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Global Economy's Hidden Agendas: What They Aren't Telling You!

A bull and a bear "Weekly brief" text captions

Global Economic Highlights ๐ŸŒ From Big Tech earnings in the US to economic measures in China, the past week has been bustling with significant financial and economic updates. Here's a comprehensive breakdown of the week's most crucial events and what they might mean for the global economy. ๐Ÿš€

US Highlights Tech Earnings Overview:

  • Alphabet: Q2 revenues exceeded analysts' expectations, primarily due to strong advertising on Google's search business, causing share prices to surge. ๐Ÿ“ˆ

  • Meta: Q2 results were positive, with the success attributed to the rising popularity of its short-form video feature, Reels.

  • Microsoft: Despite the excitement around its new AI-powered products, Q2 sales growth was moderate. Predictions indicate a slowdown in its cloud business, Azure.

Federal Reserve Actions: The Fed raised interest rates by a quarter of a percentage point, reaching a 22-year high. However, the US economy displayed strength, with a Q2 growth rate of 2.4%, outperforming the expected 1.8%. ๐Ÿ’ช

European Updates

  • Eurozone Business Activity: The eurozone saw a deepening downturn, with the PMI reaching an eight-month low due to a sharper slowdown in services and manufacturing. โš ๏ธ

  • European Central Bank (ECB) Decision: Despite the challenges, the ECB implemented a quarter-point rate hike, pushing the deposit rate to 3.75%.

Asian Insights

  • China's Economic Strategy: China introduced measures to boost its economy, emphasizing the property market, local government debt issues, youth unemployment, and domestic demand.

Global Growth Perspective ๐ŸŒ

The US economy remains resilient amidst the Fed's aggressive rate hikes. The IMF forecasts a 3% global economic growth in 2023. However, this rate is slower than in the pre-Covid-19 era, with subdued growth expected due to limited productivity gains.

The Week Ahead ๐Ÿ“…

  • Monday: Eurozone economic growth (Q2), Japan retail sales (June).

  • Tuesday: Japan unemployment rate (June), Reserve Bank of Australia interest rate decision, eurozone unemployment rate (June). Earnings from Caterpillar, Pfizer, AMD, Starbucks, and Uber Technologies.

  • Wednesday: Earnings from Kraft Heinz, PayPal, Qualcomm, and Shopify.

  • Thursday: Bank of England interest rate announcement. Earnings from Moderna, Airbnb, Amazon, Apple, Block, and Coinbase.

  • Friday: US labor market report (June), eurozone retail sales (June).

Key Takeaways - Your News Compass

  • ๐Ÿš€ Tech Titans' Trajectory: Assess how AI and innovations are influencing the tech giants.

  • ๐Ÿ’ธ Monetary Moves & Market Mood: Understand the implications of rate changes and growth metrics.

  • ๐Ÿ‡ช๐Ÿ‡บ Eurozone's Economic Pulse: Monitor the PMI and ECB's strategies for potential investment shifts.

  • ๐Ÿ‰ China's Growth Gameplan: Keep an eye on China's property market and consumer-centric policies.

  • ๐ŸŒ Decoding Global Dynamics: Use the IMF's data as a gauge for global economic health. Compare current growth rates with historical data.

Conclusion

The week offered a wealth of insights into the global economic trajectory. From tech earnings to central bank decisions, the economic landscape is in flux. Stay informed and base decisions on a comprehensive understanding of global events. Await our next weekly briefing to stay updated on the global economic scene.



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