Although they’ve struggled pressure lately, we think the yen and Japanese equities will fare well next year, and that JGBs will outperform many other developed-market bonds in common-currency terms too. Japan’s markets have been under pressure lately. …
4th December 2025
Australian consumers are loosening their purse strings The surge in household spending in October confirms our view that the RBA won’t cut rates any further. If anything, the risk is that the Bank will feel compelled to tighten policy before long. …
Dearth of official data has deepened the split between FOMC hawks and doves Another 25bp cut appears to have sufficient backing But regional presidents’ inflation concerns could lead to rare triple dissent We expect concerns over softening labour market …
3rd December 2025
Even if the FOMC cuts the fed funds rate again next week and Kevin Hassett does indeed become the next Fed Chair, we think the dollar rebound over recent months has further to run. The greenback has fallen back a bit over the past two weeks, giving up …
Explore global value chains with this interactive dashboard. Enter a shock to country or sector's final demand to see how it affects value added around the world. … Global Value Chain …
Underlying growth weaker than the Bank expected last quarter Counter-tariff reversal has removed a key source of upward price pressure Further rate cuts will come in 2026 The Bank of Canada is all but guaranteed to keep its policy rate on hold next week, …
Convincing fall in prices paid index strengthens case for December cut The sizeable fall back in the ISM Services prices paid index is consistent with “supercore” PCE inflation remaining elevated next year, but by much less than implied by last month’s …
Production flat over the third quarter The small rise in industrial production in September and revisions to previous months’ data mean output was unchanged across the third quarter as a whole. With the timelier ISM manufacturing index pointing to weak …
NBP delivers another cut, easing cycle not quite over The National Bank of Poland (NBP) cut its policy rate by 25bp again today, to 4.00%, and the softness in the latest inflation and wage data suggests to us that a bit more monetary easing will be …
World trade grew relatively strongly in Q3 and looks to have maintained this momentum at the start of Q4. Despite signs of weakness in some Asian economies’ exports in October, the region should continue to benefit from strong demand for AI-related goods. …
Weak ADP report lends support for December cut The modest fall in the ADP payrolls measure in November, coming on the back of a similar message from the Fed’s Beige Book, should be enough to persuade the FOMC to vote for another cut next week. Looking …
Previous enthusiasm fading The second consecutive decline in mortgage activity in November, as the previous decline in mortgage rates came to an end, supports our view that home sales are unlikely to rise by as much as most expect. With market …
This page has been updated with additional analysis. Inflation will remain very low for foreseeable future The fall in Swiss inflation to zero will raise significant concerns in the SNB as officials had expected it to rebound and average 0.4% in Q4. (See …
Fall in inflation paves the way for another large rate cut The larger than expected fall in Turkish inflation in November, to 31.1% y/y, provides a green light for the central bank to continue its easing cycle at its meeting next Thursday. We maintain our …
Large parts of South and South East Asia have been hit hard by tropical storms in recent weeks, causing significant loss of life and widespread disruption. The human cost is tragic. Economically, however, the impact is likely to be limited, as the …
Inflation still showing signs of stickiness With little spare capacity in the economy, further easing will be off the table However, there will be a high bar for a resumption of rate hikes With inflation showing signs of persistence, activity recovering, …
Economy softens a touch in Q3 Although activity lost a bit of momentum last quarter, we suspect growth will hover at around its trend rate in the year ahead. The upshot is that, although the RBA won’t cut rates any further, we doubt it will hike rates …
Against the backdrop of weakening demand, the ramp-up in iron ore supply from the Simandou mine in Guinea is a key driver of our below-consensus view that iron ore prices will fall sharply over the coming years. But from a macroeconomic perspective, …
2nd December 2025
There’s a growing debate about whether the Colombian central bank will hike rates. And several plausible triggers – from a pre-election spending spree to a bumper minimum wage hike – could tip the MPC’s balance in this direction. That said, market pricing …
Residential rent growth is set to slow over the next couple of years as wage growth moderates, but we expect it to remain above past averages given tight supply conditions. Meanwhile, we think yields will hold broadly steady over the forecast, although …
Although the Chancellor, Rachel Reeves, succeeded in reducing gilt yields by 5-15 basis points and raising the pound by 0.3% after the Budget (see Chart 1 and here ), the chances of a gilt market sell-off remain high, particularly if Reeves and/or Starmer …
Headline inflation to drop sharply, but services inflation remains sticky November’s inflation data will do nothing to alter ECB policymakers’ view that current monetary policy settings are appropriate. Next year, we think that headline and core inflation …
Modest slowdown, solid but unspectacular growth likely in 2026 South Africa’s economy expanded by 0.5% q/q in the third quarter of the year, a modest slowdown from the revised 0.9% q/q growth seen in Q2 on the back of softer growth in industry. The …
Taiwan is on course to record GDP growth of over 7% this year and our forecast for the economy to expand by another 5% next year lies well above the consensus. Rapid growth in exports of AI-related products is likely to remain the key driver of the …
This page has been updated with additional analysis since first publication. We’re hosting a 20-minute online briefing at 3pm GMT on Wednesday 3 rd December to discuss what the Budget means for the residential and commercial property outlook. (Register …
The prospect of the Bank of Japan resuming its hiking cycle a bit sooner than previously thought has sent tremors through global bond and equity markets this week, but we suspect they could nonetheless weather further tightening. The modest recovery in …
Overview – The economy will continue to grow at a healthy pace, which should ensure that the labour market remains very tight. While energy subsidies and falling crude oil prices will weigh on headline inflation, measures of underlying inflation should …
Overview – Asia-Pacific property faces a slow, uneven recovery as high risk-free rates and weak growth limit investment demand and therefore, prospects for yield-driven capital gains. Spreads over risk-free rates remain tight across markets, aside from in …
The fall in the EM manufacturing PMI to a four-month low in November reflects a loss of momentum in some of the largest EMs, most notably China. But conditions in industry have strengthened in some places, including in Emerging Europe and parts of South …
1st December 2025
November’s manufacturing PMI surveys paint a picture of soft growth in both activity and prices for global industry, with global supply chains still showing no signs of stress from tariffs. The output component of the global manufacturing PMI edged …
Tariff uncertainty remains a drag on manufacturers’ order books The further small decline in the ISM Manufacturing Index in November adds to the evidence that tariffs and related uncertainty are weighing on the factory sector, though not entirely …
We forecast emerging market equities to post solid returns in 2026, although not on the same scale as the exceptional gains seen this year. We expect the biggest returns in EM Asia as the AI boom continues, while returns in EMEA and LatAm will be lower, …
Growth slows, but still solid by recent standards Nigeria record a modest slowdown in GDP growth to 4.0% y/y in Q3 and, while the boost from higher oil output will continue to fade over the coming quarters, we think the backdrop of lower inflation and …
The Fed looks set to cut interest rates again in December, but we think investors are too optimistic about further easing next year. We expect only one 25bp cut in 2026, compared with roughly 75bp of loosening currently priced into futures. As a result, …
Aside from the monetary loosening undertaken by the ECB at the beginning of the global financial crisis, its interest rate cuts from mid-2024 to mid-2025 were the deepest over a 12-month period in its history. But the impact on GDP has been small and it …
The past year has underlined just how influential a handful of macro and market forces have become, from the AI investment boom to persistent US-China tensions to the build up of fiscal risks. Those themes will continue to define the outlook for 2026. But …
Net lending to property slightly lower again but above the 2024 average At £1.47bn, net lending to commercial property softened again in October, from the £1.65bn recorded in September. That pushed the three-month total down to £5.7bn, the lowest level …
While the accuracy of some official economic data in the UK and US has deteriorated recently, the issue is mainly concentrated in labour market data and does not appear to be a problem in other advanced economies. But outdated collection methods, budget …
Our Interactive Markets Chart Pack gives you a comprehensive and timely view of the latest developments in financial markets, and how we expect them to perform in 2025 and beyond. The Chart Pack can be downloaded in PDF form using the Download button on …
We’re hosting a 20-minute online briefing at 3pm GMT on Wednesday 3 rd December to discuss what the Budget means for the property outlook. (Register here .) This page has been updated with additional analysis since first publication. Budget jitters …
Small signs of improvement The increase in the manufacturing PMIs out of Emerging Europe in November offers some encouragement that demand conditions in the region’s industrial sectors may be past the worst. We expect a pickup in external demand to …
Almost everyone expects real economic growth in China to slow next year . But most forecasters think the picture will brighten in nominal terms thanks to a rebound in inflation and a bottoming out of home prices. By contrast, we think that China will …
Slowdown positive for rebalancing efforts The slowdown in Turkish GDP growth in Q3, to 1.1% q/q, still leaves the economy running relatively hot. But the positive contribution from net exports suggests that policymakers’ efforts to rebalance the economy …
With corporate profits hitting fresh record highs, the BoJ’s concern that US tariffs will provide a major headwind to business investment and wage growth looks increasingly overdone. To be sure, profits in the manufacturing sector have stalled but there …
Equity markets have finally got into the festive spirit, with a fairly broad-based rebound underway. In part, that appears to reflect renewed hopes for more Fed easing, which we think will ultimately prove misplaced. But, the reason we expect the FOMC to …
The less stringent criteria for accessing the government’s support scheme for first-time home buyers hasn’t noticeably boosted overall housing demand. Indeed, the key constraint remains extremely stretched affordability, particularly if the RBA doesn’t …
The November PMI readings for most countries in Asia remained consistent with soft manufacturing activity. However, the PMIs haven’t been a great guide to the hard activity data for some economies lately. Exports from most of Asia have been surging in …
Australia’s house price growth picked up further in November and leading indicators suggest the rally has further to run. However, with the RBA unlikely to lower interest rates any further, mortgage-debt servicing costs are on track to surge over the …
