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Newton Fund Manager Says New Reality Warrants Central Bank 3% Inflation GoalApr 4, 2023 - 05:32:14 PDT
Investors should prepare for a world of higher price growth in the years to come, which will eventually force central banks to lift their inflation targets to 3%, according to a portfolio manager at Newton Investment Management.
The Bank of England will probably need to start cutting interest rates sooner than previously thought after raising them sharply in recent months despite signs of weaker inflation pressures, monetary policymaker Silvana Tenreyro said on Tuesday.
Apr 4, 2023 - 05:26:51 PDT
Banks in the European Union must be "conservative" with dividends and other payouts after recent turmoil in the sector, and focus on keeping their cash buffers topped up, the European Union's banking watchdog has told Reuters.
Silicon Valley Bank’s blunders were encouraged by US regulation, went untested by the Federal Reserve and were “hiding in plain sight” until Wall Street and depositors grew alarmed.
Apr 4, 2023 - 05:25:57 PDT
Storm clouds are still threatening the economy as they did a year ago, said Dimon, the chief executive of the largest U.S. lender. And the banking system is under renewed stress after the failure of Silicon Valley Bank and Credit Suisse's rescue by UBS last month.
A risk-on mood fueling this year’s equities rally is likely to falter, with headwinds from bank turbulence, an oil shock and slowing growth poised to send stocks back toward their 2022 lows, according to JPMorgan strategist Marko Kolanovic.
Undaunted By Market Meltup, Wilson And Kolanovic Double Down On Doom, See Stocks Retesting 2022 LowsApr 4, 2023 - 05:23:20 PDT
Demonstrating a remarkable and enviable stubborness to continue being wrong in the face of a market meltup that will extend for as long as the Fed is once again injecting hundreds of billions of liquidity to offset the panic that it itself caused by hiking too fast and sending a bunch of regional banks to an early grave a few weeks ago...
Stock Futures, Oil Prices Edge Higher Ahead of Jolts Job Openings and Factory Orders DataApr 4, 2023 - 05:21:11 PDT
The S&P 500 closed up 0.4% on Monday. The biggest laggard was the Nasdaq 100, which fell 0.27%. Bond yields were down as manufacturing activity slumped to the lowest level since May 2020, signaling further declines could be coming as credit conditions tighten.
There's no sign of a slowdown in central bank gold buying.In February, central bank gold reserves rose by another 52 tons, according to the latest data compiled by the World Gold Council.It was the 11th straight month of central bank net gold purchases.
More bad news for the dollar.Last week, China and Brazil announced a trade deal in their own currencies, completely bypassing the dollar.This represents another small shift away from dollar dominance.
Based on the latest Commitments of Traders (COT) report, the latest price action is potentially even more bullish than normal. The latest price moves have been supported by Managed Money but the data clearly shows there is more driving the upward movement.Please note: the CoTs report was published 03/31/2023 for the period ending 03/28/2023. “Managed Money” and “Hedge Funds” are used interchangeably.
Investors are more than ever concerned about the stability of the U.S. and global banking system. While the Fed and central banks have calmed the markets by propping up failing banks temporarily, we saw both Gold & Silver Break Out of important levels today.
Emergence Of A Multipolar World And Rapid Dedollarization.
I’ll begin with what I believe to be the biggest risk that could be beneficial for gold prices: dedollarization. In last week’s commentary, I wrote about the end of the petrodollar and the possible emergence of a multipolar world, with U.S. on one side and China on the other.
The monthly graph shows a breakout above resistance on a close-only basis. The prior resistance is now support. A nearnear +5% term rally back to $2100 is expected. The stop is $1880. With the prior resistance now being support, and given the objective, we have a very favorable reward-risk situation.
Apr 3, 2023 - 12:50:31 PDT
Gold has returned 4800% (Annual 7.84%). S&P 500 has returned 4000% (Annual 7.45%)
As long as states are around, money will never be sound. But first, some clarity. Sound money, per Ludwig von Mises, has two aspects: It serves as a commonly accepted medium of exchange, while also making it difficult for governments to meddle with it.
Apr 3, 2023 - 11:49:05 PDT
Please consider the GDPNow Forecast for 2023 Q1 as of April 3, 2023...
Apr 3, 2023 - 11:47:49 PDT
Not only did the ISM Manfacturimng Report on New Business Order fall to 44.3, but price PAID also fell as The Fed hikes rates (yellow line) and slowing M2 Money growth (green line). Office REITs ar…
Credit Suisse Collapsed Because of Government Intervention, Not Despite ItApr 3, 2023 - 11:46:20 PDT
Credit Suisse, one of the fifty largest banks in the world, has joined the long list of Western banks over the past two decades that have been rescued from the brink of failure and subsequently acquired by a larger financial institution.
Elizabeth Warren’s Contradictory Demands for Easy Money and Strict Financial RegulationApr 3, 2023 - 11:45:27 PDT
As the financial ripples following the recent collapse of Silicon Valley Bank (SVB) continue to run through the financial sector, a predictable voice has weighed in on the affair, and, as always, giving bad advice.