Saxo Bank predictions 2023: Saxo Bank presents “shocking predictions” for the next year
Saxo Bank predictions 2023: The Danish Bank has published ten “shocking predictions” for 2023. They concern a series of unlikely and underestimated events because of which, however, “the world markets can be covered with a powerful shock wave”..
Saxo Bank analysis – what’s going to happen next year?
Against the backdrop of rising energy prices, leading U.S. technology companies and “billionaire technophiles” will create a multi-billion dollar project aimed at exploring new opportunities in the energy sector, the bank predicts. According to the bank, this project will be comparable to the “Manhattan Project” to study atomic energy and the creation of the nuclear bomb, and investments in the new project will be about $1 trillion.
Inflationary pressures and geopolitical instability will continue to affect not only the global economy but also the financial markets, says the Danish bank. Against this background, states will take a more conservative policy, reducing investments in more complex financial instruments, and investing in traditional assets such as gold. And traders at the same time are considering Gold Futures.
Increased demand for gold in 2023 will, according to Saxo Bank, cause its price to rise from the current $1,800 to $3,000 per ounce.
Earlier, we reported that Apple has postponed the release date of an unmanned electric car for a year.
Details of a potential U.S. government debt deal are emerging
Negotiations between the White House and the Republican Party, which holds a majority in both houses of the U.S. Congress, are progressing towards an agreement on the national debt ceiling and federal government spending limitations for two years.
In recent days, the two sides have narrowed their differences in talks, but the agreed-upon details are still tentative, and a final decision has not been reached yet, according to Bloomberg. One key outstanding issue is the amount of spending limits, on which the White House and Republicans have not yet reached an agreement. The Biden administration has advocated for a 3% increase in defense spending in 2024.
Republicans have secured an agreement to expedite permits for pipelines and other fossil energy projects. The agreement also includes provisions to modernize the U.S. electric grid by incorporating renewable energy sources, as reported by Bloomberg. Additionally, Republicans have agreed to reduce the proposed budget increase for the U.S. Internal Revenue Service by $10 billion, lowering it from the original $80 billion.
Initially, Republicans suggested raising the national debt ceiling until March 2024 in exchange for 10 years of spending limits. However, they are now discussing a two-year period for spending cuts. While there are still differences to be resolved, both parties are aware of their areas of disagreement, and work will continue until a final agreement is reached, according to House Speaker Kevin McCarthy.
Reports of progress in the negotiations have led to a slight rise in U.S. Treasury yields. Stock markets in Japan and South Korea experienced mostly positive movement, while the main indexes in Australia remained relatively stable. Goldman Sachs analysts Jan Hatzius and Alec Phillips noted that the likelihood of reaching a deal is now at its highest point ever in the negotiations. If a deal is reached promptly, a vote in the House of Representatives is expected to take place on Tuesday, May 30, allowing the document to reach the president before the June 1 deadline set by the U.S. Treasury Department.
Earlier we reported that the head of Rockefeller International criticizes China’s economic recovery as a farce.
The Head of Rockefeller International criticizes China’s economic recovery as a farce
Ruchir Sharma, the Head of Rockefeller International, argues that China’s economic recovery is merely a facade due to weak growth heavily reliant on government stimulus and debt. He believes that such a model has always been unsustainable and is currently exhausted.
While Wall Street speculates that China’s GDP will grow by 5% and corporate earnings will increase by 8%, the reality is that corporate earnings in the first quarter only grew by 1.5%.
Corporate earnings are lagging behind GDP in 20 out of the country’s 28 sectors, and the MSCI China Stock Index has declined by 15% since its peak in January.
Imports, which reflect consumer demand, also experienced an 8% decline in April, and credit growth was half of what was predicted. The labor market in China is also facing challenges, with youth unemployment reaching 20% and continuing to rise.
Since 2008, China’s economic model has relied on government stimulus and increasing debt, particularly in the real estate sector, which accounts for one-third of disposable income and 3% of GDP compared to 10% in the US. However, China’s growth potential is only half of the targeted 5% due to a shrinking population.
Earlier we reported that the U.S. called China’s ban on Micron Technology products “baseless”.
The U.S. called China’s ban on Micron Technology products “baseless”
The U.S. has criticized China’s ban on Micron Technology’s products as “baseless,” according to a report by Reuters. There is concern among investors that similar measures could be implemented against other major U.S. technology companies such as Tesla and NVIDIA.
Micron Technology, the microelectronics company, strongly opposes these restrictions, stating in a released statement that they have no basis in reality.
China’s state cyberspace office has issued a ban on national critical information infrastructure operators from purchasing products from Micron Technology, citing concerns that the company’s products have not passed cybersecurity tests and could pose a threat to national security.
U.S. authorities have expressed their intention to collaborate with key allies and partners to address these violations in the Chinese market. However, the specific actions to be taken have not been specified.
Previously, the leaders of the G7 countries issued a joint statement affirming their commitment to combating China’s non-market practices that distort the global economy, including the illegal transfer of technology or data disclosure.
Earlier we reported that the U.S. debt limit negotiations will resume on May 22.
- Forex10 months ago
Forex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
- Forex6 months ago
Unbiased review of Pocket Option broker
- World7 months ago
Why are modern video games an art form?
- Cryptocurrency10 months ago
What happened in the crypto market – current events today
- Forex10 months ago
How is the Australian dollar doing today?
- Forex9 months ago
Dollar to pound sterling exchange rate today: Pound plummeted to its lowest since 1985
- Stock Markets5 months ago
Amazon layoffs news: company announces record layoffs
- Stock Markets10 months ago
Morgan Stanley: bear market rally to continue