Morning Brew November 22021
Senior Relationship Manager
Summary: Tesla drives equities higher Infrastructure program stuck
Equities hit new records driven by Tesla, the USD trades a little lower and yields are calm ahead of the FOMC meeting. The Fed is expected to scale back its $120 billion monthly asset purchaces and any comments on inflation expectations and the “dot plot” will be monitored closely. The Dow Jones rose 94 points to 35,913.84, the S&P 500 8 points 4,613 and the Nasdaq 53 points 15,596. Tesla shares jumped 8.5%. Harley-Davidson Inc rose 9% on the US/EU tariff agreement. Tesla closed at 1208 yesterday, since October 1st the share has gained more than 50%.
The pound hit lowest levels in two weeks against versus the dollar and euro, currently 1.3648, EURUSD can rise to 1.1605, Gold and Silver are trading at 1795 and 23.95. Bitcoin remains in the range at 61700.
President Joe Biden continues to struggle with Democratic Senator Joe Manchin who is blocking the passage if the infrastructure bill. A passage this week seems unlikely.
Nearly 90 countries have joined a US/ EU-program to lower s of the potent greenhouse gas methane emission by 30% by 2030 from 2020 levels.
Standard Chartered and BP can beat estimates this morning, BP is looking at a stock repurchase of 1.25 bio.
Key data today will be the Italian, French, German and EU PMI from 09:45 to 10:00.
Key Earnings this week:
Tuesday: T-Mobile US, Mondelez International, Amgen Inc ,Pfizer, Estee Lauder, ConocoPhillips, BP PLC, KKR
Wednesday: Novo Nordisk A/S, Booking Holdings, QUALCOMM Inc , CVS Health
Thursday: Siemens Healthiners , Toyota Motor,Deutsche Post AG ,Duke Energy Corp,Square Inc, Airbnb Inc, Enel SpA, Uber Technologies, MercadoLibre, Moderna Inc , Zoetis Inc Cigna Corp, Fidelity National
Friday: Alibaba Group Holding, Enbridge Inc
Saturday: Berkshire Hathaway
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.