U.S. Economy is Slowing Down

Author

Faro Capital
April 07, 2023

Good Morning,

U.S. stocks ended a tad higher yesterday as the market is closed today. Jobs report is due to come out today and investors eyes will be glued to the report. The Department of Labor’s seasonality model was revised showing more claims for unemployment benefits than before. The interest rate yield on the 10-yr is at a seven-month low. With signs of a slowing economy the Cleveland Fed President Mester commented that the Fed funds rate should go above 5% to fight inflation. 

Canadian stocks ended almost flat yesterday after the street saw new economic data showing Canada’s growth projections. The national unemployment rate is near record lows of 5% in March. The Ivey PMI date showed the economy had gains in the tech and industrials sector but losses in energy producers. 

Brazilian stocks ended lower as investors still wait for fiscal framework. The largest losers were Natura (-5%), Meliuz (-4.3%) and Totvs (-3.7%). Ecuador’s inflation rate dropped to a 1-yr low of 2.85% in March. Chiles inflation rate touched 11.1% in March. 

Markets: Holiday Today (markets closed)

Top News Stories

Canada

  • Nutrien CEO says demand for fertilizer is growing (BNN)

  • WSP Global to buy Australian company Calibre for C$250M (BNN)

  • Canadian Retailer Roots reported Q4 profits fell from a year ago (BNN)

  • IGM Financial is entering the U.S. wealth management business with its acquisition of Rockefeller Capital, deal worth $622M (BNN)

U.S.

  • Private payrolls rose 145K in March (CNBC)

  • Sweet Green stock drops as Chipotle sues for trademark infringement (CNBC)

  • Johnson & Johnson will pay $8.9B to settle lawsuits over claims of Talc powder that causes cancer (CNBC)

  • GM U.S. sales rose 18% in Q1 (CNBC)

Argentina

  • Argentina lost a lawsuit in a UK court that will order the country to pay $1.5B plus interest to GDP linked bond buyers (BAT)

  • World bank lowers forecast to no growth in 2023 (BAT)

  • Buenos Aires reported 7.1% inflation in March (BAT)

Brazil

  • Votorantim SA is looking to invest in US real estate (BBG)

  • Petrobras to expand natural gas production in Northeast Brazil (RIO)

  • Exxon to quit drilling for oil in Brazil (WSJ)

Colombia

  • Wingo is reevaluating its slots in El Dorado Airport (PORT)

  • Inflation hit 13.34% in March 2023 (PORT)

  • Banco de Occidente grew 19.9% in 2022 (PORT)

  • The World bank projects economic growth to be 1.1% this year (PORT)

  • Oil production dropped 2.5% in February, due to blocks in Meta & Arauca (PORT)

Costa Rica

  • Inflation Y/Y dropped for the sixth consecutive month in February at 5.58% (ELF)

Chile

  • Inflation rose to 11.1% in March (RT)

Cuba

  • Cuba losses lawsuit in a UK court about debt issued during Castro era (CNBC)

Dominican Republic

  • Inflation dropped to 5.9% in March (ELD)The Savings and loans association of Cibao grew 5.4% in 2022 (ELD)

  • The Savings and loans association of Cibao grew 5.4% in 2022 (ELD)

Peru

  • Public investment grew 6.6% in Q1 2023 (ELC)

  • Peruvian congress looks to grow a Hemp industry with new law 3962/2022-CR, in Colombia & Uruguay there are more than 160 companies in this sector (ELC)

Mexico

  • Mexico InfrastruturePartners (MIP) to buy Iberdrola México assets for $6B, the assets produce 8.54MW of energy (ELF)

  • Inflation dropped to 6.85% in march, its lowest level in 17 months (ELF)

  • Brief breakdown of Mexico’s energy industry news this week (MB)

  • Mexico is now the U.S. top foreign supplier of vehicles, vehicle exports rose 21.8% last year (MB)

Insights

Compañía Panameña de Aviación, S.A., (Copa ) is the flag carrier of Panama. It’s headquartered in Panama City, Panama, with its main hub at Tocumen International Airport. Copa is a subsidiary of Copa Holdings, S.A. as well as a member of Star Alliance. The airline is also the main operator and owner of Colombian airline AeroRepública, currently known as Wingo.

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