Latest Finance-Economy News
Royal Bank of Canada Reports Quarterly Earnings
Royal Bank of Canada (RY) reported Q4 2025 earnings with a 12% increase in EPS compared to last year, though it slightly missed prior consensus predictions. The bank's price-to-earnings ratio stands at 15.18, surpassing its industry average of 12.80, indicating expectations of higher earnings growth relative to competitors.
US Economic Optimism Index Climbs in December
The RealClearMarkets/TIPP Economic Optimism Index rose 9.1% to 47.9 in December 2025, rebounding from a 17-month low. Despite this increase linked to the US government shutdown resolution, sentiment remains cautious, with the index below the neutral level of 50 for four consecutive months.
China-EU Economic Security Communication Upcoming
Europe anticipates a forthcoming economic security communication from China on December 3, focusing on enhancing internal governance rather than revolutionary changes, indicating a strategic consolidation rather than major policy shifts.
Global Economic Growth Surpasses Expectations in 2025
Contrary to early 2025 pessimism, global economic growth accelerated with goods trade expanding 4.8% monthly through September. The US grew at 2.0%, rebounding from midyear lows due to AI investments, fiscal support, and lower interest rates. Advanced economies and many EMDEs showed resilience benefiting from improved financial conditions and lower energy prices.
OECD Raises Growth Forecasts for Eurozone and US
The OECD updated 2025 growth projections upward to 2% for the US and 1.3% for the Eurozone, reflecting easing inflation, fiscal measures, and political stability. France's growth estimate was also revised to 0.8% for 2025, signaling mild optimism despite global uncertainties.
OECD Notes Global Economy's Resilience Despite Trade Tensions
The OECD forecasts a 3.2% global growth rate in 2025, marginally down from 2024 but higher than earlier estimates. Protectionist US tariffs had less impact than expected, aided by AI investment and accommodative policies. China is expected to maintain 5% growth, with India leading at 6.7%.
OECD Global Economic Outlook Remains Fragile Despite Resilience
The OECD projects a slowdown from 3.2% growth in 2025 to 2.9% in 2026, with a rebound to 3.1% by 2027. US GDP growth is expected to moderate while supportive macroeconomic policies continue to underpin global growth amid some fragility.
UNCTAD Reports Cooling in US and European Economies
The UN Conference on Trade and Development (UNCTAD) indicates slower growth for the US and Europe with US growth forecasted at 1.8% in 2025 and 1.5% in 2026, reflecting broader global economic cooling trends despite pockets of strength in emerging markets.
Notable Earnings Reports from Major US Retailers
Macy's Inc reported a 425% decrease in EPS forecast for Q4 2025 compared to last year, reflecting sector challenges. Other retailers like Dollar Tree and Thor Industries show mixed earnings performances amid varied consumer demand and economic conditions.
Financial Markets Support Economic Recovery in Emerging Economies
Lower US dollar valuation, reduced long-term yields, and strong equity markets have improved capital access for emerging markets, enabling a foreign-currency bond issuance rebound and narrowing spreads, further underpinning 2025's positive economic momentum.