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BOE Doves Take Hawkish Stance June 23, 2023

By Knowledge Leaders Team in Economy, Markets

The Bank of England surprised market participants yesterday morning when they raised the Official Bank Rate by a full half point to 5.00%. The move caught traders off guard as the BOE had chosen to raise rates by only a quarter percentage point at each…

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Hanging Tough? AI Sentiment Shows Hawkish Fed June 22, 2023

By Knowledge Leaders Team in Economy, Markets, News

After yesterday’s testimony by Fed Chair Jerome Powell to the US House of Representatives I analyzed its sentiment on key issues compared to his previous four FOMC policy statements, using ChatGPT. The table below shows the results. Unsurprisingly, ChatGPT left the sentiment for both inflation…

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BoJ Taking it Easy June 21, 2023

By Steven Vannelli, CFA in Economy, Markets, News

Today the minutes of the April 27-28, 2023, Bank of Japan meeting were released. Below in italics are the top ten highlights generated by our AI engine. The Bank of Japan (BoJ) has been conducting purchases of various financial instruments and providing funds without setting…

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More Misconceptions about Japanese Equities June 20, 2023

By Knowledge Leaders Team in Economy, Markets

Continuing last week’s discussion on the role of minority interest in Japanese equity returns, below we perform the same correlation test on universes of DM Americas and EMEA companies. To recap, we tested the following metrics, drawn from each company’s fiscal year-end reports and stated…

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Atlanta and Cleveland Have it Right on Inflation June 13, 2023

By Steven Vannelli, CFA in Economy, News

Using our AI engine, we prompted a description of the Atlanta Fed’s Flexible CPI. What we got was a pretty decent explanation: “The Atlanta Fed Flexible Price Consumer Price Index (CPI) is a measure that is calculated from a subset of goods and services included…

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Are European Assets Reflective of Financial Conditions? June 09, 2023

By Knowledge Leaders Team in Markets

The Euro Stoxx 50 Index is up about 13% year-to-date. Not a bad return for a region whose largest economy is in recession, and whose second largest is facing one of the worst inflation fights in decades. Perhaps the attention-grabbing nature of large economic releases…

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Misconceptions about Japanese Equities June 09, 2023

By Knowledge Leaders Team in Markets

Investor activism in Japanese companies has been the subject of a fair amount of recent conjecture. Specifically, foreign investors have been concerned about the relative prevalence of minority interest, the ghosts of fading Keiretsus on Japanese companies’ financial statements. This, combined with significant insider shareholding…

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