Money

2024 economic slowdown fuels 50% recession prediction

Published

1 year ago

December 5, 2023

ticker NEWS

Economists around the globe are closely monitoring the world’s economic landscape as 2024 ushers in a period of stark economic deceleration.

Amid these challenging times, a growing consensus among experts suggests that the odds of a recession have reached a concerning 50%. This unsettling forecast is sending ripples through financial markets and policy circles, as governments and businesses brace for potential turbulence ahead.

The economic slowdown, attributed to a combination of factors such as supply chain disruptions, rising inflation, and geopolitical tensions, has cast a shadow of uncertainty over global markets. As businesses struggle to adapt to these new challenges, consumer confidence is waning, leading to decreased spending and investment. With central banks and policymakers grappling with limited tools to combat these headwinds, the road ahead appears increasingly treacherous.

In the wake of this sobering prediction, investors are reevaluating their portfolios and risk management strategies, while governments are exploring potential stimulus measures to shore up their economies. The 50% recession probability is not only a cause for concern in developed economies but also poses significant risks for emerging markets already grappling with their own set of challenges.

Money

US stocks surge as banks report record profits

US stocks rise as banks report near-record profits; CPI slows, fueling hopes for continued Federal Reserve rate cuts.

Published

5 hours ago

January 16, 2025

ticker NEWS

US stocks rise as banks report near-record profits; CPI slows, fueling hopes for continued Federal Reserve rate cuts.

US stocks rose sharply following strong earnings reports from four major banks: JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo.

The banks reported their second-most profitable year ever.

JPMorgan achieved a historic milestone by becoming the first US bank to exceed $50 billion in annual profit.

Goldman Sachs saw record revenue from its equities trading division.

Citigroup reported record revenue in three of its five key segments: wealth management, US personal banking, and services.

Wells Fargo, while having the smallest presence on Wall Street, recorded a 62 per cent increase in annual revenue from investment banking.

Bank of America and Morgan Stanley are set to announce their results on Friday AEDT.

In other news, the core Consumer Price Index (CPI) for December rose at a slower rate than anticipated, indicating a potential easing of inflation.

This development has strengthened expectations that Federal Reserve policymakers may have room to continue cutting rates.

Consequently, the yield on the US 10-year bond dropped by 14 basis points to 4.66 per cent.

Similarly, UK yields fell by 16 basis points to 4.73 per cent after services inflation in the UK decreased to 4.4 per cent in December, down from 5 per cent in November, a more significant decline than the 4.8 per cent economists had predicted.

Money

Bitcoin rises 2% as market awaits inflation report

Published

19 hours ago

January 15, 2025

ticker NEWS

As of January 15, 2025, Bitcoin (BTC) is trading at approximately $97,198, reflecting a 2.17% increase over the past 24 hours. The cryptocurrency’s market capitalisation stands at around $1.93 trillion, with a 24-hour trading volume of about $54.23 billion.

This recent uptick comes as investors anticipate the upcoming U.S. inflation report, which could influence the Federal Reserve’s monetary policy decisions.

Money

Recovery on the horizon: investing in growth

Published

3 days ago

January 13, 2025

ticker NEWS

The ‘gloom to soon’ signal points to shares and property gains

Money Minute features finance expert Dr. Steve Enticott from CIA Tax, guiding audiences through practical advice and innovative strategies for financial freedom.