In today’s briefing:
- US Lands Some Disinflation In Feb-25
- CX Daily: China’s EV Sector Enters New Frontier With Solid-State Batteries
- Annual Tire Company Results Show Pace Of Change
- US: Trump Disinflation Evident in Feb’25, Likely to Continue as DOGE Cuts Flow In
- Canada: 25bp Rate Cut To 2.75% (Consensus 2.75%) in Mar-25
US Lands Some Disinflation In Feb-25
- The upwards trend in monthly US inflation of the past several months broke in February with a surprisingly steep slowing to 0.2% m-o-m, although airfares drove the downside.
- Drift in consensus expectations is not yet obviously broken, with this outcome 0.2pp above forecasts from a month ago. A rebound after Easter remains likely.
- Disinflation is unlikely to dissuade the Fed from holding rates in March. We doubt soft surveys will translate to recessionary conditions, so we still see no more Fed cuts.
CX Daily: China’s EV Sector Enters New Frontier With Solid-State Batteries
- Batteries / In Depth: China’s EV sector enters new frontier with solid-state batteries
- Sea /Environmentalists sound alarm over sea reclamation project
- Property /Analysis: Will China’s major cities propel a housing market recovery?
Annual Tire Company Results Show Pace Of Change
- The tire majors losing volume
- Smaller tire makers gaining prominence
- Most tire majors saw flat or drop in profits
US: Trump Disinflation Evident in Feb’25, Likely to Continue as DOGE Cuts Flow In
- US headline inflation was lower than consensus but in line with our view that Trump’s policies will be disinflationary. Core CPI inflation (3.1%YoY in Feb’25) was at a 46-month low.
- Trump has kept crude oil prices well contained (near US$70/bbl, down 17%YoY), an important factor helping to lower headline and core inflation. DOGE impact on spending/job cuts will flow in.
- Inflationary impact of import-tariff hikes will be modest (imports are only 20% of GDP), with greater disinflation from oil and DOGE. We expect FedFunds to fall to 3.5% by end-2025.
Canada: 25bp Rate Cut To 2.75% (Consensus 2.75%) in Mar-25
- The Bank of Canada cut the policy rate by 25 basis points to 2.75%, in line with expectations, as heightened US trade tensions introduced downside risks to economic activity despite stronger-than-anticipated GDP growth.
- Inflation remains near the 2% target but is expected to rise to 2.5% in March due to the expiry of temporary tax measures, while concerns over tariffs have lifted short-term inflation expectations.
- The Bank will closely assess the balance between weaker demand and higher cost pressures, maintaining a data-dependent approach to future rate decisions, with inflation expectations and trade policy developments being key determinants.
This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.
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