Recent Post
Card image cap

March 13, 2023

Q&A on Silicon Valley Bank and the implications for Markets

With the recent volatility unleashed due to the closure of Silicon Valley Bank (SVB) operations, we share a series of questions and answers with the information we have so far.   What happened to SVB? On March 8, SVB, based on the U.S. West Coast, announced the need to sell its US$21bn Available for Sale Securities […]

Card image cap

March 07, 2023

Q4 Earnings Key Takeaways

Quarterly reports are nearing completion, with 95% of S&P 500 companies releasing their numbers. Against this background, we summarize the key points the season has left us. On the one hand, earnings per share (EPS) behavior was much weaker sequentially since, in 3Q22, a growth of 4.4% was observed year over year (YoY). At the […]

Card image cap

March 01, 2023

China regains economic traction

The official February manufacturing activity (PMI) report in China advanced strongly and remained in the field, indicating expansion (+52.6 points*). This result was better than expected and represented its highest reading since April 2012.  Among the report’s details, the notable rebound in the export orders component stood out, which is particularly interesting because there are […]

Card image cap

February 22, 2023

Key points about the Debt Ceiling

The debate in the US Congress on extending the government’s debt ceiling will be the main fiscal issue on the markets’ radar this year. On January 19, the government reached its legal debt limit of US$31.4 trillion (an all-time maximum). Therefore, we share some points that could influence the negotiations throughout this process:   Date […]

Card image cap

February 15, 2023

Annual inflation slows slightly during January

The Consumer Price Index (CPI) advanced 0.5% in January, from the 0.1% increase seen in December (the monthly figure for December was revised slightly upwards). As a result, annual inflation stood at 6.4% (vs. +6.5% in December and +6.2% estimated). Core inflation, which excludes the most volatile categories such as food and energy, accelerated by […]

Card image cap

February 08, 2023

Strength in employment tempers hopes of a Fed pivot

The official January jobs report showed the non-farm payroll increased by 517,000 jobs, well above consensus expectations of 190,000. In addition, the unemployment rate stood at 3.4%, the lowest since the late 1960s, while average weekly hours worked jumped from 34.4 to 34.7 in December. Finally, the JOLTS (job openings) also surprised to the upside, […]

Card image cap

February 01, 2023

FED: “Rise in line, although it reiterates that the increases will continue”

In its first release of the year and in line with expectations, the Fed increased the reference rate by 25bp to a range between 4.5-4.75% (the decision was unanimous), its highest level since October 2007. This decision represented a minor movement compared to the 50bp advance last December and the 4 increases of 75bp implemented […]

Card image cap

January 25, 2023

The strength of the Mexican peso

Against a backdrop of rapidly rising US interest rates and mounting recession fears, most currencies weakened significantly against the US dollar in 2022. However, the Mexican peso was one of the outliers, appreciating 5% in 2022 and now trading below 19 per US dollar, a level not seen since February 2020, with a 3.6% gain […]

Card image cap

January 17, 2023

Blackstone’s Ten Surprises for 2023

Like every year, Blackstone, one of the largest alternative investments manager with over $951 bn assets under management, published its 38th edition for their Ten Surprises for the year. Blackstone defines a Surprise as an event in which the average professional investor would assign a one-third chance of taking place, but which the asset manager […]

Card image cap

January 06, 2023

Fed Minutes: High Rates for “Some Time” Forward

According to the minutes of the December meeting, Fed members confirmed that they are committed to fighting inflation, so they expect to keep interest rates high until more progress is made. In this sense, they expressed the importance of maintaining a sufficiently restrictive policy given that inflation is unacceptably high. In particular, members stressed that […]

Recent posts
Expectation for 4Q22 corporate reports

The quarterly reporting season of 4Q22 is about to begin, being a factor that could influence the mood of the markets in the concise term. In this sense, analysts estimate that the S&P 500 companies would have experienced a 4.1% year-on-year contraction in their profits. If this figure is confirmed, it will mark the first […]

Understanding the P/E Ratio

Within fundamental analysis, there are two key factors that influence the yield of a share: the earnings generated by the company and how investors value those earnings. In this context, one way to determine the value of a share is through a financial ratio known as the Price/Earnings multiple (P/E ratio). In this tutorial, we […]

Debt Ceiling Update

Following up on the agreement reached between President Joe Biden and House Speaker Kevin McCarthy on the debt ceiling, here is an update with the relevant points:  Over the weekend an agreement on the “Fiscal Responsibility Act”, which suspends the debt limit until next January 1st, 2025, was announced.  The main source of budget savings […]

Sign up for our newsletter today!

Stay informed with our best wealth management insights.