CNBC

Investment Strategist Says Global Economy Entering ‘War-Cession’

As per investment strategist David Roche, the global economy is likely entering a “war-cession,” and markets are underestimating its duration. Speaking to CNBC’s “Squawk Box Europe,” Roche, president of Independent Strategy, suggested that evidence of atrocities committed against civilians in Ukraine by Russian forces will prevent any possibility of swift peace negotiation with Russian President Vladimir Putin. “When the pain does become extreme on the output and performance, growth side of the economy, of course they will slip back, but I think it will take a lot longer to happen than the equity market assumes,” he said.

Reuters

Economists Expect Fed To Hike Rates Aggressively In Coming Months

According to economists polled by Reuters, the Federal Reserve is anticipated to raise interest rates by a half-point in May and June to tackle rising inflation. They also predict a 40% chance of a recession next year. With the unemployment rate nearing a four-decade low, inflation at its highest level in four decades, and global commodity prices rising, most analysts believe the Fed needs to act fast to keep price pressures under control. 85 of 102 economists forecast 50 basis points in May, and a still-solid majority of 56 said the Fed would follow up with 50 basis points in June.

Goldman Sachs Acquires NN Investment Partners For $1.9B

Goldman Sachs Group Inc (NYSE: GS) has acquired Netherlands-based asset manager NN Investment Partners for 1.7 billion euros ($1.9 billion), Reuters reported. Through the acquisition, Goldman expects to expand its asset management footprint in Europe and increase its sustainable investment capabilities.

Western Sanctions On Russia Jeopardizes Satellite Launches To Space

U.S. rocket companies remain saddled with hauling hundreds of satellites to space as sanctions sideline the Russian space launch industry. More than 800 satellites under 100 kilograms would likely be put in orbit this year alone, nearly double the number of launches year-on-year. Analysts saw Rocket Lab USA Inc (NASDAQ: RKLB), Astra Space Inc (NASDAQ: ASTR), Amazon.com Inc’s (NASDAQ: AMZN) Project Kuiper, and Tesla Inc (NASDAQ: TSLA) ’s Elon Musk owned SpaceX’s Starship as the winners from the surging demand.

BMW CEO Sees Semiconductor Shortage To Continue Into 2023

German carmaker BMW or Bayerische Motoren Werke AG (OTC: BMWYY) Chief Executive Officer Oliver Zipse said the semiconductor shortage will continue into 2023, Reuters reported. In an interview with the newspaper Neue Zuercher Zeitung (NZZ), the CEO said, “I expect us to start seeing improvements at the latest next year, but we will still have to deal with a fundamental shortage in 2023.” The report noted Zipse’s comment is the latest after Volkswagen’s financial head Arno Antlitz said he expected the chip supply and demand deficit to extend until 2024.