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The FED Pauses Hikes
Faro Capital
June 16, 2023
Good Morning
U.S. stocks finished higher after the Fed paused their rate hikes. The pause on rate hikes signal that the Fed’s tightening crusade is coming close to an end. Despite pausing the tightening cycle on its federal funds rate, median forecasts reflect a terminal rate of 5.6%. This projection shows two additional 25bps rate hikes this year before a potential pivot next year. After a muted IPO market CAVA listed yesterday posting a stellar performance.
The U.S. reported a capital & financial account surplus of $48.4B in April, the fifth increase in six months.
Brazilian stocks rose a tad higher. Positive performance was supported by the Fed’s and ECB rate decisions. President Lula said in an interview that the economy will grow at least 2% this year. Brazilian stocks rose a tad higher. Positive performance was supported by the Fed’s and ECB rate decisions. President Lula said in an interview that the economy will grow at least 2% this year.
Markets: Before the Open
Top News Stories
Canada
Ottawa Senators gets acquired for nearly $1B by billionaire Micheal Andlauer (CNBC)
First Quantum rejected an informal takeover approach by Barrick Gold (BBG)
Bell cuts 3K jobs, closing six radio stations (BNN)
Banff resort gets bought by Ontario pension for $128M (BNN)
Bunge & Viterra sign merger agreement (BNN)
Cineplex reports sales in Q2 are near pre-pandemic levels (BNN)
Rio Tinto to invest $1,4B to expand aluminum smelter in Quebec (BNN)
Toronto neighborhoods York Mills, Bridle Path, and Hoggs Hollow have greatest increase in dollar volume for condos in Toronto (BNN)
Air Canada now has new direct flights from Vancouver to Singapore (VS)
Volkswagen battery plant subsidy might cost C$16.3B (VS)
Port of Vancouver ranked second to last in efficiency by World Bank and S&P (VS)
Canada puts ties on hold with China-led Asian infrastructure Investment Bank (RT)
U.S.
Federal Reserve keeps rates unchanged but signals more hikes down the road (CNBC)
Modelo overtook Bud light as top selling beer in May (CNBC)
Golden Knights win the Stanley Cup (CNBC)
Fanatics holds second investor day as it eyes IPO (CNBC)
Overstock bids $21.5M for Bed Bath & Beyond IP (CNBC)
GM to invest $632M to make next-gen pickups in Indiana (CNBC)
CAVA prices IPO at $22 (CNBC)
Argentina
Brazil
Azul Airline set to raise capital to open new routes (USN)
Brazil stops hydroelectric power exports to Argentina & Uruguay (RIO)
Brazil projects trade with Russia to hit $10B by 2024 (RIO)
S&P upgrades the rating of Brazil’s credit, first time since 2019 (RIO)
Brazilian Central Bank will be the agency that regulates crypto assets in Brazil (RIO)
Chile
Colombia
Ultra Air is in the process of reorganization (PORT)
Agriculture is one of the sectors that will be affected by El Niño (PORT)
Ripple Partners with Colombia’s central bank to explore block chain solutions (CP)
The number of unsold newly constructed housing units are rising (ELT)
Tiendas D1 plans to open 300 stores by year end 2023 (ELT)
Dominican Republic
Ecuador
Panama
With drier temperature and drought Panama puts weight restrictions for boats that use the canal (SFS)
Peru
Mexico
A report estimate 30% of gas for sale is illegal (ELF)
Sinaloa farmers warn government that corn production has become unaffordable (MB)
Iberdrola & Mexico finalize $6B deal (MB)
A study showed Mexico will need 50K charging stations for EVs by 2030 (MB)
39 Million passengers flew in Mexico so far in 2023 (MB)
Private investments are expected to hit $48B in 2023 (MB)
Over 50 Mexican companies have chosen to close factories in China and open in Mexico (MB)
Uruguay
This week Biden and Uruguay president meet and looked on how to expand bilateral trade & economic ties (USN)
Insights
Chile's wine industry is renowned worldwide for producing exceptional wines that embody the country's diverse landscapes, favorable climate, and rich winemaking heritage.
The origins of winemaking in Chile can be traced back to the arrival of Spanish conquistadors in the 16th century. The Spanish settlers introduced vineyards and winemaking techniques, laying the foundation for the wine industry.
Chile's unique geography and climatic variations contribute to its diverse terroir, allowing for the production of a wide range of high-quality wines. The country's long, narrow shape stretching from the arid Atacama Desert in the north to the cooler regions of the south provides an array of microclimates, elevations, and soil compositions. Notable wine regions include the Maipo Valley, Casablanca Valley, Colchagua Valley, and Maule Valley, each known for producing distinct wine styles.
Chilean winemakers cultivate both traditional and international grape varieties, catering to diverse consumer preferences. Prominent red varieties include Cabernet Sauvignon, Merlot, and Syrah, while white varieties such as Sauvignon Blanc and Chardonnay showcase the country's ability to produce crisp, aromatic whites.
Chile's wine industry has embraced sustainable and organic practices, recognizing the importance of environmental stewardship. Many wineries implement sustainable vineyard management techniques, water conservation measures, and renewable energy sources. Moreover, numerous vineyards are certified organic or biodynamic, prioritizing biodiversity and minimal intervention in the winemaking process.
Chilean wines have gained international acclaim for their consistent quality and value. The country's commitment to improving winemaking techniques, investment in modern infrastructure, and emphasis on producing terroir-driven wines have garnered attention from wine enthusiasts and critics alike. Chilean wines have received prestigious accolades and top rankings in international competitions, solidifying their position in the global wine market.
Chile's wine regions attract wine enthusiasts from around the world, offering visitors the opportunity to experience breathtaking vineyards, cellar tours, and wine tastings. Wine tourism has become a significant contributor to the country's economy, fostering local development and promoting cultural exchange. Wineries often showcase Chilean cuisine, traditions, and hospitality, creating memorable experiences for tourists.
Chile's wine industry has evolved into a prominent player on the global stage, combining a rich winemaking history, diverse terroir, and a commitment to quality. Through sustainable practices, a focus on terroir expression, and a passion for excellence, Chilean winemakers continue to produce outstanding wines that capture the essence of their unique landscapes. As the industry thrives, Chile solidifies its position as a top destination for wine enthusiasts, showcasing the country's contribution to the world of wine.
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