Economic Data, Disney Cuts, and Georgia Diabetes Rates: Key Events in Developed Markets This Week
By Data from the Senior Loan Officer Opinion Survey (SLOOS) has indicated that the economy is weakening, with intensifying tightening of lending standards and declines in demand across various loan types. This survey revealed widespread demand deterioration and tighter credit standards across all loan types in the last three months of 2022, indicative of the broader effects of restrictive monetary policy starting to take hold.
At the same time, Disney (DIS) announced 7,000 job cuts and $5.5 billion in cost cutting, with newly returned CEO Bob Iger taking the reigns and setting a new path for the company's business.[0] Activist investor Nelson Peltz withdrew from his proxy battle in solidarity with Iger, netting a $150 million paper profit.[1]
The Reserve Bank of Australia (RBA) kicked off the week with a 25 bps policy rate hike, to 3.35%, with the bank noting a couple more are likely to follow.[2] The Bank of England is also keeping a close watch on inflation persistence to determine whether to hike rates again in March.
The US inflation, retail sales, and industrial production figures to be released this week are expected to be strong due to the mild January weather and the jump in employment numbers. This may give the Federal Reserve ammunition to argue for a May rate hike.[3] The Bank of England’s inflation and jobs data this week will also be important in helping to determine whether to hike rates again in March.[4]
Furthermore, counties in Georgia with the highest diabetes rate have been highlighted, and key events in developed markets for the week have been identified.[5] Stacker compiled a list of counties with the highest diabetes rate in Georgia using data from the University of Wisconsin Population Health Institute, while the U.S. Federal Reserve Bank of Cleveland President Loretta Mester has said there had been a compelling case for a 50bps rate hike at the last meeting, prompting US dollar strength and higher yields.[6]
Finally, jobs and wages data will also be closely watched, as wage growth has yet to show any signs of easing, at least in the official numbers. The Bank of England Decision Maker survey has hinted wage growth might have peaked.[7]
0. “3 takeaways from a busy week in markets: Morning Brief” AOL, 11 Feb. 2023, https://www.aol.com/finance/3-takeaways-busy-week-markets-110001679.html
1. “Week Ahead: Inflation Data, Interest Rates, and Time to Buy Shopify Breakout?” Yahoo! Voices, 13 Feb. 2023, https://www.yahoo.com/now/week-ahead-inflation-data-interest-204008296.html
2. “Weekly Economic & Financial Commentary: International Central Banks Deliver Another Round of Rate Hikes” Action Forex, 11 Feb. 2023, https://www.actionforex.com/contributors/fundamental-analysis/485872-weekly-economic-financial-commentary-international-central-banks-deliver-another-round-of-rate-hikes/
3. “Key events in developed markets next week” ING Think, 10 Feb. 2023, https://think.ing.com/articles/key-events-in-developed-markets-next-week090223
4. “Top 5 things to watch in markets in the week ahead By Investing.com” Investing.com, 12 Feb. 2023, https://www.investing.com/news/economy/top-5-things-to-watch-in-markets-in-the-week-ahead-3001221
5. “What the January Consumer Price Index Means for Investors” News-Daily.com, 13 Feb. 2023, https://www.news-daily.com/arena/what-the-january-consumer-price-index-means-for-investors/article_25bd6f85-e3a1-5fca-a22e-3cfd80174a3c.html
6. “UK retail sales set to slip back again” FXStreet, 17 Feb. 2023, https://www.fxstreet.com/analysis/uk-retail-sales-set-to-slip-back-again-202302170620
7. “Key Events In Developed Markets Next Week” MENAFN.COM, 10 Feb. 2023, https://menafn.com/1105556757/Key-Events-In-Developed-Markets-Next-Week
