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Interest rates show no signs of relief and continue to rise

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Juros não dão sinal de alívio e continuam a subir

















The threats were justified. The European Central Bank has reacted to market forecasts and has consistently raised interest rates by 0.5%. But the idea is not to stop there. And based on a significant upward revision of the inflation forecast, her organization Christine Lagarde says she “expects further increases”, noting that “she believes that interest rates will still have to increase significantly at a constant rate in order to reach levels which are restrictive enough to ensure a timely return of inflation to the 2% target over the medium term.”

A guarantee that has already been put forward by analysts contacted by our newspaper.

Ricardo Evangelista, an analyst at ActivTrades, believes that the central bank should continue to raise interest rates in 2023 until they reach 3%: “This means that after 0.5% we will have another percentage point over the next year.” However, he believes that next year the rate of interest rate growth should slow down: “We will probably have four increases of 0.25%. But this is a scenario that is not guaranteed and may need to be adjusted if inflation falls faster than expected or if it remains high despite monetary tightening.”

Paulo Rosa, an economist at Banco Carregosa, expects a 50-point increase of the same amount at the first meeting of 2023 on February 2, but sees a slowdown to 25 basis points on March 16, “setting the ECB’s deposit rate at the time at 2.75% , which is very close to the currently expected terminal rate, with the market expecting the same terminal rate for the eurozone interest rate to be around 2.8%. That is, the ECB’s current reference interest rate is 1.5%. A 50 basis point increase on December 15 would raise that rate to 2%. A rise of more than 50 points on Feb. 2 will raise the rate to 2.5%, culminating in 2.75% on March 16 for a 25 point increase.”

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Eduardo Silva of XTB Portugal also believes that “monetary tightening will have to continue to cool consumption and therefore inflation”, and therefore says that “in the medium term we will continue to see growth more or less aggressive depending on the evolution inflation.”

What to expect now?

For a property valued at 125,000 euros payable over 33 years, if in January the installment was set at 362.71 euros (at an average interest rate of 0.81%), then in October it had already risen to 488 euros (average interest rate of 2 .86). %) and will now rise to 540.58 euros, combining the interest rate with a projected increase of 0.5%. That is an increase of 52.53 euros per month, but 213.87 euros more than at the beginning of the year, according to the simulations carried out by Comparajá.pt.

For property worth 186 thousand euros, payable for the same period (33 years), if in January 535.42 euros were paid, then in October the contribution increased to 726.23 euros. With this increase in interest, you will pay an installment of 804.38 euros in December. That is a monthly increase of 78.15 euros and an increase of 268.96 euros compared to January.

The scenario is repeated for a house worth 257 thousand euros, also payable up to 33 years. The payment amount, which was 791.65 euros in January, rose to 1,073.72 euros in October this year. If this 075% increase occurs, you will pay a monthly fee of 1189.27 euros in December. After all, 115.55 euros more per month and 397.62 euros more than at the beginning of the year.

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According to João Melo, Director of the Mortgage Loan Platform, “2022 has undoubtedly been marked by an exponential and constant increase in mortgage interest rates, given that we are seeing the most dramatic increase in the history of banking. Although interest rates were already at higher rates, like in 2008 or 2012, the truth is that rates have fluctuated at a level they have never experienced before,” he refers to our newspaper.

He adds: “The main effects of this phenomenon have already been seen and, combined with the fact that house prices have not fallen, the total amount provided by banks associated with home loans has been decreasing month by month, and in October it was up to one of worst record in the last two years.



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Economy

What factors impact financial markets?

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The global financial markets are now hugely complex, with traders and analysts around the world looking closely for signs of movement. What are some of the most important factors to be aware of that impact the financial markets?

Geopolitical events

With news breaking from different countries throughout the day, many different stories could affect the markets on any given day. For instance, economic indicators such as the European Central Bank’s inflation rates and gross domestic product numbers released by each country can determine which direction the markets take. Stocks, currencies and other financial instruments can all vary depending on these areas.

Major events such as war breaking out, natural disasters and elections also have an effect. When we look at the commodities market, climate change is an issue to bear in mind, with unusual weather sometimes causing scarcity or abundance of a certain product.

An interesting aspect of the modern financial world is the way that the different markets are linked. This means that any important event or news story that affects one area could easily affect another, even if the link isn’t obvious at first sight. We can also see how local shocks and events can quickly have an effect at a global level.

The financial crisis of 2008 is a good example, as it started with a serious downturn in the US housing market. Although this appeared to be a localized issue at first, it soon revealed some major issues with the global banking setup that caused problems around the planet affecting millions of people and diverse industries.

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Speculation and investment trends

The previous factors all point toward the markets changing, and there’s no shortage of traders around the world waiting to see what happens next and how they can benefit. This means that we need to take into account other issues such as speculation and investment trends in the markets.

Armed with a variety of tools, including candlestick charts, traders try to identify trends such as support and resistance levels. They use the information they glean from the charts to make their moves, which can influence the general market if enough people make the same moves or if the amounts involved are significant.

Once an investment trend begins, it can have a knock-on effect that would have been impossible to predict at the outset. The example of Bitcoin and other cryptocurrencies shows how something that starts small can grow impressively. Cryptocurrencies have now gained enough mainstream appeal to influence and disrupt many industries, from healthcare to gaming and banking.

It’s important to understand how the leaders of a company operate and how they have faced challenges in the past. If we look at banking and the Bank of New York Mellon in particular, we can see that its history can be traced back to 1784, so it has overcome all the major events that have occurred since then. With some of the biggest names in the business world making up its key institutional investors, this is a company that we would expect to react effectively to changing markets.

Regulatory changes and company results

Just about every industry represented in the financial markets has laws and regulations that govern it. This means that the fear of harsher new laws is an almost constant threat. Meanwhile, the hope that beneficial changes to the regulations help businesses prosper is the other side of this matter that investors keep a close eye on.

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Let’s not forget the role played by the profit and loss results produced by major companies. It’s clear that these results have an almost immediate effect on their stock prices. However, we should also bear in mind that this effect can reach other areas of the economy. A surprising set of results for a large business can produce shock waves that travel around the market.

What impact do they cause?

From the wide variety of examples that we’ve looked at here, it’s clear that the impact isn’t going to be the same in every case. While one set of circumstances might snowball and cause a huge impact, another might cause a limited impact before the news disappears as other events overtake it.

Having said that, one of the key issues that they cause is a higher degree of market volatility. We can see how this works by looking at an area such as the COVID-19 pandemic in 2020. The markets became a lot more volatile as the different aspects of the pandemic became clear. Streaming companies, healthcare companies and video conferencing technology firms made huge profits, while airlines and hotels were among those to lose out massively.

Working out the overall impact of a particular situation is almost impossible to do now. With so many traders looking over the latest news stories and numbers with advanced tools, the original impact can quickly grow or simply disappear. Therefore, the key for investors is to understand emerging trends and react to them before it’s too late.

These details reveal how complex the global financial market is now. It’s a fascinating world, and with more information at our fingertips than ever before, it’s something that anyone can start to research and understand in their own way.

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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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