Inflation eases in the US and euro area, raising expectations for interest rate cuts

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Inflation is easing in the United States and 20 eurozone countries, as interest rates hit record highs since the coronavirus pandemic and Russia's full-scale invasion of Ukraine in February 2022. There is growing speculation that the central bank will cut interest rates this year.

U.S. inflation fell to 2.4% in the year to January, down from 2.6% in December, according to personal consumption spending data released yesterday. The PCE core rate, which excludes changes in food and energy prices and is the Fed's preferred measure of underlying inflation, was also in line with expectations at 2.8%.

In the euro area, inflation fell to 2.6% in February. The figure was higher than economists' expectations of 2.5%, as the cost of living for consumers continues to rise at a high rate.

In the US, rate setters remain cautious. The Fed is reluctant to reduce borrowing costs from the current 5.25% level to 5.5% until it is confident that price pressures have returned sustainably to its 2% target.

Meanwhile, the European Central Bank is scheduled to meet next week to discuss the future direction of interest rates, with signs that the economy remains in stagnation.

“The ECB is concerned about the persistence of domestic inflation,” said Tomasz Wiladek, an economist at investment firm T. Rowe Price, adding that services inflation was “clearly too strong.”

Senior ECB policymakers are downplaying the possibility of an imminent rate cut while assessing whether wage pressures have eased enough to push inflation towards the 2% target.

Inflation data boosted investor confidence in Europe, with the pan-European Stoxx600 index up 0.5%, nearing a record high. Stocks rose in late morning trading in New York, with the S&P 500 up 0.2% and the tech-heavy Nasdaq up 0.4%.

What you need to know: The UK and European economies

UK house prices Mortgage lending rose more than expected in February, marking the first annual increase in more than a year, according to mortgage lender Nationwide.

A total of 117 MPs from all major political parties have written to Prime Minister Jeremy Hunt, calling on his policy to allocate funding to compensate victims of the infected blood scandal. spring budget next week.

Thomas Jordan, long-time chairman Swiss National Bank, announced his resignation, ending a chaotic tenure of unorthodox policymaking. Jordan, the longest-serving head of a major central bank, will step down in September.

Caught by technology geeks Turkish stock market Runaway inflation has prompted local savers to stock up on stocks, pushing prices up 20% in dollar terms.

What you need to know: The global economy

economic growth of Brazil Stalled in the 4th quarter Consumer spending and agricultural production fell, signaling a slowdown in Latin America's largest economy. The Government Statistics Bureau announced today that the annual GDP growth rate for the three months to December 31 was 2.1%, down 0.1 percentage point from the previous quarter.

ChinaThe country's Manufacturing Purchasing Managers Index fell to 49.1 in February from 49.2 in January, marking the fifth consecutive month of slowdown in manufacturing activity.

of cobalt market A surplus of key electric vehicle battery metals is expected to last until 2028 as Chinese companies ramp up production, overwhelmed by record oversupply, an influential market report says.

US-born former Hollywood financier Philip Adkins is supplying Russian films. liquefied natural gas station In the Arctic Circle. The project has been heavily sanctioned by the United States in an effort to curb Russia's influence on global energy markets, and could significantly increase Russia's share of the global LNG market.

What you need to know: Business

Elon Musk filed a lawsuit OpenAI The company has charged its CEO, Sam Altman, with breach of contract for violating the startup's original mission of building artificial intelligence systems for the benefit of humanity.

This comes after OpenAI was named as an investor in Figure AI, a Silicon Valley startup looking to deploy artificial intelligence, along with Microsoft, Nvidia, and Amazon. humanoid robot to the workforce and transform the global labor market.

Broadcaster ITV sold 50% of the shares in brit box Subscription streaming service International invests in BBC Studios for £235m. The deal comes as ITV faces fresh pressure on its balance sheet from a sharp decline in advertising revenue.

Australian Prime Minister Anthony Albanese is “very concerned” about the impact. meta's latest move is to stop paying content royalties to local media companies this year.

Joe Biden has ordered an investigation into whether Chinese “connected” vehicles include: Electric cara move that appears to be an attempt to prevent China from entering the U.S. auto market and poses a national security risk to the United States.

boeing It will pay $51 million to resolve U.S. administrative charges related to the unauthorized export of technical data related to various U.S. military weapons, including fighter jets and missile systems, to countries including China.

science summary

lab monkey price China This indicates a slowdown in the future drug pipeline during clinical trials.

New research highlights the damage to cognition and memory caused by: COVID-19 (new coronavirus infection), which can cause symptoms such as “brain fog.” However, this study shows that the most severe cases can be improved.

German pharmaceutical group boehringer ingelheim Copenhagen-based Zealand Pharma announced that its weight loss drug achieved positive results in clinical trials for liver disease.

“Safe for the future” vaccine It is developed by a British startup using artificial intelligence. Baseimmune uses AI to predict future pathogen mutations and create longer-lasting magic bullets against coronaviruses, malaria, and African swine fever.

Commentator Anjana Ahuja says business people should be at the head of public funds. british science Not from a research background, that's a big mistake. That possibility is being discussed when Dame Ottoline Reiser steps down as chief executive of UK Research and Innovation in 2025.

good news

Scientists from the University of Texas successfully photographed a yellow shrike while trekking 110 km through the Itombwe Mountains in eastern Democratic Republic of the Congo. The bird was listed as “missing” by the American Bird Conservancy and was not found for more than 20 years.