BoykoWealth.com — Automated Daily Report on World Macroeconomic News for March 10, 2025

A comprehensive summary of the news, covering GDP, inflation, unemployment, consumer confidence, equity markets, fixed income and interest rates, commodities, currencies, economic indicators, geopolitical developments, and new technology news.

GDP: The U.S. economy expanded at a healthy 2.3% quarter-over-quarter annualized rate during the fourth quarter of 2024, bringing real economic growth to 2.8% for the year. Consumer spending continued to power the economy forward, growing at an exceptional 4.2%, while government spending moderated. Business fixed investment turned negative due to declines in equipment and structures spending, while residential investment rose after lagging for two quarters.

Inflation: The U.S. Consumer Price Index (CPI) for February is expected to show stubbornly sticky inflation, with core CPI projected to rise 3.2% year-over-year, higher than the Federal Reserve’s 2% inflation goal. The main drivers for these projections include ongoing trade wars and federal job cuts. In Germany, the CPI is expected to show an increase of 2.3% in February, similar to January’s figures.

Unemployment: The U.S. labor market remains relatively healthy, with nonfarm payrolls rising by 151,000 in February, although this was below economists’ consensus estimate of 170,000. The unemployment rate ticked up to 4.1% from 4.0% in January. Federal layoffs are starting to impact unemployment claims, with Massachusetts seeing a noticeable increase in claims from federal workers.

Consumer Confidence: Delta Air Lines slashed its first-quarter earnings and revenue outlook, citing a recent decline in consumer and corporate confidence amid economic uncertainty. The Conference Board reported that worries about trade and tariffs led to February seeing the biggest monthly decline in consumer confidence since August 2021.

Equity Markets: Wall Street closed higher on Friday, pulled up by tech and energy stocks. The S&P 500 finished with its biggest weekly loss since September, but markets rebounded on comments made by Fed Chair Jerome Powell. The updated equity prices are as follows:

• S&P 500 Index: $5,614.56, down 2.70%
• NASDAQ Composite Index: $17,468.32, down 4.00%
• Dow Jones Industrial Average: $41,911.71, down 2.08%

Corporate Actions and Earnings: Several stock splits are scheduled for various companies in March 2025. GRFX will undergo a 1:5 split, SNEX will have a reverse split at a ratio of 1.5:1, KUKE will undergo a 1:10 split, ABTS will have a 1:15 split, and OMH, ELAB, and MNDR will all have splits at ratios of 1:10, 1:7, and 1:8, respectively. Earnings season continues with reports from companies such as Oracle, BioNTech, and Asana.

Trending Industry Update: The U.S. economy added 151,000 jobs in February, with sectors such as health care, financial activities, and transportation & warehousing seeing the most job growth. The Institute for Supply Management (ISM) reported that its ISM Manufacturing Index registered 50.3% in February, indicating continued expansion.

United States: President Donald Trump has imposed a 25% tariff on imports from Mexico and Canada, and increased duties on Chinese goods to 20%, effective March 4. These measures have raised concerns about a potential global trade war. The U.S. dollar has declined more than 4% since the start of the year, its biggest drop over this period since 2008.

Europe: Sovereign bond yields surged across Europe last week as investors reacted to the prospect of higher defense and infrastructure spending. In Germany, a proposed spending plan triggered a rise of nearly one-half of a percentage point in the German 10-year bond yield to 2.91%, its highest level since October 2023.

Asia: China’s consumer price index in February missed expectations and fell at the sharpest pace in 13 months, while producer price deflation persisted. Seasonal demand faded, and households remained cautious about spending amid job and income worries.

Fixed Income and Interest Rates: Mortgage rates have decreased slightly, with the 30-year fixed-rate loan averaging 6.787%, a decrease of 0.054 percentage points. The Federal Reserve announced a 0.25% cut to the federal funds rate, which was largely expected by economists.

Commodities: The U.S. trade deficit surged to a record high of $131 billion in January, driven by a 10% increase in imports. Non-monetary gold and finished metal shapes contributed nearly two-thirds of the increase in the goods deficit.

Energy: Natural gas prices are dramatically increasing due to rumors that gas production in the Permian is decreasing because of the sell-off in crude prices. Underground storage levels are very low, and there is a need to refill them to meet LNG and native demand this winter.

Metals: The increased trade deficit has led to concerns about growth, with non-monetary gold and finished metal shapes contributing significantly to the deficit.

Currencies: The value of the euro appreciated by nearly 4% relative to the U.S. dollar during the week, hitting a four-month high.

Economic Indicators: The University of Michigan’s consumer sentiment index has declined 10% since November, reflecting growing concerns about economic policy uncertainty.

Geopolitical Developments: President Trump’s plan to impose fees on Chinese-built vessels entering U.S. ports could raise shipping rates and fuel inflation. This proposal is part of Trump’s commitment to resurrecting the U.S. commercial and military shipbuilding industry.

New Technology News: Delta Air Lines’ response to a recent crisis, where one of its jets burst into flames and flipped upside down, has sparked a debate about the adequacy of compensation and its potential long-term effects on customer loyalty.

This report provides a detailed overview of the latest macroeconomic news and trends, offering valuable insights into the current state of the global economy.