Friday, March 28, 2025

The Morning Call--The risk of recession is not as highs the media suggests

 

The Morning Call

 

3/28/25

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/market-recaps/gold-hits-new-record-high-bonds-stocks-continue-slide

 

            The Trump ‘put’ is struck lower.

            https://www.zerohedge.com/markets/trump-put-struck-lower-second-worst-post-inauguration-performance-ever

 

            Goldman trader on Q1 chaos.

            https://www.zerohedge.com/markets/squeeze-wobble-whats-next-goldman-macro-trader-reflects-q1s-chaos

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

February personal income rose 0.8% versus estimates of +0.4%; February personal spending was up 0.4% versus +0.5%.

 

February PCE index was up 0.3%, in line; core PCE was up 0.5% versus +0.3%.

 

                          February pending home sales were up 2.0% versus forecasts of +1.5%.

                          https://www.advisorperspectives.com/dshort/updates/2025/03/27/pending-home-sales-rebound-february-2025

 

The March Kansas City Fed manufacturing index came in at 1 versus predictions of -14.

                          https://www.advisorperspectives.com/dshort/updates/2025/03/27/kansas-city-fed-manufacturing-activity-march-2025

 

                        International

 

Q4 UK GDP growth was +0.1%, in line; Q4 business investment was down 1.9% versus -3.2%; the January trade balance was -L2.6 billion versus -L3.5 billion; February retail sales were up 1.0% versus -0.3%; ex fuel, they were up 1.0% versus -0.5%.

 

March Japanese YoY CPI was +2.9% versus consensus of +3.1%; YoY core CPI was +2.4% versus +2.2%.

 

The March German unemployment rate was 6.3% versus projections of 6.2%; the April consumer confidence index was -24.5 versus -23.

 

The March EU economic sentiment index was 95.2 versus expectations of 97.0; the March industrial sentiment index was -10.6 versus -10.5; the March services sentiment index was 2.4 versus 6.7; the March consumer confidence index was -14.5, in line.

 

                        Other

 

                          Update on Q1 nowcasts.

                          https://econbrowser.com/archives/2025/03/gdpnow-bouncing-near-zero

 

                          February goods trade balance shows more tariff front running.

                          https://mishtalk.com/economics/second-massive-wave-of-imports-shows-more-tariff-front-running/

 

            Recession

 

   Risks of a recession are not as high as the media suggests.

              https://www.advisorperspectives.com/commentaries/2025/03/27/u-s-recession-risks-not-high-media-suggests

 

              New indicator says recession not imminent.

              https://www.zerohedge.com/markets/us-recession-not-imminent-says-new-indicator

 

            Inflation

 

              Stagflation risks rising.

              https://www.apolloacademy.com/stagflation-risks-rising-2/

 

            Tariffs

 

              Tariffs shrink America.

              https://www.realclearmarkets.com/articles/2025/03/27/trump_thinks_big_about_great_america_tariffs_shrink_it_1099914.html

 

              Trump issues more tariff threats.

              https://www.bloomberg.com/news/articles/2025-03-27/trump-floats-more-tariffs-on-eu-canada-if-they-work-against-us-m8qy96vv?sref=loFkkPMQ

 

              What Canada’s tariffs on dairy imports mean.

                          https://www.bloomberg.com/news/articles/2025-03-26/canada-s-300-tariff-on-us-milk-dairy-what-it-actually-means?srnd=homepage-americas&sref=loFkkPMQ

 

            Geopolitics

 

              US pushes for expansive new deal to control Ukraine’s minerals.

              https://www.ft.com/content/896da2e5-daa5-4b4e-a51c-0aef4de95d36

 

     Investing

 

            Q4 Russell 2000 earnings results.

            https://talkmarkets.com/content/us-markets/russell-2000-earnings-dashboard-24q4-thursday-march-27?post=488762

 

            Q4 corporate profits as a leading indicator.

            https://bonddad.blogspot.com/2025/03/long-leading-indicators-update.html

 

            An early look at Q1 earnings reports.

            https://talkmarkets.com/content/us-markets/making-sense-of-early-q1-earnings-reports?post=487862

 

            How sustainable is US exceptionalism?

            https://www.morningstar.com/markets/how-sustainable-is-us-exceptionalism

 

            Bond investing amid a high macro-uncertainty environment.

            https://www.capitalspectator.com/bonds-continue-to-offer-a-haven-amid-high-macro-uncertainty/

 

    News on Stocks in Our Portfolios

 

 

What I am reading today

 

           

 

 

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