Amazon plans to increase its investment in Germany.

Amazon has announced plans to invest €10 billion in Germany in order to meet the increasing demand for its cloud services and retail goods in the country. The majority of the investment will be allocated to the expansion of the Amazon Web Service (AWS) cloud infrastructure by 2026, in line with the growing potential for AI-based technologies in Europe. It is anticipated that this initiative will result in the creation of over 4,000 jobs in Germany and attract further investment, providing a much-needed boost to the country's struggling economy. Germany is currently experiencing an economic downturn, with high energy costs, interest rates, and low investment due to bureaucracy representing significant challenges. This latest investment brings the total amount of Amazon's investment plans in Germany to €17.8 billion. Furthermore, AWS will be expanding its data centres in Italy.

https://internasional.kontan.co.id/news/amazon-akan-tambah-investasi-di-jerman

The UK inflation rate has decreased to 2%.

UK inflation in May 2024 decreased to 2%, the lowest level since July 2021, according to the UK Office for National Statistics. This marks the first decline to 2% in three years and is lower than the figure of 2.3% recorded in April 2024. The decline in inflation was attributed to a slowdown in food prices, particularly bread, cereals, vegetables, sugar, jam, syrup, and chocolate. Services inflation also declined slightly from 5.9% to 5.7%, although it remains above the consensus projection of 5.5%. The decline in inflation has prompted speculation that interest rate cuts may be on the horizon, with BOE Governor Andrew Bailey expected to give the matter due consideration. However, it is anticipated that the Bank of England will defer any changes to interest rates until August.

https://internasional.kontan.co.id/news/inflasi-inggris-turun-ke-2
 

The monetary direction of continental European central banks.

The Swiss National Bank (SNB) has announced a 25 basis point reduction in its benchmark interest rate to 1.25%. This is the second consecutive reduction following a decline in inflationary pressures. The decision was in line with analysts' expectations, with 68% predicting a rate cut and 32% expecting a fixed rate. The SNB's decision strikes a balance between supporting the growth phase of the Swiss economy and maintaining control of inflation. In contrast, the Bank of England (BOE) has opted to maintain its interest rates at their current level of 5.25%, which is the highest level seen in 16 years. In a statement, BOE Governor Andrew Bailey indicated that although inflation has reached the target of 2%, it is premature to lower rates. He emphasized the need to ensure that inflation remains low.

https://internasional.kontan.co.id/news/arah-moneter-bank-sentral-benua-eropa