S Inflation Inflating

US January inflation came in at 7.5% well over the estimate of 7.3% and a new high from 1982. The full-year This took down stocks and bonds. 

In Mexico, inflation also rose, to an 8 year high in January and a 10 year high for the full year at 6.282 bn from 4.220 last year. 

The Fed will be raising interest rates soon and this will chop the appeal of investments in more vulnerable yield plays.

The yield on the US ten-year government debt hit 2%, a level not seen since 2019 over inflation fears.

Fidelity bravely forecasts that inflation is due to fall but I am not in accord.

We saw a lot of increased dividend news but much of that is now discounted because of interest rate trends.

business man put money on pile of coins with alarm clock on working table concept in time to success

Free Stock photos by Vecteezy

Finance

*Sampo Oyj of Finland is buying full control of Hastings, a UK insurance firm, for GBX 685 mn. It rose sharply on the news. SAXPY.

*PBR (Petrobras) which I bought yesterday, raised its estimated earnings to .733 from .722.

*Mexican Fibra Uno which finances real estate reported earnings up 21.15% and FBASF is up sharply so far, by 7.77% overnight and now more about 10%.

*Brookfield Asset Management BAM of Canada may spin off its asset management arm raising US$75 bn. It reported net income of 12.41 bn and a distribution of 6.3 bn, in US$s. Its dividend is up 8% helped by a $42 bn asset sale. 

Drugs

*TEVA proposes to pay in cash and with anti-opioid drugs for its violations of law to boost sales of addictive products, not just in Texas. The stock fell hard on the news but now is only down 1%.

*VIR is expected to earn $2.61 up from 1.77 but that is pre-inflation. 

*Merck will earn 1.81 up from 1.78 in the current quarter. MRK.

*Pfizer is now expected to earn $1.61 in the current quarter down from 1.71. PFE.

*Novo Nordisk of Denmark earnings per share will be DKK5.48/sh in the current quarter, up from 5.45. NVO.

*Zymeworks analysts now expect it to lose only $1.141 in the current quarter, vs earlier estimates of $1.172. ZYME.

*Compugen will report Feb. 24 on 2021. CGEN.

*Enlivex gained 5% today. ENLV.

Mining

 *I expect that gold prices will rise because the gripe against the yellow metal is that it doesn't yield enough. But the same now applies to other investments.

*Cameco which mines uranium went into high bullish status after reporting yesterday, up 15% and more now. CCJ.

Telcos

*French telecoms startup Iliad has offered to buy Vodafone's Italian business for euros 11 bn, which would boost VOD but some analysts say it is worth more.

Cement

*Mexican Cemex Q4 net missed the forecast. CX.

Energy

*Shell EPS forecast was raised to $1.63 from $1.48 for the current quarter. RDS-B.

*Energy Fuels, UUUU, is up 2.5% on uranium booming.

*Earthstone Energy, ESTE, is up 5.41%.

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