By Alonso Munoz
What’s News?
Russia
Tensions between Ukraine and Russia have given investors jitters in recent weeks. Vladimir Putin claims the Russian troop buildup on Ukraine’s border is in an effort to stop NATO’s eastward expansion. Diplomatic talks among EU nations, Ukraine and Russia have largely been stagnant. U.S. and other Western forces have been deployed to the Polish border and Washington has signaled that under no circumstance will these troops fight in Ukraine.
Vladimir Putin is notorious for pushing the diplomatic limits. He has noted that the buildup in Russian troops is in response to the threat that the West poses to Russia and Ukraine, a country that Putin and the Kremlin view as “one people”. In recent weeks, oil prices have skyrocketed. Russia happens to be the second largest producer of oil in the world.
The Economy
Producer prices jumped 1% in January on the back of continued demand and supply chain disruptions.
The Federal Reserve is considering selling bonds from its nearly 10 trillion-dollar portfolio to combat high inflation and keep short term rates well below long term rates.
The 10 year government bond yield has risen above 2%.
Markets
The SEC is sending subpoenas to several large hedge funds and institutional firms. The regulator will specifically review block trading, which is a major revenue driver for many big banks and hedge funds. Block trading takes place when a company decides to unload a substantial number of shares in a specific security at once. Typically, a “liquidity provider” steps in to buy the security at a discount to the market price and then turns around and sells it for a premium.
To contact the author of this story:
Alonso Munoz at alonso@hamiltoncapllc.com
