The weekend will have been difficult in the USA and to see how it goes this morning, it may not be better. The Nasdaq in general and the SOX in particular continue to offer us ups and downs worthy of the best roller coasters on the planet, all take refuge in “value”, while the transport sector is in great difficulties. Otherwise, we are beginning to think that the rate hike is going to be really stratospheric in the near future, but it remains to be seen when we will have finally integrated the thing. But next week brings us many surprises between the CPI and the ECB, including the quarterly figures.
The audio of April 11, 2022
But before we talk about fundamentals, quarterly numbers, or economic numbers, we shouldn’t overlook the fact that Elon Musk obviously doesn’t really know what to do with his weekends. Or he had a lot of Russian billionaire friends and he can’t see them anymore, so he’s deeply bored. Or his only real relationship in his life, aside from his kids all being named like a blackboard in a nuclear physics class, is with his cell phone and his Twitter account.
For this reason, the king of the world has dedicated his time to the little blue bird making suggestions to earn more money better and to correct what is wrong on Twitter -according to him- the world of finance and “business wonders once again how it is that this alien was able to come to this, to do corporate communication directly through 240-character messages in full view of everyone, when usually the environment tends to do it in the cozy atmosphere of boardrooms where only people authorized parties can enter to share between information that will be confidential until they benefit from it greatly before Musk is once again revolutionizing the codes and not everyone is happy.
Fortunately, the weekend only lasts two days, because given the number of tweets that Elon Musk has produced and given the consequences that this is going to have in certain sectors, if it had been Easter, we would have until May to deal with the consequences. of his tweets. Yes, because the CEO of Tesla has not been satisfied ONLY with renewing the operating structure of Twitter in several tweets, he has also given a tremendous kick to the Lithium sector that will start the week with an injection of adrenaline directly into the heart muscle.
According to his second round of ‘tweets’, lithium is starting to be a problem for Tesla and Musk is hinting he could get into the business… he’s likely to push a lot of stocks today, stocks that are active in lithium. . Mention will be made in passing to Albemarle, Livent, SQM, Piedmont Lithium, Lithium Americas and Sigma Lithium. In fact, lithium has skyrocketed nearly 80% this year. And the titles are all well put together, but if Musk lets us hear that he’s going to do something to us on Twitter, we can’t get enough of laughing at the industry. We also note that Piedmont is already in contact with Tesla, as Musk’s box has been buying Piedmont’s output since 2020 and when they announced their partnership at the time, the stock had taken 230% in the news. It is not clear what the true intentions of the richest man in the world are, because now he simply slipped that if the price of lithium does not return to reality, Tesla will have to intervene to “help the industry”. Apparently the problem is not the rarity, but the extraction and refining processes that are too slow…
short busy week
One figure to remember for now: The recent explosion in the price of lithium has raised the price of Tesla by $2,000. I don’t mind. I don’t drive a Tesla. So Elon Musk’s tweets should be the talk of the town this Monday morning. That and the macroeconomic events that lie ahead. Since the week will be cut short by Easter, we will have to concentrate a maximum of information in a minimum of time. We are also going to start very seriously tomorrow with the CPI figures that will surely amuse the gallery. The question will be to see if the data for the month of March is even better than its three predecessors and if we break a new historical record for inflation.
We can legitimately hope for a semblance of improvement, as oil, however, has come back strong, in the end, and other commodities, however, have calmed down at the end of the month. But anyway, we shouldn’t expect a massive drop in the CPI figure either and therefore we will talk a lot about this in the next 48 hours. Also, at the end of the week, the Bank of America strategist estimated that there was a 100% chance of seeing three 0.5% rate hikes, three consecutive 0.5% rate hikes over the next three the Fed. Namely ; May 4, June 15 and July 27.
And then we won’t be done with rates any time soon, as we have the ECB meeting on Thursday. The European Central Bank should reveal a little more about its strategy against inflation, which is also a hit in Europe. On sait que Dame Lagarde n’est pas trop motivée pour monter les taux en Europe avant la fin de l’année mais les derniers chiffres en date risquent de devoir lui faire changer d’avis – peut-être – et puis ça n’est not all. Do not forget that this week is the official launch of the quarterly figures season. It’s not the biggest week of the year yet, but let’s say we’re going to start heating up the issue of pressure on margins, the cost of raw materials and what this has done to the figures for this first quarter of the year.
This week it is the bankers who are going to bear the brunt and it will not be very representative. Especially since we know that every time banks publish, the gap between reality and analysts’ expectations is closer to the Grand Canyon than the big gap.
Asia dressed in red
This start to the week already looks to be on the dark side of the force as indices from the far east of the globe are in the block as early as this morning. Japan is down 0.9%, while Hong Kong is down 2.45% and Shanghai isn’t doing much better. It must be said that the confinements that are dragging on in the region are beginning to make many people doubt. Yesterday we learned about the closure of the NIO production line in China due to COVID. As if this disgusting virus has not finished ruining our lives, although, at the moment, the financial world seems to mock it as if it were its first Hermès tie.
Oil is under pressure this morning and is good for inflation. The barrel is trading at $95.94 and gold at $1,940. Bitcoin is at $42,000 and the mega party on the subject that took place last weekend in Miami must have left more headaches and hangovers than the desire to buy Bitcoin this Monday morning. But still, the cryptocurrency has again found significant support. Support that was previously a resistance. Look carefully.
We talk again and again about Dow Jones Transportation, which continues to have a bad face with all these companies that bear the brunt of the rise in oil and fuel prices, without forgetting Boeing, which is fired every time a plane breaks down in the world. The 757 that broke in two in San José, Costa Rica this weekend, is not helping the sector to regain its motivation, not to mention that all the investment banks are lining up to discount most of the titles that make up the famous transport index. For the rest, France is preparing to experience the second leg of 2017 between Macron and Le Pen. And everyone wonders what would happen if the French got fed up with this arrogant and contemptuous president. But since that would leave room for the far right, it’s wrong to say it and it’s wrong to think about it. Macron made a speech last night to express his desire to see people rally behind him. A speech that was written by McKinsey for 450,000 euros for 1,000 characters.
Otherwise Musk again, since we just found out he refused to join Twitter’s board of directors, he just wants to be the biggest shareholder in the company and tweet all day to explain to them how they should run the business.
At the moment futures are in the red and well in the red as US indices are expected to open down nearly 0.7% for now. China’s economic numbers, also showing inflation and the fact that COVID appears to be out of control there (like inflation for that matter), are the main concern for the start of the week. . We talk very little about Ukraine, but we talk about it mainly in the sense that things are not moving forward and that the economy could split in two, you don’t have to be an economist to know that, but it’s still one more article to put in the top 20 minutes.
As far as I’m concerned, I can only wish you a very nice week and a happy Monday! See you tomorrow, as always! Have a nice day !
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