Thursday, July 21, 2022

The Morning Call---ECB raises rates, increases QE---brilliant

 

The Morning Call

 

7/21/22

 

 

The Market

         

    Technical

 

            Wednesday in the charts.

            https://www.zerohedge.com/markets/big-tech-bitcoin-jump-bonds-bullion-dump-housing-market-slumps

 

            Are stocks discounting peak inflation?

            https://www.yardeniquicktakes.com/moving-averages/

 

            From Goldman’s trading desk.

            https://www.zerohedge.com/markets/goldman-trading-desk-most-clients-are-hating-rally

           

            Gold. What’s it good for?

            https://www.morningstar.com/articles/1102697/gold-shines-as-a-haven-in-2022

 

            Oil tumbles.

            https://www.zerohedge.com/energy/oil-tumbles-demand-falters-supply-fears-ease

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly initial jobless claims were reported at 251,000 versus projections of 240,000.

 

                          June existing home sales fell 5.4% versus estimates of -1.8%.

                          https://www.advisorperspectives.com/dshort/updates/2022/07/20/existing-home-sales-down-5-4-in-june

 

The July Philadelphia Fed manufacturing index came in at -12.3 versus consensus of 0.0.

 

                        International

 

The June Japanese trade balance was Y-1383.8 billion versus consensus of Y-1509.7 billion,

 

                        Other

 

                          Inflation, gasoline, recession.

                          https://econbrowser.com/archives/2022/07/inflation-gasoline-recession

 

                          Update on Q2 GDP nowcast.

                          https://www.capitalspectator.com/us-q2-gdp-estimate-continues-to-slide-ahead-of-official-update/

 

                          Architecture billings show rising demand in June.

                          https://www.calculatedriskblog.com/2022/07/aia-architecture-billings-index-shows.html

 

                          Saudi Arabia at upper end of production capacity.

                          https://www.zerohedge.com/commodities/saudi-arabia-reveals-upper-limits-oil-production-nears-world-structurally-short

 

            The Fed

 

              The Fed’s power was always an illusion.

              https://www.bloomberg.com/opinion/articles/2022-07-18/inflation-is-a-beast-the-fed-will-never-be-able-to-tame?sref=loFkkPMQ

 

                          The Fed’s best case scenario.

  https://www.bloomberg.com/news/articles/2022-07-20/powell-s-econ-101-lesson-presents-best-case-inflation-  scenario?srnd=premium#xj4y7vzkg&sref=loFkkPMQ

 

                         

In another brilliant move by monetary authorities, the ECB raises rates while increasing QE.

https://www.zerohedge.com/markets/ecb-launches-lift-after-11-years-hikes-50bps-it-also-unveils-italy-specific-qe

                       

                         

                        Fiscal Policy

 

              The continuing saga of fiscal malfeasance by our political class.

              https://www.zerohedge.com/political/taibbi-great-american-military-rebrand

 

                        Inflation

 

              The price of a pound of bread.

              https://politicalcalculations.blogspot.com/2022/07/breadflation.html#.Ytg3sHbMKUk

                       

                          Giant corporations are not causing inflation.

              https://www.advisorperspectives.com/commentaries/2022/07/20/giant-corporations-are-causing-inflation

 

              Inflation climbs to 9.4% in Britain.

              https://www.nytimes.com/2022/07/20/business/uk-inflation.html

 

            Geopolitics

           

              Russia resumes gas pipeline deliveries.

              https://www.zerohedge.com/commodities/nord-stream-flows-resume-natural-gas-deliveries-europe

 

            China

 

              China’s mortgage boycott spreads.

              https://www.zerohedge.com/markets/we-decided-stop-paying-all-loans-chinas-mortgage-payment-boycott-spreads-property-suppliers

 

 

     Bottom line

 

            Bernstein disagrees with BofA’s bullish call.

            https://www.bloomberg.com/news/articles/2022-07-20/bernstein-strategists-say-stocks-have-yet-to-see-capitulation?srnd=premium#xj4y7vzkg&sref=loFkkPMQ

 

            Blackstone sees Fed Funds rate at 5%.

            https://www.bloomberg.com/news/articles/2022-07-20/blackstone-sees-fed-funds-rate-near-5-on-longer-hiking-cycle

 

    News on Stocks in Our Portfolios

 

Sherwin Williams (NYSE:SHW) declares $0.60/share quarterly dividend, in line with previous.

 

What I am reading today

 

           

                        Reflections on grief.

            https://www.commentary.org/articles/joseph-epstein/grief-psychology-philosophy/

 

Visit Investing for Survival’s website (http://investingforsurvival.com/home) to learn more about our Investment Strategy, Prices Disciplines and Subscriber Service.

 

 

 

No comments:

Post a Comment