Morgan Stanley Cuts Its UK GDP Growth Forecast for 2025:
Morgan Stanley has lowered its forecast for the United Kingdom’s GDP growth in 2025 to 0.9%,
down from its previous estimate of 1.3%.
This move comes amid an ongoing economic slowdown and a weakening labor market,
reflecting an increasingly negative outlook for the UK’s economic performance.
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Morgan Stanley
Japanese Yen
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Morgan Stanley Cuts Its UK GDP Growth Forecast for 2025
Morgan Stanley has lowered its forecast for the United Kingdom’s GDP growth in 2025 to 0.9%,
down from its previous estimate of 1.3%.
This move comes amid an ongoing economic slowdown and a weakening labor market,
reflecting an increasingly negative outlook for the UK’s economic performance.
The bank highlighted that persistently high prices and growing fears of stagflation further complicate the economic landscape.
It also predicted that the Bank of England might slow its rate cuts, limiting economic momentum.
These forecasts raise concerns about their potential impact on foreign investment,
adding pressure to the UK stock and bond markets.
The challenges are further compounded by ongoing political uncertainty from Brexit and conflicting economic policies.
Under these circumstances, the UK faces significant challenges in maintaining positive growth rates.
Experts emphasize that adopting flexible economic policies focusing
on attracting investments and providing a stable business environment is essential to stimulating the economy and restoring confidence.
Japanese Yen Rises Amid Political Tensions and Bank of Japan Decisions
The Japanese yen recorded a positive performance on Monday,
becoming the only currency among the G10 to strengthen against the U.S. dollar.
This rise was driven by investors seeking safe-haven assets amidst escalating political tensions between the United States and Colombia.
The dollar declined by 0.54% against the yen,
reaching 155.13 yen after touching 156.24 yen earlier in the session.
This movement followed U.S. President Donald Trump’s executive order imposing
tariffs and sanctions on Colombia for refusing to accept two military planes carrying deported migrants from the United States.
However, Trump later reversed the decision after reaching an agreement with Colombia, calming global markets.
Additionally, the yen benefited from the Bank of Japan’s decision to raise its key interest rates last week.
Analysts expect the yen’s positive performance to continue
as the central bank moves toward tightening and normalizing its monetary policy, aligning with other global counterparts.
This approach is expected to narrow the yield gap between
Japanese government bonds and their counterparts in significant economies enhance the yen’s appeal as a safe-haven asset for investors.
Manufacturing and Non-Manufacturing Activity Slows in China in January
Data released by the China Federation of Logistics on Monday morning showed
a significant slowdown in the manufacturing and non-manufacturing sectors in January.
The Manufacturing Purchasing Managers’ Index (PMI) registered a reading of 49.1,
indicating contraction.
It fell below market expectations of 50.1 and the previous reading of 50.1 in December.
In the non-manufacturing sector, the PMI showed clear deceleration,
recording 50.2 in January, far below the forecasted 52.1 and down from December’s reading of 52.2.
These figures highlight the pressures facing China’s economic sectors,
as a reading below 50 indicates contraction, while a reading above 50 signals growth.
Morgan Stanley Cuts Its UK GDP Growth Forecast for 2025