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WORLD CUP-ONOMICS

In 2024, we had Swiftonomics. Now, as the football (or soccer, if you're that way inclined) World Cup is underway, it's time for World Cup-onomics.

There's no shortage of discussion around the economic and market impact of the tournament.

According to a Bank of America, citing data from OpenEconomics, the tournament “could add six-tenths to US GDP and four-tenths to World GDP.”

The May U.S. jobs report may have already reflected some of the impact, they said.

“The upshot is that the tournament is another tailwind for the U.S. economy and another reason to expect inflation to be more persistent in the near-term.”

Meanwhile in another host nation, Mexico, “some World Cup-related price pressures may still emerge,” a Barclays note said this week. But the impact should just be temporary, meaning the country’s central bank can stick to leaving rates on hold, Barclays added.

And Deutsche Bank haven’t just thought about the economic impact – although they argue the effect on GDP will be limited as various other major macro themes could trump the World Cup.

“Our analysts in leisure, restaurants and beverages, media, tech, and gaming see names in their coverage for which the World Cup could be a supportive factor for shares,” they said in a note earlier this month.

One of their many examples is Fox FOXA.O which has the English language broadcast rights.

(Sophie Kiderlin)

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