Latest Finance-Economy News
US Entering New Productivity Growth Cycle
The US is entering a new productivity growth cycle, reducing inflationary pressures and supporting real GDP growth without overheating. This reinforces US global competitive advantage and provides fundamental support for US assets.
Implications include sustained economic expansion amid easing inflation.
ECB Projects Modest Eurozone GDP Growth
ECB forecasts Eurozone GDP growth at 1.4% for 2025, dipping to 1.2% in 2026, then stabilizing at 1.4% through 2028. Unemployment rose slightly to 6.4% in October.
Euro Stoxx 600 hit all-time high, up 15.37% YTD.
US Inflation Cools to 2.7% Headline, 2.6% Core
November CPI shows headline inflation at 2.7% YoY and core at 2.6% YoY, down from September's 3.0%. This progress supports economic resilience without reacceleration.
Government shutdown affected October data coverage.
Global ETF Inflows Set Record $1 Trillion in 2025
Investors deployed record $1 trillion into global ETFs in 2025, indicating rotation rather than retreat amid volatility. Flows occurred during heightened uncertainty, showing conviction.
This underscores engagement despite high rates and geopolitics.
Markets Resilient Amid Narrowing Leadership in 2025
Markets stayed resilient as investors rotated to selective assets, with economic growth slowing but supported by disciplined consumer spending. Labor market rebalanced with durable hiring in key sectors like health care and AI.
Wage growth moderated, easing inflation pressures.
Fiscal Deficits Pressure Long-Term Bond Yields
Rising fiscal deficits and central bank balance sheet reductions increase government bond supply, steepening yield curves globally. US deficit mitigated by $200bn in 2025 customs duties.
Potential tariff changes could widen deficits further.
AI and Trade Shifts Masked by Market Calm
Financial markets enter 2026 calmly despite protectionism resurgence and AI acceleration, with risks of hotter medium-term inflation. US factors like fiscal bills and AI capex may boost growth and inflation in 2026.
Monetary tightening shock possible if inflation reaccelerates.
Fed Maintains Patient Stance Post-Rate Cuts
After 2025 rate cuts, Fed signals gradual future easing amid uneven inflation progress and cooling labor data. US economy expands moderately with normalized consumer spending.
Unemployment low by historical standards.
Bank of England Cuts Rates to 3.75%
BoE reduced policy rate by 25bps to 3.75% amid weakening growth, while ECB held at 2.0% with easing inflation. This reflects divergent responses to stable yet sluggish activity.
Markets mixed last week with S&P 500 up 0.1%.
US Leads Global GDP Rankings at $30.6 Trillion
US economic output reaches $30.6 trillion in 2025, far ahead of China's $19.4 trillion. Europe hosts five top-10 economies.
IMF charts highlight enduring sentiment despite rising public debt.
Emerging Markets Benefit from Trade Improvements
Emerging markets post stronger growth via stabilizing trade, softer dollar, and demographics. Export booms reshape economies globally, as mapped in 82 cases since 1995.
Developed ex-US equities mixed amid uneven data.
Goldman Sachs Forecasts Gold at $4,900 by 2026
Central bank gold demand strong at 49 tonnes in October, led by Qatar and China hedging risks. GS targets $4,900/oz by 2026 on purchases and Fed easing.
This supports digital assets and broader markets.