Members of the European Central Bank (ECB) are actively opposed to the concept of a rate cut, while U. S. investors are watching the Federal Reserve’s moves. However, Germany’s near-recession raises questions about the ECB’s possible course of action.
According to an initial report from the German statistics office published on Monday, German GDP contracted 0. 3% in the three months to December. This drop, while not entirely unforeseen given the year’s pessimistic economic indicators, does not constitute a recession, as the GDP estimate for the September quarter was revised to show solid growth, up from a previous figure of a contraction in GDP. 0. 1%.
Reacting to the economic situation, German 10-year bond yields rose by five core issues to 2. 195%, reaching their highest point in a month. European Central Bank officials backed off against market position expectations of an immediate interest rate cut in the coming year. Governing Council member Robert Holzmann was pressed on Monday not to assume rate cuts will happen this year, and even recommended the option of a prestige quo in 2024.
Despite recovery attempts, the German economy has not fully recovered from the sharp slowdown it experienced in the first year of the COVID-19 pandemic. However, in 2023, GDP was 0. 7% higher than in 2019, the year before the pandemic.
Ruth Brand, president of the statistics office, remarked on the overall economic challenges faced by Germany in 2023. She noted, “Despite recent price declines, prices remained high throughout the economic process, putting a damper on economic growth. Unfavorable financing conditions due to rising interest rates and weaker domestic and foreign demand also took their toll.”
Looking ahead, economists expect a significant improvement. Andrew Kenningham, lead economist for Europe at Capital Economics, said: “The recessionary situations that have persisted since late 2022 will most likely continue this year,” predicting a solid expansion for Germany. for next year.
In December, German inflation reached an annual rate of 3. 7%, compared to 3. 2% in November, mainly due to a slight increase in energy costs, especially oil. However, this accumulation was influenced through the December 2022 base effect, when government power subsidies reduced the overall rate. Despite this recent increase, the annual inflation rate for the year slowed to 5. 9%, which is still well above the 2. 9% forecast for the euro in 2023.
Capital Economics’ Kenningham noted that while the recent moderation in inflation might provide some relief for households, residential and business investment are expected to contract, construction is headed for a steep decline, and the government is implementing sharp fiscal policy tightening.
Furthermore, the government faces a growing political crisis due to spending cuts, including reductions in energy subsidies to farmers and others, causing discontent among affected groups.
Commerzbank’s Chief Economist Joerg Kraemer expressed concern about the German economy’s minimal growth since the outbreak of the COVID-19 pandemic, drawing parallels to the years following the burst of the stock market bubble at the start of the millennium.
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Increases across all areas of Deep Leads resources: quality, tonnage and target area ABx Group has reported a 30% increase in its Mineral Resource Estimate (MRE) at the Deep Leads Ionic Adsorption Clay (IAC) rare earth deposit in northern Tasmania. The accumulation in MRE comes from 36 extension wells analyzed, representing a significant northward extension for the existing Deep Leads prospect.
Lake Resources (LKE. ASX) – LKE has signed two non-binding MOU’s in the space of 10 days. Ford Company (Ford) has signed an MOU for ~25,000t/year and last week Hanwa, a Japanese commodity trader signed a MOU for up to 25,000t/year. Subject to execution, this is an amazing feat as Ford and Hanwa are prepared to enter into longer-term strategic partnerships with LKE. Commercial negotiations are still ongoing but are expected, especially if Ford & Hanwa inject new equity into LKE, to further de-risk the project financing & thus ensure LKE and Kachi are fully funded.
Two recent gravity surveys have considerably exceeded expectations and revealed potential for extensions to the existing MRE at Lake Throssell, plus a material growth opportunity at Lake Yeo. This reinforces the potential for a multi-decade, Tier-1 SOP production hub based around Lake Throssell.
TMG is currently completing work for the planned PFS in early 2023, adding the start of drilling in the third quarter of 2022, evaporation testing and permitting activities. The effects of these systems will affect the PFS and any long-term resource upgrades.
SOP reference prices have risen to around 940 USD/t due to recent geopolitical developments. The October 2021 scoping study assumed an SOP value of $550/t and contained a sensitivity study showing that every 10% accumulated in value effects at a cumulative $144 million in NPV of the $364 million allocation. The increase of approximately 70% during the scoping study implies an allocation NPV of approximately $1. 4 billion.
Despite the decline in oil and fuel prices, which fell by 5. 4% and 19. 7% respectively in August, Calima managed to record an improvement in its key industry indicators.
WT Financial Group Limited (WTL) is a fast-growing diversified monetary company founded in 2010 and indexed on the Australian Securities Exchange (ASX) in 2015. Their recommendations and product offerings are primarily provided through an organization of independent money advisors who act as legal representatives. . de WTL in connection with its broker organisation business Wealth Today Pty Ltd (Wealth Today) and Sentry Group Pty Ltd (Sentry Group). It has approximately 275 advisers in more than two hundred money advice firms across Australia. It also operates a direct-to-consumer operation under its Spring Financial Group brand.
In May 2021, Corporate Connect analyst Marc Sinatra published a comprehensive study report on ASX-listed biotech company Immutep Ltd (ASX: IMM). He was so inspired by IMM that Corporate Connect felt it was imperative to publish a follow-up report that valued the company. as the market did not see the great prospects of Eftilagimod Alpha (EFTI).
The follow-up report published today. Using comparables, after adding a monetary rebate to its EV estimate and dividing it by the total number of percentages issued, Corporate Connect now puts the fair price of a percentage of Immutep at A$2. 20.