High Interest Rates Are Here To Stay

Author

Faro Capital
January 07, 2024

Good Morning,

 Welcome to the first edition of 2024.

 U.S. stocks ended the week flat, as investors watch the latest economic data and future path of interest rates. The FED indicated with positive economic data coming out, high interest rates may be here to stay. The U.S. added 216K payrolls, higher than the 170K expected. U.S factory orders rose 2.6% back in November. The highest increase was seen in transportation equipment.

 The Canadian TSX closed a little higher on Friday. Investors are looking for any clues on the path of the BOC monetary policy. The rise of oil prices helped boost energy stocks in the index.

 Brazil’s Ibovespa closed higher on Friday as oil prices continue to rise. The 10-yr rose above 10.5%, following similar performance amongst its peers like America. December’s PMI showed a contraction, mainly due to pressures from rising costs. Brazil hit a record trade surplus in December of $9.36B, a 106.5% increase from last year.

 Ecuador’s annual inflation dropped to 1.35% in December vs 1.53% in November.

Markets:

Top News Stories

Canada

  • Turtle Creek Asset Management is pushing for change on the board of Glidan Activewear (BNN)

  • Simpson Oil, largest shareholder of Parkland Corp, will not have a seat on the board duw to recent resignations (BNN)

  • Rogers Communications announced some customer with no contracts will pay higher prices (BNN)

  • Walmart ditches plan to build Quebec fulfillment center, will focus on upgrading stores (BNN)

  • Barclays hires Ryan Voegli to be new head of investment banking in Canada (BNN)

  • Teck Resources has closed deal to sell minority stakes of coal business to Nippon Steel Corp (BNN)

  • Alimentation Couche-Tard completed acquisition of European assets of TotalEnergies (BNN)

  • Broadband company, Xplore, to receive $400M in loan funding to provide rural communities internet access (BNN)

  • Barrick Gold is hunting for a deal on First Quantum (BNN)

  • Agnico Eagle Mines to acquire minority stake in Canada Nickel (BNN)

  • Hydro One CFO, Chris Lopez, to step down Jun. 30 (BNN)

  • Vancouver home prices ended last year 5% higher (VS)

U.S.

  • NCAA & ESPN sign 8-yr $920M media rights deal (CNBC)

  • Ford announced a 7.1% increase in U.S new car sales (CNBC)

  • Holiday spending rose 5%, as per Adobe Analytics (CNBC)

  • Private payrolls rose 164K in December (CNBC)

  • Fed minutes give weary picture on rates (CNBC)

  • Carrefour drops Pepsi and Lay’s because of price increases (WSJ)

  • Jeff Bezos backs Google challenger (WSJ)

  • Economist Albert Musalem will be the next President of St. Louis Fed (WSJ)

Argentina

  • Government proposes $71B peso debt swap (BAT)

  • YPF offers to buy back bonds in April (BAT)

  • Central bank bond auction to pay down debts barely get action (BAT)

  • Argentina closed 2023 with a $4.8B trade deficit with Brazil (BAT)

  • Milei plans to modernize Argentina’s seed technology (BAT)

Brazil

  • Brazil hits record trade surplus in 2023 (RIO)

  • Brazil car sales rose 12% in 2023 (RIO)

  • Brazilian stocks ended the week higher (RIO)

  • Brazil has entered 78 new markets for agriculture exports in 2023 (RIO)

Colombia

  • Exports dropped 13.7% in November 2023 (PORT)

  • Wingo moved 3M passengers in 2023 (PORT)

  • Biggest stores to close in 2023 due to DIAN orders (PORT)

  • Top 10 car brands sold in Colombia (PORT)

  • Coffee production grew 24% in 2023, hitting records (PORT)

  • Banana producers lose out on revenue due to price controls in Europe (ELT)

Dominican Republic

  • S&P recertifies Dominican Republic debt as BB (ELD)

  • Gov’t ends 2023 with a deficit of about $3B (ELD)

  • Earnings from mining hits $2B in 2022 (ELD)

Mexico

  • Pemex oil production doubles under AMLO (MB)

  •  Mexico issues $7.5B in bonds (MB)

  •  Grupo México joins Genesee & Wyoming rail service (MB)

Paraguay

  • Pork Exports grew 172% in 2023, exporting 7.69K tons (RIO)

Uruguay

  • Uruguay’s exports in 2023 dropped 13%, hitting $11.51B, due to drop in Chinese demand (RIO)

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DISCLAIMER: The 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 made of their own free will. Financial markets are full of risk, so be careful.