Category: OUR BLOG

CNBC Daily Open has prepared an extended report on banking activities

Four major Wall Street banks reported earnings.
— JPMorgan Chase started the season with lower fourth-quarter profits due to a $2.9 billion fee paid last year.
— Citigroup reported a quarterly loss of $1.8 billion and announced a 10% workforce reduction.
— Bank of America’s net profit in the fourth quarter fell by more than 50% compared to last year, while Wells Fargo reported higher quarterly revenues but warned of lower interest income this year.

The Labor Department’s producer price index fell by 0.1% in December, contrary to the 0.1% increase economists expected.

Goldman Sachs stated that there were no significant changes in the European utilities sector over the last three years, but a potential shift could occur.

The report also includes information on the elections in Taiwan, manufacturers in the USA, and inflation risks. The information in the report will be useful for investors worldwide. 

Key points:
– 69% of global wealth belongs to developed countries, while less than a third to the developing world.
– Women and minorities disproportionately suffer from rising income inequality.
– The WEF’s future growth report for 2024 suggests a new set of indicators for growth assessment focusing on inclusivity and sustainability.

Oxfam reports that global inequality has risen for the first time in 25 years, with the richest people and their wealth concentrated in developed countries. Currently, 1% of the wealthiest own 43% of all global financial assets.

According to Oxfam, only 0.4% of the world’s largest and most influential companies commit to paying a living wage, allowing people “to afford a decent standard of living”.

Oxfam’s document calls for governments to play an active role in shaping their economies to promote equality, achievable through a comprehensive set of measures:

Guaranteeing public services: healthcare, education, etc.
Investing in public infrastructure and services.
Improving public sector management for operational transparency.
Strengthening laws on gender and racial justice.
Enhancing business management.
Limiting CEO salaries while ensuring a living wage.
Creating more efficient corporate tax regimes.

With such measures, it’s expected that the poorest 40% will have an income roughly equal to the richest 10%.

What do you think about this report? 

Greetings, everyone. The cumulative market capitalization of Hong Kong and China has plummeted from $20 trillion to $13 trillion, reverting to pandemic levels.

The Chinese ETF has collapsed to its 2016 levels, reflecting significant market shifts.
A notable development is the bursting of the real estate bubble in China, with property prices plummeting by 20-50%, and even more in some regions.

Key Factors Contributing to the Decline:

1. The US-China Trade War: Initiated by Trump, this conflict significantly impacted market sentiments.
2. Internal Struggle Among Elites and Clans: Resulting in the destruction of many companies, imprisonment of key figures, and some suspicious deaths.
3. Delisting of Chinese Giants from US Exchanges: A move that has affected investor confidence.
4. Potential Taiwan Conflict: Disruptions in supply chains and increased costs are a significant concern.
5. Withdrawal of Global Investors: Notable figures such as Ray Dalio and Warren Buffett have sold off their Chinese stock portfolios, indicating a lack of confidence in the Chinese market.

Conclusions and Outlook:

1. China remains the world’s second-largest economy, growing faster than the global average.
2. The lingering scent of war and instability deters investment in Chinese stocks.
3. While Chinese stock prices are currently attractive, caution is advised.
4. The domestic market has become crucial for the economy, with Chinese consumers increasingly important for businesses.
5. China is likely to emerge first from an economic crisis that has yet to hit the US and Europe, potentially becoming a dominant player in the financial market.

Final Thoughts:
Monitoring the situation in Asia closely, it’s evident that there are concerted efforts to destabilize the region. However, China has so far managed to stay away from major conflicts and key issues. If China navigates these challenges successfully, it could emerge significantly stronger from the crisis.

Wishing everyone wise investments and a pleasant day!

Were you surprised by these headlines last week?

On this occasion, we want to share the opinion of Andrey Syrchin (if you also find his thoughts interesting, like we do, give a like immediately!).

‘The biggest problem in the world today is the national debts of the USA, Japan, Italy, Greece, China. All these countries have a tax burden that is clearly difficult to cover with the current economic capabilities, and sooner or later there will be a “breakthrough” somewhere!

Such titans as Ray Dalio and the late Charlie Munger also agreed with this, noting the risk. So far, the governments of these countries have managed to balance, but what can happen if it breaks:

1). The default of one of these countries will trigger a spiral of bankruptcies among companies, banks, and investors around the world.
2). It will be necessary to use the printing press, and this means inflation.
3). If the default occurs in a European country, the likelihood of leaving the EU will be high!’

Andrey, like the entire Cresco Capital team, will be closely monitoring the triggers of the global debt crisis, and if it happens, a window of opportunity will open, but turbulence is inevitable!

High stakes – the biggest danger for these countries today. Andrey has already noted in our videos that in the USA, the main part of the budget expenditure is debt service.

What else to expect in 2024? We’ll see!

Organizers expect that the four-day JPMorgan Healthcare conference, starting on Monday, will gather more than 8,000 people, including delegations from the world’s largest drug manufacturers, signaling a return to normal business conduct after last year’s reduced participation due to COVID-19 concerns.

Just last month, drug makers including AbbVie (ABBV.N), Bristol Myers Squibb (BMY.N), and AstraZeneca (AZN.L), announced biotechnology deals worth about $25 billion in the U.S., according to data from LSEG Deals Intelligence.

Overall, global merger and acquisition activity in the healthcare sector increased by 8% year-on-year to $365 billion in 2023, which is below the average of the previous five years at $432 billion, calculated by LSEG.

“Recently, we have seen a surge in mergers and acquisitions, we are observing a rebound in stocks against the backdrop of market recovery and falling interest rates,” said JPMorgan’s global head of investment banking Mike Gaito, who will interview CEO Jamie Dimon on the opening day. “People are open for business.”

Two deals that epitomized this in 2023 were Roche’s (ROG.S) acquisition of Carmot Therapeutics for $2.7 billion (CRMO.O) and Eli Lilly’s acquisition of Versanis Bio for up to $1.93 billion, which strengthened the manufacturer’s Mounjaro obesity drug lineup.

The annual conference at the Westin St. Francis Hotel in San Francisco will feature small drug manufacturers and companies from all corners of the healthcare industry, such as medical insurance companies and medical equipment manufacturers.

Investors will be meeting with companies in public and private venues.

Dear Valued Clients,

As the festive season approaches, we at Cresco Capital extend our warmest wishes for a Merry Christmas and a prosperous New Year!

As we reflect on the year gone by, we are reminded of the resilience and adaptability that the world of investments demands. It has been a year of challenges and triumphs, and through it all, your trust in us has been our greatest motivator. 

For this Christmas and the coming New Year, we wish you not just financial success, but the wisdom to spot opportunities where others see challenges. May your portfolios flourish and your investments bring you closer to your long-term goals.

We hope the New Year ushers in a period of growth, stability, and profitable ventures. May your decisions be guided by insight and your risks be rewarded with great returns. We look forward to continuing our journey together, navigating the dynamic world of investments with strategy and foresight.

Above all, we wish you and your loved ones health, happiness, and peace during this holiday season and throughout the New Year. 

Thank you for choosing Cresco Capital as your trusted investment partner. Here’s to a year of fruitful collaborations and shared successes!

Warm regards,

Cresco Capital Team