Inflation Is The New Target

The Fed is now targeting inflation and the U.S. treasury will start cutting its balance sheet in May. The 10-yr T-bill rose 2.65% overnight (5 basis points). Inflation is the new target. High yield bonds are now paying 118 basis points after hitting 147 bp yesterday

India has joined the countries condemning Russian behavior in Ukraine, after refusing earlier. Russia has had to pay its interest in rubles and not dollars. Intel is the latest firm exiting Russia. Prices of food, fertilizer, and energy are expected to rise over the Putin condemnation.

Adam Rozencweijg predicts that energy, wheat, and fertilizer prices will rise over the sanctions.

Photo by Annie Spratt on Unsplash


*VALE will sell its PRC iron ore assets to J&F Investments, at a 4% premium. I am not sure we sold too soon. Its price today was $20.42.

*Cameco CCJ, the nuclear firm, reported revenues up because of volume but uranium prices more or less flat. It has switched 70 mn lbs of nuclear fuel to long-term contracts with increased leverage. Its mines in Kazakhstan, Cigar lake, and McArthur were producing below capacity because of covid-19. It will raise its dividend by half this year to 12 cents/sh from 8 cents. It fell 32 cents in the US and 35 cents in Canada today.

*AT&T today is spinning off Time Warner at 4.2%. T.

*Fibra Uno is down 2.54% in Mexico to 22.62 pesos. FBASF.

*NIO expects to be able to spread its recharging system to other stations but they will have to use identical batteries, which may prove an obstacle. 

*State Street's TP fell 1 cent to $1.48. STT.


*Bristol Myers' target price estimate fell by 1/10 cent to $1.93. BMY.

*Eli Lilly TP rose 2 cents to $2.14. LLY.

*Pfizer however saw its TP fall 4 cents to $1.59. PFE.

Disclosure: None.

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