- Eurozone Manufacturing PMI at 3-Year High
- New Zealand’s CB Reports It is in No Rush to Tighten Monetary Policy
- Donald Trump Hints at 2024 Presidential Run
Eurozone Manufacturing PMI at 3-Year High
The fastest growth of the last three years was recorded in the Euro Zone manufacturing sector in February. The Eurozone Manufacturing PMI, announced by IHS Markit, reached 57.9 in February. Growing from 54.8 in January. Production and new orders increase with the strengthening of exports, with significant increases in shipping times and the fastest cost inflation in almost a decade.
“The eurozone’s manufacturing economy performed strongly in February as operating conditions improved,” the report said.
Sector data signaled solid growth across the consumer, intermediate and investment goods categories, it noted.
“Investment goods producers registered the strongest growth since January 2018, followed by intermediate goods.”
The European manufacturing sector, which has been growing for eight months, has witnessed the second fastest increase in shipping times in Manufacturing PMI data for almost 24 years, indicating that the tightness in the continent’s supply chains is growing.
Spain’s manufacturing PMI rose from 49.3 to 52.9, with Italy’s manufacturing PMI increasing from 55.1 to a 37-month high 56.9. For Spain, it was the highest reading since Jul-2020.
Manufacturing PMI in Germany rose more than 3 points from 57.1 in January to 60.7, the highest level in 37 months, while the report emphasizes that supply chain pressures are intensifying for Germany. It is stated that record supply delays raise prices and decrease inventories.
“Germany and the Netherlands, where export gains remained especially strong, continued to lead the way in terms of overall growth,” the report said.
IHS Markit economist Phil Smith said, “Germany’s manufacturing sector recorded strong growth in February due to the increasing positive trend in export orders. Producers of capital goods performed particularly strongly as a sign of increased investment spending.’’
On the inflation front, Italian consumer prices rose by 0.1%, month-on-month, according to preliminary February figures. In January, consumer prices had risen by 0.7%.
The annual rate of inflation, however, ticked up from 0.4% to 0.6% in February. Economists had forecast an annual rate of inflation of -0.1%
In Germany, consumer prices increased by 0.7%, month-on-month, following a 0.8% rise in January. Economists had forecast a 0.5% increase.
New Zealand’s CB Reports It is in No Rush to Tighten Monetary Policy
New Zealand’s central bank is in no hurry to remove economic stimulus and tighten monetary policy, assistant governor Christian Hawkesby said on Tuesday, adding that markets will inevitably have “false starts” as they try to get ahead.
“Markets are keen to get ahead of central banks but there will inevitably be false starts and that is why we are seeing some of the volatility in bond markets at the moment,” Mr Hawkesby told Reuters in an interview.
“Our approach is to continually remind markets that we are going to be patient, and we are in no hurry to remove stimulus,” he added.
New Zealand’s approach is close to that of other central banks around the world, including those in the United States, Europe, Japan, and Australia, which have decided to keep the money spigot open before inflation returns to pre-coronavirus levels in a sustainable manner.
The Reserve Bank of New Zealand (RBNZ) held rates last week and said it would maintain easy policy settings for a prolonged period.
In New Zealand, the 10-year yields last week posted their largest weekly gain since mid-2013 and the New Zealand dollar hit a 3-1/2 year high.
Despite minor outbreaks in Auckland, New Zealand’s strong response to the coronavirus epidemic has helped it recover from a once-in-a-generation recession faster than most other economies.
Hawkesby said New Zealand’s recovery has been impressive, but added “there are pockets, regions and sectors that are still struggling.”
The neighbouring Australian central bank is widely expected to hold rates at a historic low of 0.1% at its meeting later Tuesday.
In addition, government bond yields worldwide, as well as in New Zealand are rising, as financial markets are betting on an improving economic outlook lifting inflation sooner than previously expected. This is happening as central banks around the world continue to use loose monetary policy in an effort to raise inflation by lowering interest rates. The Reserve Bank (RBNZ) reported that it could increase its weekly bond purchases to put downward pressure on interest rates. RBNZ Assistant Governor Christian Hawkesby told the RBNZ was “watching markets really carefully.”
Donald Trump Hints at 2024 Presidential Run
Speaking for the first time after leaving the White House, former US President Donald Trump signaled that he would run again in the 2024 Presidential elections.
Trump used his speech at the Conservative Political Action Conference, where he has been hailed as a returning hero, to blast his successor, President Joe Biden, and try to cement his status as the party’s undisputed leader despite his loss in November.
“Do you miss me yet?” Trump said after taking the stage, where his old rally soundtrack had been playing. “I stand before you today to declare that the incredible journey we begun together … is far from being over.”
Addressing Republican Party members at the 2021 Conservative Conference on Political Action (CPAC) held in Florida, Trump maintained his unfounded claims that he won the November 2020 elections and said, “I can decide to beat them for the third time” for the 2024 elections.
Criticizing his successor Joe Biden harshly, the former US President stated that the country’s policy had transformed from “first to America, last to America”.
“We will be victorious and America will be stronger and bigger than ever,” Trump said in his speech.
Trump, who denied the allegations that he would establish a new political party, described these allegations as “fake news” and said:
“We have our Republican Party. It will be stronger than ever. I’m not establishing a new party. These are fake news. Wouldn’t it be great? Let’s start a new party so that our votes are divided and then we never win the election.”
Claiming that Biden’s policies have spawned a new youth immigration crisis on the Southern border, Trump said the Biden administration has reversed its own successes.
Trump, who was criticized by many parties because of his loss of the November 2020 election and the raid on Congress in January, still holds power in the party base.
In the congress, two polls were conducted asking the Republicans’ presidential candidate preferences in the 2024 elections.
If the 2024 primary were held today and Trump were in the race, 55% said they would vote for him, followed by Florida Gov. Ron DeSantis at 21%. Without Trump in the field, DeSantis garnered 43% support, followed by 8% for South Dakota Gov. Kristi Noem and 7% each for former Secretary of State Mike Pompeo and Texas Sen. Ted Cruz.