Perhaps the time has come for the Federal Reserve to “start thinking” about reducing its bond buying program. I’m not saying it. He said it Philadelphia Fed President Patrick Harker, who is concerned that inflation could get out of control … eventually. In markets, Harker’s statement curbed risk appetite. At this time, European Stoxx600 and Wall Street futures trade lower around 0.2%, awaiting new labor data in the US.
Analysts will pay special attention to signs of tightness in the labor market and wage pressures. In Europe, the PMI indices for services exceeded expectations, and already allow us to forecast a higher than expected growth for the second quarter in the main economies of the region.
This morning the FAO also reported that the world food price rose 4.8% in May. This is the largest monthly increase in a decade, and marks an increase for twelve consecutive months. Added to this is the publication of the Knight Franks Global House Price Index, which revealed a rise of 7.3% in the last 12 months to March, which is the largest advance since the end of 2006, reports Bloomberg. By last, Larry Fink, CEO de Blackrock, he warned that investors may be underestimating the possibility of a rebound in inflation, and that this could cause a shock in the markets. Fink assured that many young investors have not lived through periods of inflation … He is talking, of course, of investors in Europe, the US or Japan, not in Latin America.
Speaking of young investors, the “redditors” did it again. The action of the AMC cinema chain rose more than 95% yesterday, in the middle of the campaign by retail investors to “squeeze” hedge funds with short positions for more than US $ 4,500 million against the firm. AMC’s case is similar to GameStop’s, but with a difference, AMC CEO Adam Aron has decided to embrace his new investors, who will receive free popcorn every time they go to the movies. But more than that, it is making them feel like part of the company. This could be a first for other firms.
On local issues, the common minimum agenda occupies the headlines. Financial Journal informs that, now with Pablo Lorenzini, again at the head of the House Finance committee, the projects on the aforementioned agenda will have priority, even at the cost of paralyzing the process of the pension reform. That does not mean that everything is paralyzed in the pension area. DF informs that the Superintendency of Pensions appointed the head of studies of the Ministry of Labor, Úrsula Schwarzhaupt, as the new mayor of Regulation of Public and Private Providers.
Financial Journal it also covers the Clean Energy Summit, which is hosted by Chile. The first key guest was Bill Gates, who arrived with a positive message: “I am optimistic. I believe we will avoid a climate disaster.”
ATTENTIVE TODAY
- The Central Bank publishes the results of the Survey of Financial Operators. (08.30 hours)
- The Chamber of Deputies plans to vote today on the expansion of the Emergency Family Income. (10.00 hours)
- Wall Street has an agenda loaded with labor data. As for the weekly report of applications for unemployment benefits, the publication of the ADP survey of private employment and non-agricultural productivity is expected in Q1. Also, the PMI index for services. (08.30 hours)
- The presidents of the Atlanta, Dallas and Philadelphia Fed conferences on recovery, monetary policy and the labor market are scheduled.
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