Investors Brace For Powell's Next Move

Author

Faro Capital
August 25, 2023

Good Morning,

U.S. stocks finished lower yesterday as investors are looking to Fed Chair Powell’s speech, scheduled today. Sentiment on the street is mixed with PIMCO saying that rate hikes into next year shouldn’t be counted out. The rally in tech dropped due to bond yields increasing. Jobless claims dropped as the labor market remains tight. Former Fed member James Bullard stated that the rise in economic activity this summer could put a pause on rate hikes. Time will tell if this is the case.

Canadian stocks ended relatively flat while tech stocks take a hit, miners falling, and local banks reporting negative outlooks on operations. TD Bank dropped after missing profit estimates. RBC announced cost cutting initiatives. Other major banks are to report earnings next week.

Markets: Before the Open

Top News Stories

Canada

  • TC Energy looks to sale of NGTL system (BNN)

  • Crescent Point Energy to sell North Dakota assets for C$675M (BNN)

  • RBC to cut jobs and lower expenses (BNN)

  • Canadian banks underperform (BNN)

  • Bell Media to shut down Vrak TV (MG)

  • Concord Pacific lost a court challenge over Yaletown condo building use (VS)

  • Hudson Bay ups rewards program (VS)

  • Alberta’s pause on renewable energy projects affect 118 projects worth C$33B (TC)

  • TD Banks reports profits are down (TC)

U.S.

  • Mastercard & Binance end four crypto cards programs (USN)

  • DOJ sues Space X for hiring discrimination (CNBC)

  • Roark Capital to buy Subway food chain (CNBC)

  • Dollar Tree is facing problems (CNBC)

  • Shein and Forever 21 announce a strategic partnership (CNBC)

  • Peleton faces trouble as loss are more than expected (CNBC)

  • Juul to cut 30% of its workforce (CNBC)

  • Footlocker cuts forward guidance on poor earnings (CNBC)

  • Abercrombie & Fitch announces stellar earnings (CNBC)

  • Mortgage demand drops to 28-yr low (CNBC)

  • Dick’s Sporting Goods report poor earnings due to theft (CNBC)

  • Tilray to by several brands under the Molson Coors umbrella (CNBC)

  • TSMC and unions fight on Arizona plant (WSJ)

  • Andreessen Co-leads $200M investment in Biotech Genesis Therapeutics (WSJ)

  • T-Mobile lays off 5K employees (WSJ)

  • U.S. Cobalt supply chain gets looked at (WSJ)

Argentina

  • IMF frees $7.5B for Argentina (USN)

  • Economic activity is down 4.4% (USN)

  • Mass looting breakout in parts of Argentina (BAT)

Brazil

  • Brazil looks to raise $2B in ESG bonds (USN)

  • Brazil is looking to top the USA in corn exports (USN)

  • Brazil entered 37 new agricultural market in 19 countries this year (RIO)

  • Lula is looking into Yuan based trade with Argentina (RIO)

  • China is the largest buyer of Brazilian soybeans, imports 54M tons in 2023 so far (RIO)

  • Brazil & India look into local currency transactions (RIO)

Colombia

  • Colombian banks raise issue of liquidity to central bank (USN)

  • Petro looks to restructure free trade deal with America, spooking U.S. companies (USN)

  • Colombia liquor market has rose 5.2% this year (ELT)

  • Truck sales drop 51.8% year over year in July (PORT)

  • Air traffic rose 27% in Q1 2023 (PORT)

  • Santa Marta is ranked #1 to buy property for tourism (ELT)

  • Colombina gets $50B Peso loan from BBVA for sustainable projects (ELT)

  • BRC ratings and Fitch give positive signs to Corficolombia credit (ELT)

  • Grupo Sura to leave Argentina & El Salvador (ELT)

  • Ecopetrol to reactivate 8 contracts that were suspended (ELT)

Cuba

  • China pledges support to Cuba’s national sovereignty (USN)

Ecuador

  • Ecuador extends contract with America Movil (USN)

  • First round presidential polls show economy and violence are top issues (USN)

Mexico

  • Inflation slows down for 7th time in a row, hits 4.67% (USN)

  • Mexico expects $63.7B in remittances for this year (RIO)

  • BBVA capitalizes on automotive nearshoring (MB)

  • Asia is fueling Mexico nearshoring projects, representing 61% of investments (MB)

  • Bimbo to increase EV fleet (MB)

  • CNH greenlights oil exploration venture of $87M (MB)

  • Santacruz silver production increased 27% in Q2 2023 (MB)

  • Kueski makes its mark on Mexico’s unbanked population (MB)

  • As the Peso increases avocado exports fell 17% in H123 (MB)

  • Mexico is now the U.S. top trade partner (MB)

Panama

  • Backlogs in the Panama canal ease as drought restrictions drop (USN)

Peru

  • Citibank buys a stake in Peruvian FX startup Rextie (USN)

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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.