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Baillie Gifford & Co., traditionally focused on high-growth tech stocks, is shifting its attention to "boring" US infrastructure companies, anticipating a significant building boom following years of under-investment. Partner Stuart Dunbar noted that while the firm still favors some major US tech stocks, they are currently underweight due to high valuations.
European Central Bank officials are divided on the effectiveness of interest rate cuts to stimulate the struggling economy. Some advocate for swift reductions to boost consumer spending and business investment, while others caution that issues like high energy costs and a shortage of skilled workers may limit the impact of monetary policy.
China's exports experienced slower growth in November compared to the previous month, while imports unexpectedly declined. This trend raises concerns for the world's second-largest economy, especially with Donald Trump's potential return to the White House introducing new trade risks.
BMW's Mexico chief anticipates stagnant auto sales in 2025, impacted by a weakening peso and slow economic growth amid rising trade tensions from the U.S. The luxury vehicle market is expected to maintain its volume, with growth projected at 0.5% to 1.5% in 2024.
UBS analysts assert that the current high stock valuations, with the S&P 500's forward price-to-earnings ratio at 22.2x, are justified due to the tech sector's growing dominance and improved cash flows. They predict that these valuations will continue to rise in 2025, supported by lower capital costs and contained recession risks. The S&P 500 has surged 28% in 2024, driven by a booming tech sector and optimism following Donald Trump's reelection.
Global advertising revenue is set to exceed $1 trillion in 2024, with a projected increase of 9.5% to $1.04 trillion, according to GroupM. This growth is primarily fueled by online advertising platforms like Google, Meta, and Amazon, as highlighted by Kate Scott-Dawkins at the UBS Global Media and Communications Conference.
The Canadian government will unveil its fall economic statement on December 16, as announced by the finance ministry. This update will include a revised estimate of the government's deficit.
Donald Trump's treasury secretary nominee, Scott Bessent, proposes a "3-3-3" plan aimed at reducing the federal budget deficit to 3% of GDP, increasing annual economic growth to 3%, and enhancing oil and gas output by 3 million barrels per day by 2028, rising from 30 million in 2024.
Ghana's electoral commission has declared ex-President John Dramani Mahama the winner of the presidential election, securing 56.55% of the vote. His main rival, Vice President Mahamudu Bawumia, conceded defeat, acknowledging the need for change amid a severe economic crisis. Mahama, who previously served from 2012 to 2016, promises governance reforms and a $10 billion investment in infrastructure to address the country's challenges.
Stocks are expected to face a significant correction in the first half of 2025, driven by slowing consumer momentum, a softening labor market, and historically high valuations. Analysts predict a potential drop of over 20%, advising investors to adopt defensive strategies and consider buying after a substantial decline. The current economic indicators suggest a heightened risk of recession, making equities a precarious investment.

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