Barkin is the president and CEO of the Federal Reserve Bank of Richmond, he has some comments crossing on the wires.
Speaking in a Bloomberg TV interview.
you want yields to respond to what happening in the economy
yields reflecting good news on vaccines, fiscal aid
really hopeful that we’re at the back end of pandemic
the Fed’s interest-rate dot plot is not Federal Open Market Committee policy
Fed has tools to handle unwanted inflation
inflation is not a one-year phenomenon, it’s multi-year
expect to see price pressures in 2021
expect strong demand, met by some supply-chain issues
the US economy will have strong spring and summer
Re that headline I put in the, headline …. the dot plot is part of the Fed’s forward guidance. Barkin’s comments are in line with other comments from Fed officials, they are toeing the party line since Chair Powell laid down the law and told them all to shut up about tapering a month or so back.
S&P post the best day to day performance since November
The major indices closed higher for the 2nd consecutive day with solid gains across the board ahead of earnings from Amazon and Google after the close.
The final numbers are showing:
S&P index +52.37 points or 1.39% at 3826.24
NASDAQ index up 209.38 points or 1.56% at 13612.77
Dow industrial average rose 476.23 points or 1.58% at 30688.14
After the close, both Google and Amazon have beaten on the top and bottom lines. Alphabet shares are currently trading up 4.21% to near $2000 a share.
revenues of $56.90 billion vs. $53.13 billion estimate
earnings-per-share came in at $22.30 cents vs. $15.90 cents estimate
For Amazon, CEO basis said that he will transition to role of executive chair. Andy Jassy will become the new CEO of Amazon. Jassy is a long time Amazon employee and built AWS. The announcement is a surprise. Amazon’s basals is to focus on new products and early initiatives according to the headline news.
Amazon shares are currently trading higher by about 1.3% and volatile trading.
Earnings-per-share came in at $14.09 vs. $7.34 estimate
net sales came in at $125.56 billion vs. 119.70 billion
Director of the National Institute of Allergy and Infectious Diseases Dr. Anthony Fauci spoke with (wait for it) Facebook CEO Mark Zuckerberg in a YouTube event.
Some of Fauci’s remarks (via Bloomberg):
COVID-19 is very different from the severity of the 1918 virus
Monoclonal antibody drug could be ready for use by fall
No signs that face masks could cause harm to people
A little more on his timing remark …
by mid-to-late fall, early winter, we’ll know whether we have candidates that are safe and effective, and I hope and anticipate that we will have one or more.
If that’s the case, by the end of this year, beginning of 2021, we may have one or more candidate that is actually safe and effective. That being the case we can start distributing doses widely at that time.
Wilbur Ross and George Soros are out today calling for crash of commercial real estate.Read more here:
Billionaire investor Wilbur L. Ross Jr., said today the U.S. is in the beginning of a “huge crash in commercial real estate.”
“All of the components of real estate value are going in the wrong direction simultaneously,” said Ross, one of nine money managers participating in a government program to remove toxic assets from bank balance sheets. “Occupancy rates are going down. Rent rates are going down and the capitalization rate — the return that investors are demanding to buy a property — are going up.” (more…)
WARREN BUFFETT Chairman, Berkshire Hathaway I have no idea what the stock market’s going to do tomorrow, or next week, or next month or next year. But over a ten-year period you will do considerably better owning a group of equities than you will owning Treasuries. In fighting the economic war, we’ve taken action that sows the seeds of substantial inflation down the road. Not in the next six months or year, but ten years from now the dollar will buy a lot less than it buys today. BOB RODRIGUEZ Chief executive officer, First Pacific Advisors Don’t run with the herd. Being surrounded by people who are doing the same thing as you offers a false sense of protection. Being a loner is extremely uncomfortable, but it’s far better. Today, being a loner means owning short-maturity, high-quality debt on the bond side. And if the U.S. government continues to blow up the nation’s balance sheet through massive deficits, you should probably move at least 20% to 40% of your assets out of the U.S. (more…)
John Taylor, chairman and chief executive officer of FX Concepts LLC, the world’s largest currency hedge fund, sees the euro dropping to $1.20 by August, and believes parity is possible. Be very careful, because as of today Goldman is now accumulating euros (as per its just released Sell recommendation). More from Taylor: “It’s going to be quick because things are really falling apart…. Some of these [countries] have to be thrown out [of the EMU]. If you look at a country like Latvia, which has been effectively in the Euro, has been saved by the European Commission and the IMF much like they are suggesting Greece will be, their retail sales were down 30% last year, the GDP was down 18%, it is expected to drop another 8% this year. Latvians are starving, the place is a disaster area: that’s what you have to go through to be a part of the Euro.” On whether his firm has felt any political pressure on putting on bearish euro bets: “None at all. We are SEC regulated and the information is there, but nobody seems to be caring.” Lastly, Taylor ridicules the WSJ story about the restaurant-based collusion: “Yes, they had a meeting and talked about how bad the euro was. But that they in fact had some impact: their assets are 1% of the daily volume. Somebody like us, we have a bigger position against the euro than those people put on.” Taylor says in the next three to six months, the dollar will be strongest against the euro, and Eastern European currencies. In a longer horizon, he says to be long Asia and short the euro. Bottom line: sell Europe, buy everyone else. And join the bandwagon… Just as Bernanke prepares the dollar’s next suicide move with inflation obviously not working.
March 4 (Bloomberg) — Citigroup Inc. Chief Executive Officer Vikram Pandit plans to tell U.S. taxpayers he’s grateful for the $45 billion bailout that helped stave off a deposit run at the bank in 2008, a person close to the company said.
Pandit, scheduled to appear in Washington today before a panel overseeing the bank-bailout program, will acknowledge that the infusion stabilized Citigroup, said the person, who requested anonymity because the planned testimony isn’t public. Pandit will thank the government for providing the money, the person said