How to Start the Week: Analytics and Forecasts — 10.01.2022

Fundamental analysis and forecasts for the future

The COVID-19 related roller coaster continues as data and predictions vary


Must know

Eurozone economic sentiment dropped more than expected last month while inflation hit another record high, indicating the economy is under renewed stress as surging coronavirus infections force governments to tighten restrictions. With infections breaking records almost daily as the Omicron variant sweeps across Europe, growth is likely to take a hit around the turn of the year even though governments have largely avoided the debilitating measures that brought their economies to a standstill a year ago.

US employment increased less than expected in December amid worker shortages and job gains could remain moderate in the near term as spiraling COVID-19 infections disrupt economic activity. Nonfarm payrolls rose by 199,000 jobs last month, the Labor Department said in its closely watched employment report on Friday.

Since adopting a new approach to US monetary policy weighted towards ensuring a strong labor market, Federal Reserve officials have been reluctant to define key terms like “maximum employment,” arguing they did not want to prejudge how many jobs the economy could produce but feel their way toward that end. They are hesitant no longer. That would clear the way for the Fed to hike interest rates after pledging not to do so until maximum employment was assured.

The Canadian dollar is expected to strengthen over the coming year as the global economic recovery continues from the COVID-19 crisis but gains for the currency could be kept in check by Federal Reserve interest rate hikes.

Eurozone retail sales surged past all expectations in November, driven by in-store non-food purchases, data from Eurostat showed on Friday, indicating that consumer demand remained healthy even as fresh pandemic-related restrictions were implemented. Retail sales, a proxy for consumer demand, in the 19 countries sharing the euro rose 1% by value on the month, defying expectations for a 0.5% drop.


Fundamental breakdown


Apple Inc boss Tim Cook’s pay in 2021 was 1,447 times that of the average employee at the tech giant, a filing on Thursday showed, fueled by stock awards that helped him earn a total of nearly $100 million.


Ford dove headfirst into Electric Vehicles (EVs) and the accompanying digital services for the tech-filled vehicles under new CEO Jim Farley, which is turning heads.


Japanese customers will have to settle for a small serving of McDonald’s fries for the next month or so after the fast-food chain said it was limiting portions due to shipping problems.
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