International News 30/04
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The US economy expanded by 1.6% in the first quarter of 2024, a slower pace than anticipated.
The US economy is experiencing its slowest growth in nearly two years, with a 1.6% increase in gross domestic product (GDP) in the first quarter of 2024. This slow rate of growth is largely attributed to a surge in imports to meet strong consumer spending, which has widened the trade deficit. Economists had predicted a higher growth rate of 2.4%. The slowdown in growth is also attributed to slower inventory accumulation by businesses and lower government spending. However, the accelerating inflation has led to expectations that the Federal Reserve will not cut interest rates before September. Inflation spiked with the personal consumption expenditure price index (excluding food and energy) increasing by 3.7%. This combination of slow economic growth and rising inflation presents a mixed message for the US economy, making expectations of a Fed rate cut in 2024 increasingly unlikely if these trends continue.
Gojek Singapore and ComfortDelGro Co-operate, Pass Unpicked Orders to Each Other.
Gojek Singapore and ComfortDelGro Taxi have officially launched their partnership in Singapore, following an agreement in November 2022. The primary objective of this partnership is to increase the number of drivers on both platforms, which will result in increased fleet availability and reduced waiting time for bookings. The collaboration will commence on 29 April 2024. If a driver on one platform does not claim an order after a certain waiting time, it will be transferred to the other platform. Both companies have emphasised that orders will always be offered to driver-partners on their respective native platforms first. The General Manager of Gojek Singapore, Lien Choong Luen, hopes that this partnership will help to decrease customer waiting time and enhance reliability for both companies.
Deutsche Bank reports a 10% surge in profits for the first quarter of 2024.
Deutsche Bank has reported a 10% increase in first-quarter profit, exceeding estimates, driven by growth in fixed income trading and investment banking deals. This signals a recovery for the investment banking division, which has performed better than the retail division despite facing challenges in customer service. The bank's results mark 15 consecutive quarters of profit, a significant achievement after a decade of heavy losses. However, despite the positive performance, Deutsche Bank's stock opened 1.5% lower. Net profit attributable to shareholders reached €1.275 billion in the quarter, exceeding analysts' estimates. CEO Christian Sewing stated that the results mark a step forward for the bank and reiterated its commitment to achieving its 2025 targets, including a reduction in the cost-to-income ratio. Despite the earnings exceeding expectations, Deutsche Bank still faces challenges.