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Economy

Head of Fed: there are risks of further increase in current inflation in the US

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current inflation in the US

The Federal Reserve System (Fed) of the United States of America fixed the risks of further increases in current inflation in the US. This was announced by the Head of The Regulator, Jerome Powell.

According to Powell, it is a question of “inflation expectations in the short term. He noted that the longer the current period of high inflation continues, the more likely expectations of high price growth will be fixed.

The head of the Federal Reserve said that the regulator intends to look for convincing signs of a decline in inflation, which would indicate a return to 2%.

What is the current US inflation?

In August, the press office of the US Department of Labor released data showing that US consumer prices rose 8.5% year on year in July 2022 after rising 9.1% in June. Inflation in the first summer month was the highest for the country since November 1981, nearly 41 years.

Earlier on September 21, it was reported that the U.S. Federal Reserve raised its benchmark interest rate by 75 basis points for the third time in a row. That is, to 3-3.25% per year at the end of the September meeting.

Earlier we reported that the CEO of JPMorgan is warning the U.S. Congress about impending economic problems in the United States.

Economy

Ford Motor brands cut quarterly net profit 9.4 times

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Ford Motor brands

U.S. automaker Ford Motor Co (NYSE:F). cut net income 9.4 times to $1.3 billion, or 32 cents per share, in the fourth quarter of 2022, down from $12.3 billion, or $3.03 per Ford Motor company stock, in the comparable period a year earlier.

Ford Motor brands adjusted earnings rose to 51 cents per Ford Motor company stock from 26 cents per share a year earlier. The figure was below the 62 cents per share expectations of analysts surveyed by FactSet, the company said in a statement.

Revenue, meanwhile, rose 17% to $44 billion. Experts had forecast revenue of $41.4 billion. The company said in a statement that the results fell short of its expectations, due in part to supply chain and manufacturing instability that led to higher costs and lower-than-expected vehicle production.

For all of 2022, Ford recorded a net loss of $2 billion, compared with a profit of $17.9 billion a year earlier.

Ford is forecasting EBIT of $9 billion to $11 billion this year, but warned that factors such as the U.S. and European recession, a stronger U.S. dollar and higher customer acquisition costs could have a negative impact on the figure.

Ford said earlier this week that it will “significantly increase” production of the Mustang Mach-E electric car in 2023. At the same time, the company sees an opportunity for lower prices for these electric cars in the U.S. Ford Motor Company stocks fell 6.4 percent in additional trading in New York on Thursday. The company’s capitalization has risen 23.1 percent to $55.4 billion since the beginning of the year.

Earlier, we reported that the U.S. suspends the issuance of licenses to U.S. companies to export Huawei technology.

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Economy

News US sanctions against Huawei: US suspends licenses to US companies to export technology to Huawei

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impact of US sanctions on huawei

US sanctions against Huawei are expanding. The administration of U.S. President Joe Biden has stopped issuing licenses to U.S. companies to export technology to Huawei, the Financial Times reports.

According to the newspaper’s informed sources, the U.S. Department of Commerce has notified some companies that it will no longer issue licenses to export U.S. technology to Huawei.

Meanwhile, Bloomberg’s interlocutors reported that the Biden administration is considering a complete ban on the sale of U.S. technology to the Chinese telecommunications equipment giant. The agency notes that some officials in the Biden administration are in favor of banning all sales to Huawei, but a final decision has not yet been made.

According to knowledgeable sources, it is still unclear how soon the administration may pass a ban on all Huawei sales. According to some of them, the timing of the decision could coincide with the four-year anniversary of Huawei’s blacklisting. The impact of US sanctions on Huawei is quite serious. 

The U.S. Department of Commerce under former President Donald Trump blocked Huawei in May 2019 as a threat to national security. U.S. firms were prohibited from doing business with companies on the list without special permits.

Earlier we reported that the German economy shrank by 0.2% in Q4.

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Economy

Germany economy analysis: economy shrank by 0.2% in Q4

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Germany economy analysis

German economic analysis shows that German GDP fell by 0.2% in the fourth quarter of 2022 compared to the previous three months. according to preliminary data from the German Federal Statistical Office (Destatis). On an annualized basis, the economy grew by 1.1%, adjusted for the number of working days.

Analysts polled by Trading Economics on average expected no change in GDP in quarterly terms and growth of 1.3% in annual terms. At the same time, the German economy provided the country with stability, although the DAX index also fell in price due to recent events.

The main factors of the economic downturn were cuts in consumer spending and industrial production in October and December, said the report. Final data on changes in GDP in the fourth quarter will be published by Destatis on Feb. 24.

At the same time, the statistical office said that “due to the ongoing COVID-19 crisis and the situation in Ukraine, the data are subject to more uncertainty than usual. This points to the possibility of a stronger revision of the figures than initially announced.

According to revised data, German GDP rose 0.5% quarter-over-quarter and 1.3% year-over-year in the third quarter, both estimates up 0.1 percentage points.

Earlier, we reported that analysts predicted a decline in Chinese production.

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