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U.S. Treasury Secretary Bessenter: We will eventually end the Russia-Ukraine conflict.January 25th - For most of the past three years, the so-called "Big Seven"—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—have led the stock market rally. However, this trend reversed at the end of 2025 as Wall Street began to question the hundreds of billions of dollars these companies have invested in developing artificial intelligence and when those investments would pay off. An index tracking the Big Seven hit a record high on October 29th, and since then, five of the Big Seven companies have seen their share prices decline and lag behind the S&P 500. During this period, only Alphabet and Amazon, with gains approaching 20%, have maintained their upward trend. Darrell Cronk, Chief Investment Officer of Wells Fargo Wealth and Investment Management, stated, "Tech stocks have become a performance-driven story. If big tech companies continue to deliver strong results, I think money will flow back into the tech sector." Next week, Microsoft, Apple, Tesla, and Meta will release their earnings reports, providing insights into the health of industries ranging from cloud computing and electronics to software and digital advertising.On January 25th, Saudi real estate developers shares saw their biggest gain in four months, boosted by the formal implementation of new regulations allowing foreigners to own a wider range of local real estate assets. On Sunday, the Saudi Stock Exchanges Real Estate Management and Development Index surged 4.5%, with all 17 constituent stocks rising. Mecca Construction and Development Company led the gains with approximately 10%, followed closely by Al-Aqen Real Estate. Fadi Arbid, Founding Partner and Chief Investment Officer of Amwal Capital Partners, stated, "This is a market craving good news. Opening up the real estate market to foreign investment, especially in Mecca and Medina, is clearly a good thing." While specific details regarding foreign ownership rules are scarce, Saudi Arabias latest announcement indicates that the country is moving forward with plans to allow foreigners to own residential, commercial, agricultural, and industrial properties. Under the new law, non-Saudi citizens can also purchase land. As part of efforts to reduce dependence on oil and diversify its economy, Saudi Arabia approved a comprehensive revision of its property ownership law last July, aiming to attract foreign buyers to the Gulf regions largest economy and accelerate necessary infrastructure development.Monday: ① Data: Germanys January IFO Business Climate Index; US November Durable Goods Orders (MoM); US January Dallas Fed Business Activity Index; Chinas December Year-to-Date Power Generation Capacity. ② Events: 200 billion yuan of 1-year Medium-term Lending Facility (MLF) and 158.3 billion yuan of 7-day reverse repos mature today; the China Academy of Information and Communications Technology holds the 2026 "Star Computing & Intelligent Connectivity" Space Computing Power Seminar. ③ Holidays: The Sydney Stock Exchange and the National Stock Exchange of India are closed. Tuesday: ① Data: US November FHFA House Price Index (MoM); US November S&P/CS 20-City Composite Home Price Index (YoY, Unadjusted); US January Conference Board Consumer Confidence Index; US January Richmond Fed Manufacturing Index. ② Earnings Reports: Boeing, General Motors. Wednesday: ① Data: US API crude oil inventories for the week ending January 23; Australias December unadjusted CPI year-on-year rate; Germanys February GfK consumer confidence index; Switzerlands January ZEW investor confidence index; US EIA crude oil inventories for the week ending January 23. ② Events: Bank of Canada releases interest rate decision and monetary policy report. ③ Earnings reports: Meta, Microsoft, Tesla (after market close). 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Saturday: ① Data: US total oil rig count for the week ending January 30; Chinas official January manufacturing PMI. ② Events: 2028 FOMC voting member and St. Louis Fed President Musalaim speaks on the US economy and monetary policy; CFTC releases weekly positioning report.On January 25, local time, Mohshinni Sani, a member of the Iranian Parliaments National Security and Foreign Policy Committee, stated in an interview that the Iranian armed forces have entered a state of full alert in response to the current military deployments of adversaries. Sani emphasized that Iran is continuously monitoring all hostile movements in the region, and the military is "hands on the trigger," ready to respond at any time. In the event of any form of aggression, Iran will launch a fierce counterattack, its strikes encompassing everything from the Strait of Hormuz to all US interests in the region, and its retaliatory measures will exceed the enemys expectations.

0.8450 is being reached by EUR/GBP as the prospect of a UK recession looms

Daniel Rogers

Aug 05, 2022 14:46

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Following a huge upward rise from 0.8360 on Thursday, the EUR/GBP pair has subsequently turned sideways around 0.8430 in the Tokyo session. After the Bank of England (BOE) hiked interest rates by 50 basis points, the cross displayed a significant upward rise (bps) (bps). The BOE lifted interest rates by 50 basis points in succession, bringing them to 1.75 percent.

 

The investing community is aware that UK household earnings have been unsteady during the preceding few months. In addition, the economy's inflation rate is fast expanding. The inflation rate was 9.4 percent prior. The recent statement by BOE Governor Andrew Bailey that price increases might exceed 13 percent has sent shockwaves across the market.

 

The runaway inflation is now escalating, leaving the BOE with very little flexibility to tighten its monetary policy. The BOE is in poor shape as a result of the dismal economic data and the continuing political upheaval following the departure of UK Prime Minister Boris Johnson. A recession in the UK economy is extremely probable in the case that the inflation rate is close to 13 percent.

 

German manufacturing order numbers for the Eurozone have decreased by 0.4 percent against an anticipated 0.8 percent decline and a prior monthly contraction of 0.2 percent. Falling orders from factories indicate sluggish demand in Germany as a whole. It is vital to remember that Germany is a key element of the European Union (EU), and that economic data from Germany has a huge effect on people who favor the common currency.