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World Economics News & Latest World Economic Analysis

Inflation expectations are higher than they’ve been since November 2018, based on the 10-year breakeven rate, and that’s adding extra juice to BlackRock’s bond outlook that calls for stronger growth with stable nominal yields and lower real yields. Last week, Bostic said the Fed may start to ease up on its asset purchases if the economy exceeds expectations by midyear. While his baseline outlook sees robust recovery, relief for a number of sectors may still be needed, Bloomberg reports.

In the even more bearish cap, Ark Investment Management’s Cathie Wood, know for here disruption and innovation investments, says she can see long-term rates going up to 2% this year. “We see 10-year rates at 1 . 40, 1. 50 by the end of the year, ” Howard told Bloomberg. Last month, HSBC’s call stressed the effect of the Fed’s new policy for average inflation, or letting it run hot.

Worldwide shipments of used smartphones, inclusive of both officially refurbished and used smartphones, is expected to reach 225. 4M (+9. 2% Y/Y) units in 2020, International Data reports. In the November 2020 survey, U. S. consumers expected to spend more even as they expected flat income and earnings growth. Median expected household income growth ticked up 0. 1 percentage point to 2. 2%; since March, the series has moved within a narrow range of 1 . 9%-2. 3% and well below its 2019 average of 2. 8%.

Advance seasonally adjusted insured unemployment rate was 3. 7%, increase of 0. 2 percentage point from the previous week. 5-year Treasury-indexed hybrid adjustable rate mortgage averages 3. 12% vs. 2. 75% in the prior week and 3. 39% a year ago.

Just like the March spike, this morning is looking like a crucial time for the direction of rates this year. And much of that comes down to whether you think the Fed’s commitment to dovishness outweighs the commitment of President-Elect Joe Biden to fiscal spending. Last week, Fed presidents Harker and Barkin said they don’t see any threat from near-term inflation. “Banking contacts saw little or no change in loan volumes, with some anticipating stronger demand from borrowers in coming months for new government-backed lending programs, ” the report said. The Association of American Railroads reports total weekly US rail traffic up 4. 7% to 525, 253 carloads and intermodal units for theweek ending Jan. 9, 2021.

Economic News

All eyes are on the price tag of President-elect Joe Biden’s stimulus plan, which will be announced today and is expected to range in the trillions of dollars. Many elements of the package are expected to be drawn from House Democrats’ Heroes Act, which passed in May, but was blocked by the GOP-controlled Senate.

appointed20 years industry veteran Robert Sundy as SVP & Chief Commercial Officer, effective Jan. 27, 2021, responsible for all facets of sales, merchandising and marketing for the La-Z-Boy branded business in North America. Overall, George says she has growing confidence that the year will see continued economic recovery, “though not without bumps and potholes”, especially in the first part of the year. China will overtake the U. S. to become the world’s biggest economy by 2028, according to a recent report from the Center for Economics and Business Research. The V-shaped recovery will result in “explosive earnings, ” while double-digit GDP growth could arrive in a few quarters, Wood said.

As such, expect more job losses in January, says economist Mohamed A. El-Erian. Despite 2020 volumes not as large as expected, IDC estimates a 6. 4% drop for smartphones in 2021; expects to see double-digit growth during the forecast period ( ), at an average of 11. 8%.