Fed Hikes Not Immune from Equity Collapse

Light at the End of Long Eurozone Tunnel?

United Kingdom: Anatomy of Economy on Lockdown Life-Support

US: High Inflation, Rising Yields, Repeat

Founder

Olivier Desbarres

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4X Global Research

4X Global Research was founded in 2017 to provide institutional and corporate clients with the substantive research, high-quality analysis and thoughtful insight on Emerging and G20 economies and financial markets they need to make informed and timely decisions and gain an edge in their investments.

Macroeconomics

<ul>
<li>UK consumer demand remains modest, particularly for services, and will run into numerous headwinds in coming months, including an erosion in real earnings and tax and energy price hikes.    </li>
<li>Sizeable bank deposits, which rose £259bn between February 2020 and November 2021, should provide a cushion to demand but are no panacea given wealthy households' low propensity to spend. </li>
<li>This will not stop Bank of England hiking its policy rate further this year but this may do little to bring down cost-push CPI-inflation.  Expect some Sterling volatility. </li>
</ul>


UK consumer demand remains modest, particularly for services, and will run into numerous headwinds in coming months, including an erosion in real earnings and tax and energy price hikes.    
Sizeable bank deposits, which rose £259bn between February 2020 and November 2021, should provide a cushion to demand but are no panacea given wealthy households' low propensity to spend. 
This will not stop Bank of England hiking its policy rate further this year but this may do little to bring down cost-push CPI-inflation.  Expect some Sterling volatility. 


United Kingdom: Inflation Without Benefits