Asks about physical ripple effects of energy shock showing in PMI numbers and high input prices across US, Eurozone, Japan, UK.
Sam
Michelle Ghibli
Composite PMIs fell across the board; rising input costs a major concern due to fresh memories of 2022 inflation.
Michelle Ghibli
Longer energy supply disruption and elevated prices risk ingraining inflation expectations, changing corporate/consumer behavior.
Asks how long higher prices and supply chain disruptions could last even after Middle East hostilities end.
Sam
Michelle Ghibli
Does not expect energy prices to return to pre-war levels due to production disruptions.
Michelle Ghibli
Asia and Europe more vulnerable than US as large energy importers; fuel shortages could grow, governments mandating rationing.