The noise
-
US CPI fell 0.1% month-on-month in December as year-on-year inflation slowed to 6.5%, its lowest since December 2021. This encourages hopes that the Federal Reserve is making inroads in its fight against inflation and will soon be able to stop raising interest rates.
-
Around 100,000 civil servants plan to strike on 1 February in a dispute over pay, jobs, and conditions per the Commercial Services union. It will be the largest civil service strike for years and will involve members in 124 government departments. The government estimates the union’s pay demands will cost £2.4bn which they say is not affordable at a time when public finances are stretched.
-
The UK economy grew in November as GDP rose 0.1% on the previous month, beating expectations. The Office for National Statistics said pubs and restaurants contributed to growth as people went out to watch the football. Growth slowed sharply from October (0.5% increase) due in part to strike action.
The numbers
The nuance
Both equity and bond markets have started the year positively as investors look for a fresh start. Economic data showed inflation continuing to fall in line with expectations. Wage pressures also moderated despite a continued strong labour market, which provides some evidence that the Federal Reserve Bank is making progress on its fight against inflation. On the other hand, credit growth to the consumer remains very strong. The $1.7 trillion spending package passed by congress just before Christmas Eve last year shows that while the cyclical drivers of inflation may have subsided for now, the structural drivers are very much in place.
Many stocks which were unduly depressed have bounced back, the US dollar has been weak, falling from an overvalued position, and international stocks rather than US stocks have led the charge, with Europe and Emerging markets in particular showing strength.
Quote of the week
“In it for the long haul!”
Brian Wilson, Lorry Driver
A 90-year-old lorry driver thought to be the world’s oldest trucker is set to carry on for another year after passing an annual health inspection.
Brian Wilson, from Sheffield, started his career as a lorry driver in 1953, when he began delivering petrol for Esso. Seventy years later, he still wakes up at 4am for his 12-hour shifts delivering to various locations across Britain.
Just like his lorry, Mr Wilson requires a full health check up from his doctor each year which allows him to drive on the roads. And after he passed his annual inspection, Mr Wilson says he’s glad he doesn’t have to put the brakes on his career just yet. He said: ‘Well if I feel fit enough, then I’m going to carry on even though I’m at a big age. I have to go every year and I’m glad I passed it.’
Amazingly, Mr Wilson has never had an accident in all his decades of driving and the longest he has taken time off work was seven weeks when he broke his foot aged 40. According to the Guinness World Records, the oldest male HGV license-holder is the UK’s Jack Fisher, at 88 years and four days, as of January 2021. Mr Wilson has been urged for years to make his own claim on the record but has yet to do so.
Source: Mail Online