My Investing Muse

Global Economy This is extracted from an article dated 13 Sep 2023 from Fitch: We have raised our 2023 world growth forecast by 0.1pp to 2.5% reflecting surprising resilience so far this year in the US, Japan and emerging markets (EM) excluding China. We have revised up US growth by 0.8pp to 2.0%, Japan by 0.7pp to 2.0% and EM ex. China by 0.5pp to 3.4%. This has more than offset a 0.8pp cut to China – to 4.8% – and a 0.2pp cut to the eurozone, to 0.6%. But we have cut our 2024 world growth forecast by 0.2pp to 1.9% with widespread downward revisions. We have reduced our 2024 US forecast by 0.2pp to 0.3%, the eurozone by 0.3pp to 1.1%, and China and EM ex. China by 0.2pp to 4.6% and 3.0%, respectively.  This is the outlook provided by the Organisation for Economic Co-operation and Development OECD's recent September post : Global growth is expected to remain weak . The world economy is expected to grow by 3.0% in 2023, before slowing down to 2.7% in 2024. A disproportionate ...

MAERSK 2023 Q2 EARNINGS REVIEW MAERSK 2023 Q2 earnings were released in early Aug 2023. Here is a review of the earnings and what it says about the company and the global outlook. Why do I consider Maersk’s as an indicator of the bigger global outlook? MAERSK is one of the biggest operators of the world liner fleet at 15.3% as of May 2023, trailing only behind MSC (Mediterranean Shipping Company which leads with 18.6%). They have one of the widest reach and at one point, 20% of the global shipping capacity. Financial Highlights of MAERSK (consolidated)  Looking at the highlights above, we can see a notable YoY drop of revenue (consolidated) with ocean revenue suffering the biggest dip of 50% YoY. For the other business units, the drop was much lesser in magnitude. Observations from the Quarterly Summary of Consolidated MAERSK (YoY) in USD Revenue fell from 2022 Q2’s $21.65B to 2023 Q2’s $12.98B , a significant dip by 40.0% . The underlying profit has dropped from 2022 Q2’s $8.55B ...