BENGALURU/TOKYO: Factory activity across Europe and Asia expanded last month as demand, partly boosted by the global AI spending boom, remained strong even as the energy price shock from the Iran war kept inflation elevated, surveys showed on Thursday.
Rising inflation pressures across the globe have pushed several central banks, including the Federal Reserve and European Central Bank, to start hiking interest rates, with more increases expected. This has contributed to a sharp selloff in bond markets, pushing up borrowing costs for firms already hit by increased production costs.
