Economic Outlook 3.0
REPORT
Tomorrow, 29th February, is the date when inflation data for Spain, Germany, and USA will be released. The first two will be related to February data, while in the case of the U.S, it will refer to January’s PCE.
Important to follow…
Spain
General inflation, on a year-on-year basis, hit its lowest point 8 months ago and has since been rising again to around 3.4%. However, core inflation, which excludes energy and food, has maintained its downward trend, reaching its lowest at 3.6%, still far from the 2% target.
Germany
Despite the German economy being in recession, prices are not falling as rapidly as one might have expected. General inflation dropped to 2.9% in January and maintains a favorable trend towards reaching the 2% mark. The situation is similar for core inflation, although the level is slightly higher at 3.4%.
But if we want to compare both countries, we must use harmonized inflation figures to ensure equivalent baskets of goods. In this case, Spain reports a rate of 3.5% compared to Germany's 3.1%. And let's not forget that the ECB precisely looks at this harmonized or HICP "Harmonized Index of Consumer Prices" data to make its decisions.
Spain core inflation rate
Germany core inflation rate
BITCOIN
Bitcoin weekly chart
Bitcoin is reaching levels close to its all-time highs with a significant increase of over 10% in the past week. It's worth noting that the halving is scheduled for April and the price is nearing previous highs. The prospect of an unprecedented bull run is tangible, especially considering that this will be the first halving to involve powerful institutional investors who have entered the bitcoin market, thanks in part to the approval of the ETF last January. At the same time, deciding whether to buy now might be a bit late depends on long-term perspectives. If you consider a timeframe of another 10 years, then it might not be too late at all. Yet, is clar we are way far off from the accumulation area, where is always ideal to enter any market.
BEYOND MEAT
Beyond Meat's shares were surging nearly 49% in Wednesday trading after the company reported late Tuesday a wider Q4 net loss than a year earlier, and announced cost-cutting measures.
Beyond Meat Chief Executive Ethan Brown said late Tuesday the company expects to "steeply reduce" its operating expense and cash use during 2024. He also said it will "right-size" the company's production footprint and adjust prices to boost Beyond Meat's margins.
As we can observe in the chart here below, the price has fallen approximately 97% from its all-time-highs, thus is really difficult to have good reasonable good perspectives for this stock.
Beyond’s meat weekly chart
Instead, here we can see today’s rise signaled in the chart. One thing to be noted is that, so far, the previous important level neckline (green area) has been recovered, which it can be a bullish sign if the the stock keeps trading over that level.
