Sell-Off Extends📉 Capital Flows To Bonds
Dec 23rd 2022, 12:40 pm
Top Technology Trends for 2023
- The year 2023 is around the corner, and the tech sector is prepared to make a comeback. There are several exciting themes to watch out for, from gaming and EVs to artificial intelligence and Apple's new headset.
- While Sony is getting ready to introduce a new PlayStation headset, $AAPL and $FB are anticipated to continue investing in their AR/VR projects.
- EVs are becoming more popular, and $TSLA is driving this trend. The public's interest in AI is growing, thanks partly to Open AI's ChatGPT.
Source: Photo by Eugene Capon from Pexels
Everything Suggests a UK Recession
- Instead of the 0.2% ONS estimate from last month, the UK economy was revised to indicate a larger recession in the third quarter of the year, with GDP falling by 0.3% between July and September.
- Poor business investment was the primary cause of the GDP decline that was more than anticipated. Therefore, it will be considered a recession if the GDP shrinks again in the fourth quarter.
While the US sees an improvement in growth
- In Q3, the US economy expanded faster than forecast thanks to upward consumer spending and business investment revisions.
- GDP growth, adjusted for inflation, grew at an annualized rate of 3.2%. This shows that there is more economic activity than was previously thought.
- The fact that unemployment claims are still at or near a half-century low suggests that companies keep their workers despite an increase in Covid-19 instances.
- Semiconductor stocks, including $LRCX, $AMAT, $ASML, and $NVDA, are leading the losses as the selloff picks up speed on how the US and the UK economies are changing.
The sector is vital to the technology we use every day. As the globe becomes increasingly dependent on technology, this industry is anticipated to expand dramatically over the next few years.
- Wall Street stocks fell on Thursday as hopes that the FED will continue aggressively raising borrowing costs to combat inflation.
- As local bond yields rise due to the Bank of Japan's recent hawkish shift, concerns have grown that Japanese investors may be persuaded to repatriate some of the trillions of dollars they have invested in global equities and bonds.
- The $300 billion market's long-established duopoly is being challenged by increasing rivalry from Amazon, Microsoft, and Apple.
- As China's largest smartphone manufacturer, Xiaomi, fights a knock to sales and profits from the Covid-19 disruption, three top executives, including president Wang Xiang, are to resign.
- Stephanie Linnartz, President of Marriott International, has been appointed as the next CEO of Under Armour $UA. She was among the 60 candidates considered during the seven-month hunt for the new head.
- After this year's unprecedented selloff, large investors are reentering the bond market, with fund managers favoring debt relative to other asset classes for the first time since the aftermath of the 2008 financial crisis.