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”
US Sovereign Rating Affirmed AA+ With Stable Outlook Stable By S&P
Standard and Poors rating agency affirmed that the US sovereign ratings remain ‘AA+/A-1+’ and the outlook remains stable. The affirmation comes out in the midst of a banking crisis with the US having three bank failures in a week. SVB was the largest failure since Washington Mutual’s September 2008 collapse and the second largest in U.S. history. The S&P says sovereign stability is based on strong American institutions, a diversified and resilient economy, extensive monetary policy flexibility. The agency added … Continue reading “US Sovereign Rating Affirmed AA+ With Stable Outlook Stable By S&P”
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”
The World’s Largest Pension Funds, Who They Are and Where They Invest
Global pension funds saw relatively strong growth in 2021, recall the end of 2021 many stock markets hit all-time highs and the bond market had not been routed yet. The world’s 100 biggest pension funds were worth over $17 trillion in total, an increase of 8.5% over 2020. A study from the Thinking Ahead Institute and Pensions & Investments released in September 2022 gives us a look into who are the largest pension funds around the world. The top 20 pension funds … Continue reading “The World’s Largest Pension Funds, Who They Are and Where They Invest”
Moody’s Cut UK Credit Rating Outlook to Negative on Political Chaos
Britain has had weeks of turmoil which was reflected in extreme volatility in the British pound and Gilts eventually leading to the resignation of Liz Truss as Prime Minister. Rating service Moody’s has responded by cutting its rating outlook on UK sovereign debt to negative from stable. Moody’s, said the political chaos was at the core of its rerating. Moody’s also said it affirmed the Aa3 rating it has on UK sovereign debt which it said “reflects the UK’s economic … Continue reading “Moody’s Cut UK Credit Rating Outlook to Negative on Political Chaos”
S&P Revise Italy’s Outlook to Stable from Positive Rating
S&P Global Ratings agency said on Tuesday it had revised its outlook on its BBB/A-2 ratings on Italy to stable from positive. The change reflects impact of the global effect on Italy’s economy and on sovereign’s fiscal position. The Italian Prime Minister Draghi resigned last week and there will be new elections later in the year. The ratings agency affirmed all of its sovereign ratings on the country and said the stable outlook balances rising risks to the economy and … Continue reading “S&P Revise Italy’s Outlook to Stable from Positive Rating”
China To Allow Foreign Investors to Trade Exchange Market Bonds in Plea to Stop the Bleeding
Chinese bonds saw outflows since the yield differential shrank with US rates rising coupled with the risks associated with China’s tacit approval of Russia invasion of the Ukraine. Global funds slashed their holdings of Chinese bonds. Goldman Sachs Group Inc. trimmed its bond inflow forecast for China to $100 billion this year, from as much as $140 billion. In response China will allow foreign institutional investors to trade bonds on its smaller exchange market. The PBOC said the move would … Continue reading “China To Allow Foreign Investors to Trade Exchange Market Bonds in Plea to Stop the Bleeding”
Ukraine Credit Rating Cut Further by S&P on Protracted War and Nation Reliant on Donations
Global ratings agency S&P cut Ukraine’s credit rating further Friday, in a move that was not unexpected and follows Moody’s earlier move in the week. It also assigned a negative outlook, saying risks from the military conflict could undermine the government’s ability to meet its debt obligations. The moves flow on from S&P and Fitch swiftly cutting Ukraine on default worries. Russia’s debt was cut to junk back then. The International Monetary Fund is exploring all options to aid Ukraine … Continue reading “Ukraine Credit Rating Cut Further by S&P on Protracted War and Nation Reliant on Donations”
Russian Central Bank Slashed Key Interest Rate to 11% as Inflation Pulls Back From 20-year highs on Rouble Strength
Russia’s Central Bank (CBR) in a fight to arrest the plummeting Russian economy smashed from impacts from the invasion of Ukraine. The CBR has now slashed its key rate by a cumulative 900 basis points since February, the rate was cut to 14% in April, weeks after an emergency rate increase to 20% triggered by Russia’s move to send tens of thousands of troops into Ukraine on Feb. 24 and the Rouble’s collapse. Since than capital controls have seen the … Continue reading “Russian Central Bank Slashed Key Interest Rate to 11% as Inflation Pulls Back From 20-year highs on Rouble Strength”