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JPMorgan 1Q profit up sharply, helped by improving economy

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JPMorgan Chase saw its first-quarter profit jump nearly five fold from a year earlier, as the improving economy allowed the bank to release roughly $5 billion from its loan-loss reserves that it had stored away in the early weeks of the pandemic.

The nation’s largest bank by assets said Wednesday that it earned $14.3 billion, or the equivalent of $4.50 per share, in the year’s first three months. That’s compared to a profit of $2.87 billion, or 78 cents per share, in the same period a year earlier.

Excluding the loan loss releases, the bank earned $3.31 per share. The results were significantly better than the forecast from analysts, who were looking for JPMorgan to report a profit of $3.10 per share, according to FactSet.

A significant chunk of JPMorgan’s profit gain came from its ability to release $5.2 billion from its loan-loss reserves this quarter. Banks such as JPMorgan set aside billions to cover potentially bad loans during the early months of the coronavirus pandemic. With the economy improving, and trillions of dollars of government stimulus being injected into the U.S. economy, those loans are no longer considered at risk of failing.

“With all of the stimulus spending, potential infrastructure spending, continued quantitative easing, strong consumer and business balance sheets and euphoria around the potential end of the pandemic, we believe that the economy has the potential to have extremely robust, multi-year growth,” said Jamie Dimon, the bank’s CEO and chairman, in a statement.

JPMorgan still has $26 billion stored away in its loan-loss reserves, which Dimon said is a “appropriate and prudent” amount for the bank currently.

JPMorgan also had a surge in revenue and profits in its investment banking division, which helped its overall bottom line. The investment banking division had revenues of $14.6 billion in the quarter, up from $10 billion a year earlier. The bank saw significant gains in the revenues from its trading desks, reflecting the healthy volatility last quarter in both the bond market and stock market.

Total revenue across the entire bank was $33.12 billion, up from $29.01 billion a year earlier.

Originally Appeared On: https://apnews.com/article/coronavirus-pandemic-economy-906e9d109f1732d097d5ab16e5ed96bf

Inflation Accelerated in March Due to Strengthening Economy, Rising Energy Prices

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U.S. consumer prices picked up sharply in March as the economic recovery gained momentum, partly reflecting higher gasoline prices.

The Labor Department said Tuesday that the consumer-price index—which measures what consumers pay for everyday items including groceries, clothing, recreational activities and vehicles—jumped 2.6% in the year ended March, and rose a seasonally adjusted 0.6% in March from February.

The so-called core CPI, which excludes the often-volatile categories of food and energy, climbed 1.6% over the prior year, and was up 0.3% in March from February.

“Inflation in March 2021 is still under control,” said Gus Faucher, chief economist at the PNC Financial Services Group, before the report was released. “It takes time for inflationary pressures to build in the economy.”

March’s reading marks the start of what many economists expect to be a monthslong upswing in prices, after nearly a year of muted overall inflation as the Covid-19 pandemic doused consumer spending. Whether this rise proves temporary is one of the key questions for markets and the U.S. recovery over the next year or so, as the Biden administration, Congress and the Federal Reserve continue to provide financial support for the economy.

Originally Appeared On: https://www.wsj.com/articles/us-inflation-consumer-price-index-march-2021-11618273541

Bond investors beware – US rates may rise sooner than thought

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However, markets are running contrary to the direction that the US Federal Reserve (Fed) has signalled so far.  Members of the Fed have emphasised that they are explicitly committed to achieving maximum employment. They have pledged to hold off any policy rate increases until realised inflation has reached 2% and is on track to average 2%.

Fed chair Jay Powell has dismissed any possibility of tapering asset purchases in 2021. He expects inflation to remain contained and that it could take three years to reach the 2% average inflation target. Powell and other members have been forceful and consistent in adhering to this policy framework.

The so-called median dot plot, in which individual Fed officials map their forecasts for interest rates, released for the March 2021 meeting of the Federal Open Markets Committee, showed policymakers did not expect the first rate rise until at least the end of 2023.

Yet bond markets have in recent weeks radically brought forward the market-implied expectations of the timing of the Fed’s first rate increase. That first move is expected by the end of 2022, according to current market pricing.

Three questions for Ken O’Donnell, head of short duration fixed income

What is the situation on US fixed income markets now?

Let’s first consider the context. Central banks’ accommodative monetary policy has left investors with very little if anything in terms of return potential on bank deposits, money market funds and ultra-short and short duration bond mutual funds. While the absolute yield in the US may be positive, in inflation-adjusted terms, returns are negative. A negative real return means your capital is not keeping pace with inflation. Its purchasing power is slowly eroding away.

How long will this last? After the global financial crisis of 2008/09, interest rates remained low for six years in what in Fed speak was an extended period. That was a difficult period for risk-averse investors. The good news is that such a long period of low real interest rates does not appear likely this time. The US economy is responding to the measures taken.

Nevertheless, the Fed’s forecast is for no rate increases until 2023.

When should we expect official interest rates to rise?

In my opinion, the balance of risk is tilted towards a move sooner. A strong rebound in growth and a corresponding decline in unemployment would pressure policymakers to begin to remove stimulus measures.

That would put an end to (near) zero rates sooner than expected.

We could expect to begin to see a gradual shift in Fed rhetoric by June, acknowledging that the economy is performing well. This would put the Fed schedule for a tapering of asset purchases under its quantitative easing policy accommodation programm at year-end and into 2022. A potential
increase in the fed funds rate would then come by the end of 2022.

How should bond investors position themselves for this scenario?

There are various considerations.

Intermediate 10-year US Treasury note yields have risen by 100bp from the low of August 2020 to 1.65% (see Exhibit 1 below). That is a 9% drop in the market price of these notes. This is painful when you are receiving less than 1% in annual interest. Bond investors face a permanent loss for this market cycle, but they should keep in mind that this loss comes after a long period of excess gains of about 10%. In a way, compensation for bond risk is averaging out.

In addition, with T-note yields now near 2% levels, investors may choose to rotate out from investment-grade and high-yield corporate bonds into the US Treasury market. This could cause credit spreads to
widen.

Managing through this – markets pricing in higher rates is likely to continue – will be challenging. The Fed will need to respond to the recovery and begin the rate normalization cycle and if the recovery proceeds more rapidly, the market adjustment could be quite extreme. That is not our base case, but we still think there are benefits to adopting a flexible investment strategy.

This would involve a regular reassessment, reinvesting every quarter. An investor using such a disciplined ‘ladder’ strategy (see Exhibit 2) invests in bonds ranging in maturity from short term to long term and reinvests the proceeds when a bond matures.

Exhibit 2: A
laddered bond portfolio disperses risk in a ladder-like fashion, mitigating interest rate risk, reinvestment risk, credit risk, and liquidity risk.

Bond investors beware – US rates may rise sooner than thought

Source: Corporate Finance Institute via https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/laddered-bond-portfolio/

If the short-term bonds mature at a time when interest rates are rising, the principal can be reinvested in ‘higher-rung’ bonds. It mitigates interest rate risk, reinvestment risk, credit risk, and liquidity risk.

Such a diversified portfolio has greater liquidity, allowing the investor to participate in the rising yield pattern and capture yield over time rather than trying to time the market by waiting for peak yield.

Originally Appeared On: https://investors-corner.bnpparibas-am.com/markets/bond-investors-beware-us-rates-may-rise-sooner-than-thought/

‘Total nightmare.’ Fast food struggles to hire as demand soars, U.S. economy roars

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FILE – This Thursday, Dec. 15, 2016, file photo shows a Taco Bell restaurant in Metairie, La. Yum Brands, Inc., which operates Taco Bell, KFC and Pizza Hut, reports earnings, Thursday, Aug. 3, 2017. (AP Photo/Gerald Herbert, File)  The Associated Press

NEW YORK — Taco Bell restaurants, struggling to hire enough workers to keep up with a surge in sales as the U.S. economy recovers, is pitching a huge April job fair to hire at least 5,000 employees in one day. And it’s adding benefits for some general managers to sweeten the pot.

Taco Bell, part of Yum Brands Inc., will hold spot interviews on April 21 in parking lots at nearly 2,000 Taco Bell locations, where some candidates won’t even have to leave their cars to apply. It has also added four weeks of annual vacation, eight weeks of paid maternity leave, and four weeks of new parent and guardian “baby bonding” time for general managers at company-owned locations.

Taco Bell has used such hiring events before, but never at so many locations at once. “It is no secret that the labor market is tight,” Kelly McCulloch, Taco Bell’s chief people officer, said in a statement.

“Total nightmare” is the way FAT Brands Inc. CEO Andy Wiederhorn describes the staffing situation for franchisees of his company’s restaurants, which include Johnny Rockets and Fatburger.

“The most recent stimulus check and unemployment benefits have been a catalyst for people to stay at home” instead of looking for work, he said.

U.S. job openings in the accommodation and food service industry increased by 104,000 to reach 761,000 on the last day of February from the prior month, according to federal data released last week.

Originally Appeared On: https://www.stltoday.com/business/local/total-nightmare-fast-food-struggles-to-hire-as-demand-soars-u-s-economy-roars/article_6d68b385-2e7d-5872-84f1-ee9f5f23c669.html

Group: US economy gathers momentum as policy decisions reshape future | Farm Forum

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The U.S. economy continues to outperform expectations as stimulus funds are fueling robust consumer spending. Consensus forecasts point to 7% GDP growth for 2021, the fastest rate of expansion since 1984. Inflation is inevitable, however, as the 2020 price declines will widen year-over-year inflation over the next two quarters, and new upward price pressure should push headline inflation above 3%.

The transition to a less COVID-restricted world has begun. But for the economy and rural industries, there will be no going back to pre-COVID conditions. A transformed policy environment and awakened commodity markets are making way for a whole new operating environment, according to the new Quarterly report from CoBank’s Knowledge Exchange.

“The policy focus in Washington is shifting from crisis management to building for the future,” said Dan Kowalski, vice president of CoBank’s Knowledge Exchange division. “And the outcome of the president’s infrastructure plan will have substantial implications for rural water, power and broadband providers. Hundreds of billions of dollars in funding would reshape these industries and intensify the current focus on climate resilience and social equity.”

The cyclical turn in grain pricing, driven by strong demand and tight stocks, continued during the first quarter of 2021 and has picked up further gains ahead of spring planting. Accumulated grain exports to China have been very strong. While the backdrop for the grain and oilseed complex is positive, there are issues worth monitoring that could result in price volatility in the coming months. A recent surge of African Swine Fever in Asian countries could temporarily slow soybean demand.

Farm supply retailers are positioned to benefit from an exceptionally strong spring agronomy season, outpacing fall and spring 2020. Financially strong U.S. crop farmers should increase spending given a 3.1% increase in planted corn, soybean and wheat acres. Fertilizer prices rose 42% during Q1 and are now 96% above the trough level in May 2020. While much of the Midwest Corn Belt is free of drought, some areas of concern surfaced in late March.

The U.S. fuel ethanol sector has recovered, with production running near 90% of pre-COVID levels. The industry is adapting to new short-term and long-term realities, including changes in driving and work habits, policy directives on ethanol and fossil fuels and increased adoption of electric vehicles. Operating margins averaged near $0.10/gallon but rose sharply in March to above $0.25/gallon as fuel ethanol prices rose and natural gas prices fell.

U.S. chicken prices started 2021 on a high note, climbing over 20% in the first quarter. These prices offset the double-digit rate of feed cost inflation and brought spot margins well into positive territory. The counts of eggs set and chick placements are a leading indication that chicken production will remain at current levels, so chicken prices continue to look strong through the summer. Expected increases in vacation and business travel this summer will boost food service sales, benefiting the chicken sector.

U.S. beef demand has been incredibly strong in the first quarter despite the challenges in foodservice and the away-from-home dining sector. Strong demand and expectations for limited supply growth in the back half of 2021 have driven up cattle futures. The USDA expects beef production to decline by 3.5% in the second half of 2021, which has helped lift cattle prices nearly 15% above year-ago levels. Packer margins remain elevated, but producers are expected to realize better margins in the second half of 2021.

Strong first quarter demand for pork, coupled with indications of limited supply growth, has lifted hog sector profitability to levels not seen in many years. Concerns over feed and other cost inflation has taken a back seat to optimism for another year of strong pork exports and robust domestic demand as U.S. consumer behavior slowly returns to normal. China has slowed its hog herd rebuilding due to increased ASF cases this winter, helping drive the positive outlook for the remainder of the year.

The pace of U.S. dairy exports started 2021 on a weaker note as exporters continue to struggle with trade logistics, specifically with the scarcity of containers, port congestion and rising transportation costs. Cheese and butter stocks continued their rapid ascent, climbing 5.4% and 16.8% year-over-year respectively, for February. U.S. milk production rose in January and again in February, giving dairy processors ample milk supplies for processing. Cow numbers in February reached the highest level in 30 years following months of ongoing expansion.

Combined cotton and rice planted acreage is expected to fall for the third consecutive year in the U.S. according to USDA’s latest projections, as acres shift out of pima cotton and all classes of rice. The surge in upland cotton prices has blunted losses in its acreage. Last year’s rally in refined sugarbeet prices also forestalled losses in sugarbeet acreage. The recovery in U.S. foodservice demand remains an unknown for both rice and sugar, while China remains critical for U.S. cotton demand.

Tree nut exports reached an all-time high with the peak shipping now drawing to a close. However, container shortages and port constraints are estimated to have delayed U.S. tree nut export shipments 10%-20% in the opening months of the year. The lack of movement could potentially translate into higher-than-expected tree nut inventories at the end of the marketing season. Drought conditions in California are raising concerns of limited water allocations in the forthcoming growing season.

February’s polar vortex refocused attention on deficiencies in U.S. power, energy and water infrastructure, and how it is affected by climate change. Widespread failures in energy systems tend to negatively impact water systems. Consequently, any climate mitigation program in the U.S. must account for water and energy system dependencies. President Biden, delivering on his “Build Back Better” platform promise, has announced the American Jobs Plan — a $2 trillion infrastructure and economic modernization bill, which includes a major focus on climate change.

The recently enacted American Rescue Plan Act included $20 billion for broadband availability and affordability and the American Jobs Plan includes $100 billion to bridge the digital divide. Details are not finalized, but President Biden wants to prioritize funding for nonprofits, cooperatives and local governments. The ultimate outcome of the infrastructure plan will have substantial implications for rural water, power and broadband providers.

Originally Appeared On: https://www.aberdeennews.com/farm_forum/group-us-economy-gathers-momentum-as-policy-decisions-reshape-future/article_e9810d24-98a6-11eb-9e2e-7794a7f37843.html

Royal Oak craft whisky distillery among ‘top 50 businesses to watch’ statewide

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Tonya and Rich Lockwood’s Motor City Gas whiskey distillery and tasting room in Royal Oak was served another bracing shot of recognition this week.

Motor City Gas was just named one of the top 50 Michigan businesses to watch in 2021 by Michigan Celebrates Small Business (MCSB). Headquartered in Lansing the group has reviewed and hosted awards of small businesses statewide for over 15 years.

The husband-and-wife team, who live in Royal Oak, have come a long way from when they first opened their distillery on Fourth Street east of Troy Street six years ago.

“It’s been a wild ride,” Rich Lockwood said. “When we opened in 2015 it was just the two of us and a buddy who quit his corporate job to help us out … It’s been a difficult journey, but the recognitions that we’ve been blessed with over the past couple of years make it all worth it and keep us going.”

Motor City Gas was among the top 10 Whiskey Bars in the U.S. by Yelp a few years ago, and was named a Top 10 Distillery in the U.S. by Travel & Leisure magazine. The Lockwoods’ distillery then snagged another honor as Michigan Whiskey Distillery of the Year from US Business News.

Tonya Lockwood, 40, is a Sri-Lankan American and Motor City Gas is the only minority woman-owned distillery in the state, and one of just four among the nation’s more than 2050 distilleries.

She said seeing her family’s homegrown whiskey distillery get its latest recognition this week is “pretty surreal.”

“I hope this encourages more minority women-owned businesses to chase the American Dream,” Tonya Lockwood said.

The couple recently bought a farm in Ann Arbor to grow a variety of organic heirloom grains for whiskey production. Having a farm-to-bottle distillery has been the Lockwoods’ dream since they went into business, Rich Lockwood said.

“Motor City Gas Farms now makes that possible,” he said. “Now the new goal is to someday make 100 percent of our whiskey form our own organic, non-GMO, heirloom-style grain.

The couple’s farm allows them to control the quality of raw ingredients and grow exotic heirloom grains that are seldom found in the Midwest, Lockwood said.

As the Lockwoods chase their spirited dreams, they have plans this year to double the size of their existing manufacturing facility and start statewide retail distribution of their whiskey products.

The Lockwoods are also moving this year to break ground on a new expanded tasting room with food service.

“Designs for an expanded tasting room, as well as a second offsite tasting room are currently in the works,” Lockwood said. “We are not sure at this point which one will come first , but we hope to reveal our next step by this fall.”

Originally Appeared On: https://www.dailytribune.com/news/royal-oak-craft-whisky-distillery-among-top-50-businesses-to-watch-statewide/article_2135977e-9967-11eb-aed8-9f888e039bb2.html

Biden’s infrastructure plan will increase long-run productivity of the U.S. economy: IMF

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Yahoo Finance’s Alexis Christoforous, Kristin Myers and Brian Cheung discuss the latest global implications of Biden’s infrastructure plan with Ceyla Pazarbasioglu, Director of the Strategy, Policy, and Review Department of the IMF.

This is a video transcript.

ALEXIS CHRISTOFOROUS: Welcome back. The International Monetary Fund is advocating for more international cooperation as the vaccine rollout continues globally. Here to walk us through the global outlook and how the world’s nations should be working together is Ceyla Pazarbasioglu, an IMF Director who oversees the fund’s work with the G20 and the United Nations. We’re also joined by Yahoo Finance’s Brian Cheung.

Ceyla, thanks so much for being with us. First, I’d like to get your thoughts on the news of the day, which was President Biden releasing the blueprint for his budget, which we know is on top of the $1.9 trillion COVID relief package, which is on top of a $2 trillion-plus infrastructure package. Is this prudent to be spending this kind of money right now when our nation’s debt is more than the American economy combined?

CEYLA PAZARBASIOGLU: So very nice to be with all of you. In our surveillance work, which is IMF’s key mandate, it’s basically the annual check up of countries, we have long been saying that the US needs increase in infrastructure spending. You were talking just a little while ago about the shortcomings of the quality and size of public investments in– in the US.

So this is very much going to increase the long-run productivity of the US economy, and also transition to a less carbon-intensive economic model. So I think this is good news. They also have the tax plan, which should help finance part of the costs.

BRIAN CHEUNG: Hey, Ceyla, it’s Brian Cheung here. Great to have you on the show. I wanted to ask just about the global picture on the inequal recovery, if you will. We know that was the case with the vaccine distribution, because most of the wealthy countries are the ones that have the most access to the vaccines, which is going to be the quickest way to get out of the economic rut that we experienced last year. So from the IMF’s perspective, what is the situation for those lower-income emerging developing countries? And how is that gap going to even widen through the vaccine rollout globally?

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CEYLA PAZARBASIOGLU: Yeah. So Brian, we did just came up this– this week with our global growth forecast. We did upgrade from 5.5% to 6% for 2021. But as you said, we also warned about the increasing divergences across countries. And this is really related very much to the– the response that countries were able to take, the policy response, which has been very divergent as well.

If you look at advanced economies, for example, they were able to put in policy packages of 23% of GDP. For emerging market economies, this was 6% of GDP. And for low-income countries, 2% of GDP. So the response to deal with this tragic pandemic has been very different across countries.

And also, if you take, for example, the vaccine administration, this also has been very different across countries. When you really look at 100 doses– the doses administered per 100 people, the amounts are very starkly different. Take the case of US, it’s 43 doses for 100 people. For emerging markets, it’s 8. For low-income countries, it’s 2.

So really stark differences, and this is what we have been worrying about, that this will create inequalities within countries, with, of course, the low-skilled women and youth impacted much more in this crisis, as well as across countries with the advanced economies and emerging markets, and especially low-income countries very different prospects for recovery are very much of a multi-speed and diverging recovery.

BRIAN CHEUNG: And Ceyla, this week, which is the annual spring meeting at the IMF, was a big forum to discuss the idea of a new special allocation of what they call special drawing rights. For viewers that might not understand, it’s a pool of money that the IMF can award based on certain quotas to member nations. And this has been something that the managing director has said might help a lot of those countries that you were just saying that might be struggling out of the other side of this recovery.

But of course, this is a bit of a politically thorny issue, because a lot of the advanced nations would also benefit from the SDR allocation. So you liaise with the G20 and the United Nations. What have those discussions been like in terms of this aspirational $650 billion in new allocations? And how might you communicate what the purpose of this and how it works to our viewers?

CEYLA PAZARBASIOGLU: Yeah, thanks. Thanks, Brian, for that question. It is really historic. It’s historic general allocation, $650 billion proposed, as you said, the special drawing rights. And to me, it signals international cooperation. And in the context of the uncertain and multi-speed recovery, with divergences across the advanced and low-income world, this is particularly important.

It’s basically an increase in global reserves across the world. So everyone– every country, depending on their quota, will get an increase in their reserves. And 42% will go to emerging markets and developing countries. That’s about $275 billion US dollars.

We will go to the board by June. The managing director will send the proposal. And then if that’s approved, hopefully by August we should be able to have this SDR allocation effective. It will help in these uncertain times to provide buffer for all countries, but it’s particularly important for that are most vulnerable.

And also, as you have seen in the G20, many countries have said that, voluntarily, that they would be willing to unlend or channel some of their SDRs to those countries that are most in need. So we are also working on options and proposals for a voluntary unlending or channeling of SDRs by countries that do not need them.

KRISTIN MYERS: Ceyla, you know, we’ve seen over the last couple of decades, actually, governments not getting all the money that is really owed to them as a lot of corporations have been able to skirt and avoid paying tax by moving their companies around to the country with the lowest tax rate. And obviously, Treasury Secretary Janet Yellen has now proposed this global minimum tax rate. I know it’s a measure and a move that the IMF does support. I do want to ask you, however, the likelihood that you think a measure like this could be enacted, could be passed by a consortium of countries? Is there anything that the IMF can do to push some of those countries along to adopt this measure?

CEYLA PAZARBASIOGLU: So yes, this is very much discussed at the G20 level as well. The idea is to come up with an agreement by the end of the– by the mid-year, actually, by June, so there is a big momentum. It’s very important that there is discussion across the countries, especially the G20. And I am optimistic. We are optimistic that this is going to be– we are going to see progress on this.

BRIAN CHEUNG: And Ceyla, I wanted to ask about the– just China’s role in all of this. Obviously, there were a lot of questions in Janet Yellen’s testimony to Congress about how China might benefit from the SDR, but then just broadly also their role in global cooperation during this really important period of time where everyone’s trying to get on board with a global recovery. What are those conversations like with China? Janet Yellen was saying that she can be adversarial where they might need to be from the US part. How does the IMF approach their participation in the global order?

CEYLA PAZARBASIOGLU: So China is very important, as you said. It’s one of the largest creditors to many of the low-income countries, which have seen an increase in debt levels. And China has been participating in the G20 Debt Service Suspension Initiative. They have been participating also in the common framework debt treatments. This is to bring all creditor countries to agree on either debt reprofiling or debt restructuring for countries that really need them.

And China has also contributed to our Catastrophe Containment and Relief Trust fund, which is for us to be able to provide grants to countries for the debt service payments to the IMF. So China has been very much working on all of these different initiatives. Of course, much is expected of China going forward. And it will remain to be seen how the common framework works, as well as in the context of many of our programs how we can support developing countries, which really need collaboration from China in terms of dealing with some of the debt problems.

More generally, more broadly on the climate change agenda, China has been also a very important force. The Chinese and– authorities and the US authorities are co-chairing the Sustainable Finance Group under the G20 Climate Initiative. This is really remarkable. This study group was dormant for a while. And it shows that there are these collaborative efforts to really make progress and– on important areas as debt sustainability and transparency, as well as on climate change.

ALEXIS CHRISTOFOROUS: All right, we’re going to leave it there. Ceyla Pazarbasioglu, IMF Director. Thanks for your time today. Still ahead, we’re going to break down President Biden’s budget

Originally Appeared On: https://finance.yahoo.com/video/biden-infrastructure-plan-increase-long-193001137.html

Gold retreats from 2-week high amid a stronger U.S economy

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Gold prices drifted lower at the fourth trading session of the week. The precious metal lost just under 10% of its value in the first quarter of 2021, posting its worst quarterly decline since 2016.

At press time, gold futures were down by 0.11%, to trade at $1,714 an ounce.

Many factors contributed to the record selloffs in the bullion asset during the first quarter of this year such as low inflation expectations, and a rise in the value of the U.S dollar, U.S Treasury Yields and Bitcoin.

The surging dollar, gold’s archenemy, has powered higher so far, at the expense of gold, which strayed near negative market territory at least twice in March when it lost 20% from its August record high.

In addition, the precious metal has been under immense pressure from a stronger U.S economy, and further compounding the woes of gold bugs, are macros pointing to a $2.25 trillion, eight-year “American Jobs Plan” released by President Joe Biden in aiding the world’s most powerful economy.

Stephen Innes, Chief Global Market Strategist at Axi in a note to Nairametrics spoke on why gold prices are rallying above $1,700 price levels despite the rallying U.S Treasury Yields.

With UST 10-year yields still above 1.70 and the dollar sailing on an even keel, gold seems to have been a significant beneficiary of month-end rebalancing.

What to expect: It is critical to note that the precious metal has underperformed U.S 10-year bonds by 5% and U.S equities by around 15-20%. If there is a need to rebalance portfolios, investors will likely buy the precious metal at the current levels.

Originally Appeared On: https://nairametrics.com/2021/04/07/gold-retreats-from-2-week-high-amid-a-stronger-u-s-economy/

Celebrities spotted in platinum jewelry

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The world’s most famous celebrities were spotted in Platinum jewelry on the red carpet of the 27th Screen Actors Guild Awards (SAG Awards) which took place on Sunday, April 4th.

The naturally white setting truly enhances the brilliance of diamonds and colored gemstones perfectly complemented the stunning array of couture gowns worn on the red carpet. Platinum jewelry is made of 95 per cent pure platinum with minimum use of other ingredients – making it the finest metal available to us today. All over the world, designers prefer precious platinum to create masterpieces because of its versatility, and because it is the most secure setting for any precious gemstone.

Platinum is one of the rarest metals and always stand out making a distinctive style statement. Platinum is the metal of choice for most red-carpet events around the world. The who’s who of the fashion and glamour world love to style their ensemble with this naturally white, precious metal.

Platinum Guild International (PGI) is a marketing organization with the vision to develop the global platinum jewellery market as a new demand source for platinum. It was formed in 1975 with specialist teams dedicated to growing the global platinum jewellery market through consumer and trade-facing programs in the four key jewelry markets of China, India, Japan and USA. Since then, jewellery development has demonstrated a strong track record in delivering results.

Through various programs, both direct-to-consumer and in collaboration with jewelry retailers and manufacturers, PGI creates consumer ounce demand by first identifying opportunities for platinum in jewelry, and then developing them with partners. It also aims to build an enduring commitment to platinum in jewelry.

PGI’s consumer marketing and educational programs are focused on developing awareness and an appreciation for platinum’s unique properties as a precious metal for fine jewelry. In addition, PGI works globally with collaborative partners running extensive marketing programs in the four main platinum jewelry markets of China, Japan, USA and India.

These markets are staffed with experts in strategic planning, marketing, retail, design and business development. Since 2015 PGI has been headquartered in Hong Kong. PGI is funded by the leading platinum producers of South Africa, as well as through co-funded programs with the jewelry industry.

PGI has partnered with TUV India Pvt. Ltd. to implement a robust audit program to ensure the purity of platinum under its program. TUV is one of the country’s first certification bodies and has been closely associated with the quality revolution in India.

Under Platinum Guild India’s quality assurance program, each individual piece of jewelry has an assured purity as high as 95 per cent. And as a proof of this assurance, every piece is stamped ‘Pt950’ and comes with a tamper-proof quality assurance card that distinguishes authentic platinum from other jewellery.

Originally Appeared On: https://www.bignewsnetwork.com/news/268508187/celebrities-spotted-in-platinum-jewellery

Chauvin’s Trial Leaves Many Black Viewers Emotionally Taxed

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Charles McMillian becomes emotional as he answers questions at the trial of former Minneapolis police Officer Derek Chauvin in the Hennepin County Courthouse in Minneapolis, Minn. Chauvin is charged in the May 25, 2020 death of George Floyd.
(Court TV via AP, Pool, File)

For some it’s too much to watch. Others just can’t turn away.

The televised trial of Derek Chauvin, the former white police officer charged in the death of George Floyd, has provoked strong emotions among many Black men and women — all tinged with an underlying dread that it could yield yet another devastating disappointment.

For many, it has brought back memories of the disturbing video of Floyd’s last moments as he gasped for breath with Chauvin’s knee on his neck. The video galvanized protests in cities across the U.S. and the world, as the words “Black Lives Matter” took hold.

“I had to mute the TV,” said Lisa Harris, 51, of Redford Township, just west of Detroit. “Hearing Mr. Floyd continue to say he can’t breathe and call for his mother — it was a lot. It’s been a lot to watch.”

Steven Thompson remembers closely watching the 2013 trial of George Zimmerman in the shooting death of 17-year-old Trayvon Martin in Florida and feeling blindsided. Zimmerman, who identifies as Hispanic, was acquitted on all counts in the unarmed Black teen’s death, including second-degree murder.

“I didn’t expect that outcome,” Thompson, 35, said. “But I’m a lot less ignorant now.”

Thompson is choosing not to watch the trial of Chauvin, the former Minneapolis officer charged with murder and manslaughter, even though he feels there is a strong case against him.

“I definitely have a fear of being let down. And instead of investing my time and energy into it now, knowing how these things go, I’d rather be pleasantly surprised,” the Los Angeles resident said.

Marlene Gillings-Gayle said she had planned not to watch the trial to preserve her peace of mind. But she’s found herself watching almost all of it. She’s had to force herself to go outside and take walks, or risk watching the trial all day and feeling upset.

The retired high school teacher who lives in New York City describes herself as a political person who likes to stay aware of current events and vocalize her opinions.

“I’m trying not to be pissed, because we’ve been here and done that too many times,” she said, referring to other police officers acquitted in the deaths of unarmed Black people. She’s watching the trial with apprehension, as she ponders what Floyd’s killing and the way the trial has unfolded so far says about America and its values.

Chauvin, 45, who was eventually fired from the police force, is accused of killing a handcuffed Floyd last May by pinning his knee on the 46-year-old Black man’s neck for 9 minutes, 29 seconds, as he lay face-down. Floyd had been accused of passing a counterfeit $20 bill at a neighborhood market.

The first week of the trial has included emotional testimonies from several people who witnessed Floyd’s death: The young woman, a teenager at the time, who filmed Floyd’s last moments and told the courtroom she stays “up nights apologizing to George Floyd;” the 61-year-old man who sobbed on the stand, compelling the judge to order a 10-minute recess; the firefighter who begged officers to let her check Floyd’s pulse as he gasped for air, saying, “I was desperate to help.”

The grief and trauma of these witnesses has been on full display, filling in details from new perspectives to create a fuller picture of the scene that people around the world watched over cellphone video last May.

For Kyra Walker, it was enough to tune out and shut down Twitter one day.

“I realized I just didn’t have it in me to watch all this,” she said.

Floyd’s death was traumatizing enough for Walker, but seeing conversations about the trial on Twitter this week brought back a flood of emotions she has grappled with over the course of the last year.

“I had a moment where I just felt broken and I started thinking about Ahmaud Arbery and Breonna Taylor and how in such a short time frame, it was like one Black death after the other, without a break,” she said. It has made her feel paranoid at times for her 11-year-old Black son anytime he leaves home.

The trial is only furthering the uneasiness many felt when the video of Chauvin pressing his knee to Floyd’s neck started to circulate online.

“It took me a while to watch it because I know what these videos are about. I know the ending already,” Thompson said.

Leigh Smith, a logistics operations manager who lives in the Detroit suburb of Grosse Pointe Park, said he has tuned in each day of the trial. He calls some of the testimony “freaking depressing.”

“You catch a murder on camera and you’re going to explain away to me that this man died of a heart attack?” Smith said of Floyd. “All this does is reaffirm the hatred and entrenchment of white supremacy and white domination over communities of color.”

Brenda Hill, 57, of Detroit watched every video during every minute of the trial’s first two days. Hill, who works for a nonprofit that advocates for low-wage workers, isn’t so sure the rest of the country is viewing the trial — or how African Americans continue to be treated — through the same lens.

“We don’t have any trust in this criminal justice system,” she said. “I should be assured that by this time everyone saw what I did. I’m disgusted, I’m hurt by everything.”

As witnesses and attorneys in the courtroom recount the final moments of Floyd’s life in detail, the emotional trauma many Black Americans have felt over the last several years is resurfacing.

“Our country needs counseling,” Gillings-Gayle said. “The witnesses have been grieving and suffering for the last 10 months. And we’ve all been grieving, too.”

Originally Appeared On: https://news.wttw.com/2021/04/03/chauvin-s-trial-leaves-many-black-viewers-emotionally-taxed