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Central bank pressure sends debt into bear market for the first time in 20 years

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Central bank pressure sends debt into bear market for the first time in 20 years

This Friday, the global bond market entered a bear market after registering a 20% drop since its peak in 2021, the largest since its inception in 1990. The drop was recorded in Bloomberg’s Global Aggregate Total Return Index.

Accelerating this decline has been the constant rhetoric from monetary authorities around the world who stress every day the need to keep raising interest rates as a way to curb runaway inflation around the world in the aftermath of the war in Ukraine.

One of the things that put the most pressure on primary-traded sovereign debt was Jerome Powell’s speech exactly one week ago, last Friday. The chairman of the US Federal Reserve System (FRS) confirmed his intention maintain a tight monetary policy “for a little while”, even if it represents “some pain” for households and businesses.

Across the Atlantic, days after Powell, Isabelle Schnabel, a member of the European Central Bank’s (ECB) executive board, mentioned the need to keep key rate increases as “a slowdown in economic growth,” in the event of a recession – which, according to Schnabel, not excluded –

probably not enough to slow inflation.”

Against the backdrop of these toughened speeches, analysts have less and less doubts about a further increase in interest rates at the September meetings. The new signals from central banks follow a wave of interest rate hikes around the world that has been ongoing since last year and brought the bond market to the end of four decades of a bull market amid a highly volatile investment environment and uncertainty.

High inflation worldwide, far from both the Fed’s and the ECB’s 2% rate mandate, also marks the end of the stimulus that has driven sovereign debt below 1% for years.

See also  The world's largest passenger aircraft, the Airbus A380, is being reactivated by Lufthansa.

Europe was one of the regions hardest hit by the energy crisis caused by Russia’s invasion of Ukraine and the subsequent sanctions imposed by the European Union. China, on the other hand, has chosen the opposite strategy of cutting interest rates as a way to stimulate the world’s second largest economy.

This reality, as Powell pointed out in his Jackson Hole speech, bears some resemblance to what happened in 1960 when low inflation and unemployment ended. Under then-Fed Chairman Paul Volcker, interest rates rose 20% and Treasury bond yields rose 16%.

The Fed chairman said, speaking of this period, that “history strongly warns against premature easing of accommodative monetary policy” and therefore it must continue.

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Economy

Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners

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Everything has been delivered.  10 Bugatti Centodieci are already in the hands of the owners

OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.

“The Centodieci combines all the values ​​of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.

This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.

This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.

Recall that each unit costs the owners eight million euros before taxes.

Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.

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Economy

The first Dacia hybrid. “The cheapest hybrid family on the market”

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The first Dacia hybrid.  "The cheapest hybrid family on the market"

BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.

The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.

The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”

Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.

Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.

Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.

Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…

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See how Tesla tests its electric Semi truck in the worst-case scenarios

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Tesla Semi camião elétrico testes

Tesla has finally been able to bring its long-awaited Semi to market. This electric truck promises to revolutionize transportation and bring all the unique characteristics of this type of electric vehicle to this class of vehicles.

Now that the first units have been delivered, there is hope that they will finally be mass-produced and reach more transport companies. With so many promises to be kept, a new video is now emerging showing Tesla testing its Semi truck under worst-case scenarios.


Tesla Semi is already on the market

Like all Tesla electric vehicles, Semi follows the same line of creating a unique design associated with a platform with the most modern technology available. The proof is in what was presented to the public and surprised most people.

To prove the quality of this new proposal, Tesla published in your LinkedIn account new video. In it, he reveals some of the testing he's done to determine the strength and quality of the Semi's design and its (potential) durability.

Tests to prove its durability

It has been revealed that the Tesla electric truck is subjected to numerous tests and its application in the worst scenarios that drivers may face. It doesn't stop at the ruggedness of the Semi's designs, but goes further and focuses on the motors and batteries themselves.

This is the proof that many have been waiting for to ensure that this new proposal is not limited to a lot of autonomy. Its resistance is great and will provide greater durability, further enhancing the Semi's value and performance.

high quality electric truck

Tesla has already showcased the Semi's quality with a video showing its truck driving roughly 500 miles on just one charge. The big news here is that he managed to make this long journey with a maximum load of about 37 tons.

Now Tesla remains to widely place the Semi on the market. At the moment, only a few companies have access to this new product, with a very long list of pending deliveries, who want to start mass-using this electric truck offering.

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