Delivering Global Macro Investment Insights

DeSaque Macro Research

DeSaque Macro Research Limited was formed by Said DeSaque in April 2012 with the view to delivering global macro investment insights aimed at providing new ideas to clients.

Said DeSaque has over 26 years of experience working as a professional economist in financial services. Prior to establishing DeSaque Macro Research, Said held positions as Senior Economist at Robert W Baird and William Blair. He began his career as a graduate at PaineWebber in 1986, where he eventually became Head of the London Economics Department.

Said takes a very keen interest in international relations, along with their implications for economic development. His research interests include the economic transformation of China and its implications for global capital markets, particularly in the United States. He is a member of Chatham House in London.

The US economy and capital markets have historically been Said’s main focus of attention. He frequently presents his views to institutional investors in diverse geographic locations. In recent years, Said has also been carefully monitoring economic developments in Asia, particularly China and Japan.

Tougher Outlook for Big-Ticket Consumer Items While US Corporations Resort to Old Habits

Global Economist, DeSaque Macro Research

Said Desaque

Global Economist

Cross Asset Strategy

<ul>
<li>The Fed's baseline policy outlook suggests a tougher operating environment for Corporate America. Investors should focus on downside risks to corporate profits, particularly in those sectors with limited pricing power.</li>
<li>Weakening demand is the main source of risks for US corporations, particularly in consumer discretionary sectors. Capital spending will not be immune to softer economic conditions.</li>
<li>Elevated energy prices could remain a source of input cost pressures into 2023. The US labour market remains tight. Upward pressure on wages is likely to persist until 2023 H2.</li>
</ul>


The Fed's baseline policy outlook suggests a tougher operating environment for Corporate America. Investors should focus on downside risks to corporate profits, particularly in those sectors with limited pricing power.
Weakening demand is the main source of risks for US corporations, particularly in consumer discretionary sectors. Capital spending will not be immune to softer economic conditions.
Elevated energy prices could remain a source of input cost pressures into 2023. The US labour market remains tight. Upward pressure on wages is likely to persist until 2023 H2.


Corporate America Faces Stiffer Headwinds as Demand Outlook Falters and Higher Input Costs Persist