📈 Global Economy: The road is getting rocky

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The U.S. inflation data for March, to be released today, will determine whether the strong disinflation forces from late last year have returned. Furthermore, The global economy, recovering from the pandemic and Russia's invasion of Ukraine, is progressing as expected, with China's reopened economy rebounding strongly. The IMF predicts in its latest World Economic Outlook that global growth will reach 2.8% this year.

In other news, EY has abandoned its plan to separate its consulting and accountancy arms, a significant change in direction for the Big Four accountancy firm.

Markets

What to watch in March inflation report (2 minute read)
The March U.S. inflation data, set to release on Wednesday, will answer whether the strong disinflation forces seen late last year have reemerged. This answer will be based on the extent to which moderating prices reflected in private sector data are appearing in the government's figures. Overall, economists predict inflation to be at 5.2% for the 12 months through March, down from 6% the previous month due to a favorable comparison to last year's soaring energy prices.

Global Economic Recovery Endures but the Road Is Getting Rocky (6 minute read)
The global economy's recovery from the pandemic and Russia's invasion of Ukraine is progressing as planned, with China's reopened economy making a strong rebound. Supply chain disruptions are being resolved, while energy and food market dislocations caused by the war are easing. Moreover, the tight monetary policies implemented by most central banks are expected to help control inflation, moving it back towards targets. In the IMF's latest World Economic Outlook, it predicts that global growth will reach 2.8% this year before modestly rising to 3% next year, slightly lower than the January projections. While global inflation is expected to decline from 8.7% last year to 7% this year and 4.9% in 2024, the decline will be slower than initially anticipated.

EY abandons break up plans after internal turmoil (3 minute read)
EY has abandoned its plans to separate its consulting and accountancy arms. The Big Four accountancy, which operates globally, decided not to put the proposed break-up to a crucial vote among American partners last month. EY partners received a note from the firm's global executive team on Tuesday, announcing that the US executive committee had put a stop to the plan, codenamed Project Everest. EY explained that given the strategic importance of the US member firm to Project Everest, they would be stopping work on the project.

Investing

Crypto Is Off to a Strong Start This Year. Can the Rally Continue? (3 minute read)
Cryptocurrency may have fallen from grace in the past, but it's starting to regain traction with investors. Bitcoin has surged past $30,000 per coin for the first time since June 2022, while other cryptos like ether and stocks like Coinbase have also seen gains. As the industry looks to recover from the implosion of firms like FTX and interest rate hikes that affected financial assets, traditional financial institutions are also stepping up their game with Nasdaq launching a crypto custody platform soon. Will crypto continue its rally in the second quarter?

Apple to invest another $200 million in carbon removal fund (1 minute read)
Apple has announced that it will double its investment in its Restore Fund, which supports projects aimed at reducing carbon emissions. The tech giant will add up to $200 million to the fund, which it established in 2021 with an initial $200 million commitment. The move is expected to help the fund start new projects and double its goal to remove around 1 million metric tons of carbon dioxide per year. Apple has set a target to become carbon neutral in its supply chain and the entire life cycle of its products by 2030.

Dividend Investing: Broader Is Better for Multi-Asset Strategies (5 minute read)
Investing in stocks that pay dividends can be a successful long-term strategy, but returns may fluctuate depending on market conditions and the business cycle. To ensure effectiveness, dividend-income strategies should encompass a wider range of opportunities beyond traditional dividend-paying stocks. These strategies are crucial for multi-asset income portfolios, but there's a risk of focusing too narrowly, which can limit income potential and upside participation in rising equity markets.

Money

How Rich Are the Baby Boomers? (3 minute read)
The current housing market is heavily influenced by baby boomers, who own the majority of homes and have high levels of home equity. This allows them to sell their properties for millions, while also being able to purchase multi-million dollar homes themselves. In contrast, millennials are struggling to enter the housing market due to high prices and low inventory, with baby boomers making up a larger percentage of homebuyers in recent years. The generational wealth gap is also apparent, with baby boomers holding the majority of net worth in the United States.

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