Topic: What are the opportunities for A-share consolidation in May?
Global financial media last night and this morning Headlines of common concern mainly include:
1、 US inflation has cooled for the first time in six months, reassuring Fed officials who hope to cut interest rates this year
2、 ESG Fund Clearing Sweeps US ETF Market
3 、 Goldman Sachs entered the high rating market for the third time since March this year
4 、 Federal Reserve official Kashkari: The interest rate may need to be maintained at the current level for a period of time
5、 Disney CEO Iger: Disney is "substantially" reducing its investment in traditional TV
6、 CEO of Qiaoshui warned investors not to be overconfident in the face of changing geopolitical environment
US inflation has cooled for the first time in six months, reassuring Fed officials who hope to cut interest rates this year
A measure of basic inflation in the United States dropped for the first time in six months in April, which is undoubtedly a small step in the right direction for Federal Reserve officials seeking to cut interest rates this year.
Official data released on Wednesday showed that the so-called core consumer price index, which excludes food and energy costs, rose 0.3% from March. Previously, this indicator exceeded expectations for three consecutive times, triggering deep-rooted concerns about inflation. Data from the Bureau of Labor Statistics also showed that the year-on-year growth rate fell to the lowest level in three years.
The Federal Reserve is trying to break the price pressure by weakening the demand of the whole economy. Another report released on Wednesday showed that retail sales stagnated in April, as high borrowing costs and increased household debt prompted consumers to be more cautious.
Although these data may give the Federal Reserve some hope that inflation is returning to a downward trend, officials will still want to see more data to build the confidence needed to start considering interest rate cuts. Chairman Jerome Powell said Tuesday that the Federal Reserve needs to be patient to let restrictive policies work. Some policymakers do not believe that interest rates will be cut this year at all.
ESG Fund Clearing Sweeps US ETF Market
The US exchange traded fund (ETF) market, which focuses on ESG, is struggling.
Shaheen Contractor, a senior ESG analyst, said that so far this year, at least 27 ETFs classified as conforming to the Environmental, Social and Governance Principles (ESG) have been closed. In contrast, there were only 36 cases last year.
The future is not optimistic. The contractor said that this trend may continue, especially if the strong opposition of the Republican leadership to the investment strategy heats up.
"Complex themes that are difficult to raise funds face the greatest risk," she said.
Against the background of increasing fund closures, only two ESG ETFs were launched in the Americas this year, which is the least since tracking this data about five years ago. The contractor said that the number of funds issued decreased from 124 peaks in 2021.
Goldman Sachs entered the high rating market for the third time since March this year
On Wednesday, a subsidiary of Goldman Sachs Group Inc. began its second investment grade bond offering in the past two months. Previously, the company had not issued bonds for five consecutive years.
According to a person familiar with the matter, Goldman Sachs Bank USA is promoting fixed floating rate notes and floating rate notes. The company sold $3 billion of such bonds in March, the first bond sale since 2019.
The person, who did not want to be named, said that the yield of the fixed floating part of the latest transaction may be 0.9 percentage points higher than that of US Treasuries, because they are not authorized to talk about it. A representative of Goldman Sachs, which was responsible for the bond issue, could not be immediately reached for comment.
Federal Reserve official Kashkari: The interest rate may need to be maintained at the current level for a period of time
Neel Kashkari, president of the Minneapolis Federal Reserve Bank, reiterated that the Federal Reserve may need to maintain interest rates at the current level for a period of time. He also questioned how restrictive the level of interest rates was on the US economy.
Kashkari said at an event in Bismarck, North Dakota on Wednesday: "In my opinion, the biggest uncertainty is how much downward pressure the monetary policy has brought to the economy. This is an unknown number, and we do not know exactly. This tells me that we may need to stay here for a longer period of time until we know the trend of basic inflation, and then make a conclusion."
The Minneapolis Fed President said last week that the Federal Reserve may keep interest rates unchanged "for a longer period of time". Since July last year, the Federal Reserve has kept interest rates unchanged at the current 23 year high.
Fed officials have pushed back their expectations on the timing of the first interest rate cut. Against the backdrop of disappointing inflation data, they stressed the need to keep borrowing costs high for a longer time. The latest data released on Wednesday showed that the price increase excluding food and energy in April fell for the first time in six months 。
Disney CEO Iger: Disney is "substantially" reducing its investment in traditional TV
Bob Iger, CEO of Disney, said that the media giant planned to "significantly" reduce the investment in the linear TV field, so as to make its streaming media division a profitable one.
Last summer, Iger said that he would "comprehensively" examine the traditional TV assets of the entertainment giant, suggesting that strategic options, including selling, might be taken.
Eiger said on Wednesday that after analysis, the company determined that cable TV "will not become a growth business, but it may become an important part of our ability to attract consumers.
CEO of Qiaoshui warned investors not to be overconfident in the face of changing geopolitical environment
Bar Dea said at the Qatar Economic Forum that at a time of global tension, Bridgewater has been working with clients to stress test their portfolios.
"I think the biggest mistake investors make is overconfidence," he said at the conference held in Doha. "My advice to investors is not to use the strategies of the past 10 to 15 years in the next 10 to 15 years."
Nir Bar Dea, CEO of Bridgewater, said that investors need to build a resilient portfolio in view of the current geopolitical tensions affecting the global market.
Bar Dea was appointed as the only CEO of Bridgewater last year, and quickly launched an ambitious strategy aimed at improving the profitability of the company by limiting the size of the flagship fund, investing more capital and talent in artificial intelligence, and expanding in Asia and the stock market.
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