The Americas Report

Author

Faro Capital
February 07, 2023

After effects of a Balloon Pop and AI Mania

Good Morning,

US equites ended Monday’s trading day lower due to hotter tensions between US & China. Traders are scared to open new positions due to Federal Reserve Chair Powell’s upcoming speech later today. The speech might leave breadcrumbs on what the FED is thinking on future rate hikes and policy. Natural Gas is at a 25-month low due to higher-than-normal temperatures so far in the year. Brazil’s 10-year rate is now around 13.5% with Brazil’s Lula considering increasing public government spending. Making almost every Brazilian economist hair greyer by the day. Canada’s Ivy PMI touches an eight-month high at 60.1. Finally, an interesting proposed acquisition hit the Canadian market yesterday.

Options Corner

Top News Stories

  • Gold Miner Newmont Corp. is proposing a $17billion acquisition of Newcrest Mining (BNN)

  • First Quantum is still in a heated battle with the Panamanian government with the Panama Maritime Authority suspending its loading operation of copper concentrate (BNN)

  • CIBC released a report making the case that high interest rates will be the norm in Canada for the rest of the year (FP)

  • Tyson Foods fell after earnings due to an unexpected supply glut (RT)

  • A Brazil central bank survey of 100 economists showed they think Brazilian rate cuts would happen in November (RT)

  • Brazil’s Lula takes aim at county’s high rates stating there’s “no expiation” for it (RT)

  • Chile’s state-owned oil and gas company plans to cut its debt with its big treasure chest (BBG)

  • Google rolls out its own AI bot to go against Chat GPT (CNBC)

  • Binance announced it will suspend U.S. dollar transfers (CNBC)

  • Inflation index for the city of Buenos Aires increased to 7.3% in the month of January (Elecon)

  • Argentina’s government got rid of the 5% refund that applied to lithium exports (Elecon)

  • Colombia public Debt to GDP reached 64.1% at the end of 2022 (Port)

Venture Capital

  • Even with risks of a recession Mexico’s Kueski continues with its growth strategy (FNN)

  • Brazil’s iCred raises $58million to create a payroll loans solution in Brazil (FNN)

  • Magic to challenge Github’s Copilot with $23million backing (TC)

  • Startup Breef raised $16million in a series A round to connect companies with marketing agencies (TC)

  • Quipli raised $3.5million to ramp up its equipment rental solutions (PRN)

  • ShiftMed raised $200million to ramp up its market share the digital health care labor marketplace (PRN)

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DISCLAIMER: The writing above is not financial advice or solicitation to buy/trade any financial product/security. This newsletter is for educational purposes only. Any action/decision made by any reader is done by their own accord. Financial markets are full of risk so please be careful.