Good afternoon
generally strong earnings continue to support the market…but for my feeling, we are quite overbought…need a bit of consolidation in these equity markets!
Interesting interview with Stan Druckenmiller in youtoube…this master of investment sees signifant inflation risks coming up, is very long commodities ( for as long as interest rate are not rising too much ) and is cautious on many techs…but he still likes the big techs like Amazon, Google, Microsoft on valuation grounds and because of ever-growing cloud business. He much prefers Asia ( China Taiwan South Korea ) to the US , partially because of US monetary policy and them printing money like never before, without that money going into companies actually investing!
Base metals are having a strong day, and gold is currently managing well to hold above 1800 US$ again! Oil ( Brent ) is higher once again - at 59,50 US$/barrel, we are almost back to 60$!! Another factor for potentially rising inflation around the world!
German Factor Orders are down by 1.9% - economists were surprised, but I don´t think the market was. How could you not have been, considered lockdown etc?? Unfortunately, I will have to leave before US labor market numbers will be announced in 30 min.
Not much news on the micro front except for one important one ( well, for me that is ! )
Genex Power - done! The very complex financing, incl several parties incl new equity, has been done! Took much longer than expected…! Today, the Queensland government signed up on the funding for the transmission line from the new project, to be connected to the consumer! The government increased funding by 15 mill A$ to a total of 147 Mill A$. The company does not say, but I guess the little caveat is, that GNX / or better Powerlink, the operator, will be responsible for servicing the line, which will elad to a few hundred thousand $ in extra cost per annum. But that´s not important! All other financiers have been waiting for this funding to fall into place! I think we will see consecutive announcements now over the enxt few days, for all indicative proposals ( all subject to funding of the transmission line ) to become definite!! This is major good news, and I would not be surprised, if this true green development would find many buyers over the enxt few days, to potentially overshoot valuations, which are generally in the mid-thirties for Genex!
Have a nice weekend!
WS