Wednesday, April 16, 2025

The Morning Call---China opens door for reengagement

 

The Morning Call

 

4/16/25

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/market-recaps/headline-fatigue-real-now-bonds-bullion-bid-top-goldman-trader-warns-tape-remains

 

            This week in the charts.

            https://bilello.blog/2025/the-week-in-charts-4-14-25

 

            Bid/Ask spreads are widening in the investment grade credit market.

            https://www.apolloacademy.com/bid-ask-spreads-widening-in-ig-credit-markets/

 

            Gold up 25%.

            https://www.zerohedge.com/the-market-ear/golds-25-good-luck-explaining-why-you-missed-it

           

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications fell 8.5% while purchase applications were down 5.0%.

 

Month to date retail chain store sales grew slightly slower than in the prior week.

 

March retail sales were up 1.4% versus forecasts of +1.3%; ex autos, they were up 0.5% versus +0.3%.

 

                        International

 

Q1 Chinese QoQ GDP growth was +1.2% versus projections of +1.4%; March YoY industrial production was up 7.7% versus +5.6%; March YoY retail sales were up 5.9% versus +4.2%; March YoY fixed asset investments were up 4.2% versus +4.1%; the March unemployment rate was 5.2% versus 5.3%.

 

February Japanese machine tool orders were up 4.3% versus estimates of +0.8%.

 

March EU CPI was +0.6%, in line.

 

                        Other

 

                          What economic growth is.

                          https://www.realclearmarkets.com/articles/2025/04/15/marc_benioff_wisely_reminds_us_what_economic_growth_is_1103298.html

 

                          What a world in which the dollar is not the reserve currency looks like.

                          https://www.zerohedge.com/markets/rabobank-just-what-does-world-which-dollar-isnt-reserve-currency-look

 

            Overnight News

 

NVDA (6% pre mkt) filed an 8K last night revealing a more stringent set of export rules around its H20 chip. According to the filing, Nvidia will now require an export license from the US gov’t to sell H20 chips to China and D5 countries (this license requirement will stay in effect for the indefinite future). Nvidia warns it will book up to ~$5.5B in charges in FQ1 related to the H20 because of this requirement.

 

White House plans aggressive campaign to isolate China economically by forcing countries to limit their dealings w/Beijing in exchange for reduced American tariffs.

 

Japan is set to be the first nation to have trade talks with the US, people familiar with the situation said the US had signaled priorities for the talks, including LNG imports, Boosting Market access to Ags and Japanese auto legislation.

 

There is more talk in the media about the White House potentially forcing Chinese firms to delist from American stock exchanges. 

 

            Recession

 

              Used vehicle sales surge.

  https://wolfstreet.com/2025/04/14/our-drunken-sailors-are-back-sales-of-used-vehicles-surge-in-march-same-as-new-vehicles-overall-retail-sales-might-look-good/

 

 

                          Too soon for recession watch.

              https://bonddad.blogspot.com/2025/04/the-state-of-short-leading-indicators.html

 

              But the consumer increasingly appears to be tapped out.

              https://www.advisorperspectives.com/commentaries/2025/04/15/tapping-out-consumer

           

Inflation

 

              The yield curve is telling that inflation is far from over.

              https://www.zerohedge.com/markets/real-us-yield-curve-signaling-inflation-far-over

 

            Tariffs

 

              China opens door for reengagement.

              https://www.zerohedge.com/markets/respect-clarity-china-demands-prerequisites-reengaging-trump-trade-talks

 

              Consequences are a bitch.

              https://alhambrapartners.com/weekly-market-pulse-the-end-of-the-beginning/?src=news

 

              Why the dollar weakness?

              https://www.reuters.com/markets/currencies/is-dollar-weakness-panic-signal-or-healthy-rebalancing-klement-2025-04-14/

 

    Investing

 

            The first victims of the basis trade blow up.

            https://www.zerohedge.com/markets/first-victim-basis-trade-blow-emerges

 

            How to protect your portfolio from market volatility.

            Protecting Investments from Volatility

    

     Investor Alert

 

In my quarterly review, Illinois Tool Works (ITW) failed to meet the minimum financial quality standards for inclusion in the Dividend Growth Portfolio. Therefore, the DGP will Sell its position in ITW at the market open.

 

    News on Stocks in Our Portfolios

 

What I am reading today

 

           

                        Be on alert for these insurance scams.

            https://www.zerohedge.com/political/be-alert-these-insurance-scams

 

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