FOMO
April 28, 2023
–BOJ summary from Reuters, “The yen tumbled and Japanese bonds and stock rallied on expectations the BOJ’s new governor [Ueda] would take his time to withdraw the stimulus of his dovish predecessor…” $/yen new high for April over 136. The Argentine central bank was somewhat less timid, hiking by 10 percentage points to 91%.
–SPX soared 2% yesterday, the biggest one-day rally this year since Jan 6. Asset reallocation. AMZN warned of slowing cloud growth post-close. Q1 GDP weak at 1.1% but price data higher than expected. Yields across the US curve jumped. Tens rose nearly 10 bps to 3.524 while on the SOFR curve, SFRH4 plunged 20 to 9603.5. The market shook off lingering doubts about next week’s FOMC with FFK3 settling 9497. On a hike FFK3 should ultimately settle around 9494.4.
Today’s news includes Employment Cost Index expected 1.1%
PCE prices yoy 4.1 vs 5.0 last and Core 4.6 vs 4.6 last.
Chicago PMI expected 43.6 vs 43.8.
–Here’s another brilliant plan for Chicago:
The Chicago Coalition for the Homeless is one of the main backers of a proposal to increase the real estate transfer tax on all real estate transactions over $1 million, to 2.65 percent of the sale price from the 0.75 percent in place now for all deals regardless of price. Called Bring Chicago Home, and often nicknamed the “mansion tax,” it’s been estimated by the coalition to generate an extra $163 million a year that would be earmarked for combatting homelessness.
https://therealdeal.com/chicago/2023/04/27/johnson-elevates-transfer-tax-hike-with-appointments/
From another piece:
[Mayor] Johnson’s plans to hit Chicagoans with higher taxes is likely to speed up the Chicago exodus. Recent polling shows more than one-third of city residents would leave if they could. They cited taxes and affordability among their top concerns.
