Global Markets React to Policy Shifts, Corporate Actions, and Economic Outlooks

Corporate News - Moody's Ratings has upgraded SoftBank Group Corp.'s debt outlook to positive from stable, affirming its Ba3 corporate family rating due to improved credit fundamentals, including a reduction in market value-based leverage to approximately 26% as of September 2024, down from 41% a year prior [3][8] - SoftBank has expressed strong disagreement with Moody's rating, considering it unsolicited and is exploring legal options to address what it views as potentially misleading information for investors [3][8] - PwC UK is cutting around 175 auditor jobs and implementing lower pay increases for its staff due to a sharp slowdown in revenue growth, with broader job cuts affecting approximately 1,800 positions across its U.S. operations anticipated in late 2024 [4][8] Economic Policy - German Chancellor Friedrich Merz emphasized the urgent need for pension system reforms in response to changing demographics, with projections indicating a significant imbalance by 2036 as 19.5 million baby boomers retire against only 12.5 million new workers entering the labor market [5][6] - Proposed reforms include encouraging private savings, potentially raising the statutory retirement age, and discouraging early retirement to mitigate future labor shortages [5] - Chancellor Merz announced plans to seek new trade partners outside the trans-Atlantic region, highlighting opportunities in South America, Asia, and Africa, while also expressing a desire to revive talks on a trans-Atlantic free trade agreement with zero percent tariffs [6] Central Bank Policy - European Central Bank (ECB) Vice President Luis de Guindos stated that the ECB is maintaining a flexible stance on interest rates, keeping all options open due to ongoing uncertainty in the global economic landscape [9] - De Guindos noted a "remarkable services inflation deceleration" but observed that consumption as a driver of growth has not materialized, with expected growth for the second and third quarters being "almost flat" [9]