This week there is further evidence of the split emerging between the US Federal Reserve and central banks on this side of the Atlantic. The small decline in US inflation takes the pressure off the Fed as it can argue that it should now be given time to see if its efforts have paid off. Over here the data is far from convincing. GDP growth remains weak, at just 0.1% for the first quarter. Unemployment is very low and wages are rising, but signs of weakness are emerging - particularly in employers’ preference for temporary staff over permanent hiring. As the Bank of England has conceded that inflation will remain higher for longer markets now expect several more hikes before it is ready to pause for reflection.
Elsewhere, big tech companies continue to hype the potential for artificial intelligence. However, the impact is already being felt in sectors like publishing, marketing and advertising as investors grow concerned about its impact. Businesses like Pearson and Relx have spent this week outlining the benefits they see in AI but there is likely significant disruption to other sectors as the potential for this technology is tested.
Read what the team at Financial Express consider to be significant over the current week.