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Looking for a crypto exchange? Give Equos a try (they've just released an exchange token too, similar to BNB and FTT...

TMI & Diginex are hosting an event on April 21st: β€œCrypto Assets: The Questions Every Corporate Treasurer Should be Asking” a panel of leading experts will discuss whether crypto assets and more specifically bitcoin has become a viable treasury asset...

Book your spot πŸ‘‡

Crypto Assets: The Questions Every Treasurer Should Be Asking | Treasury Management International
In partnership with Diginex Wednesday 21st April 20219am GMT / 10am CET / 4pm SGT Speakers FranΓ§ois Masquelier, CEO, Simply Treasury Moderator Eleanor Hill, Editor, TMI Are crypto assets really a viable treasury investment? If so, how can you enter – and exit – the market with the least possible ris…

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πŸ”₯ Hot and 🚫 Not

πŸ”₯ Macrodesiac founder David Belle and his appearance on the Black Heart Red Spade podcast this morning - Give it a listen πŸ‘‡πŸ‘‡

🚫 U.S. banks: JP Morgan & Goldman Sachs absolutely SMASHED it on their earnings today, with Wells Fargo also posting some strong numbers...

JPMorgan Q1 Earnings

  • Q1 Adj. EPS $4.50 (est $3.01)
  • Q1 Revenue $33.12 Bln (est $30.42 Bln)
  • Q1 Investment Banking Revenue $2.85 Bln (est $2.46 Bln)

Goldman Sachs Q1 Earnings

  • Q1 Adj. EPS $18.60 (est $10.07)
  • Q1 Revenue $17.70 Bln (est $12.55 Bln)
  • Q1 FICC Sales & Trading Revenue $3.89 Bln (est $2.89 Bln)
  • Q1 Investment Banking Revenue Β£3.57 Bln (est $2.68 Bln)

Wells Fargo Q1 Earnings

  • EPS: $1.05 (est $0.70c)
  • Revenue: $18.06BB (exp $17.53B)
  • Net Interest Income: $8.80B (exp $9.08B)

Seriously impressive quarter, but banks might start to face headwinds from here...

The big reason? Yields and more specifically the spread between short-dated yields and longer yields...

Simply, banks borrow at shorter-dated rates (currently pegged near zero), and lend at longer rates, pocketing the difference between the two...

The 10Y yield has fallen from 1.75% to 1.63% in recent days, and the 30Y has fallen to 2.30%...

Add in some 'overweight' positioning...

Note that financials (XLF) are already up over 20% on the year...

And it's hard to make the case for further strong gains (unless yields push higher again...)

Beyond the headline: UK productivity rose in 2020 as lockdown hit lower-paid jobs

β€œAlthough there was substantial volatility during the year, this contrasts with a slow and steady decline in productivity during the 2008-09 economic downturn,” the ONS said.

But what does this actually mean?

Many workers in relatively low-paid retail and hospitality roles lost their jobs or were furloughed last year, while employees able to work from home were typically in higher-paid sectors which boost the productivity numbers.
During the 2008-09 recession, there was a greater loss of high-paid financial services jobs, exacerbating a longer-term slide in productivity growth which began before the crisis and persisted for years afterwards.

Soooo, once everyone goes back to work we'll see UK PRODUCTIVITY FALLS as lockdown ends and low-paid sloggers return to the workforce - what's the point?

Productivity is one of those hard-to-measure things - if it was a company they'd try and book it under intangible assets...

It's hard to get excited about productivity measures in isolation, but give me a paper (or study) on The Role of Innovation and Entrepreneurship in Economic Growth and I'm all over it...

Trade idea via ING

ING look for the pair to return to 0.75 by the fall/Autumn...

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