Markets
Earnings and Trump’s tariffs dominated the agenda this week. Starting off Monday with $IXIC -1.20% and $SPX -0.76%, US equities recovered the dip through Thursday from sound earnings and many positive outlooks. On Friday Trump continued to fire tariff threats. Jobs report were mixed, but consumer sentiment data from U Michigan showed a sharp incline in inflation outlook. These factors dragged US equity indices down to net negative for the week. 4.49% gain for $HSI. Since the January 2024 lows, the index has gradually risen 38%. $BTC was below $100k for the better part of the week. For Treasuries, 10Y and 2Y showed divergence. The yields of latter gained noticeably from disappointing inflation metrics.
Headlines
• Federal Judge Blocks Elon Musk’s DOGE From Treasury System
• Trump Is Changing the World Order With Unprecedented Speed
As federal funding freezes, payments to individuals, agencies, constructions are getting uncertain.
• Europe’s Unloved Stocks Are Suddenly on Top of the World
DAX, FTSE, CAC has outperformed US equity indices YTD. Doesn’t mention much innate appeal of European equities. More like stopped being terrible is the main logic – rates are falling faster the the US, political uncertainty in France is abating, valuation has deviated too much from the US, war between Ukraine and Russia seems like it’s going to end.
• The Tequila Boom Is Over. The Tequila Price War Has Begun.
Vodka and tequila are the top 2 most popular spirit in the US. Casamigos and Patron have been lowering prices for more than a year. Trump’s tariffs against Mexico could be another problem.
• Trump signs order to cut funding for South Africa over land policy, ICJ case
South Africa received $440m in assistance in 2023 from the US. A bill allowing an easier expropriation of land by the state has been signed. Washington commented willingness to accept those largely Dutch and French descendant farmers and families as refugees.
• British junior minister sacked by PM Starmer over WhatsApp messages
Junior minister insulted other members of parliament via WhatsApp.
• Hamas frees three hostages, Israel begins releasing Palestinians
• Protesters denounce Trump immigration policies outside his Florida golf club
• Iran currency plunges to record lows amid escalating U.S. tensions
Inflation rate is 35% in Iran. Iranians have been turning to USD, gold, crypto instead, causing further destabilization of the rial.
• Trump administration backs big arms sales to Israel, defying Congress
US government approves military sales to Israel worth $7.4b
• Baltic nations cut ties to Russian power grid, prepare to link with EU
The disconnection of Estonia, Latvia, Lithuania
• Boeing warns moon rocket program employees of layoffs happened Saturday.
• Trump, headed to Super Bowl LIX, has long and tangled relationship with football
He will be the first incumbent to attend the Super Bowl.
• Billionaire Musk says not interested in acquiring TikTok
“I do not acquire companies in general. I usually build companies from scratch.”
• Microsoft’s Bill Gates: Steve Jobs was a genius in this area
• Team Trump’s fight to convince Wall Street that Musk’s DOGE is good for markets
• What happened to Nissan? And what happens next if a Honda merger is truly dead?
Honda looks to Nissan as a less reputable partner/subsidiary that needs drastic cost-cutting.
