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Livesquawk - US Briefing - Friday 14.01
US Briefing - Friday 14.01
  • Biden Voting Rights Push Scotched By Democrats Sinema, Manchin
  • Congress Launches Funding Talks Ahead Of February Shutdown Cliff
  • Fed Governor Waller Mentions Possibility Of Five Hikes In 2022
  • Fed’s Harker Sees Three Or Four Rate Increases Likely This Year
  • German Recovery Lags Rest Of Europe On Supply Snarls And Inflation
  • Housing, Food Costs Push Spanish Inflation To Highest Since 1992
  • UK Economic Growth Hit Pre-Pandemic Levels In November
  • New 'Partygate' Revelations Heap More Pressure On UK PM Johnson
  • Russian Foreign Minister: Will Not Wait ‘Endlessly’ For Security Deal
  • China Agrees With US To Release Oil Reserves Near Lunar New Year
  • European Power Prices Soar On Setbacks At French Nuclear Giant
  • US Treasury Yields Climb, With Focus On Hawkish Fed Comments
  • European Equity Markets In The Red; US Futures Little Changed
  • JPMorgan Slumps In Premarket As Profit Falls On Trading Slowdown
Inflation Risks Getting Sticky As Big Firms Flex Pricing Power

Economists have largely dismissed the Biden administration’s efforts to blame the inflation surge in part on big companies padding profits, but some warn that these firms could still keep prices higher for longer.


Consumer prices rose 7% in 2021, the fastest calendar-year increase in 39 years, according to government figures released this week. Analysts generally agree on the cause: massive fiscal and monetary stimulus that swelled demand, coupled with supply disruptions and tectonic labor-market shifts triggered by the pandemic -- rather than pricing decisions by big business.


They also concur that the disruptions will ease over the course of the year, returning inflation closer to its muted, roughly 2% pace of the pre-Covid part of the century. (Bloomberg - Continue Reading)

German Economy: Putting A Number On A Disappointing Year

2.7%. This was German GDP growth in 2021. A disappointing performance, as global supply chain frictions paralysed industrial activity. The annual numbers mask a contraction in the economy in the final quarter of 2021, emphasising the high risk for the economy to fall into an outright recession at the turn of the year.


The rebound that almost wasn’t…Despite one of the largest fiscal stimulus packages during the pandemic, the German economy disappointed in 2021. Global supply chain frictions paralysed industrial activity and weighed on economic activity. As a result, and according to the just-released data, the German economy grew by 2.7% in 2021, from -4.6% in 2020.


According to available monthly information and the statement by the statistical agency, the economy shrank in the fourth quarter of 2021. As a result, it could take until the second quarter of 2022 before the economy is back to its pre-crisis level. (ING Think - Continue Reading)

UK Economy Grew Solidly In November Before Omicron Wave Hit

UK growth finally reclaimed pre-pandemic level status in the penultimate month of 2021 to put in a strong, broad-based performance before the arrival of the Omicron variant.  


GDP growth rose 0.9% in November, stronger than the 0.4% expected, and above last month’s 0.1%. All four main sectors contributed to the positive read, led by services.  


The Office for National Statistics said services output grew by 0.7% in November, with 8 of the 14 sub-sectors surpassing pre-covid levels. ONS’ chief economist Grant Fitzner said architects, retailers, couriers, and accountants all had “a bumper month”. Output in consumer-facing services grew 0.8%, driven mainly by a 1.4% increase in retail trade.  (LiveSquawk - Continue Reading)

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