The disinflation process continues, although employment remains strong
The consumer price index accelerated 0.4% monthly in April from 0.1% in March. This figure was in line with what the consensus was expecting, and at the same time allowed a slight reduction in inflation in annual terms, reaching a rate of 4.9% (vs. 5.0% in March and 5.0% expected). For its part, the index […]
FED: “Rise in line that could represent a pause moving forward”
In line with what was expected by the market and unanimously, the FED increased the reference rate by 25bp to 5 – 5.25%. This movement represented the tenth increase since March 2022 and implied its highest level since September 2007. Within the statement, it stood out that the Federal Open Market Committee (FOMC) reiterated that […]
Perspectives on the real estate market and its potential impact in the banking sector
Over the last few months, several macroeconomic and financial events have impacted the various sectors of the economy, and the real estate market has not been immune to these movements. With that arose the debate about how much risk there is in investments focused on real assets, whether through equity or debt. Additionally, the Silicon […]
The process of disinflation continues in the United States
Headline inflation slowed in March after registering a monthly increase of 0.1% in the consumer price index (CPI), with a rise of 0.4% observed in February and contrasting positively with the consensus expectation of 0.2%. In this context, annual inflation reached a rate of 5.0% (vs. 6.0% in February and 5.1% estimated). Overall, “shelter” costs […]
Expectations for 1Q23 corporate reports
The corporate reporting season is about to begin. In this context, the consensus considers that the companies of the S&P 500 would have recorded a contraction of 5% per year in their profits in 1Q23 (excluding the energy sector, the contraction of profit would be 6.6% YoY). This would represent the most significant drop in […]
Quick Guide to CoCos After Buying Credit Suisse
In the past two weeks, markets have experienced not seen volatility since the pandemic with the Silicon Valley Bank default, which subsequently led to the decline and purchase of Credit Suisse by UBS AG. During the weekend of March 18, UBS AG agreed to buy Credit Suisse for $3.2 billion (less than $0.8 per share) […]
FED: “The banking system is sound and resilient”
The statement stressed that recent indicators point to moderate growth in spending and production. Job creation in recent months has been notable, allowing the unemployment rate to remain low, although inflation remains high. On the other hand, he stressed that the US banking system is solid and resilient. Consequently, recent events will probably result in […]
Q&A on Silicon Valley Bank and the implications for Markets
With the recent volatility unleashed due to the closure of Silicon Valley Bank (SVB) operations, we share a series of questions and answers with the information we have so far. What happened to SVB? On March 8, SVB, based on the U.S. West Coast, announced the need to sell its US$21bn Available for Sale Securities […]
Q4 Earnings Key Takeaways
Quarterly reports are nearing completion, with 95% of S&P 500 companies releasing their numbers. Against this background, we summarize the key points the season has left us. On the one hand, earnings per share (EPS) behavior was much weaker sequentially since, in 3Q22, a growth of 4.4% was observed year over year (YoY). At the […]
China regains economic traction
The official February manufacturing activity (PMI) report in China advanced strongly and remained in the field, indicating expansion (+52.6 points*). This result was better than expected and represented its highest reading since April 2012. Among the report’s details, the notable rebound in the export orders component stood out, which is particularly interesting because there are […]
