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The week ahead:: September 08, 2014-September 12, 2014 (US Economy & Markets)

It’s Monday Again! Apple iWatch a new pricing strategy beginnings for Apple?

IT’s a dull week but the equity indices continue in the Blue sky territory esp as Brent Crude heads to a mark below 100 for the first time in years sometime midweek having gained momentum downwards below the 102 levels Gold also hit fresh all time lows below 1280 to 1269 at the end of the week and will likely breach fresh low records this week, even as one hopes for another Retail sales bounce back by Friday esp in the ex Autos data and Consumer credit starts Monday off at highs with auto and student loans pushing the envelope albeit from secondary transactions and Revolver credit not so pessimistic anymore after the surge in April 2014.

More importantly news of the upcoming Q3 results season starts gatherng steam and banks lead the wyay with prognostications for the quarter even as Equity inflows returning did not move much on markets and bonds decided in Q34 to give a definite signal that investors were indeed not headed for the exit doors despite promises of higher interest rates drifting closer on the Fed calendar and likely forcing Yellen and Fischer when it does indeed happen before which 10 yr yields will definitely go below the 2% mark and probably lower

Only two months left to close on the record Fiscal deficit gains for the US this year with receipts higher by 8% and DEfence Spending down by more than 5% on the year, making any number even above $125 Bln not so bad compared to last year as it keeps most of the improvements in the Fisc

The JOLTs report will be dull too, markets having seen it rise to 4.7 million Job openings and not expecting it to go much higher from there and one is also not sure why inventories rise would be a good thing as PMIs peaked in March April this year and sales have not really picked up at retail making this rise a dull thud in profit expectations than a betterment in activity

Apple’s launch on Tuesday could well say its repricing strategy taking hold in more markets after the not so tepid launch of the 5c in the ecosystem last year, iPhone potentially looking at trebling sales and redefining smartphone categories at new affordable price points and becoming a key winner in its Oriental struggles as well

Banks continue to rise even as Biggies settle out with the outgoing AG and midcap banks package a lot more US mortgages. Banks mostly run down this year but for the meteoric rise in deal incomes with Asia deal volumes on a leash and revenue heavy tax deals on the continent that side of the pond making things rosy for investment banks still figuring out how to deal with the threat of higher interest rates and the Euro trade staying juicy on the short side , US remaining the safe haven 

 

 

 

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This entry was posted on September 7, 2014 by in Uncategorized.

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