25 APR 2022 – Monday Market Highlights – Transcript

Nick Morgan
Good morning. It’s Monday the 25th of April and I’m Nick from Milford. Looking at the key economic news from last week, Federal Reserve Chairman Jerome Powell spoke as part of the International Monetary Fund debate and reiterated the central bank’s determination to bring inflation under control, and that a 50 basis point hike was likely at the main meeting, the Chinese economy expanded 4.8% year on year in the first quarter of 2022, up from 4% last quarter, and ahead of market expectations at 4.4%. It is however, worth noting that the march retail sales numbers fell 3.5% year on year down for the first time since July 2020. And worse than market expectations of minus 1.6%. The German Producer Price Index jumped to 30.9% in March, exceeding market expectations of 28.2% and breaking a record high for the fourth straight month in a row. The data reflects the impacts of the war and you train for the first time, with energy prices remaining the biggest upward contributor. Remember, the German producer price index measures the changes in the price of goods sold by manufacturers. Moving closer to home. We had the RBA minutes, which revealed the bank’s concern about the second run effects of higher commodity prices and confirmed that the likely timing of the first rate hike has been brought forward due to expectations of further inflation and a pickup in wages growth. Overall, the minutes reinforce the expectations of a June rate hike following the upcoming CPI and wage price index data. The New Zealand q1 CPI was 6.9% and a shooting market expectations of 7.1 but still hitting a near 30 year high. Much of the downward surprise was due to large cuts and domestic airfares, which is expected to reverse in the coming quarters as New Zealand opens up and you will tradable and non tradable inflation both had multi decade highs, illustrating that the nature of this inflation was broad based and key equity news in TD a new wagering business launching in New Zealand and Australia have made a 10 year deal with beatmakers to use the technology services. The MTD consortium is made up of MetroPCS CEO of tech Corp, and Matt Davey, CEO of News Corp, and is set to launch in the second half of this year. Ramsey healthcare received a $20 billion bailout from a consortium of investors led by KKR and includes superannuation and offshore sovereign wealth funds. During Wednesday’s trading session, Ramsay shares rose by more than 25% After they confirmed the bed at $88 per share. It’s possible that this may prompt further office when Ramsay with other bidders coming to the party. Finally, global reporting season kicked off with Netflix closing the week down 35%. After a very large and unexpected mess on the trading update and guidance. Netflix reported a drop in subscribers down 200,000 People in the first quarter and guided for loss of up to 2 million in the second quarter. The reasons given for this mess included strong competition, password sharing, and the disruptive macro conditions. Looking forward to the week ahead. It’s a quiet week on the economic front with the markets focused on the Australian CPI print out on Wednesday. The RBA is watching this closely as will be a key factor in their decision making going forward. In the US we have a big week of reporting ahead, including JMeter, Amazon, Apple alphabet and Microsoft. The market will continue to focus on the pricing power of these companies given the current cost pressures. Thanks for listening. We’ll see you next week.