Bond markets are in danger to the global economy
In light of what is happening now through the budgets of great countries
and the continuous attempts to control inflation and resort to raising interest rates,
there is a prodigal son who stands against this solution,
which is “bonds and stocks,” as James Carville, political advisor to President Bill Clinton,
indicated to the Wall newspaper. Street Journal in 1993:
“I used to think that if there was a rebirth of him wanting to come back as president,
or to be the pope or a baseball player with 400 hits in a season,
but now I want to be like a (bond market) because it scares everyone.
This is something that must be taken into consideration by traders.
topic’s
Tesla’s delivery of electric cars declines, and the company displays the first “Optimus” robot
Bond Markets
This was a comment on the current events regarding the bond market crash last week,
as the average ten-year borrowing costs were raised in the Group of Seven countries,
and the average return rose above 3% Assured.
The situation now makes investors and traders worried about the rise in government bond yields,
but they are not alone in suffering from small companies that want to borrow,
and those looking for home loans are also very worried about
what is happening with the high-interest rates that the modern world has not witnessed before,
but they have no choice. Just adapting and coexisting with the current situation.
Will things go back to how they were?
It is worth noting that since 2008, US bond yields have not risen to this extent.
Bonds have witnessed a 10-year rise as a benchmark for global debt markets.
Germany also witnessed a rise in the 10-year bond yield,
which negatively affected the movements of the fixed income markets
in the euro area and reached its highest level in more than 10 years.
The British 30-year bond yield jumped in the largest amount
before the intervention of the Bank of England to relieve the pressure
the country is experiencing due to the costs of government debt
and the matter is now subject to an effective economic solution
All solutions are futile now As for the G7 countries,
which are Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States,
the average 10-year debt yield is approaching a major turning point Its stop at around 3.15% means
that it is well above the 1.3% average seen for most of the past decade,
and if the Bank of Japan is not spending billions of yen
to keep its benchmark return below 0.25%;
This average was a long time ago higher.
High inflation figures suggest
High inflation figures suggest that central banks will need to tighten policy
further in the coming months to cool consumer prices,
and the average official interest rate in the G7 countries is around 1.75%,
after hovering around zero in the past two years,
and that does not appear to be high enough to curb prices at the high level.
Consumer prices have reached, prompted the Central Bank to act,
even if it was something late, and, as we mentioned,
it raised prices by raising interest rates to keep inflation below the target level of 2%. 7.2%
is very much the two-decade average of 1.7%, or the one-decade level of 1.6%,
or the average for the period from 2002 to 2012 at 1.8%,
which has made central banks on alert to tighten policies further in the coming months.
All of that, and we haven’t yet looked at the impact of rising and high borrowing costs on stocks.
While stocks soared to record highs when borrowing costs
were close to or below zero, the best advice now is probably: “Don’t look down (because the bottom is far)”
The total market capitalization of global stock markets is currently around $90 trillion
although this is 47% higher than when the pandemic shut down economies in the first quarter of 2020;
It is 25% below the peak recorded in November and certainly everything
that is happening is causing the world to fear this year about the bond market.
It is expected that the G7 average will break 3.5% in the coming period.
Is it possible to achieve the desired goal and return
stability to the bond market once again?
The terrifying week and news of employment, inflation, bonds, and interest constitute a warning of danger to the global economy
It is expected that the Federal Reserve’s strength towards tightening monetary policies
will increase after Friday’s statement on the job rate for September,
as growth in the US jobs index is expected,
which will make the market accelerate significantly during the coming period.
Jobs may have increased by about 250 1,000 jobs last month,
while the unemployment rate may have registered at 3.7%,
just above its lowest level in five decades,
according to the median estimate in a Bloomberg survey of several economists.
It was less than it was in the five years before the epidemic and less than it was in 2020.
Will the employment rate continue to grow?
The continuation of the Federal Reserve in its strict policies toward the economy
and raising interest rates remains the obstacle to the growth process in most areas,
and a significant decline in the employment rate is expected in the coming period.
Policymakers accepted another tightening of 125 basis points this year,
which negatively affects the nature of investment and therefore employment rates as well.
It seems that raising interest rates is not an effective solution for the US economy,
despite the false strength of the dollar
that negatively affects the health of US bonds and stocks,
which negatively affects monetary policies throughout Europe and the world.
It seems that sticking to this solution and not retracting
it is the only decision in the hands of decision-makers.
At the Federal Reserve in other places,
many central banks around the world may raise interest rates,
with hikes likely as far afield as Australia and Peru. Meanwhile,
key policy statements by UK Conservative Party leaders
will be scrutinized for any sign of a shift in unfunded tax cuts
that most economists and global economists have predicted.
Looking at the eurozone
It also suffers from inflation, price swings, and an abundance of opinions without a clear plan.
For example, the United Kingdom is likely to remain in focus
after Treasury Secretary Kwasi Karting announced last month
tax cuts that lack plans on how to finance them,
the appearance of Bank of England officials may lead to scrutiny
for For any hints about ways to deal with the situation,
as Catherine Mann is scheduled to speak on Monday and Deputy Governor Dave Ramsden next Friday,
and it is expected to develop solutions and
consider effective plans to curb inflation and face successive crises,
more European Central Bank statements regarding
The potential size of an interest rate hike later this month will notably attract scrutiny from the news
that inflation has reached its highest level since the launch of the euro currency.
The account of the September decision,
issued on Thursday, may provide new evidence that
can move officials in an effective direction to confront the events
and events with a more in-depth look.
And about the events in Asia
After the intervention during the past week from the Japanese government side,
it is expected that investors will re-intervene again to
save Yemen from the expected slide in the coming period,
and the “Tankan” data on business confidence and
the consumer price index in Tokyo due to be released
at the beginning of the week will show the strength of price increases in September,
and the impact of inflation concerns, and the global recession on corporate activity,
which intervenes again not reassuring on the health of the Japanese economy.
Coming back to the situation in Sri Lanka
after raising interest rates for the second week in a row by 9.5 points,
it seems that the Central Bank is insisting on the same position this year,
as raising interest rates has become the only popular solution in the world at this time.
Australia is also expected to take the same ideological side towards the crisis
by raising interest rates by half a percentage point for
the fifth consecutive month on Tuesday,
although increases may be smaller in the future,
as inflation shows signs of slowing in response to the rapid increases in interest
She achieved her hope during the meetings of the past weeks.
In New Zealand, the matter is nearing its end as its turn to emphasize its hope is that
it is expected to raise rates by half a percentage point during Wednesday’s meeting this week.
Coinciding with the release of consumer price data in South Korea.
Tesla’s delivery of electric cars declines, and the company displays the first “Optimus” robot
With the increasing demand for electric cars,
the company decided to expand its activities and
open 4 new factories on three different continents.
In the third quarter of this year 2022,
the company was able to deliver 343,830 electric cars worldwide,
and this result was announced On Sunday,
it was less than expected, and this is due to the difficulty of transporting cars,
especially at the time of the logistical peak,
while expectations were that up to 358 thousand cars were shipped,
and this also comes in light of the desire to increase production in large quantities,
and thus delivery volumes change with the end of each year stage.
Company’s Delivery Indicators
The most important indicator that shows the strength of Tesla’s financial results is monitored,
which is the indicator of quarterly deliveries,
and despite the intensity of competition in the auto industry and
the entry of giant companies into the field of electric cars,
now that Tesla has retained its leading position in the cars that Battery powered,
which is the company’s first model when
it was launched a decade ago and was the largest sales within the United States and China,
and the announcement of these results came after a very important event for Tesla,
which is “Artificial Intelligence Day”.
Tesla announces the first robot at the “Artificial Intelligence Day” event
The artificial intelligence ceremony was held under the organization of “Tesla” on Friday,
where the company announced the first robot,
which bears the name “Optimus”,
and the results presented by the robot consisted of movement on the stage
an attempt to greet the audience without relying on any connections,
and Musk indicated that the robot has The ability to do more,
but we are afraid that he will fall on his face,
and videos have been shown that prove some of the work of the robot,
including carrying some things.
company in its cars and who helps the driver.
artical name Bond markets are in danger to the global economy