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Jun 28, 20234 min read

Oz CPI softer / CS / BUBA article / Saxo! / Lagarde, Powell, Ueda and Bailey meet today in Europe



  • Saxo Bank Attains Systemically Important Financial Institution (SIFI) Designation from Danish FSA, Reflecting its Important Role in the Financial System

  • Gustav Klimt’s Lady with a Fan sells for £85.3m, breaking European record!

  • US Data surprises to the upside : beating expectations, reducing the likelihood of recession, new home purchases jumped 12.2%, the fastest annual rate in over a year, durable goods unexpectedly climbed 1.7% and consumer conf reached highest level since early 2022. The data support pricing of another Fed hike, Powell may address when he and other central bankers convene today in Europe (Powell, Lagarde, Bailey.. and Ueda talking)

  • Lagarde speech: Need to bring rates into ‘sufficiently restrictive’ territory to lock in our policy tightening

  • That Bundesbank article on Monday, ...'“In Europe, many pensions and insurance companies were forced (by their mandates) to buy bonds with negative yields (a market which at one point reached the size of $18 trn), which essentially means they were losing money from day one.” , remember that 100y Austria bond that was issued at the peak ZIRP...good times, 'too many were hiding behind their mandate...it made ZERO sense, they wouldn't have done it for themselves, but they 'had' to do to their investors, absolute madness....''

  • BlackRock's Fink said he's no longer using the term "ESG" (environment, social and governance) because it is being politically "weaponized" and he's "ashamed" to be part of the debate on the issue

  • Brexit shame: Three-quarters of Brits ‘not proud’ of leaving EU

  • President Joe Biden is kicking off a more than $42 billion plan to give every American household access to high-speed internet by 2030

  • Quarter-end flows in equity, expected to be a decent net sell ''$150bn in US equities for sale at month/quarter-end . JPM'' ...caviat this is fairly well know since last week..news contributed to the peak Friday OpEx...a few tech/AI type names lost their momentum too

  • WSJ-U.S. Considers New Curbs on AI Chip Exports to China. Restrictions come amid concerns that China could use AI chips from Nvidia and others for weapon development and hacking

  • UBS to cut more than half of Credit Suisse workforce, report says

  • Oz CPI came in decently lower at 5.6% YoY vs 6.8% in May, now a 13months low, markets trim expectations for higher rates

 


Markets :

  • USDJPY 2023 highs 144+, CROSSJPY's still going as risk and yields move higher

  • VIX low point is typically in July - watch out for seasonals etc

  • German bond yield curve most inverted in nearly 31 years

  • CROSSJPY's higher on higher yields and risk, AUD lower on softer CPI, mixed bag going into quarter-end flows

  • Equity markets recovered on strong strong US data, consumer sentiment

 

This is great news for Saxo clients!




The Almighty US Consumer Reasons that make her continue to spend spend spend.... 1. US housing market appears to be finding its footing again even as mortgage rates remain elevated. April home prices gathered in 20 cities by Case-Shiller grew 0.91% from March, and the year-over-year decline is now only 1.0% 2. The travel sector continues to show signs of post-pandemic strength and cruise line company CCL reported results this morning that are getting a strong reception. 3. Consumer confidence edges higher. Conference Board released its monthly consumer confidence survey and the reading hit its highest level of the year -- jumping to 109.7 from 102.5 a month ago (GS)



good read i'd say Russian mercenary chief Prigozhin is 'dead man walking': Eurasia Group (cnbc.com) ...quite honestly everyone has got their views, can go either way, hard to think Putin's got stronger during loast week's events, but hey ho, we shall see



what are we going to do with all those ESG ETF's :-) >> what next ? climate action ETF instead or biodiversity or hydrogen ?... they will find another gimmick to attract funds..



Such a populist calamity from sold by those great politicians...The promise was a better deal and access to the single market. That was what people voted for when voting to leave. And it was incorrect, thus the polls telling us people now want to rejoin, not too hard to understand


Housing expert: Here’s how to ‘bring affordability back into check’ for buyers (yahoo.com) >>> "The way you bring affordability back into check is one of three ways: You either raise incomes, you lower rates, or you lower home prices."


Brutal


Blackrock Gives Bitcoin a Huge Boost (finews.asia) yups - when the big institutional names get involved it's for the long-term





here we go again


HAVE A GREAT DAY

TEAM PVM







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