Bank of America Upgrades T-Mobile to Buy, Says LEO Satellite Fears Are Overdone 
State of emergency in Crimea as Ukraine focuses pressure on ‘jewel in Putin’s crown’ 
Gold Pulls Back After Hitting $4,180 as Geopolitical Risk Sends Crude Higher 
Gold Surges Past $4150 on Dovish Fed Signals and Weak Jobs Data; Bullish Outlook Prevails 
Goldman AM Sees Strong Buyout Opportunities in Japan, South Korea and Australia 
In a rebuke to Trump, the Supreme Court rules that birthright citizenship is the law of the land 
Smartphones are helping filmmakers tell the stories the movie industry overlooks 
Vietnam’s population hit the 100 million milestone. Where’s it headed? 
Goldman Sachs Says China Competition Weighs More on EU Growth Than Trade Deficit 
Alcohol is one of the most dangerous drugs, yet its presence is ubiquitous in social settings and celebrations 
Citi Raises TSMC Price Target as AI Chip Demand Strengthens Growth Outlook 
Rapid rise in inflation due to rebound in energy prices would have pushed Federal Reserve Governor Janet Yellen to act faster to curb prices, given recent rapid rise in longer end yields. This would have hurt US economy given it is already losing momentum from start of the year.
However today's release of producer prices indicate that Federal Reserve might wait and watch for longer time horizon before acting on first rate hike.
- Producer price index dropped by -0.4% m/m in April and by -0.2% excluding food and energy prices. PPI is down by -1.3% from a year ago. However prices rose by 0.8% y/y excluding food and energy prices.
Impact -
- FED is likely to wait before raising rates as other economic dockets like retail sales, GDP growth have fallen well below expectation. This is not good news for US short term rates and dollar.
- Inflation vigilantes, who have pushed bond yields across world at record pace in recent weeks need to consider their moves before pushing US long end curve at fast pace. However Spread between 10 year and 2 year still might move up as FED rate diminishing hike bets would push short end lower.
