Author: Igor Kuchma
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Time Marches On, But Old Problems Persist, And New Ones Emerge
Although the PCE index, closely watched by the Federal Reserve, fell to 4.2% year-on-year in March from 5% in February, core inflation, which excludes food and energy, came in at 4.6% year-on-year, only 0.1% lower than in February. The situation in the energy markets is also not encouraging: the further rise in oil prices triggered…
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The Disaster That Never Comes
The debt ceiling is practically agreed upon, gold prices (GC:CMX) contract, and the bulls dominate the markets – will the long-awaited correction never come? Not so fast. Despite PacWest Bancorp’s stock recent rebound, the future of regional banks remains in question. The country’s economy is also starting to tempest on one foot… According to Robert…
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Key Events In The Week Ahead
The negotiations over the U.S. debt ceiling keep breaking sticks and stones… Today, Joe Biden will meet with McCarthy to discuss the issue and try to reach an agreement. Before leaving Japan after the G7 summit, Mr. President expressed his willingness to cut spending and make necessary fiscal adjustments. However, he rejected the latest offer…
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Corporate Earnings, Bank Breakthroughs and the Debt Ceiling
This week’s focus will be on US debt ceiling negotiations (the next meeting between President Joe Biden and congressional leaders is set for Tuesday), speeches by Fed members, regional bank “breakthroughs”, and corporate earnings. Starting from the end, the corporate sector beat analysts’ expectations again: S&P 500 earnings fell 3% year-over-year versus an expected 7%…
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Banks Surprise on the Upside
Sticks and stones may break my bones but there will always be something to upset the markets. First the coronavirus pandemic, then inflation, and now corporate results. Even though Friday’s reports came in better than many had feared, analysts still expect a 4.8% decline in S&P 500 earnings. The paradox is that stronger numbers will…
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Why Did The Market Drop?
“From a small seed a mighty trunk may grow”, also the saying may not be exactly about financial markets, but there is no better way to describe the short but intense last week. To begin with, for the first time in U.S. history, an ex-U.S. president was indicted on criminal charges. Precisely, for falsifying business…