Powell doesn’t want unemployment to rise too quickly, so he let us know that he’d rather have a bit of inflation and somewhat lower rates. Because companies watch other companies. If your neighbor cuts, you may cut. Per BBG.
The global bond markets are betting on rate cuts again, with the estimated start time in June. These folks just got bit in the *** a few weeks ago, so gotta give ‘em credit for tenacity. PIMCO and BlackRock are betting on steepeners.
$1bn is coming into Lucid from the Saudi’s Public Investment Fund. Now the company has to figure out its more intermediate-term survival plan.
Boeing’s CEO is out at year-end. So is its Board Chair. Plys Comm’l Air chief Stan Deal. No surprise given the myriad of Max crises that were self-inflicted.
The EZ is en fuego about our tech companies. AAPL, GOOG, and META risk potential fines of 10% of global revenues, based on an investigation into their compliance with new laws. That’s a lot of dough. They’re riled up about app store rules, search results, browser choices, subscription prices, ranking formulas. Get this—penalties are 20% for repeated breaches. At some point this becomes geopolitical, right?
Just like Americans view buying US products with national pride, Chinese consumers are doing the same. Apple’s iPhone used to be the top dog, but now Huawei and others are preferred, per the NYT.
BTIG ended their daily note with a question from MS re: whether it’s time for Utes and Energy to shine. They posit that commodity-oriented cyclicals and energy in particular could rally. The sector’s relative performance versus the S&P has lagged crude oil prices, and they note valuations look attractive. MS says, “…it remains one of the cheapest and most under-owned areas of the market.” MS and JPM also warned that company earnings have to stay propped up, otherwise this market is tumbling. Valuations are overall “hard to justify.” Not a particularly brilliant statement (if you get into a car crash, you could be hurt). But understood. Positivity is priced in.
Bitcoin bounced on the steep trend line/ Fibo support @ $62k. $66k is a level to watch as well as the $68k resistance, per BTIG. In terms of flows, it also looks like folks took a breather.
BBG is out with a story about out-of-work HK bankers. IPOs are down. Layoffs everywhere. Comp down hard. To me, it just seems like a regular boom/bust cycle. Have to enjoy that froth on your coffee when you get it. Because tomorrow you may be out of milk. But the milkman usually comes ‘round at some point.
