Weekly Market Update - 16 January 2023

Inflation Downshift

The Federal Reserve is on track to downshift to smaller interest-rate increases following a further cooling in US inflation, though it’s likely to keep hiking until price pressures show more definitive signs of slowing. Consumer prices rose 6.5% in the 12 months through December, marking the slowest inflation rate in more than a year. Investors seized on the numbers as a sign that the Fed would dial down the pace of its tightening campaign. The data is good news for the prospects of a soft landing.

Source: Bloomberg

Hong Kong Mortgages

Hong Kong mortgage applications from mainland Chinese buyers rose to a record high in the fourth quarter, underscoring the group’s growing influence in the city’s property sector. Mainland buyers with Hong Kong residency represented 11.4% of the mortgage applications that mReferral Mortgage Brokerage Services handled. The city has returned to the top five Asia-Pacific investment destinations by property consultancy CBRE for the first time since 2020, thanks to an expected pandemic recovery and low pricing.

Source: Bloomberg

Subway Sale

Subway is exploring a potential sale that could value the sandwich chain at more than $10 billion, according to a person familiar with the matter. The process is in its early stages and Subway, which has 37,000 locations in more than 100 countries and has long been a potential acquisition target, could still decide against any transaction. Separately, T-Mobile US is considering an acquisition of Mint Mobile, the budget wireless provider backed by actor Ryan Reynolds. No final decision has been made and closely held Mint Mobile could opt to remain independent or sell to another party, people familiar with the matter said.

Source: Bloomberg