Inflation in the US is projected to increase in December, signaling a potential challenge for policymakers. While inflation has shown signs of slowing in recent months, economists predict a slight uptick as the year ends, influenced by rising consumer demand and ongoing supply chain constraints. This expected rise may complicate efforts by the Federal Reserve to manage inflationary pressures while supporting economic growth.

ECB’s De Guindos: Will Keep Easing with Economic Momentum Slowing

The European Central Bank (ECB) is likely to maintain its accommodative monetary policy, even as the economic momentum in the eurozone weakens. According to ECB Vice President Luis de Guindos, the central bank is prepared to continue easing policies to stimulate growth. However, there are concerns that prolonged stimulus could undermine long-term financial stability if the economy doesn’t regain its footing soon.

German GDP Shrinks for Second Straight Year Before Election

Germany’s economy contracted for the second consecutive year, highlighting the ongoing challenges faced by Europe’s largest economy. The decline comes at a crucial time, just before national elections, and raises concerns about the country’s ability to bounce back from multiple economic headwinds, including high energy costs, labor shortages, and global supply chain disruptions.

UK Inflation Unexpectedly Cools to 2.5%, Core Print Slows Further

In the UK, inflation has unexpectedly cooled to 2.5%, signaling a welcome slowdown in price growth. Core inflation, which excludes volatile food and energy prices, also slowed further, suggesting that inflationary pressures in the country may be stabilizing. This could provide some relief for households struggling with the cost of living and offer policymakers a window of opportunity to adjust monetary policy accordingly.

BRC: UK Retailers to Raise Prices in Response to Budget Tax Hike

The British Retail Consortium (BRC) has warned that UK retailers are likely to raise prices in response to a new budget tax hike. Retailers are facing rising operational costs, and with the tax burden increasing, many are left with little choice but to pass on the additional expenses to consumers. This could put further pressure on inflation, potentially eroding the purchasing power of UK households.

BOJ Chief Ueda Signals Rate Hike Chance Next Week, Yen Jumps

Bank of Japan (BOJ) Governor Kazuo Ueda has signaled the possibility of a rate hike in the near future, a move that sent the yen soaring. The yen’s appreciation reflects growing expectations that Japan may begin tightening monetary policy after years of ultra-loose settings. A rate hike could signal the BOJ’s confidence in the recovery of the Japanese economy, though the timing and scale of any changes remain uncertain.

PBoC Pumps Near-Historic Level of Cash Into Financial System

The People’s Bank of China (PBoC) has injected a near-historic level of liquidity into the financial system to support economic activity. The move comes as the Chinese economy grapples with slowing growth and weaker demand. The central bank’s action is intended to ensure that credit remains available to businesses and consumers, helping to stimulate economic activity during a challenging period.

IEA Trims Oil-Demand Outlook, Still Expects Stronger Growth This Year

The International Energy Agency (IEA) has revised down its global oil demand outlook for the year. Despite the downgrade, the agency still expects strong growth in oil consumption, driven by a rebound in energy demand as economies recover from the pandemic. However, the IEA has cautioned that risks such as geopolitical tensions and supply chain disruptions could influence the outlook.

JPMorgan Traders Notch Record Fourth Quarter on Election Swings

Traders at JPMorgan reported a record fourth-quarter performance, capitalizing on market swings caused by election uncertainty. The bank’s trading division saw substantial gains as investors reacted to changing political dynamics, particularly in key regions like the US and Europe. This highlights the importance of political events in shaping market sentiment and the profitability of financial institutions.

Goldman Sachs Tops Estimates on Strong Trading Results

Goldman Sachs exceeded analysts’ expectations with strong trading results, reflecting the bank’s ability to navigate volatile markets. The firm’s trading division benefited from increased client activity, particularly in equity and fixed-income markets. This performance underscores Goldman Sachs’ resilience in the face of broader economic challenges.

Wells Fargo Shares Jump After Earnings Beat, Strong 2025 Guidance

Wells Fargo’s shares surged following a strong earnings report that beat Wall Street’s expectations. The bank’s results were bolstered by solid loan growth and a decline in credit losses. Additionally, Wells Fargo issued strong guidance for 2025, boosting investor confidence in the company’s future prospects.

BlackRock CEO Calls Record Client Cash ‘Just the Beginning’

BlackRock CEO Larry Fink recently stated that the record levels of cash held by the company’s clients are “just the beginning.” This reflects a growing trend of investors seeking safety in cash and short-term assets amid economic uncertainty. BlackRock, as one of the largest asset managers globally, is well-positioned to benefit from this shift in investment strategies.

US to Push TSMC and Samsung to Tighten Flow of Chips to China

The US is reportedly urging semiconductor giants TSMC and Samsung to limit the flow of chips to China. The move is part of a broader strategy to curb China’s access to advanced technology, amid ongoing geopolitical tensions. The semiconductor industry has become a focal point of global trade disputes, with both the US and China seeking to secure their technological supremacy.

Hamas Accepts a Draft Agreement for a Gaza Ceasefire

In a significant development, Hamas has agreed to a draft ceasefire agreement for Gaza. This marks a potential breakthrough in the ongoing conflict, though challenges remain in reaching a lasting resolution. The ceasefire proposal has been welcomed by international actors, but its implementation will require careful negotiation and monitoring.