In the coming months, we should see the global economy regain vigour as consumers and businesses release their pent-up demand. This revival will come with some risks but we do not think an alarming rate of inflation is the most pertinent risk for now.”
High hopes for a stronger-than-expected upturn in the global economy have rattled financial markets. Once it was clear that the US Congress was set to approve President Biden’s massive US$1.9 trillion (RM7.7 trillion) stimulus package without reducing its scale, expectations of economic growth in the US and the world economy soared. But as these same expectations also drove bond yields and commodity prices higher, investors became skittish about inflation and whether central banks would be prompted to tighten monetary policy. Prices of bonds and equities have become much more volatile as a result.
Here are some selected news articles from the week ended 06 March 2021. Part 2 is available here.
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Fuel supplies drop most on record as US oil refining collapses, leading to largest ever jump in oil supplies
Refinery utilization at an all time low, 10% lower than it s ever been; oil refined is least on record; record jump in oil inventories, record drop in gasoline inventories; distillates production at a 26 year low, distillates inventories drop most in 18 years; largest jump in oil imports in 39 weeks.
disruptive innovation
In part one of this three-part series, Rob Arnott, the founder and chairman of Research Affiliates, and colleagues Vitali Kalesnik, a partner and head of research in Europe, and Lillian Wu, vice president of the firm’s European business strategy, look at how global stimulus packages have impacted value strategies.
Key points:
Around the globe, value is trading at extremely deep discounts relative to growth. The discounts are wide no matter how we measure valuation.
While we still like our last-named trade of the decade, emerging markets value stocks, the UK equity market, and UK value stocks in particular, are now even cheaper.
Possible changes to oil leasing and permitting requirements governing federal lands could lower oil production in the Permian Basin, a report from the U.S. Federal Reserve Bank of Dallas, said. In late January, U.S. President Joe Biden signed a raft of executive orders that paused new leasing for drilling on public lands and waters that .