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Accumulation of mercury and lead in the body has been linked to a range of health problems, including neurological damage, and lead has been linked to learning disabilities and behavioral problems in children. Studies have shown that mercury can adversely affect the immune system, and can be toxic to the nervous system. It is important to understand the sources of these toxins and how to reduce exposure to them. Common sources of mercury and lead include water, food, air, and industrial and medical waste. In particular, mercury can be found in fish, dental amalgams, and natural gas, while lead can be found in paint, gasoline, and lead-acid batteries. To reduce exposure to these toxins, it is important to avoid eating large fish, such as tuna, that contain high levels of mercury, and to limit the amount of lead-based paint used in the home. In addition to avoiding sources of mercury and lead, it is also important to follow good health practices, such as eating a balanced diet, exercising regularly, and avoiding smoking and alcohol. Finally, it is important to talk to your doctor if you have any concerns about your health, and to have your blood tested for heavy metals if you are concerned about exposure.
We expect the euro area inflation data today to show that headline inflation eased to 2.2% y/y in August from 2.6% in July, driven by base effects on energy prices. We see underlying inflation remaining persistent due to sticky service inflation and a normalization of core goods inflation from the very low levels seen in the first half of the year. The most important part of the print will be the monthly increase in services inflation, which we expect to come in at around 0.3% m/m s.a. for the third consecutive month. This will still be high but at least lower than what we saw at the beginning of the year.
Easy base effects due a high monthly EMU CPI reading last year already foreshadowed a substantial cooling of EMU headline inflation this month. On top of that, German (2.0%) and Spanish (2.4%) national data published yesterday surprised slightly to the downside. Maybe there was room for the EMU figure to also touch the psychological barrier of 2%? This didn’t materialize.
We have a big day and big week ahead in terms of eco data and central bank speeches. EMU headline inflation (tomorrow) is on track to drop below the ECB’s 2% inflation target for the first time since June 2021 following downward surprises in French and Spanish readings end last week. German figures are released today. The September drop is mainly energy-inspired though as ECB President Lagarde suggested already at the Q&A session of the previous ECB meeting: “We are looking at a whole battery of indicators. And I’m saying that in particular because September will certainly deliver a low reading of inflation. Very likely. We expect, because of the base effect, particularly on energy, our inflation numbers to be up in the fourth quarter, so the last three months of 2024. But September is going to deliver a low reading.” While EMU money markets have been eager to nearly fully discount a 25 bps October ECB rate cut on the back of these softer national CPI readings and weak September PMI’s, we still tend to err on the side of the status quo. Unless the ECB president herself convinces us otherwise at an hearing in front of the European parliament later today.
Today's most important data release will be the US October CPI, where we expect inflation to slow down in both headline (+0.1% m/m SA, from +0.2%) and core (+0.2% m/m SA, from +0.3%) terms. In annual terms, headline inflation could still appear to accelerate due to base effects stemming from a low reading a year ago (headline forecast 2.5% y/y, from 2.4%).
UK interest rates are expected to remain higher for a longer period than previously thought, as UK inflation rose to 2.3%, a sharp 0.6% increase from September’s reading. “Annual CPI inflation rose to 2.3% in October, following a temporary dip to 1.7% in September driven by base effects from last year. This increase comes amidst […]
In the euro area, focus turns to inflation data for Germany and Spain which we receive ahead of the euro area data tomorrow. We expect euro area headline inflation to rise to 2.3% y/y from 2.0% y/y in October. The increase is expected mainly due to base effects on core inflation and especially energy inflation, while the monthly price increases are expected to show a continuation of the disinflationary process. We expect core inflation to increase to 2.8% y/y from 2.7% y/y. However, the monthly price increases are projected to continue below what is compatible with the 2% target annualized.
Krishna Sanghavi, CIO-Equity at Mahindra Manulife, expects some growth pickup in H2FY25 compared to H1FY25. He believes the market is in a consolidation phase post a significant rally. While FII selling has impacted the market, the underlying fundamentals remain strong. SIP flows are expected to continue growing, driven by India's economic growth and investor discipline. A Santa Claus rally is possible, but the long-term outlook depends on factors like GDP growth, macro conditions, and corporate earnings.
Larsen & Toubro Ltd. can potentially rally 25.11% from its previous close, said Jefferies Equity Research as it upped its target price for the stock. The hike comes on the back of L&T's robust order book and better visibility on government infrastructure spending following the Maharashtra elections. Despite a 2% year-on-year decline in order flows during the first half, largely due to a high base effect, the company’s domestic order flow grew by 1%.
In the euro area, focus is on German inflation data for December, which will provide an important hint of where we can expect euro area data to be tomorrow. Spanish inflation showed higher-than-expected inflation in December, which importantly was also due to core inflation rising more than expected. We expect euro area HICP inflation tomorrow to rise to 2.4% year-on-year in December from 2.2% in November. The increase is mainly due to base effects on energy and food inflation, while we expect core inflation to decline from 2.7% y/y in November to 2.6% y/y. Most importantly, we expect the monthly price increase in core inflation to once again be compatible with the 2% target when annualised. The data is thus expected to support the case for continued rate cuts by the ECB.