures, though there is some inflationary pricing in the core, particularly in Saxony to bring a smile to the ECB.
Major Fiscal Stimulus in Australia May Pressure S&P AAA Rating
The ratings agency S&P issued a note saying the major fiscal stimulus in Australia flagged by the Australian federal government could place the countries AAA rating under pressure. The S&P noted; “If this fiscal stimulus involves substantial spending initiatives and changes the trajectory of the budget, then doing so could increase downward pressure on our rating and outlook for Australia” “While spending initiatives are likely to support the economy, they’re also likely to weaken Australia’s fiscal flexibility to respond to … Continue reading “Major Fiscal Stimulus in Australia May Pressure S&P AAA Rating”