Analysis Archives - Page 77 of 1770

There is speculation that Biden is considering issuing an executive order to screen and possibly restrict U.S. investment in China.

09-Sep-22 04:38 am

Analysis

Anirudh Sethi

Wall Street Journal with the report:

The Biden administration is weighing an executive order to screen and possibly restrict U.S. overseas investment in cutting-edge technology development in China and other potentially hostile countries.
The White House is aiming to issue such an order within the next couple of months to monitor and potentially block outbound investment by American companies and investors, according to people familiar with the matter.

Here is the Journal link for much more.

Stocks close higher for the 2nd consecutive day. Up and down session for the major indices

09-Sep-22 04:29 am

Anirudh Sethi

Stocks turned back lower after ECB sources comments that a 75 basis point hike is not ruled out for October. Today the central bank increased rates by 75 basis points the largest increase since the start of the common currency.

Those declines were whittled away into the close.

The final numbers are showing:

Dow industrial average up 193.24 points or 0.61% at 31774.51
S&P index up 26.31 points or 0.66% at 4006.19
NASDAQ index up 70.24 points or 0.60% at 11862.14

The small-cap Russell index was the biggest gainer with a 14.90 point rise or 0.1% at 1846.90

ECB sources: Do not exclude a 75 basis point hike in October if inflation persists

08-Sep-22 09:42 pm

Analysis

Anirudh Sethi

Do not exclude a 75 basis point hike in October if inflation outlook warrants an additional big step.
ECB Lane struck a more hawkish tone at the meeting today
QT is expected to be discussed at the October for the meeting and later dates

European equity close: Decent comeback after the ECB

08-Sep-22 09:39 pm

Anirudh Sethi

UK FTSE 100 +0.4%
Stoxx 600 +0.4%
German DAX -0.1%
French CAC +0.3%
Italy MIB +0.9%
Spain IBEX +0.9%

The DAX is trying to base above the July lows.

Japan’s deputy chief Cabinet secretary said that they are monitoring FX moves with a high degree of urgency.

08-Sep-22 01:44 pm

Analysis

Anirudh Sethi

Sharp FX fluctuations are not desriable
Important for currency to move stably reflecting economic fundamentals
Concerned by rapid, one-sided currency moves
Does not want to comment on specifics (when asked about intervention)

Well, you can pretty much copy and paste these comments for later after the meeting between the MOF, FSA, and BOJ as pointed out here. It is pretty much a rehash of what they have talked up previously and I would expect the statement later to reinforce the narrative.

The IfW economic institute foresees a recession and record inflation in Germany for next year.

08-Sep-22 01:42 pm

Anirudh Sethi

Sees the German economy contraction by 0.7% in 2023 (previously predicted growth of 3.3% back in June)
Sees inflation this year at 8.0% (up from 7.4% previously)
Sees inflation next year at 8.7% (up from 4.2% previously)

On the forecast revisions, the firm says that “the recent price jumps for electricity and gas will noticeably reduce the purchasing power of private households and lead to a decline in private consumer spending”.