Wall Street Today | Global Economy is Heading into a Decade of Low Growth, Economist Says

Moomoo Recap US wrote a column · Dec 29, 2022 08:28

MACRO

Global Economy is Heading into a Decade of Low Growth, Economist Says

The global economy likely faces a decade of sluggish growth, according to Daniel Lacalle, author and chief economist at Tressis Gestion.

"I think that we are probably going to move into a decade of very, very poor growth in which developed economies are going to find themselves lucky with 1% growth per annum, if they are able to achieve it, and what is more unfortunate than everything else is with elevated levels of inflation," Lacalle said.

US Pending Home Sales Fall to Second-Lowest Level on Record

US pending home sales fell for a sixth month in November to the second-lowest on record as higher borrowing costs and an uncertain economic outlook kept many potential buyers out of the market.

The National Association of Realtors index of contract signings to purchase previously owned homes decreased 4% last month to 73.9, the lowest outside of the pandemic in data back to 2001, according to a release on Wednesday.

SECTORS

The World Just Doesn't Have Enough Planes as Travel Roars Back

With carriers from $United Airlines (UAL.US)$ to Air India Ltd. placing, or looking to place, jet orders that number in the hundreds, $Boeing (BA.US)$ and $AIRBUS SE (EADSF.US)$ are crowing variously about blockbuster deals. But supply chain constraints mean those planes won't be delivered until possibly years down the track — Jefferies LLC estimates there's an order backlog of 12,720 aircraft currently.

All that means the sky-high airfares that people have complained bitterly about over the past few months are here to stay, and things could get worse before they get better.

COMPANY

Tesla Fans Keep Buying, Unbowed by the $720 Billion Wipeout

Retail traders have continued piling into $Tesla (TSLA.US)$ shares, data from Vanda Research show. In fact, they've been strong buyers every day this month, driving their net purchases to record highs in both December and the fourth quarter.
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Exxon Sues EU in Bid to Block Windfall Tax Against Oil Companies

$Exxon Mobil (XOM.US)$ is suing the European Union in a push to eliminate a new windfall tax against oil groups, arguing the bloc does not have legal authority to impose the levy.

Southwest Cancellations Continue as Rival Carriers Cap Fares to Help Stranded Flyers

The Dallas-based carrier's cuts amounted to 60% of its schedule and nearly 90% of overall cancellations in the U.S. on Wednesday, marking another day of disruptions even as weather conditions and operations at other airlines improved. Transportation Secretary Pete Buttigieg urged other carriers to cap fares. $Southwest Airlines (LUV.US)$

Amazon Planning Standalone App for Sports Content

$Amazon (AMZN.US)$ is working on a standalone app for watching sports content, the Information reported on Wednesday, citing a source with direct knowledge of the plan.

Source: Bloomberg, Dow Jones, CNBC, Yahoo Finance

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