Economy

Today's stock market
Strateg gets 1995 vibes: Then the stock market surged 40 percent

For those who want to know where the economy and the stock market are headed, it might be a good idea to specifically study the year 1995. Wells Fargo's strategist Chris Haverland writes that, according to Market Watch.

He believes that the economic cycles of 1995 and 2024 have several clear similarities. In 1995, inflation fell at the same time as the Fed started to cut interest rates and managed to achieve a soft landing in the economy.

In the 18 months that followed the first rate cut, the S&P 500 index rallied 40 percent, led by the financial sector. Haverland believes the pattern may repeat itself.

"We believe the US economy will avoid a recession and gradually strengthen through 2025. This, along with easier financial conditions, should support continued corporate earnings growth and equity market strength."

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The Fed vs Inflation
The White House on inflation: "Companies are not doing enough"

The big companies are not doing enough to lower prices, writes the White House in a statement after the US CPI announcement.

"We must do more to lower costs for hard-working Americans," it says.

Therefore, the pharmaceutical industry must be tackled to lower prices, reduce regulations for new housing construction and ensure that private landlords are not allowed to charge too much rent, writes the White House.

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US growth
Stronger-than-expected consumption in the US cheers the stock market

US retail sales rose 1 percent in July, compared to the previous month. It was clearly better than expectations of 0.3 percent, according to Trading Economics.

At the same time, there is also good news from the job market, writes CNBC. The number of newly registered unemployed fell by 7,000 to 227,000 people last week. Expected was 235,000.

Wall Street futures are reacting positively to the numbers, which dampen recession worries, according to the news channel. The Stockholm Stock Exchange's broad index also rose from 0.3 to 1.1 percent shortly after the reports were released.

"Walmart delivers strong report and raises guidance and now retail sales numbers come in stronger than expected. Good news is good news," tweets investment profiler Jon Arnell.

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Boom for non-alcoholic beer in the Middle East - soft drinks are nobbed

Sales of non-alcoholic beer in the Middle East have increased - both for Danish Carlsberg and American Anheuser-Busch. That when more and more consumers in the region are opting out of large soft drink manufacturers such as Pepsico and Coca-Cola because they are considered to support Israel, writes Reuters.

Anheuser-Busch says the upswing can also be partly attributed to a shift in countries such as Egypt and Saudi Arabia. There, the demand for alcohol-free beer has partly increased from the local population, immigrants and tourists.

Carlsberg's CEO Jacob Aarup-Andersen has previously told Reuters that the term "beer" is culturally charged in the Middle East, despite the fact that the company's drink, through a special production process, has never contained alcohol.

- It will take time for people to feel comfortable with the term.