Markets have stabilised a little bit over the past three months, but for investors, this year has been a complete disaster, with both government bonds and stocks reporting negative returns. Investors are nonetheless concerned about high prices, sluggish GDP, and the possibility of a recession brought on by an aggressive Fed.
There isn’t a lot of good news to report right now, but the fact that investors are feeling quite pessimistic is consoling. Our composite sentiment index, which uses a variety of technical, positional, and survey indicators to gauge investor mood for the S&P 500® Index, is almost two standard deviations oversold. This, in our opinion, offers some comfort that the markets have thus far taken the terrible news into consideration.
U.S. - Even while it’s too soon to say that a recession will be the most likely outcome for the US economy in 2023, we think the likelihood is growing. The inverted Treasury yield curve, which shows the biggest negative difference between 10-year and 2-year yields in 40 years, is the key cautionary sign. Some of the leading indicators for the US economy, such as the new orders index from the Institute for Supply Management, have weakened. The Fed’s primary metrics, such as payrolls and wages, are still in overbought territory. These labour market movements typically lag behind the general economy. The Fed running the danger of tightening more when the economy deteriorates as a result. We continue to believe that the US will experience a soft or softish landing, and we anticipate that robust household and business finances will be able to keep the downturn to, at most, a light recession.
Since the COVID-19 pandemic, the often obscure world of shipping equities has come to prominence as investors have realised just how crucial marine shipping is to the international economy.
Normal supply networks were disrupted by the outbreak, leaving many deep-sea cargo ships and containers in the world unprepared to manage an enormous increase in demand as housebound consumers gorged on commodities instead of spending their money on experiences.
The crisis in Ukraine poses a potential to significantly disrupt international shipping lanes and force cargo to be relocated even as the pandemic (hopefully) subsides.
The Gaming Market was valued at USD 198.40 billion in 2021, and it is expected to reach USD 339.95 billion by
2027, growing at an 8.94 percent CAGR between 2022 and 2027. Because of the nationwide lockdowns imposed
as a result of the COVID-19 pandemic, some people turned to gaming platforms to pass the time. As a result,
these platforms drew hundreds of thousands of new visitors to online traffic. Recently, video gaming trends have
seen a massive increase in both players and revenue.
The gaming industry’s continuous technological advancements are significantly propelling its growth.
They are improving the way games are made and the overall gaming experience of users.
Game developers in emerging economies are constantly striving to improve the gaming experience by
releasing and rewriting codes for various console/platforms such as PlayStation, Xbox, and Windows
PC, which are then incorporated into a standalone product delivered to gamers via a cloud platform
The opportunity for the power, utility, and energy sectors is once in a generation. It can not only play a key part in realizing its own cleaner energy future, but it can also assist consumers, communities, and society in achieving this objective. The distinctions between established enterprises in the sector, up-and-coming competitors offering novel goods and services, and other related industries, such as manufacturing and transportation, will continue to wane during the coming ten years. Tomorrow won't resemble today at all; it will be more complicated, nonlinear, and converged. Policy changes, geopolitical unpredictability, and technological advancements will continue to be an undercurrent, defining the way forward.
The role that industry executives want their companies to play in this new energy ecosystem, the route to get there, and how to involve stakeholders in the journey should all be in the forefront of their minds. Instead of letting others determine the narrative, the sector has the chance to write its own account of the energy transition. We examine what lies in store for energy and utility firms going forward.
Many of the top energy and utility firms are beginning to clarify the stances they will take both now and during the transition by committing to net zero targets and advancing their environmental, social, and governance (ESG) journey. Even many who at first thought of it as a temporary storm to be weathered now recognize it for what it is: a chance for the industry to reinvent itself by fundamentally altering how it functions. This entails preserving the qualities that have benefited the sector over the course of its lengthy history while retiring those that are no longer relevant to the energy ecosystem of the future.
U.S. - The U.S. economy’s momentum will probably prevent a recession in 2022. But as borrowing costs rise due to
the Federal Reserve’s aggressive monetary policy and the weight of exceptionally high prices, it is difficult to imagine the
economy surviving 2023 undamaged. Now, we expect the U.S. economy to increase by 2.4 percent in 2022 and 1.6 percent
in 2023. (compared with 2.4 percent and 2.0 percent , respectively, in May). The labor market is still tight and will stay
there until the beginning of 2023, when it will start to rise as the effects of subsequent Fed rate increases become more
pronounced. We now anticipate that the jobless rate will surpass 4.3 percent by the end of 2023 due to the economy’s
pressures getting worse as the Fed tightens its purse strings
Europe - We have lowered our GDP growth forecasts modestly for the eurozone economy. We now expect 2.6%
growth this year and 1.9% next year (from 2.7% and 2.2% in our interim forecasts in May). Higher inflation drives our
downward revision. We now expect consumer price inflation to reach 7% this year and 3.4% in 2023 (from 6.4% and 3%
previously) on the back of higher energy and food prices resulting from geopolitical tensions. Lower international demand,
particularly from China, is also expected to dampen growth. With pay increases falling short of covering increasing prices,
consumers are beginning to feel the pinch on their purchasing power. Although less so than three months ago, we still
anticipate sizable pandemic-related saving buffers and pent-up demand for services to keep consumption rising. This is
because the instability in the financial markets is reducing net worth. The growth is clearly at risk from negative factors.
Asia-Pacific - The prospects for the Asia-Pacific region are generally positive, notwithstanding war, increased
inflation, and interest rates. The exception is China, where we anticipate that due to difficulties brought on by the COVID-19
lockdown, it will miss its growth goal. We further reduced our baseline 2022 growth prediction for China to 3.3% because
to the slower-than-anticipated removal of COVID restrictions and the country’s weak domestic demand recovery.
Emerging Markets - Across the board, we increased our projection for consumer price inflation. Compared to
our March forecasts, annual average inflation in a median EM will be 7.1 percent in 2022 and 4.1 percent in 2023, an increase
of 1.2 and 0.6 percentage points, respectively. This higher inflation reflects the greater decline in consumer purchasing
power and the resulting decline in real domestic demand for the rest of 2022 and 2023
The industrial batteries market is expected to reach $30.8 billion by 2030, rising at a CAGR of 13.2 percent from 2021 to
2030, according to the industrial batteries market report. The worldwide industrial batteries market was estimated at $9.0
billion in 2020. Industrial battery deployment capacity has increased by 200 percent annually since 2018. Industrial batteries
are currently powering a number of end-use applications such grid storage and uninterrupted power systems, whereas
traditional batteries were mostly utilized in one consumer devices during the 1990s and the early 2000s. Industrial batteries
are utilized in remote, challenging locations where it is necessary for equipment or devices to be self-powered but where
it is difficult or impossible to recharge or replace the batteries. These batteries’ primary components are cathode, anode,
and electrolyte, with cathode accounting for about 30% of the total cost of the battery. Rechargeable industrial batteries
are frequently employed as a power source in various data centers, grid storage facilities, and communication hubs. The
industrial batteries most frequently utilized in industrial applications are nickel-, lead-, and lithium-ion batteries.
Continuous technological developments in the industrial battery sector, rising annual industrial battery deployment
capabilities, and strict government restrictions put in place to curb rising pollution are some of the key factors influencing
the worldwide industrial battery market trend at the moment. Additionally, the usage of industrial batteries in increasingly
more applications, such as forklift power or backup power for data centers and telecom base stations, has a substantial
impact on the market growth for industrial batteries. According to data done by the Statistical Review of World Energy in
2020, the yearly use of renewable energy worldwide (including biofuels) increased at an all-time high (3.2 EJ). This was the
biggest increase for any energy source in 2019 thus far. Industrial batteries also don’t release potentially harmful chemicals
like sulfuric acid, which supports environmental sustainability and helps the worldwide industry expand.
Home buying in the U.S. activity declined in February and fell 7.2% from a seasonally adjusted 6 million units from January. Overall sales fell 2.4% from the previous year. These figures were much higher than analysts expectations of 6.2% according to consensus estimates. The good news for sellers is that the median home price sales grew 15% from the previous year, increasing the record streak of 120 consecutive months of year on year price increases.
The price increases are a major challenge for buyers as they are seeing sustained price increases and rising mortgage rates. Previously stable mortgage rates are rising month on month and have risen 28% from the previous year. This trend has prevented many home buyers from purchasing a home, and inflation is also a factor as they see their purchasing power dwindling.
The U.K. on the other hand is seeing a surge in demand, even though prices have increased on all property types. The overall supply of new housing has increased 5% over the 5 year average and the seller is still in the driver’s seat. The market is bouncing back from the Covid doldrums with property sales 15.3% higher in January with the average asking price for a home is over £290,000. This has caused a squeeze on household incomes and is expected to continue for the foreseeable future.
Some of the factors contributing to the increase in home sales are more people work from home and want a larger living space. Families are realising the need for bigger homes after being kept home for 2 years due to strict Covid restrictions. Analysts believe this buying trend will subside in the coming months as the Bank of England has increased mortgage rates and the rate hikes will continue as inflation drives the cost of living. Increased costs for fuel, food and taxes are on the horizon.
businesses should redouble their efforts to improve transparency, agility, cooperation, sustainability, and
digital innovation in order to enable the next wave of growth. In our 2022 technology industry forecast,
you can learn more about these important focus areas.
digital transformation. As remote work became more prevalent and market demands changed, work
environments transformed overnight. To accelerate their transformation efforts, Deloitte advised
technology companies to improve their supply chains for better transparency and resiliency, as well as
adopt cloud, everything-as-a-service (XaaS), and edge intelligence.
We recommended technology sector leaders to review where and how production occurs, focusing
on boosting transparency, flexibility, and resiliency as the year 2021 began and many supply networks
faltered. We also recommended that businesses reorient and reskill their workforces in order to maximise
remote work capabilities and fully utilise emerging technologies like AI.
Leaders now have the opportunity to address these issues more strategically and deliberately. Rather
than dealing with a current crisis, they can create the groundwork for future innovation and growth.
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