Basket Village USA http://basketvillageusa.com/ Sat, 21 May 2022 00:02:57 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://basketvillageusa.com/wp-content/uploads/2021/03/basketvillageusa-icon-70x70.png Basket Village USA http://basketvillageusa.com/ 32 32 ED turns to Polad for cost-effective solutions https://basketvillageusa.com/ed-turns-to-polad-for-cost-effective-solutions/ Fri, 20 May 2022 22:00:05 +0000 https://basketvillageusa.com/ed-turns-to-polad-for-cost-effective-solutions/

President Emmerson Mnangagwa

BY MASAU PROBLEM
EMBATTLED President Emmerson Mnangagwa has turned to members of the Policy Stakeholders Dialogue (Polad) to help him stop the economic turmoil characterized by soaring prices of goods and services.

Speaking after meeting Polad directors at State House on Thursday, Mnangagwa acknowledged the country was in an economic mess but pointed the finger at “economic saboteurs”.

Polad was created by Mnangagwa after the disputed 2018 elections and is made up of losing presidential candidates from shadowy opposition political parties.

“Help me find economic saboteurs and deal with them,” Mnangagwa pleaded.

“We have established that some members of the business community are involved in fueling the parallel market, thereby destabilizing our local currency.

“Our economy has been attacked by unscrupulous and nefarious individuals and unions bent on sabotaging our way of life.”

Some staples such as cooking oil have disappeared from supermarkets while others are priced out of reach, especially as the local currency continues to lose value.

On Thursday, the Consumers Council of Zimbabwe said a consumer basket for a family of five hit $120,000, up from $98,000 in April, as inflation continues on an upward trend .

In a bid to halt economic decline, Mnangagwa announced a package of measures such as a ban on lending to banks, but later rescinded the decree following an outcry.

Earlier this week, the government lifted import tariffs to allow Zimbabweans to buy groceries across borders.

“The assault has created hardship for our citizens due to inflationary pressures caused by speculation in our local currency. I believe these activities have been caused by a third hand whose objective is to interfere and derail our national development trajectory,” Mnangagwa told Polad members.

Inside sources revealed that Polad members continued to profit from taxpayers’ money in endless workshops disguised as strategy meetings.

Political analysts said there was no need to continue pampering Polad members.

Political analyst Pardon Taodzera said, “Nothing tangible has come out of Polad members over the past four years. They must push for electoral reforms.

“They failed to convince the United States and its allies to lift the sanctions. They have failed to contribute significantly to the economy, but they continue to misuse state resources.

There was an uproar last year when Mnangagwa gave Polad members double-cab Isuzu D-Max vehicles, which cost around $60,000 each.

  • Follow us on Twitter @NewsDayZimbabwe

]]> Moscow will build new military bases on the Western front in “response to NATO” https://basketvillageusa.com/moscow-will-build-new-military-bases-on-the-western-front-in-response-to-nato/ Fri, 20 May 2022 15:47:40 +0000 https://basketvillageusa.com/moscow-will-build-new-military-bases-on-the-western-front-in-response-to-nato/

Jhe United States and Russia blamed each other on Thursday for the worsening food situation around the world as the war in Ukraine unfolds.

Washington has called on Russia to allow Ukrainian grain exports stuck in Black Sea ports. Ukraine is one of the world’s leading producers of wheat.

“Stop blockading Black Sea ports. Allow free movement of ships, trains and trucks carrying food out of Ukraine,” Secretary of State Antony Blinken told a meeting of the Council of UN security organized by the United States.

“Stop threatening to suspend food and fertilizer exports from countries that criticize your war of aggression,” he said.

“The food supply of millions of Ukrainians and millions of others around the world has literally been held hostage by the Russian military,” Blinken added.

Russia’s ambassador to the UN, Vassily Nebenzia, countered by saying that his country was blamed for all the misfortunes in the world.

He said the world had long suffered from a food crisis caused by an inflationary spiral resulting from rising insurance costs, logistical problems and speculation in Western markets.

He argued that Ukrainian ports are blocked by Ukraine itself, which he said has placed mines along the Black Sea coast.

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Analysis: The pain of food inflation puts emerging markets between a rock and a hard place https://basketvillageusa.com/analysis-the-pain-of-food-inflation-puts-emerging-markets-between-a-rock-and-a-hard-place/ Fri, 20 May 2022 07:21:42 +0000 https://basketvillageusa.com/analysis-the-pain-of-food-inflation-puts-emerging-markets-between-a-rock-and-a-hard-place/

LONDON/ISTANBUL/CAIRO: As with millions of people in developing and emerging countries around the world, buying basic foods has gone from a necessity to a luxury for Selcuk Gemici.

The 49-year-old, who works at a car repair shop in Turkey’s biggest city, Istanbul, and lives with his wife and two children in his father’s house, says fresh produce is often out of stock. reach, her family living on pasta, bulgur and beans. .

“Everything has become so expensive that we can’t buy and eat what we want – we only buy what we can afford now,” Gemici said. “My children are not properly fed.”

Global food prices have soared for two years, fueled by COVID-19-related disruptions and inclement weather. Grain and oil supply shocks caused by Russia’s invasion of Ukraine hit an all-time high in February and then again in March.

Inflation rates have soared, with rising energy prices adding to the pressure. Turkey or Argentina with annual inflation of 70% and around 60% could be outliers, but the readings are in the double digits in countries from Brazil to Hungary. This makes US inflation of 8.3% modest by comparison.

Rising food prices are a hot topic in emerging markets, raising the risk of civil unrest with echoes of the Arab Spring and putting policymakers in a bind between intervening with fiscal support to ease the pain of their population or the preservation of public finances.

Food is the largest category in inflation baskets – the selection of goods used to calculate the cost of living – in many developing countries, accounting for around half in countries like India or Pakistan and on average some 40% in low-income countries, International Monetary Fund data shows.

Food producers have become more protective: India announced a ban on wheat exports over the weekend while Indonesia halted palm oil exports to control soaring prices at home in late April.

Soaring wheat and rising food prices are fueling inflation

And with the war in Ukraine disrupting not only food but also fertilizer supplies, food inflation could last longer, Marcelo Carvalho, head of global emerging markets research at BNP Paribas, told Reuters.

“It’s here to stay,” Carvalho said. “Food is very salient – ​​when there is a change in food prices, the perception of inflation is amplified – which fuels inflation expectations which are more easily unanchored.”

HOTSPOT

For Um Ibrahim, a 60-year-old widow who sells scarves outside a mosque in the middle-class neighborhood of Madinet Nasr in Cairo, the Egyptian capital, feeding her four children has become much more difficult.

“All prices have gone up – clothes, vegetables, poultry, eggs – what am I going to do?” she asked, spreading her dishes on a tablecloth.

Egypt, one of the world’s biggest wheat importers, saw inflation soar more than 13% in April and is expected to raise interest rates again at a meeting this week after devaluing the currency by 14% in mid-March.

Emerging market policymakers, who have raised interest rates by hundreds of basis points cumulatively since 2020 to dampen price pressures and secure a higher US bond yield premium for investors, must find a balance between controlling inflation and maintaining fragile growth at a level during periods of rising global interest rates.

Emerging economies could grow by just 4.6% this year, according to World Bank forecasts, down from an earlier forecast of 6.3%.

Emerging Markets Inflation https://fingfx.thomsonreuters.com/gfx/mkt/mopanzmmqva/EMper cent20inflationper cent20pressures.PNG

Polina Kurdyavko, head of emerging debt at BlueBay Asset Management, says governments have three options: give consumers bigger subsidies or bite the bullet to let prices rise and deal with inflation and social unrest, or do something in between.

“There are no easy solutions,” Kurdyavko said.

A series of countries have introduced measures: Turkey raised the minimum wage by 50% in December to deal with a currency crash and soaring inflation. Chile will also raise the minimum wage this year.

The South African government is debating whether to increase a social assistance grant launched in 2020 and make the program permanent.

Economists fear that emerging economies will face a new wave of unrest following the latest food price hikes. North Africa, where food inflation contributed to the Arab Spring revolts a decade ago, looked particularly vulnerable, said Beata Javorcic, chief economist at the European Bank for Reconstruction and Development.

“The irony of this war is that while everyone expected Russia to have a crisis, it is actually the countries of North Africa that are closer to having an emergency. due to high food prices,” she said.

But the pain is expected to spread further: Three-quarters of countries expected to be at high or extreme risk of civil unrest by the fourth quarter of 2022 were middle-income countries, the cabinet said last week. risk consultancy Verisk Maplecroft.

Easing inflationary pressures through spending will have a fiscal cost that could lead to problems later, BNP’s Carvalho said.

“In emerging markets, tax sins are forgiven but not forgotten,” he said. “For the past two years, everyone felt like they had a blank check…partly because rates were so low. Now that interest rates are going up, it’s getting a little more complicated .”

(Reporting by Karin Strohecker; Additional reporting by Jorgelina do Rosario; Editing by David Evans)

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Stocks tumble after retail giants sound stagflation alarm https://basketvillageusa.com/stocks-tumble-after-retail-giants-sound-stagflation-alarm/ Thu, 19 May 2022 14:26:03 +0000 https://basketvillageusa.com/stocks-tumble-after-retail-giants-sound-stagflation-alarm/

Bond markets rallied on the dive for safety and on bets that interest rate hikes could be recalibrated, but it was gloom that hit stocks after Wednesday wiped out $25 billion from the shares of US retail giant Target which topped the stock. [.N]

Wall Street, which haemorrhaged $1.5 trillion in total, reopened another 1% down, Europe fell 2% as its retailers fell 2.5% [.EU]and Chinese tech companies also fell overnight [.SS]all of which left the MSCI global equity index sliding to year-and-a-half lows.

“Target and Walmart coming out with disappointing numbers really, really scared people off,” said Robert Alster, chief investment officer of Close Brothers Asset Management.

“We’re going to see a series of downward revisions to US GDP (forecast) now…it really does look like we’re hitting a faster-than-expected slowdown.”

This MSCI World Index is now down nearly 18% in what is its worst start to the year on a recent record.

Signs of flagging economies were highlighted as weekly U.S. jobless claims figures rose slightly and a survey of businesses in the mid-Atlantic region showed confidence about the coming months was at a 13-year low.

Goldman Sachs now estimates a 35% chance of a US recession over the next two years, while Morgan Stanley sees a 25% chance over the next 12 months.

Wall Street’s new selloff came after Wednesday’s rout sent the S&P 500 down 4% and the Nasdaq down 5%. [.N] while megacap giants Amazon, Nvidia and Tesla all fell nearly 7% and Apple fell 5.6%.

Shares in Asia-Pacific ex-Japan snapped four days of gains to falter 1.8%, led by a 1.65% loss for the resource-rich Australian index, a 2.5% decline in Hong Kong. The Tokyo Nikkei also lost 1.9%.

Hong Kong-listed tech giants were particularly hard hit, with the index falling nearly 4%. Chinese online giant Tencent fell more than 6% after posting zero revenue growth in the first quarter, its worst performance since its IPO in 2004.

China’s tech and real estate sectors are still reeling from a year-long government crackdown and a slowing economic outlook stemming from Beijing’s strict zero-COVID policy, even as the vice-president’s soothing comments Premier Liu He to technology executives boosted sentiment on Wednesday.

(Chart – Worst start to the year for global equities:

)

CENTRAL FOCUS

The focus remained on what central banks will do now as they walk a tightrope to try to regain control of inflation, which is now at 40-year highs in some countries, without causing recessions. painful.

“We will have to discuss what we can do together in our respective areas of responsibility to avoid stagflation scenarios,” German Finance Minister Christian Lindner said upon arriving for a two-day meeting of top central bankers near from Bonn.

Two top U.S. central bankers said on Wednesday they expected the Federal Reserve to downgrade to a more measured pace of rate hikes after July, but in Europe traders suddenly forecast up to four rate hikes. the ECB. He hasn’t raised interest rates in over a decade.

However, while things haven’t reached the tipping point, they are apparently heading “out of control. This is probably the most worrying part for the market,” market analyst Hebe Chen said. at IG.

In currency markets, the US dollar fell 0.3% against a basket of major currencies, after a 0.55% jump overnight that ended a three-day losing streak.

The euro gained nearly 1% on the ECB’s rate hike, while the Australian dollar jumped 1.6% and the New Zealand kiwi rebounded 1.2%, helped by an easing of the lockdown Shanghai COVID China. [FRX/]

US Treasuries continued to rally with yields – which move inversely to prices – as low as 2.77%, while Europe’s risk aversion saw German bond yields 10 years to fall well below the closely watched level of 1%. [GVD/EUR]

Inflation worries also saw oil prices fall again as fears of slowing economic growth and signs that Venezuelan oil could return to the market outweighed lingering fears over the tight global supply.

Brent crude fell from $110.41 to $108.04 a barrel in London, while US crude fell to $108.05 a barrel and gold, which has fallen more than 12% since March, hit $1,830 an ounce. [GOL/]

(Chart – Rising inflation driven by food and energy prices:

)

(Additional reporting by Francesco Canepa in Koenigswinter, Germany, Stella Qiu in Beijing and Alun John in Hong Kong; Editing by Chizu Nomiyama and Kirsten Donovan)

By Mark Jones

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XAU/USD Benefits from Softer Dollar, Lower US Yields and Visual Test of 200DMA https://basketvillageusa.com/xau-usd-benefits-from-softer-dollar-lower-us-yields-and-visual-test-of-200dma/ Thu, 19 May 2022 11:52:41 +0000 https://basketvillageusa.com/xau-usd-benefits-from-softer-dollar-lower-us-yields-and-visual-test-of-200dma/
  • Gold is higher amid risky flows, a weaker dollar and weaker US yields.
  • XAU/USD is again eyeing a test of its 200-DMA around $1,837.

Spot gold prices (XAU/USD) are trading around $1,830 per troy ounce and are eyeing a test of the 200-day moving average again around $1,837, after gaining around $15 ( or about 0.8%) so far on the session. Risk flows in the global equity space continued on Thursday after Wall Street’s worst day in nearly two years on Wednesday, as investors continued to worry about easing global growth expectations at a time where the main central banks (namely the Fed and to a lesser extent the BoE and the ECB) seem determined to aggressive monetary tightening.

This is a toxic combination for equities and investors have started to seek safety in traditional safe-haven assets such as US bonds, even as US bond valuations have been hit hard in recent months by the shift in Fed hawkish stance. Either way, US yields (both nominal and real) are lower on Thursday, dampening the attractiveness of the US dollar as a safe-haven currency, with the Swiss franc and the yen faring better.

The combination of lower yields, which reduces the “opportunity cost” of holding non-yielding gold, and a weaker US dollar, which lowers the price of USD-denominated commodities like XAU/USD for foreign buyers, had the double effect of supporting gold on Thursday. But it remains to be seen if these trends will continue and if XAU/USD can break above its 200-DMA and break out of its recent downtrend.

Over the past few weeks, buying USD dips and selling gold rallies has been a very profitable strategy. As long as the markets continue to believe that the Fed will continue with as much monetary tightening as it has promised, gold’s chances of rebounding towards, say, the upper $1,800 seem limited. Looking to the immediate future, a few US Level 2 data releases on Thursday in the form of the Philadelphia Manufacturing Survey in May, the initial weekly jobless claims report and April existing home sales probably won’t move the markets much. But the data will likely remain focused on the broad themes of slowing growth, inflation and central bank tightening.

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Dollar breaks Tk 100, but still ‘hard to find’ https://basketvillageusa.com/dollar-breaks-tk-100-but-still-hard-to-find/ Tue, 17 May 2022 19:51:21 +0000 https://basketvillageusa.com/dollar-breaks-tk-100-but-still-hard-to-find/

Many people who visited banks and exchange offices in Dhaka for the dollar on Tuesday could not find one as its price on the open market rose by at least Tk 5 to Tk 102, the highest rate in the history of Bangladesh, according to traders from Gulshan, Gulistan, Paltan and Motijheel. Even the banks sold the dollar at 97 Tk.

Md Aminuddin, a trade representative of Western Money Exchange in Paltan, said he sold the dollar at 98 Tk in the morning and bought the currency again at 101 Tk in the afternoon to sell it at 102 Tk later.

“As some other companies ran out of dollars after a while, we stopped trading because buying at a high rate can lead to losses. Today the market was hard to grasp as it was on a rollercoaster ride.

Jashim Uddin, who trades in dollars on the streets outside banks in Motijheel, said he has never turned away a customer without providing as many dollars as he wanted. “Now I first ask how much they need because the rate is high due to a shortage. I sold at 100 Tk until 3pm and ran out.

A man who demanded $2,000 from a bank said the bank could not provide him with the dollars. “The price is much higher on the open market. So I’ll be back [Wednesday]”said the man, on condition of anonymity.

The drop in COVID-19 cases has been accompanied by a global rise in commodity prices, as the Russian-Ukrainian war has led to higher supply and delivery costs. As a result, the demand for dollars increased and the Bangladeshi taka, like many other currencies around the world, began to lose value.

In the free market, expatriate workers and tourists are the main sources of dollars. They sell the dollar they have on them to exchange offices, which in turn resell the money to foreign travelers who need it.

Today, currency exchanges no longer obtain much foreign currency from expatriates and tourists, while the number of people going abroad for travel, shopping, education, medical treatment and other causes increased.

“More people are coming to buy dollars now. We had seen strangers earlier, but they disappeared. Also, it is possible to make purchases with cards, so the use of dollar bills is down,” said Golam Faruk, an employee of Margina Money Exchange in Gulshan.

The US dollar exchange rate for interbank transactions was revised down by 0.80 Tk to 87.5 Tk on Tuesday, but several banks raised dollar prices to around 92-94 Tk amid increased demand .

On Tuesday, Eastern Bank Limited sold the dollar at 96 Tk, down from 92.5 Tk on Monday. Social Islami Bank raised the price of the dollar by 3.5 Tk to 99 Tk in one day.

In the global market, the dollar eased for a third straight day on Tuesday, coming back from a two-decade high against a basket of major peers, as an increase in investors’ appetite for riskier bets diminished the attractiveness of the US currency as a safe haven, Reuters reported.

The US Dollar Currency Index=USD, which tracks the greenback against six major currencies, fell 0.7% to 103.39, its lowest since May 6. The index hit a two-decade high last week, buoyed by a hawkish Federal Reserve and global economic fallout from the Russia-Ukraine conflict.

The dollar remained subdued after data showed U.S. retail sales rose sharply in April as consumers bought motor vehicles amid improving supply and patronized restaurants, not showing no sign of slowing demand despite high inflation.

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Start of sales in the South American district of Minsk World. The best prices are now! https://basketvillageusa.com/start-of-sales-in-the-south-american-district-of-minsk-world-the-best-prices-are-now/ Tue, 17 May 2022 11:00:00 +0000 https://basketvillageusa.com/start-of-sales-in-the-south-american-district-of-minsk-world-the-best-prices-are-now/

Do you want to protect your savings from inflation by investing in luxury real estate, the hardest currency of our time? Welcome to the new South American district of the Minsk World multifunctional complex where sales begin in the new comfortable homes Buenos Aires, Havana, Caracas soon. The prices are better at the beginning of the sales!

Current prices will only be available until the end of this month for all new homes in Minsk World!

A promotion in the South America district is only running until the end of May – from €910 per m2!

South America district

The South America district is located in the central part of Minsk World, a multifunctional complex that has implemented the modern concept of urban development of a “15-minute city”.

All facilities of a comfortable infrastructure here will be located within walking distance. This will allow future residents of Minsk World to use the comfort of the neighborhood, which is created with maximum care for new tenants. They will not have to leave his land unnecessarily, saving and rationally using their time and money.

Houses Buenos Aires, Havana, Caracas.  South America district in Minsk World

Houses Buenos Aires, Havana, Caracas. South America district in Minsk World

The South American district is being built just steps from the International Financial Center, which will become a transnational hub for business, a place to build a successful business career, implement business projects by companies and businessmen. affairs of Belarus and other countries. More than 1,000 applications for attendance at the Global International Financial Center in Minsk have been submitted so far.

Minsk World International Financial Center

Minsk World International Financial Center

The largest shopping center in Belarus will be built nearby. It will bear the name of the first airport in Belarus, which operated in this area for more than 80 years (from 1933 to 2005). Avia Mall will have a hypermarket and a huge 1,000 m2 food court serving dishes from around the world. There will also be a modern cinema and plenty of entertainment facilities for adults and children.

Avia Shopping Center

Avia Shopping Center

The Aerodromnaya metro station will open at the entrance to the International Financial Center in 2023. Finishing works with porcelain stoneware are already underway there. Kovalskaya Sloboda metro station of the Zelenoluzhskaya line is within walking distance. The metro station has been operating since November 2022.

Vestibules of the new stations of the Zelenoluzhskaya line

Vestibules of the new stations of the Zelenoluzhskaya line

Construction of new facilities and improved transportation infrastructure are driving up real estate prices in the South American Quarter.

Safe adjacent territory in the South American Quarter

Safe adjacent territory in the South American Quarter

The neighborhood will have all the necessary facilities and amenities to enhance the living experience for adults and children.

Basketball Court in the South American Quarter

Basketball Court in the South American Quarter

The South America district will have a kindergarten for 270 children, a shopping and community center, children’s play areas, training areas and sports fields to live a life healthy.

Car parks away from children

Parking spaces away from children’s play areas

There will be a polyclinic, a music school, a commercial and community center with outdoor parking a stone’s throw away, in the Western Europe district.

The area near the houses in Buenos Aires, Havana and Caracas is traffic-free and parking spaces are located along the perimeter of the neighborhood. Parents don’t have to worry about the safety of their children.

For the convenience of car owners, the Minsk World mixed-use complex offers more than just parking spaces on the ground floor. Nine-storey car parks with 24-hour security, video surveillance and 24/7 automated access are already operational and more car parks are under construction.

Parking is a new level of car driving culture, ensuring vehicle safety.

Parking on Germanovskaya Street.  Minsk World

Parking on Germanovskaya Street. Minsk World

New 25-story single-section homes in Buenos Aires, Havana, and Caracas offer the best proportion of modern aesthetics and functionality, typical of modern South American architecture.

Comfort in these homes begins with ground-level entrances. This is convenient for mothers with prams and people with disabilities.

Buenos Aires.  A stone's throw from a comfortable life!

Buenos Aires. A stone’s throw from a comfortable life!

The houses of the South America district will welcome you with design lobbies that reflect the semantic and aesthetic concept of the names of the prestigious new houses.

Buenos Aires house design lobby

Buenos Aires house design lobby

Havana House lobby looks very romantic

Havana House lobby looks very romantic

Welcome to sensual “Caracas”!

Welcome to sensual “Caracas”!

The spacious halls with an area of ​​more than 40 m2 feature 3.45 meter high ceilings. There is a concierge desk, a comfortable sitting area for visitors, a bathroom with a changing table and sink, allowing mums to change their babies without having to come home. There is also a bike box for cyclists.

A guest space and a bit of book sharing in the Buenos Aires house

A guest space and a bit of book sharing in the Buenos Aires house

A Caracas home entrance hall at sunset

A Caracas home entrance hall at sunset

An elevator hall in Havana home

An elevator hall in Havana home

Each of the three houses has three silent fast elevators: a freight elevator, a people elevator and a panoramic elevator. You and your guests will be able to see beautiful views of the prestigious multifunctional complex from its window.

A hoist, a people lift and a panoramic elevator in the house of Caracas

A hoist, a people lift and a panoramic elevator in the house of Caracas

The new houses have 246 apartments each with basic building layouts and sizes varying from 32m2 to 62m2. Most of them have floor-to-ceiling panoramic windows (except second-floor and fifth-floor properties). Loggias are available. The ceiling height is 2.72m (3.32m and 3.09m in apartments with terraces).

The basic construction layout is a great opportunity to distribute the interior space as you dreamed of while fulfilling your coveted fantasies and fitting out as many rooms as you and your family need!

Compare preliminary computer images and photos of ready premises!

A computer image is below and the real image of the Yekaterinburg house in the Eurasia district of the Minsk World multifunctional complex is above.

It was built exactly as it was designed!

Do you want to become a resident of the comfortable neighborhood by investing profitably and multiplying your capital? Promotional prices from €910 per square meter are offered in the South America district only until the end of May! Dial 7675 (the fixed numbers are +375 17 269−32−90, +375 17 39−39−465, +375 17 38-81-719). Welcome to the sales offices at 9 Mstislavtsa Street and 11 Mstislavtsa Street! Consultants from 57 cities and towns across Belarus can tell locals about Minsk World!

Minsk world. Everything you’ve been dreaming of for so long!

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Protect your portfolio against recession with XHYD https://basketvillageusa.com/protect-your-portfolio-against-recession-with-xhyd/ Tue, 17 May 2022 01:12:01 +0000 https://basketvillageusa.com/protect-your-portfolio-against-recession-with-xhyd/

IIs the US economy headed for a recession? Many Wall Street analysts and industry veterans seem to think it’s a very real possibility, including former Goldman Sachs CEO Lloyd Blankfein. Speaking with “Confront the Nationon CBS News on Sunday, Blankfein said there was a “very, very high risk” that the US economy was heading into a recession as the Federal Reserve tightens policy to combat high inflation.

“If I was running a big company, I would be very prepared for this,” said Blankfein, who stepped down as CEO in 2018 but is still Goldman’s senior chairman. “If I was a consumer, I would be prepared for it. But it’s not baked in the cake.

Blankfein attributed high inflation to the economic stimulus the government introduced to mitigate the impact of the COVID-19 pandemic, supply chain issues, lockdowns in China and war in Ukraine.

“The Fed has very powerful tools. It’s hard to fine-tune them and it’s hard to see the effects quickly enough to change them,” Blankfein added. “But I think they react well.”

With an economic slowdown a real possibility, institutional bond investors with a long-term view might want to move away from broad-based exposure and consider some defensive sectors. One option to protect against a possible recession could be the BondBloxx US High Yield Consumer Non-Cyclicals Sector ETF (NYSE Arca: XHYD).

The U.S. high-yield bond fund targets the consumer staples sector, including consumer goods, discount stores, food and drug retail, restaurants and utilities sub-sectors . XHYD has an annual expense ratio of 0.35%.

“We’re hearing two things from clients right now. First, they’re considering taking on risk in their fixed income portfolios. Second, they’re worried about a higher likelihood of a recession. Because XHYD offers precise exposure to non-cyclical high yielding industries, this is a choice for investors looking for defensive positioning as we enter the second half of the year,” said JoAnne Bianco, Client Portfolio Manager at BondBloxx.

XHYD is one of seven new US high-yield bond ETFs that BondBloxx Investment Management launched in February. The funds provide precise index exposure to the high yield asset class and allow investors to diversify and manage industrial sector risk.

The funds are passively managed and track rules-based sub-indices of the ICE BofA US Cash Pay High Yield Constrained Index.

BondBloxx was founded by ETF industry leaders Leland Clemons, Joanna Gallegos, Elya Schwartzman, Mark Miller, Brian O’Donnell and Tony Kelly. The team has collectively built and launched over 350 ETFs in companies including BlackRock, JPMorgan, State Street, Northern Trust and HSBC.

For more news, insights and strategy visit the Institutional Income Strategies Channel.

Learn more at ETFtrends.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The upward pressure on prices will continue in all sectors; Know why https://basketvillageusa.com/the-upward-pressure-on-prices-will-continue-in-all-sectors-know-why/ Mon, 16 May 2022 10:42:33 +0000 https://basketvillageusa.com/the-upward-pressure-on-prices-will-continue-in-all-sectors-know-why/

Inflation is becoming one of the hottest topics in the country, with CPI growth figures hitting their highest level in eight years in April. Now, rising retail inflation has also started to be reflected in product MRP across all segments. FMCG products, such as soap, shampoo and cookies, manufactured items such as television and air conditioning, and restaurant bills, among others, have come under continued price pressures over the past few months.

Recently, Indonesia banned the export of palm oil, which has restricted its supply to India, thus putting pressure on higher prices. Palm oil is used as a raw material in various industries to make products ranging from soaps, shampoos, noodles and cookies to chocolates. The shortage of palm oil supply will drive up its prices, which, in turn, will increase the input cost of these products and therefore prices.

Subsequently, Hindustan Unilever Ltd (HUL) increased the prices of its products by up to 15% across all segments. the price of its Sunsilk shampoo has been increased by 8-10 rupees depending on the variant, while the Clinic Plus 100ml shampoo has become more expensive by 15%. The price of the Pears 125 g soap increased by 2.4% and that of the multipack by 3.7%. Lux soap saw a 9% increase in prices for some multipack variants. The price of Glow & Lovely has been increased by 6-8%. The price of pond talcum powder has also been increased by 5-7%.

In April, the company also increased the price of its products by a range of 3-20% for skin cleansing and detergents.

According to a Bloomberg report, the price of Surf Excel rose 20% in January. Laundry detergent falls under “magic prices” (such as Rs 5 or Rs 10) for buyers on tight budgets. “Almost 30% of our business comes from packs that operate at magic prices,” according to the report quoting Ritesh Tiwari, chief financial officer of Hindustan Unilever.

Meanwhile, a weaker Indian rupee also weighed on input costs for companies making household appliances and consumer electronics, including televisions, washing machines and refrigerators. On May 12, the rupee fell to an all-time low of 77.63 per dollar.

The Consumer Electronics and Appliances Manufacturers Association (CEAMA) recently said that the Indian currency’s fall against the dollar is creating more problems for the industry. “From June, we will see a price increase of 3 to 5%,” said its president Eric Braganza.

Apart from this, rising commodity prices amid the Russian-Ukrainian war is affecting the input costs of the food industry. Quick service restaurants such as Dominos, bars and cafes are experiencing price increases of up to 15%. Jubilant FoodWorks, which operates Domino’s Pizza, recently raised prices by 5% last month, its second increase in five months after a price hike of 4-5% at the end of last year.

Current Retail Price Inflation Scenario

Inflation based on the Consumer Price Index (CPI), which the RBI takes as its benchmark when deciding monetary policy, in April 2022 hit an eight-year high of 7.79 percent. It is compared to 4.23% in April 2021 and 6.97% in March 2022. Food basket inflation rose to 8.38% in April, from 7.68% the previous month and 1.96% the month of the previous year. .

Is this the maximum level?

Suvodeep Rakshit, senior economist at Kotak Institutional Equities, said: “Headline inflation in April is likely to be the peak of the year. However, we do not expect inflation to fall below 6% for the remainder of the year, with drawdowns over the next few months remaining around 7-7.5%. »

DSP Mutual Fund also said the latest reading would likely mark the peak statistically, but inflation in the first half could remain well above 6%. “The RBI’s inflation expectation of 5.7% for the current financial year is expected to be revised upwards in June policy.”

Vivek Rathi, Director (Research) of Knight Frank India, said: “The sooner the geopolitical tension due to the (Russian-Ukrainian) war and trade sanctions eases, the better it will be for global economic growth and the stability of price.

Read all the latest IPL 2022 news, breaking news and live updates here.

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Carol Perry: Uncertainty causes anxiety https://basketvillageusa.com/carol-perry-uncertainty-causes-anxiety/ Sun, 15 May 2022 15:50:52 +0000 https://basketvillageusa.com/carol-perry-uncertainty-causes-anxiety/

Carol Perry

I got a license to trade securities in 1990 with IDS financial services, but only stayed there briefly due to my dislike of cold calling.
I applied for a job with Bank of America Investment Services during a campaign to increase female hiring in the early 1990s. I had majored in public health education, so my background in Investment banking was limited but I spoke a good game so they hired me. Suddenly, I was working for one of the largest bond underwriters in the country with just enough bond knowledge to pass the licensing exam. I was immediately in over my head.
Then came the bond market crisis of 1994 which caused prices to fall sharply and yields to rise. The rout began in the United States and Japan and was precipitated by a 0.25 basis point hike in interest rates by the Federal Reserve. Having yet to hone my bond trading skills, I was hammered, but it was a lesson I never forgot.
I learned that bond markets might seem boring, but they rule the world and I would understand them better if I wanted to survive. It’s now 2022 and once again a 25 basis point hike by the Fed (along with expectations for further rate and QT hikes) is making markets vomit. We literally have the worst bond market since 1994, so now is a good time to remember those lessons.
Some things have changed since 1994 in bond markets, but not for the better. Rising debt issuance, the use of leverage and dark markets have only gotten worse. Many of the real problems that led to the Great Financial Crisis of 2008 have only been covered up, not structurally resolved, so that the estimated total of global debt markets is now around 250T. Can such a debt really be repaid? The answer is no, so the debt should be rolled over, but with rising interest rates, now at higher rates. If more capital goes to servicing debt, less goes to growth. It affects everyone, from countries to small businesses.
So should you be worried if you own bonds and can the carnage in the bond markets affect your stock holdings? Sure.
What happens in bond markets doesn’t stay in bond markets, so there are some important things to consider. If you own good quality bonds and hold them to call or maturity dates, the worst that can happen is that you get your money back plus interest. If you own bond funds, the fund owns the bonds, not you, so no money back guarantee.
The lower the quality (credit rating) of the bond or fund, the higher the coupon (interest), but with rising rates you will see much larger price drops on your statements with bonds of lower quality because they carry more risk of default and prices move in the opposite direction. produce. Right now, headline inflation is 8.5%, with real inflation being regional and even person-to-person, so you need to earn at least 8.5% to break even on bonds.
Normally, the longer the maturity, the higher the return, but sometimes shorter maturities can earn you more. This is called the inversion of the yield curve and it is generally a reliable predictor of recession. We have seen this reversal recently, so it may be a sign of danger ahead in the economy.
Some stocks will be more sensitive to rising rates than others. Companies that are highly leveraged, that use hedging or leverage extensively, or whose earnings are predictive of the future rather than the present will see greater price volatility as rates rise. Look for defensive (stages, healthcare, REITs, utilities) or price-raising (consumer, food, energy) companies or ETFs that will allow you to buy a basket of stocks in these sectors. Consider companies that have a track record of reliable and rising dividends to provide income or protect your portfolio from volatility.
Predicting interest rates is difficult, although the Fed has eliminated much of the guesswork. Their dot chart is meant as a guide, but as we’ve seen recently, interest rates can rise on their own without Fed intervention. Interest rates move with inflation, geopolitical risk and liquidity and we have problems in all of these areas. So you should ask yourself if you think inflation is transitory. Will the risk of a further escalation of hostilities in Ukraine be a lesson and even if they cease completely, will the sanctions against Russia be lifted? Will there be enough dollars to travel around the world to meet liquidity needs?
All new things to consider when investing in new assets or selling existing assets.
I know uncertainty causes anxiety for many, so I’m going to share with you the advice of a battle-scarred trader who helped me in the 1990s. He had a theory using three baskets that he would compartmentalize in his mind. He told me to visualize the first basket containing things over which I had full control (attitude and behavior) the second basket contained things over which I shared partial control with others (family, friends, professional relationships ) then the third and by far the largest basket contained things I had no control over. If you realize that most of what happens in the markets (and in life) happens in the third basket, you can plan better and be much less stressed.

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