Well folks, today’s BoC interest rate announcement marks the beginning of a slew of economic updates through the latter half of this week. That said, the central bank is expected to hike the overnight rate to 4.5% this morning, bringing it just 25 bps higher than their American counterpart, the Fed. Read on for more on that as well as stories on Germany’s donation of tanks to Ukraine and Google’s layoffs within this 203rd Coachman’s Report!
Markets in Review
Premarket futures are deep in the red across the board this morning with the Dow, S&P and Nasdaq falling 69, 88, and 134 bps respectively at the time of writing. With equities posturing for a down day today - the $VIX, which has broken below its support level, is likely to spike up to the mid-20s once again.
The market's fear gauge is currently just above 20 and is already up 5% over the last 24 hours. Lastly, with all eyes on rates over the next couple of days, it's worth noting that there is currently just above a 97% chance of a 25 bp hike to 4.5% by the Fed next Wednesday.
Long: Hanmi Financial Corporation (HAFC-NASDAQ) | Timeline: 2 days
Hanmi Financial Corporation (HAFC), which operates as the holding company for Hanmi Bank that provides business banking products and services in the United States, reported earnings yesterday after the market closed. Capping off their fiscal year with strong momentum, the company surpassed earnings and revenue estimates by 11.60% and 10.97%, respectively, as the company diligently managed operating expenses and significantly improved asset quality, amid a turbulent macro environment. (Full Story)
Turning to the chart, HAFC hasn’t had a very volatile last 12 months, oscillating between highs of $27, and lows of $22. That said, as the stock begins to edge towards breaking above $27, an ascending triangle has formed as it begins to rebound - and especially as the Stochastic RSI turns bullish from oversold levels, a rebound is likely.
Zooming Out...
Please and Tank You
After weeks of pressure from global allies, Germany has decided to permit the export of Leopard 2 tanks to Ukraine. This shift in policy is extremely consequential, as now other friendly nations who field the German-made machine also have permission to send their units into Ukraine. Initially, the German government will send 14 of the vehicles, while other allies will eventually send an additional 98 to bring the total up to two battalions worth.
This comes as reports indicate that the United States is finalizing plans to export a shipment of M1 Abrams battle tanks to the beleaguered nation. While unconfirmed, this announcement would fall in line with prior German demands for the US vehicles and mark a sizeable escalation in the conflict.
Google Gets Got
The US Justice Dept. alongside 8 States announced another antitrust lawsuit against Google, this time for their advertising business. The DOJ has accused Google of anti-competitive practices within the online ad market through the acquisition, neutralization, or elimination of its competitors. This suit follows a similar framework of the actions launched under the Trump administration in late 2020, which targeted Google for anticompetitive practices within the search, and search advertising markets.
The DOJ has stated their intention for Google to divest their ad manager suite. While potentially beneficial to the consumer, this act may be detrimental to Google’s parent Alphabet Inc, as the ad manager accounted for 12% of revenues in 2021, while advertising as a whole accounted for roughly 80% of revenue.
Making Headlines...
One clear theme dominated Microsoft's earnings call
Microsoft got a few high fives from Wall Street on Tuesday night as its quarterly Azure sales bested analyst estimates amid an overall earnings beat. Microsoft's stock initially popped 4% in after-hours trading. (Full Story)
‘Scared the Hell Out of Me’: NYSE’s Wild Start Rattles Traders
A chaotic open for some stocks listed on the New York Stock Exchange sent chills across Wall Street as dozens of the largest companies in the US seemed to erase billions of dollars in market value for no apparent reason, leaving some investors frustrated and others clamouring for an explanation. (Full Story)
Amazon workers hold first UK strike, adding to labour turmoil
Amazon warehouse workers went on strike for the first time in Britain on Wednesday because of a dispute over pay and working conditions, adding to a wave of industrial labour action across the country fueled by the soaring cost of living. (Full Story)
Elon Musk's Twitter just reinstated the account of white nationalist Nick Fuentes, who previously said Hitler was 'cool'
Fuentes announced his return to Twitter on Tuesday after being banned from the platform in July 2021 for repeated violations of the Twitter rules. (Full Story)
Chart of the Day: Each decade has a mega trade. What will it be for the 2020s?
"Go for it now. The future is promised to no one."
- Wayne Dyer
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