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Aspiring members of Donald Trump’s potential second administration gathered Thursday at Washington’s Royal Sands Social Club — a bar designed to resemble the state of Florida — for a fundraiser that felt like a victory party.

Chris LaCivita, the campaign’s top strategist, told the crowd of lobbyists and former administration officials that the former president would collect at least 289 electoral college votes in November — enough to secure the White House. Vice President Kamala Harris, he added, had plateaued in internal data, according to multiple attendees.

“Everyone in the room told me we were going to win,” said one person, who described the mood as “jubilant” and who like others spoke on the condition of anonymity to describe private events.

Less than 24 hours later, Harris campaign chair Jen O’Malley Dillon convened a Friday all-staff Zoom meeting to also predict victory — but with a much more sobering message. Nothing was certain, she told the roughly 3,000 staffers who joined the call.

“This is not going to be a race where one day we wake up and the sun shines and the clouds part and we’ve won by five points,” O’Malley Dillon told the team, according to someone who was on the call. “It’s just not that kind of race. It is tight, and we are going to just keep driving. Our data is telling us that we are winning and we are going to stay ahead, but it is by the skin of our teeth.”

The opposing messages were delivered as both campaigns have independently come to what is actually a shared understanding of the state of the race. Internal polls on both sides roughly match the public numbers that show the race in the seven battleground states within the statistical margin of error and mostly unchanged in recent weeks. Both campaigns calculate victory based on their own turnout models.

But the two camps are treating that information in divergent ways. Trump’s team has embraced bravado as it tries to keep its candidate on message and encourage him to avoid the sort of high-profile national audiences that might motivate Harris’s supporters.

Trump declined Fox News’s invitation to another presidential debate within hours of the offer this week, giving up a potential audience of about 75 million Americans. He announced rallies in California and New York — uncompetitive states where no Republican has won an electoral vote in 35 years. He authorized the leak of internal polling that showed a statistically tied battleground race with the cheerful conclusion: “Trump holds an edge.”

“You communicate and you push and you demonstrate that you are ahead,” LaCivita said in an interview Friday. “But you run like you are behind.”

Vice President Kamala Harris’s team has, by contrast, embraced the “underdog” spirit of her July launch, hoping to motivate more action from her supporters and grab the attention of those sitting on the sidelines.

Top aides spent last week warning that the $1 billion they raised in 80 days was not enough — never mind the roughly 3-to-1 spending advantage over the Trump campaign in August. The Harris campaign deployed former president Barack Obama to admonish Black men for their somewhat soft support of the vice president, as she called for another debate and hustled between mainstream television programs that Trump has avoided.

In the face of Trump’s cockiness, the Democratic mood has dipped to a mix of desperation and determination. Several people close to Harris conceded they had lost some momentum — and needed something to stir the race up. Harris advisers say they need more ad spending, more paid canvassing, more volunteer energy, more media placements, more surrogates and more activity from their candidates on bigger platforms. Even as they dominate most advertising mediums, they have begun to fret about Trump’s advantage in direct mail, shifting funds to deal with what the tracking firm Mintt says is a 4-to-1 Republican advantage.

“It’s going to take all of us together,” O’Malley Dillon told her team on the Friday Zoom call. “So feel confident in the plan.”

At the core of the calculations of both campaigns are separate research finding that many of the targeted voters in key states still do not have fully formed views of Harris, who only became a candidate for president in July. Views of Trump, by contrast, are nearly universally set. That has made it more important for Harris to make a splash in the final weeks.

“The more people see the real Kamala Harris and the real Tim Walz, the more that I believe they will do the comparison and vote for her,” Rep. Debbie Dingell (D-Mich.) said, referring to the nominee and her running mate, the Minnesota governor. “We’ve got to get people energized in this state because it’s coming down to voter turnout. We’ve got to see passion.”

The lack of definition around Harris has also shaped the advertising wars. Ads for the vice president mostly seek to provide contrast, mixing positive introductory messages about her and her plans with negative depictions of Trump.

The Trump campaign instead has focused its recent advertising on trying to define Harris as an extreme ideologue who is not on the side of regular Americans. The strategy echoes the approach of other incumbent presidents, like Obama in 2012 and George W. Bush in 2004, who seek to define their newcomer opponents as out-of-touch before they can fully introduce themselves to the American people.

The Trump campaign has put the most money in October advertising behind ads about Harris’s past support for taxpayer-funded gender-reassignment surgery for prisoners, according to AdImpact. The Harris campaign has called the ads “false,” pointing to federal court rulings that have upheld the right for inmates to get health care, but has not clarified her position on the issue.

The Trump ads run in both English and Spanish, often around sporting events with more male audiences. “Kamala is for they/them. Donald Trump is for you,” one of the spots concludes.

Trump has also chosen to focus on his rallies, which tend to be watched primarily by his supporters. In a sign of her desire to elevate the race, Harris has repeatedly urged more Americans to tune into Trump events, which are rarely covered by the major cable news networks, to see what he is offering.

Karoline Leavitt, the press secretary for the Trump campaign, said in a statement he would win “because he is out working Kamala Harris every day.” The Harris campaign declined to comment for this story.

Several Trump advisers said they did not see an upside to doing a second debate because they believe Harris needs a momentum moment more than they do. In the final weeks, the campaign is likely to focus advertisements on immigration, the economy and a clip on the television show “The View” where Harris initially said she wouldn’t do anything differently than Biden during his term before citing appointing a Republican to her Cabinet.

“People say, ‘Why aren’t we doing the debates?’ The question is, ‘Why do them?’” another Trump adviser said. “They could try to create a contrast with us. We’re going to starve her of that opportunity.”

Tony Fabrizio, the campaign’s pollster, has urged the campaign to talk about the economy. Campaign advisers have discussed limiting interviews and appearances outside of rallies.

Public polling averages have been so close for so long that divining their meaning has become a matter more akin to faith than science. Between Harris’s entrance in the race and early September, high-quality national public polls have shown the Democratic ticket move from a two-point deficit to a two-point advantage against Trump, with corresponding movements in most swing states. But that drift slowed or stopped in recent weeks — leaving a largely stable race that can be interpreted different ways depending on one’s assumptions of who will actually turn out to vote and how the polling sample is designed.

The differing vibes from the two campaigns also reflect the differing styles of the candidates. In each of his races for the White House, Trump has exaggerated his dominance, often citing polls that have no statistical significance. He frequently encourages those around him to shower him with praise. Before landing in Pennsylvania this month for a rally in Butler — the site of a July 13 assassination attempt on his life — he gathered with his advisers at the window of his plane to look at the crowd down below, which appeared similar in size to other events.

“It’s a monster,” one of his top advisers said, according to a video of the exchange posted on X by Rep. Mike Waltz (R-Fla.). “It’s a lot of people. I don’t think I have ever seen that much before.” Trump agreed, as others praised him on the plane.

LaCivita kept up that same enthusiasm Thursday night when he told the fundraising crowd in Washington that Harris had to place more advertisements on TV because they didn’t have a good message. He described polling that he said showed Trump ahead in major states and crowed that Trump had a better message, according to people present. A second attendee said people were partially there to network for jobs in a second Trump administration.

Harris, by contrast, has less interest in such positive talk. Aides say she has become more comfortable in recent weeks accepting unscripted appearances on news shows, at town halls and on podcasts as it has become more clear to her campaign that she needs to communicate with more voters.

Former congressman Conor Lamb (D-Pa.) said Trump holds a slight edge over Harris in western Pennsylvania — though he said that in conversations with voters in recent days, Harris still has an opportunity to win over Trump-leaning voters. He said he recently spoke to someone who voted for Trump in 2016 and Biden in 2020, and was 60 percent likely to vote for Trump again, attributing his preference to Trump because he is a known quantity.

“That tells me though that if Trump hasn’t fully closed the deal, Harris still has an opportunity if people get a chance to know her,” he said. “Trump knows that people are not going to change their opinions on him very much regardless of what he says or does. Her strategy to be more active and visible makes sense.”

This post appeared first on washingtonpost.com

EURUSD and GBPUSD: EURUSD on the bullish side this morning

On Thursday, the EURUSD retreated to a new weekly low at 1.09000
During this morning’s Asian session, GBUPSD was under pressure from the EMA 50 moving average

EURUSD chart analysis

On Thursday, the EURUSD retreated to a new weekly low at 1.09000. We stayed down for a short time because the bullish consolidation up to the 1.09400 level was started very quickly. During this morning’s Asian trading session, the pair continued to rise above the EMA 50 moving average. In the EU session, we see a strengthening of the bullish momentum to a new daily high at the 1.09500 level.

EURUSD should take advantage of this momentum and form a new daily high by the time the market opens tonight. Potential higher targets are 1.09600 and 1.09800 levels. For a bearish option, we need first to get back below the EMA 50 and 1.09400. After that, we should see a strengthening of the bearish momentum and a drop from 1.09200 to a new daily low. Potential lower targets are 1.09000 and 1.08800 levels.

 

GBPUSD chart analysis

During this morning’s Asian session, GBUPSD was under pressure from the EMA 50 moving average. With the beginning of the EU session, the pound began to show signs of recovery with an impulse up to the 1.30800 level. That is not enough to keep us above EMA 50, and we need a continuation of bullish consolidation. After that, we can expect to go back to 1.31000 and skip yesterday’s high. Potential higher targets are 1.31200 and 1.31400 levels.

In the 1.31400 zone, we expect resistance in the EMA 200 moving average before continuing on the bullish side. For a bearish option, we need a negative consolidation and pullback to this morning’s low at 1.03400. A new pressure on the support level could make us see an impulse below and the formation of a new daily low. Potential lower targets are 1.30200 and 1.30000 levels.

 

The post EURUSD and GBPUSD: EURUSD on the bullish side this morning appeared first on FinanceBrokerage.

Investing.com — In a “no-landing” economic scenario, where growth remains resilient and a recession is avoided despite higher interest rates, rebalancing your portfolio to outperform requires a shift in sector allocations. 

As per BCA Research, recent revisions to U.S. economic data suggest that the odds of a recession have decreased, and the economy is stronger than previously assumed. 

This outlook demands a pivot from defensive sectors like Utilities and Telecoms, which typically provide downside protection in a downturn, to more growth-oriented and economically sensitive sectors that tend to thrive when economic momentum persists.

BCA Research recommends increasing exposure to sectors that benefit from economic strength, such as Energy and Technology, while reducing allocations in sectors that are traditionally favored during economic slowdowns. 

The strategic emphasis is on positioning for a “no-landing” scenario where economic growth is sustained and monetary easing could potentially lead to overheating, rather than a recession.

Defensive sectors such as Utilities and Telecoms were favored over the past quarters as investors anticipated a slowdown or recession. 

However, given the stronger-than-expected economic data, the value proposition of these sectors is now less compelling. 

BCA suggests booking profits in these areas and shifting to sectors with higher potential upside.

The brokerage has upgraded Energy to a tactical overweight position. This decision is based on a combination of geopolitical factors, such as heightened tensions in the Middle East, and an expectation of a resurgence in demand driven by sustained economic activity. 

Moreover, recent increases in oil prices and a firm dollar also support this call.

While Technology faced headwinds earlier in the year due to high valuations, BCA now sees value in this sector, especially given its recent underperformance relative to other cyclical areas. 

With a neutral stance, they flag opportunities within Software and Hardware segments, which appear oversold and may benefit from a renewed growth outlook.

Consumer Discretionary and Industrials, which typically benefit from strong consumer spending and business investment, are positioned to outperform in a sustained growth scenario. 

This includes segments like retail and travel, which are tied to consumer strength and services demand.

The backdrop of stronger-than-expected economic data, alongside easing measures and a steady labor market, suggests that investors should be prepared for the possibility of higher inflation and upward pressure on bond yields. 

This environment favors sectors that are positively correlated with rising economic activity and commodity prices.

However, the shift in strategy comes with caveats. BCA warns that a “no-landing” scenario could eventually morph into an overheated economy, requiring a rapid reversal in monetary policy stance. 

This would potentially introduce volatility into growth sectors. As a result, they advise tactical rather than long-term overweights in these areas, particularly Energy, and to remain nimble in adjusting positions as new data emerges.

This post appeared first on investing.com

New majorities in Congress, particularly when the incoming party has a new leader, offer the rare chance for the institution to take a breath and consider what can be done to make the place function better.

The Senate seems poised for just that outcome, as Republicans get closer to locking up at least 51 seats for next year and with Senate Minority Leader Mitch McConnell (R-Ky.) stepping aside after 18 years atop the GOP conference.

Any major overhaul to the customs of the very tradition-bound Senate, where permanent rules changes are supposed to happen with a least a two-thirds majority vote, are not likely. For now at least, a majority of Senate Republicans have vowed to not do anything radical such as a party-line move to eliminate the 60-vote filibuster hurdle.

Neither of the top contenders to replace McConnell, Sens. John Cornyn (R-Tex.) and John Thune (R-S.D.), have publicly embraced any vast reform-minded ideas, although Cornyn has voiced support for his party imposing a term limit for its Senate leader, as is imposed on other leadership positions.

Those two front-runners, along with a long-shot contender, Sen. Rick Scott (R-Fla.), are doing most of their talking about how they would operate differently than McConnell did during one-on-one huddles with other senators, according to GOP aides familiar with the talks.

But Senate experts believe that if there’s ever a time to truly consider some changes, this would be it. A survey of a half-dozen former senior Senate Republican aides — including advisers to party leaders, top staff for legislative committees and chiefs of staff to rank-and-file senators — produced several ideas that could shift the chamber’s behavior.

Speaking on the condition of anonymity to offer any idea without potential blowback on their former or current employers, these veteran Senate staffers came up with a bounty of suggestions: some very worthy, some more aspirational, some probably impossible to enforce.

One former aide wants to see changes that would make it easier for legislation to be brought to the Senate floor for consideration, especially if there is demonstrated bipartisan support. This aide said amendments that are ruled germane to the debate should also get special protections.

Another wants to end the seniority system that results in Senate committee chairs being selected by whoever is next in line in terms of tenure on the panel, hoping to create more dynamic energy in the once powerful hearing rooms across the street from the Capitol.

Some would like to see a cultural shift back to the days when newcomers served quietly, instituting a rule forbidding them from speaking on the Senate floor in their first year. That might limit the increasing practice of new senators grandstanding to catch the attention of prime time cable news hosts.

One tantalizing idea is almost certain to go nowhere in the modern, TV-driven Congress: banning cameras from the Senate floor so that debate would be between the senators looking across the chamber at others, rather than the current practice of staring straight into the camera as if they are speaking to America.

Cornyn tried to reignite the debate over shaking up the Senate when he announced his bid to succeed McConnell as GOP leader. “I believe the Senate is broken — that is not news to anyone,” he wrote almost eight months ago.

The reality is almost everyone who has served around the chamber over the last 10 years agrees with Cornyn’s assessment.

Senate Democrats quibble with his statement, noting that the House is also broken, possibly worse so given the GOP’s inability to do some of the most basic functions across the Capitol.

This 118th Congress is on track for a record low level of production, with just 106 public laws approved in the first 22 months of its two-year session. That’s on track to be the fewest laws approved by one Congress in more than 100 years.

To put it in perspective, the 116th Congress (2019-2020) also had a partisan split, with Democrats running the House and Republicans holding the Senate, but it produced 344 laws. The 113th Congress had the same partisan makeup as today — a Democratic president, a Republican House and a Democratic Senate — and that combo produced 296 public laws.

Later this month, we will explore a separate column on the possible rules changes that could come with Democrats winning the House — part of a potential historic “double flip” in which the two chambers swap majorities.

But let’s start with the Senate, which has always fashioned itself with such a grand superiority complex that its self-anointed nicknames are the “upper chamber” and “the world’s greatest deliberative body.”

The Merriam-Webster definition of “deliberation” is “a discussion and consideration by a group” for and against something. In Senate parlance, that means a debate.

The mere act of debating has collapsed over the last decade, according to records monitored by C-SPAN’s Congress page. From early January 2023 through this month, the Senate has held 272 hours of debate, just 18 percent of the time it was in session.

That’s almost 175 fewer hours of debate than the Senate held through the same time frame of 2021-2022. It’s a small fraction compared to the more than 1,200 hours of Senate debate that came in this timespan of the 115th Congress (2015-2016), when the deliberating accounted for almost 60 percent of all the time in session.

The current Senate has spent twice as much time (551 hours) holding roll call votes than senators spent debating actual legislation.

But almost two-thirds of those votes have come on presidential confirmations, either a procedural vote or the actual confirmation vote, to fill the federal judiciary or executive agencies. Just 16 years ago nomination votes accounted for less than 10 percent of Senate roll calls.

Most of the confirmation votes have been for relatively low-level posts that most senators did not know existed when they first ran for office. Those include the Sept. 19 vote to advance a judicial nominee for the U.S. Tax Court or the Sept. 23 vote to formally confirm that tax judge to a 15-year term.

That first vote was the last of the week, “flyout day,” as it’s known, so nine senators did not bother to show up. The second vote came on a Monday evening, “fly-in day,” and 14 senators skipped that vote.

That confirmation took eight months to process, from President Joe Biden’s formal nomination on Feb. 1, to the June committee vote and late September final approval.

The Senate’s sharp shift into “personnel business” — as McConnell has called confirmation votes — began during his six years as majority leader. And it has continued under Majority Leader Charles E. Schumer (D-N.Y.).

One of the smartest ideas from former senior Republican aides would dramatically reduce the number of positions requiring the full Senate’s approval, especially those in key posts like U.S. attorneys who serve as the Justice Department’s regional prosecutors and nonpartisan ambassadors.

Take Biden’s Jan. 11 nominations of two career Foreign Service officers, with decades of experience, speaking a combined six foreign languages, to be ambassadors to Cambodia and Albania.

The Senate Foreign Relations Committee approved their nominations more than six months ago, and today they still await a full confirmation vote.

Freeing the Senate from the endless wheel of confirmation votes would open up the chamber for more legislative debate.

Combine this with the idea, from another former Republican aide, that legislation with bipartisan support in the committee process would receive special fast-track privileges.

Current rules require a majority leader to follow a three- or four-day process to clear the procedural hurdles just to begin debate on legislation. If a bill is bipartisan, just eliminate all those hurdles and allow it to be easily considered for debate — at which point, it would still have to clear one 60-vote hurdle to get passed.

Forcing committee chairs to win their posts through a real internal vote, rather than the current seniority-driven, next-senator-up process, could also energize those roles. They would derive power from across their entire caucus, not just the party leader and Father Time.

These ideas might never come to see the light of day, regardless of who serves as majority leader next year. Each time there’s a new majority leader, pledges flow to improve the institution.

“The good news is that it can be fixed,” Cornyn wrote to his colleagues.

Most senators hope that will happen.

This post appeared first on washingtonpost.com

By Leika Kihara

TOKYO (Reuters) – Japanese Prime Minister Shigeru Ishiba said on Saturday he would not intervene in monetary policy affairs, as the central bank is mandated to achieve price stability.

“It’s important to avoid vocally intervening” in monetary policy affairs, or appear as if he was doing so, Ishiba said in a news conference gathering leaders of major parties ahead of the Oct. 27 general election.

“Whatever the government has to say, the Bank of Japan makes an individual decision on policy,” Ishiba said. “I believe the BOJ’s governor and staff have a strong sense of responsibility over achieving price stability.”

Ishiba also said strength in consumption is key to achieving a sustained exit from deflation, calling for the need for measures to boost real wages.

The former defence minister became Japan’s prime minister on Oct. 1 after winning the ruling party’s leadership race.

A day after assuming the role, Ishiba stunned markets by saying the economy was not ready for further interest rate hikes, an apparent about-face from his previous support for the BOJ unwinding decades of extreme monetary stimulus.

The surprisingly blunt remarks pushed the yen lower against the dollar and cast fresh doubts over how aggressive the BOJ would be in raising rates.

It is historically rare for the country’s leader to comment directly on the BOJ’s interest rate policy in public, as it would infringe upon the central bank’s independence – stipulated by law – in setting monetary policy.

The BOJ ended negative interest rates in March and raised the short-term benchmark to 0.25% in July on the view Japan was making progress towards durably achieving its 2% inflation target.

Governor Kazuo Ueda has signalled the bank’s readiness to keep raising interest rates if economic and price developments move in line with its forecast.

While politics is unlikely to derail the longer-term case for rate hikes, analysts say uncertainty on Ishiba’s stance on monetary policy and the outcome of the Oct. 27 election could complicate the BOJ’s decision on how soon to raise borrowing costs.

This post appeared first on investing.com

Investing.com — According to Wells Fargo analysts in a note Wednesday, secondary valuations in the private equity market have shown resilience, even as discounts have become smaller. 

The bank said in its investment strategy note that secondary valuations reached their lowest point during the market drawdown in 2022 but have experienced a modest increase through the first half of 2024.

Wells Fargo explains that as the likelihood of an economic soft landing increases, the secondary private equity market continues to present attractive opportunities for investors. 

“The secondary market is typically only available for larger fund stakes and is a common solution for institutional investors looking to rebalance their portfolios,” wrote Wells Fargo.

They add that typically, secondary transactions occur for larger fund stakes, providing liquidity options for investors who have committed their capital for the long term, often spanning 6 to 12 years.

Wells Fargo highlights that investors in the secondary market can acquire interests at a discount to the fund’s current net asset value (NAV). 

The purchasing strategy is said to offer several advantages, including improved visibility into the underlying portfolio holdings and a shortened path to positive returns. 

Furthermore, the bank states that as secondary investors often buy these interests after the fund’s investment period, they typically find portfolios that are fully invested and starting to distribute capital as investments are exited.

Despite the observed decrease in discounts, the Wells Fargo note indicates that expectations for interest-rate cuts could foster sustained economic expansion. This environment may lead to rising valuations for private equity investments, thereby increasing fund NAVs, according to the firm.

Wells Fargo concludes that the current climate remains favorable for secondary investors, combining attractive discounts with an increasing likelihood of a soft landing, which could enhance private equity strategies in the near term

 

This post appeared first on investing.com

Investing.com — A declining working age population, once thought to be isolated to the East where Japan and South Korea have fought the economic toll of a diminishing labor pool for decades, has now washed up on Europe’s shores, causing significant concern. But just how big of a problem is Europe’s declining working age population?

“The working age population in the euro area is projected to fall by 6.4% by 2040,” Morgan Stanley in its Future of Europe Bluepaper published Oct. 9, estimating a 4% hit to euro area GDP by 2040.

As a country or region’s working age population declines, there are fewer individuals contributing to its economic output and productivity, marking a blow to GDP, or gross domestic output, particularly when coupled with a aging population. 

But some euro-area countries are likely to feel more pain than others: Italy, with a working age population expected to shrink by as much as 10% between 2025 and 2040, faces the steepest challenges. While France, given its relatively stronger demographic outlook, would likely be the least affected among major economies.

Lessons from Asia: Japan and South Korea

The demographic crisis in Europe isn’t a new phenomenon. Japan and South Korea have faced these challenges for decades. These Asian economies, which have been at the sharp end of dealing with aging populations and declining birth rates, can offer a window into this problem and valuable insight into how effective, or not, the solutions have proved along the way.     

Japan has implemented a myriad policies to address its demographic challenges, including efforts to increase female labor force participation, raise the retirement age, and cautiously open up to more immigration.

These measures, however, have had limited success, as cultural norms and economic pressures continue to discourage higher birth rates. 

For the past three decades, Japan’s fertility rate has been below 1.5, and the most recent statistics in 2022 recorded the lowest level, 1.26, according to data from the Center for Strategic and International Studies. 

Still, Europe’s hopes for addressing these demographic headwind may involve a mix of the policies implemented in the East, Morgan Stanley said. 

Turning to policy to cushion economic blow from demographic crisis   

Three potential policy options could counteract these headwinds in Europe: increasing net migration, raising the effective retirement age, and closing the gap between male and female labor force participation rates.

These policies could add between 1.3% and 2.5% to baseline GDP for the euro area by 2040, according to Morgan Stanley’s scenario modelling. But the degree of success of these policies in addressing the demographic problem will vary from country to country as some may have a head start having pursued these policies early than others. 

Germany, the UK, and Spain, would “see the greatest impact from increased net migration, while Italy, could benefit most from closing the gender participation gap in the workforce,” Morgan Stanley said.

Increasing net migration by one standard deviation relative to each country’s historical levels could boost euro area GDP by 1.8% by 2040.

Closing the gap between male and female labor force participation rates could also have a significant impact, potentially increasing euro area GDP by 2.5% by 2040, Morgan Stanley estimates. Italy, which has a male vs. female labor force participation 8% below the euro area average, could see meaningful increases in its labour force if it were to reduce this gap.

Raising the effective retirement age by one year could increase euro area GDP by 1.3% by 2040. France and Spain, where the effective retirement age remains 2 years to 3 years below the European average, stand out as the countries that would benefit most from this policy. 

Earnings growth in the crosshairs

This demographic challenge is already impacting European corporate outlooks. And if allowed to exacerbate without policy action, Morgan Stanley estimates, could lower companies’ long-term earnings growth from 5.1% to 4.2% by 2030.

This theme is already emerging a hot topic of conversation in European C-suite commentary, with quarterly transcripts showing a notable rise in mentions of “aging population,” especially compared to US companies, it added.

AI, automation to the Rescue? 

The estimated hit to corporate earnings in Europe, however, assumes no increase in margins or gains in productivity from AI or automation, which “could potentially offset some negative impacts,” Morgan Stanley said.

The productivity boost from widespread use of AI and automation tools is likely to become more evident as companies begin to see the fruits of their AI investments and adoption efforts as soon as next year.

“2024 is the year of AI investment and adoption; in 2025, we think corporate gains should be more evident,” Morgan Stanley said.

Automation will also have an increasing role to play to plug the productivity gap from a decline in the working age in Europe, which is relatively under-penetrated by automation technologies. 

Industrial robot density in South Korea, for instance, was just over 1,000 per 10,000 people employed in the manufacturing in 2022, compared with less than half that number in Germany. 

A call for action to safeguard Europe’s economic future

As Europe grapples with this demographic shift, the race is on to find solutions that can mitigate its economic toll and ensure sustainable growth in the decades to come. While the experiences of Japan and South Korea offer valuable lessons; Europe will need to tailor its approach to its unique social, political, and economic landscape.

The challenge is clear: Europe must implement effective policies that address its declining working-age population. While policies aimed at increasing migration, lifting the statutory retirement age, increasing female workforce participation will help cushion the impact, Europe must embrace technological advancements including AI and automation to help bridge the productivity gap. 

The key to successfully counteracting the impact on growth and safeguarding Europe’s economic future requires effectively implementing these strategies while ensuring they align with societal values and economic goals.

This post appeared first on investing.com

Investing.com — Weight-loss medications like the popular versions made by Denmark’s Novo Nordisk A/S (CSE:NOVOb) and US peer Eli Lilly (NYSE:LLY) are the “most compelling story within the healthcare sector,” analysts at Wells Fargo said.

The GLP-1 class of drugs includes blockbuster brands like Novo’s Ozempic and Wegovy and Eli Lilly’s Mounjaro and Zepbound.

According to Harvard University, GLP-1 treatments aim to help patients with diabetes by helping them release insulin and control blood sugar levels. They can also act on the brain to reduce hunger and delay the emptying of the stomach, possibly leading to weight loss.

Since releasing their GLP-1 offerings, both Novo and Eli Lilly have registered record profits. Some analysts have estimated that total annual global sales for such medications could be around $150 billion early in the next decade, Reuters reported.

Novo and Eli Lilly have even struggled to keep up with the soaring demand. Because of this shortage, US regulators have allowed businesses, including telehealth groups like Noom and Hims Hers Health (NYSE:HIMS) to make compound versions, or close recreations of brand-name medicines. Shares in WeightWatchers, also known as WW International (NASDAQ:WW), spiked this week after the company announced it would offer a compounded version of Novo’s Wegovy.

Approximately 74% of adults are considered to be either overweight or obese in the US, with 42% of that group suffering from obesity, the Wells Fargo analysts said in a note to clients this week, citing data from the Centers for Disease Control and Prevention.

“Looking forward, the market for weight-loss drugs should continue expanding rapidly, but we believe cost-benefit economics will be increasingly important,” the analysts wrote.

In particular, they noted that the costs for enrollees in Medicare — the US federal health insurance program for people aged 65 and older — are typically far higher for those with obesity than those without such a dianosis. The trend offers “strong support in the cost-benefit equation for these drugs and will be a critical factor supporting the expanded usage of GLP-1s going forward,” they added.

Meanwhile, demand could further be bolstered by recent clinical data which indicates that GLP-1 drugs may have favorable effects on other health issues like cardiovascular risk, sleep apnea, and dementia, the analysts said.

They reiterated a “neutral” stance on the overall healthcare sector and a “favorable” outlook for the healthcare equipment and supplies, life sciences tools and services, and managed healthcare sub-sectors.

This post appeared first on investing.com

BEIJING (Reuters) – China urged the European Union on Saturday not to conduct separate negotiations over the prices for China-made electric vehicles, warning that would “shake the foundations” of bilateral tariff negotiations.

The comments, published on the website of China’s Ministry of Commerce, come days after Brussels rejected a Chinese proposal for EVs made in China to be sold at a minimum price of 30,000 euros ($32,000), a move Beijing hoped would avert EU tariffs being imposed next month.

This post appeared first on investing.com

By Karin Strohecker

LONDON (Reuters) – The Maldives has chosen U.S.-headquartered Centerview Partners to be its adviser on debt matters as the country battles to stave off a financial crisis, two sources familiar with the situation said.

Concerns have grown in recent months that the island nation could become the first country to default on Islamic sovereign debt as the government faces a $500-million Sukuk maturing in 2026 and dwindling foreign currency reserves.

According to the World Bank, the country’s total public and publicly guaranteed debt stood at $8.2 billion, or equivalent to 116% of GDP, in the first quarter of this year.

About half of that is external debt, with a big chunk owed to regional rivals China and India, which have extended $1.37 billion and $124 million in loans, respectively, World Bank data shows.

Both countries have in recent weeks shored up their support to the Maldives, easing investor concerns about a debt crisis and helping to bolster its international bonds.

Beijing signed a financial cooperation agreement with the Maldives in September to strengthen trade and investment. India subscribed to a $50-million Maldives Treasury bill last month and said in October it had approved currency swap deals worth more than $750 million.

The Maldives’ sole international bond, which had tumbled to 66 cents on the dollar in early September as debt concerns deepened, currently trades around the 80-cents mark, Tradeweb data showed.

That is well above the threshold of 70 cents, below which debt is considered distressed.

Investment and advisory firm Centerview Partners, founded in 2006, has recently been on a push to increase its sovereign advisory business and has been hiring widely over the past year to beef up its global operations both in Paris and New York.

The Maldives’ government did not immediately respond to a request for comment.

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