World

Is inflation returning from death?

We recently made some changes to our newsletter.If you have time, let us know what you think covid@ft.com..Thank you

Forward this newsletter to friends and colleagues who you deem valuable. Even if you’re not a Financial Times subscriber, you can read the newsletter and all FTs for free for 30 days. And, if this has been transferred to you, hello.Welcome to sign up Here

Coronavirus cases and vaccinations

Global case: 111.8m

Total dose given: 216.2m

Get our latest worldwide photos Vaccine tracker

the latest news

  • Up Wall street boss Prior to this week’s parliamentary vote, it came out to support US President Joe Biden’s $ 1.9 trillion stimulus package.

  • Exxon mobile Oil companies are selling their North Sea asset group as they try to repair their finances after the oil price crash last year.

  • U.S. Food and Drug Administration scientists declared Johnson & Johnsons A safe and effective vaccine that paves the way for approval in the next few days

For the latest coronavirus updates, Live blog

Bond markets have begun to deteriorate since 2015

The outlook for rising inflation this week has plagued policy makers and investors on both sides of the Atlantic.

Forecasts are rising due to a significant surge in government spending during pandemics and emergency measures by central banks.

Chairman of the Federal Reserve Board Jay Powell Some economists tried to downplay the outlook, testifying to Congress yesterday, after warning that an explosion of stimulus-led activity could spike inflation and start tightening monetary policy earlier than expected. Attention will be focused on the Commerce Department’s data on Friday’s household spending.

Potential returns on inflationary pressure are also driving investor sentiment. today, Global bond market If inflation affects interest payments and returns, it’s been the worst start in a year since 2015. Product Meanwhile, prices are rising as investors seek hedging against inflation. Asset manager We are scrambling to protect our portfolio from the risk of returns.

on the other hand, EurozoneInflation reached its highest level in almost a year, as rising input costs are reflected in rising prices from manufacturers.

Chief Economics Pundit Martin wolfAn analysis of Biden’s $ 1.9 trillion stimulus statement states that it is unwise to dismiss growing concerns. “Some analysts seem to think that a big rise in inflation is unthinkable because it hasn’t happened for a long time,” he says. “This is a bad argument. Many once thought that the global financial crisis hadn’t happened for a long time and was unthinkable.”

World economy

Italian mafia Providing more and more “welfare” to the country Small and medium-sized enterprises, According to a new report. Suffering from a reduction in traditional criminal opportunities during a pandemic, gangsters first provide assistance before taking over the business, turning them into “tools for money laundering and recycling of illegal capital.”

Unemployment in the UK It reached 5.1% in the last quarter of last year, Improvement As companies adapt to new situations and the severance system keeps people working. The Lobby Group hopes that next week’s budget will maintain and extend emergency measures, “a bridge for companies to begin the process of rescaling and rehiring.”

Hong Kong expect economic growth Thanks to strong rebounds and the introduction of vaccines in China, this year’s increase was 3.5-5.5%. The city’s economy, which was already weak before the pandemic, shrank 6.1% last year, while unemployment reached its highest level in 17 years.

business

Reckitt Benckiser Thanks to Dettol and Risor’s sales leap, it is a clear winner from the pandemic and reports the highest sales growth for the whole year. disinfectantIntroduced in 41 new markets. Hygiene sales increased by a fifth overall.

Swedish head Hennes & Moritz, The second largest in the world Clothing retailer After Spain’s Inditex, FT about plans for chains to remodel stores for the post-pandemic era, speed up the supply process, and unleash (expected) stagnation in consumer demand Told to.

Holiday reservation From the UK Blockade relaxation The plan was announced on Monday but is international Hotel chain Faced with serious financial problems: Accor Reported 2 billion euros today One year loss while IHG cautioned against industry recovery and expected business trips to be sluggish for several years.United Kingdom Heathrow Airport After reporting a £ 2 billion loss, he sought further government support.

market

Sterling Vaccine-backed economic optimism is driving a surge in government, and we’re on track for the best month since July last year. Bond yield.. The pound has jumped more than 3% against the dollar since early February, reaching a three-year high of $ 1.4237, making it one of the best-performing developed currencies of the year.

Veteran investor Mohamed Ellerian Write to FT as follows Stimulation program It may be good for economic growth, but not always good for investors, at least in the short term. The answer is, “Rather than abandoning fiscal stimulus, improve its immediate bailout goals and accelerate its impact on long-term growth. And the Fed is best to slowly step away from financial accelerators. You need to seriously consider how to do it. “

Pandemic supercharged shift to Electronic bond trading, Write Global Finance Correspondent Robin Wigglesworth.. He argues that liquidity creates liquidity. Investors will inevitably move towards parts of the market that are easy to trade, “likely to destroy the long tail of inadequate, rare or never traded debt.”

A line graph of the share ratio of electronic bond transactions that marks the beginning of the digital age of the bond market?

Please give us your opinion

Comments from readers about what it’s worth Pets grounded by a pandemic as flights are reduced and costs soar:

I lost my job in Hong Kong in a pandemic last fall and had a very short time to pack up and leave for the UK. It’s a very difficult experience. But the most stressful part to date has been getting back two old cats. They did it, but it wasn’t without a lot of cardiac arrest until we boarded the plane. .. .. (At that time, the animals and their owners had to be on the same plane). If we were only a month old, as explained in this article, that would be a completely different story. A good article about another hidden consequence of what’s happening in the world.

Final idea

Pet photos on social media may have been about LOL in the past, Spoiled pouch Today, we are driving the global dog clothing market to new heights. Welcome to the world of dog influencers and VIPs (very important puppies).

Dogfluencer Tika the Iggy

Thank you.Please send your reaction or suggestion to covid@ft.com..Thank you

Is inflation returning from death?

Source link Is inflation returning from death?

Back to top button