The Economist - Global Economy, Facebook Economy, Economic Recovery & There's a key reason why (20/07/22) - Financespiders

The Economist - Global Economy, Facebook Economy, Economic Recovery & There's a key reason why (20/07/22) - Financespiders

UK companies’ confidence in the global economy slumps

UK business confidence in the global economy has slumped to its lowest level in a decade amid the cost of living crisis and Russia’s invasion of Ukraine, according to a survey of FTSE 350 companies.

The Boardroom Bellwether survey found that 76 per cent of the companies that responded expect the economy to shrink in the next year — the biggest annual swing in sentiment since the research was first conducted a decade ago. In the poll this time last year, 96 per cent of companies that replied predicted the economy to improve.

The latest survey of FTSE 350 company secretaries, which is conducted by the Chartered Governance Institute UK & Ireland, a professional body, found that only 8 per cent of respondents expect the economy to improve.

Meanwhile, 76 per cent of companies that replied predicted that the British economy will decline in the coming year. The survey was based off 40 responses: 26 from the FTSE 100 and 14 from the FTSE 250.

In last year’s poll, the vast majority of companies expected an improvement in the global economy in significant part because of hopes that the UK and the rest of the world had turned the corner in the coronavirus pandemic.

Facebook Shifts Resources From News to Focus on Creator Economy

Meta Platforms Inc.’s Facebook META 5.11%▲ is reallocating resources from its Facebook News tab and newsletter platform Bulletin, as the company focuses more on the creator economy, senior executive Campbell Brown told employees in a memo.

Ms. Brown, a former journalist who leads Facebook’s global media partnerships, said the company would shift engineering and product support away from the two products as “those teams heighten their focus on building a more robust Creator economy.”

Thai central bank to ensure uninterrupted economic recovery

Thailand's economy has clearly recovered and the central bank will ensure the recovery is not interrupted by efforts to tackle higher inflation, the central bank chief said on Wednesday, amid expectations of an interest rate hike.

Economic recovery is expected to continue while the financial system remains strong and functioning normally, Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput told a business event.

The economic context has largely changed compared with during the COVID-19 crisis, so all sectors have to adapt in the face of higher inflation, policy adjustments going on in major economies, and geopolitical problems, he said.

Bank of America sent a message on the economy that was much more bullish than JPMorgan.

As banks reported second-quarter earnings, one thing stood out: Banks that focus on Wall Street were pessimistic about the outlook, and banks that mostly serve consumers and Main Street were much more bullish.

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Gold Rises As Dollar Retreats; Traders Focus On Fed Rate-Hike Path

The reasons for that aren't hard to identify, especially with a hard look at numbers Bank of America put out along with its earnings – which actually missed Wall Street forecasts, a fact glossed over as investors focused on its optimistic take on the American consumer. 

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