Blackrock has come out with his latest note on macro perspectives and makes a compelling argument: inflation is largely being driven by supply shocks, not fiscal policy, and raising interest rates is not the solution. This was largely caused by manufacturing shortages and a shift in consumer spending towards goods rather than services. We’ve heard it all before, and it’s compelling. I think inflation will go away along with the virus and we’ll be right back to the post-financial crisis economy. That’s the best-case scenario.   Because if inflation continues and the Fed is forced to raise Fed funds to […]

GBP/JPY was down 0.7% on Friday, falling from above 155.00 to around 154.00. Risk-off flows and weak UK data weakened sterling, while safe haven demand and lower global bond yields strengthened the yen. GBP/JPY fell sharply on Friday and sharp falls in global stocks and commodities weighed on risk-sensitive currencies like sterling, while a sharp fall in global bond yields on safe-haven demand boosted the rate-sensitive yen. Much worse-than-expected UK retail sales for December made matters worse for the GBP and while it wasn’t the worst-performing G10 currency on the day, it fell 0.7% against the yen, which was the […]

The world’s leading streaming services and production company NETFLIX (#Netflix) with a market cap of $239.57 billion, is expected to report its fourth quarter 2021 financial results and business outlook Thursday, January 20, 2022 after market close. The report is prepared for the fiscal quarter ended December 2021. In the third fiscal quarter of 2021, ended March 30,th September 2021 and reported on 19th As of October 2021, the company’s revenue was $7.48 billion and net income was also $1.45 billion for the same period, while earnings per share were 3.19, beating analysts’ forecasts of 2.57/2, surpassed 56. These numbers […]

European equity markets are sold out across the board, as global equity markets came under pressure from rising yields and heightened expectations, hitting technology stocks in particular. In this environment, strong data releases only add pressure rather than lift sentiment on stocks and the GER30 and UK100 are currently down -1.2% and -0.8% respectively. Core EGBs were little changed, with the 10-year Bund yield falling -0.4 basis points to -0.033% after the paper erased earlier losses. the German 10-year-old clearly preparing to break negative territory for first time since early 2019, but not quite as far as it seems. the […]

Equity markets fell (Nasdaq -2.6% while VIX rose +5.22%). Financial and pharmaceutical companies led the slide, U.S. dollar more firmly supported by high Income – the main market driver. US 10-year bonds 1.85%, German 10-year highs to May 2019 as UK and German inflation hit 30-year highs. oil higher again, gold keeps circling. The pressure on the British Prime Minister is growing. U.S. DOLLAR (USDIndex 95.65) holds on to profits. US returns Up 10 years up – closed at 1.865% & acts at 1.883%. shares – US500 -85 (-1.84%) 4577 (GS -6.97%, BAC -3.44%, FB -4.0%, SONY -7.0%, Nikkei -0.27% […]

The weakest start to the new year since 2009 for the US Treasury market continues to undermine equities and support the USD as yields continue to rise.   The Market Week – January week 3 The markets are now in focus inflation and the central banks. Treasuries continue to make a stormy start to 2022 and the move in yields is the main driver of market sentiment. The equity markets were rocked by the expected rise in interest rates and a disappointing start to the Q4 reporting season. CPI rates have hit 30-year highs. Employment growth is also making headlines; […]

USDCAD Canada’s CPI got on 4.8% Pace in December from the growth rate of 4.7% in November. CPI fell 0.1% after gaining 0.2% in November. The average of the three core CPI measures of the BoC was 2.9% in December compared to 2.8% in November. Key annualized trimmed CPI reading rose 3.7% from expectations of an “unchanged” reading at 3.4%. Prices increased year-on-year for all eight major components in December. Transportation and accommodation prices were the main contributors to CPI growth. Year-on-year, prices for services (+3.4%) increased more in December than in November (+2.9%). Goods prices (+6.8%) increased slightly more […]

Equity markets fell again (Nasdaq -1.15%) Financial and technology companies led the decline, U.S. dollar slipped like Yields – slides from highs, oil higher again, gold The day’s asset rose to $1842, helped by more hot inflation data from Germany, UK and Canada and strong US housing data. China cut mortgage rates and lifted Asian markets (Nikkei +1.11%). Lagarde: The ECB has reasons NOT to act as quickly as the FED. Biden reinforced rhetoric about Russia and Ukraine, in which he predicted Russia would “make a move.” Johnson is staying in the UK for the time being. U.S. DOLLAR (USDIndex […]

GBPUSD, daily GBPUSD raised 1.3636 during the European morning but remains in yesterday’s range and tested the key 1.3600 even. The rise in yields has fizzled out for now and with Treasuries outperforming core European markets, the dollar struggled during the European AM. The fact that British Prime Minister Johnson has managed to hold on despite the heated debate over “Partygate” and calls for his resignation may have helped Sterling somewhat this morning, but there still appear to be attempts to garner sufficient support for a no-confidence vote, z now the pound is finding support and has also risen against […]

Microsoft Microsoft, the second largest company on Wall Street by market capitalization (after Apple) and developer of the Windows operating system and office suite, is expected to report its results for the quarter ended December 2021 Tuesday, January 25th, after market close. Zacks forecast sales for the quarter at $50.32 billion, above that $43.08 billion in the same period last year (up 16.82%), while the return per share is expected $2.29, over $2.03 in the same quarter of the previous year (an increase of 12.81%.) For revenue by product line for the upcoming quarter Amy Hood Microsoft Chief Financial Officer […]