The Daily Chase: Warning signs in bond market; Twitter plays defence
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It’s still all about inflation. That’s clear when we look at important market indicators, like the 10-year U.S. treasury yield, which rose to 2.879 per cent this morning; that’s the highest level since December 2018.
It’s still all about inflation. That’s clear when we look at important market indicators, like the 10-year U.S. treasury yield, which rose to 2.879 per cent this morning; that’s the highest level since December 2018. And if big round numbers are your thing, we’ll point out the spot price of gold came within seven dollars of hitting US$2,000 per ounce this morning for the first time since early March. We’ll have plenty of insight today into the outlook for markets as central banks attempt to rein in inflation; guests include Manulife Investment Management Co-Chief Investment Strategist Kevin Headland and Jean-Francois Tardif in The Open.
HOUSEHOLDS ON THE BRINK
Almost one-third (31 per cent) of respondents to an Ipsos survey for MNP said they don’t earn enough income to cover their monthly bills and debt obligations, that’s up four percentage points from the last survey in January and should serve as a sobering reminder of the pain that could be in store for some Canadian households as they navigate rising interest rates and surging inflation. And on that front, economists are expecting to see a 6.1 per cent year-over-year jump in the consumer price index on Wednesday, which would be the sharpest rise since June 1991.
AWAITING MUSK’S NEXT MOVE
Twitter attempted to dissuade Elon Musk from pursuing a hostile takeover of the company by announcing on Friday it’s adopting a poison pill, which would allow all shareholders (other than Musk or anyone else who scoops up at least 15 per cent of the company) to buy additional shares on the cheap, which would water down the would-be acquirer’s stake. That’s standard practice for a board of directors that’s trying to buy itself time, and begs the question of what Musk’s next move will be. The poison pill is the most recent significant development in this takeover dance. Though some are trying to decode the meaning of Musk’s “love me tender” tweet on Saturday. Seems worthwhile to point out that in his Ted remarks in Vancouver on Friday, Musk said there’s no deep meaning to many of his quips on Twitter, pointing out that they’re written as stream of consciousness, because he finds something funny, while he’s sitting on the toilet.
COVID BATTERS CHINA’S ECONOMY
