Inflation in the US will not come down as quickly as markets are currently pricing, strategists at Goldman Sachs Group have said.
Investors could be assuming that a sharp deceleration in growth will lead to a more rapid easing of price pressures, and tending to be more bearish on energy prices than what is implied by commodities futures, strategists led by Praveen Korapaty wrote in a note on Friday.
They see limited ability for those things to lower prices, and say markets are also ignoring the potential for “delayed-onset inflation” in sectors such as health care.
“Although we expect further declines in inflation going forward, markets appear considerably more optimistic than we are about the pace of cooling,” the strategists said.
The Federal Open Market Committee paused its series of interest-rate hikes Wednesday, but policymakers projected rates would move higher than previously expected in response to surprisingly persistent price pressures and labour-market strength. Meanwhile, US short-term inflation expectations fell in early June to a more than two-year low, helping drive consumer sentiment higher.
Fundstrat’s head of research, Tom Lee, said in a note on Friday that price increases could ease, potentially this year and possibly amid a drop in the shelter or rent component of the consumer-price index. The stock market is beginning to come around to that view and it probably explains much of the gains year-to-date, he said.
“The Fed can end this inflation war (aka pivot) when the collective public believes inflation is broken,” Mr Lee said, and his best guess is that it “will be sometime in 2023.”
Goldman, meanwhile, even has a trade for those who share the viewpoint that price increases will remain sticky. The firm’s strategists recommend investors buy one-year swaps to bet on inflation realising higher than current market pricing.,” the strategists said.
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Global state-owned investor ranking by size
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United States
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China
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UAE
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4.
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Japan
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5
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Norway
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6.
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Rating: 3/5
The specs
Engine: Four electric motors, one at each wheel
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Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Business Insights
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- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
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Ferrari 12Cilindri specs
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Fines for littering
In Dubai:
Dh200 for littering or spitting in the Dubai Metro
Dh500 for throwing cigarette butts or chewing gum on the floor, or littering from a vehicle.
Dh1,000 for littering on a beach, spitting in public places, throwing a cigarette butt from a vehicle
In Sharjah and other emirates
Dh500 for littering - including cigarette butts and chewing gum - in public places and beaches in Sharjah
Dh2,000 for littering in Sharjah deserts
Dh500 for littering from a vehicle in Ras Al Khaimah
Dh1,000 for littering from a car in Abu Dhabi
Dh1,000 to Dh100,000 for dumping waste in residential or public areas in Al Ain
Dh10,000 for littering at Ajman's beaches
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Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
Temple numbers
Expected completion: 2022
Height: 24 meters
Ground floor banquet hall: 370 square metres to accommodate about 750 people
Ground floor multipurpose hall: 92 square metres for up to 200 people
First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time
First floor terrace areas: 2,30 square metres
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Fuel consumption: 11.7L/100km
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The specs
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Fuel economy, combined: 13.8L/100km
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Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Seemar’s top six for the Dubai World Cup Carnival:
1. Reynaldothewizard
2. North America
3. Raven’s Corner
4. Hawkesbury
5. New Maharajah
6. Secret Ambition
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
