The headlines that global financial media paid attention to last night and this morning mainly include:
Due to the Christmas holiday, US stocks will be closed on Monday Due to the Christmas holiday, the US stock market will be closed on December 26 (Monday).
CME’s precious metals, U.S. crude oil and foreign exchange contract trading was suspended throughout the day. ICE's Brent crude oil futures trading contract was suspended throughout the day.
Interactive Brokers economists warn: U.S. economy increasingly at risk of entering stagflation
Interactive Brokers senior economist Jose Torres warned that the U.S. economy is at increasing risk of entering a stagflation environment, in which inflation remains high while economic and job growth slows.
The reason for the potential stagflation situation is that the Federal Reserve has strengthened its hawkish monetary policy that began in March by raising interest rates and shrinking its balance sheet to curb consumer price inflation at the highest level in nearly 40 years. This is the most aggressive tightening cycle since the Volcker era in the 1980s.
"As the Fed continues to tighten financial conditions, it puts downward pressure on the money supply and inflation, upward pressure on short-term interest rates, and downward pressure on GDP," Torres said.
He believes that the economic slowdown, especially weakness in housing and manufacturing, coupled with tighter credit conditions and interest rates will "ultimately lead to a small increase in unemployment in 2023."
Goldman Sachs 2023 Healthcare Themes Preview: Micro Operations in the Presence of Macro Uncertainty
Goldman Sachs highlighted the key healthcare themes to follow in 2023, noting that while macro uncertainty persists, micro factors are becoming increasingly important for stock selections in the sector.
Goldman Sachs analyst Haider said health care stocks are expected to outperform the S&P 500 index this year after lagging the benchmark index for three consecutive years.
The team added that while defensive stocks such as pharmaceutical distributors and managed care led gains, dental, medtech, SMID biotech and tools stocks in growth, cyclical and consumer-facing sectors lagged.
Goldman Sachs said the key question for health care next year will be rotation risks to other sectors and how the sector's outperformance relates to the past market volatility that has lasted more than a year.
Bloomberg company spokesman: No interest in acquiring Dow Jones or the Washington Post
A Bloomberg company spokesman said in a tweet that Bloomberg has no interest in acquiring Dow Jones or The Washington Post.
"has not had conversations with anyone or any organization regarding an acquisition," a spokesperson said in a tweet that was retweeted by company owner Michael Bloomberg.
has previously reported that Bloomberg is interested in acquiring Dow Jones from Murdoch News Group , or acquiring the Washington Post from Amazon founder Jeff Bezos .
The governor of Colombia’s central bank said that the interest rate hike is nearing the end. Is the tightening in emerging markets almost over?
The wave of interest rate hikes that have followed the global impact of inflation seems to be spreading in emerging markets and seems to be coming to an end.
The governor of Colombia's central bank said that as the economy is expected to hit a hard landing next year, inflation will slow down significantly, and Colombia's most substantial interest rate hike cycle is about to end.
Board of Central Bank Governor Leonardo Villar said policymakers have adopted a "tightening" policy stance in response to the highest inflation in more than two decades, mainly due to international factors.
"I can't say now that the rate hike process is over," Villar said. "What I can say is that we are approaching the upper limit of the process."
European Central Bank Executive Committee: Interest rates need to reach the "restrictive area"
European Central Bank Executive Board member Isabel Schnabel said that interest rates need to enter the "restrictive area" to bring inflation back to target levels.
Schnabel said the danger of an overreaction by the ECB's policy "remains limited because real interest rates remain very low."
When referring to the European Central Bank's four consecutive interest rate hikes, Schnabel said that the central bank is taking "all necessary measures" to bring the inflation rate back to 2%. She agreed with European Central Bank President Christine Lagarde's stance that rate hikes would continue "for some time."
"In our assessment, interest rates are in a restrictive zone, that is, above the neutral rate, even if the exact level is not yet clear," Schnabel said.
