{"id":555574,"date":"2021-11-18T03:59:46","date_gmt":"2021-11-18T03:59:46","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/18\/inflation-weighs-on-stocks-as-goldman-ceo-warns-on-rate-hikes\/"},"modified":"2021-11-18T03:59:46","modified_gmt":"2021-11-18T03:59:46","slug":"inflation-weighs-on-stocks-as-goldman-ceo-warns-on-rate-hikes","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/18\/inflation-weighs-on-stocks-as-goldman-ceo-warns-on-rate-hikes\/","title":{"rendered":"Inflation weighs on stocks as Goldman CEO warns on rate hikes"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-10\"><\/a> <strong>US stocks fell again yesterday as investors fretted over how central banks <\/strong><strong>will react to rising inflation<\/strong>. The S&P 500 slipped 0.3% and the Dow closed 0.6% in the red as solid retail earnings failed to offset concerns about rising interest rates in the coming months.<\/p>\n<p><strong>This came on the same day as Goldman Sachs CEO David Solomon warned about the implications of rising interest rates on the markets<\/strong>. \u201cIf interest rates move up, that in of itself will take some of the exuberance out of certain markets,\u201d he told <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-11-17\/goldman-s-solomon-warns-pandemic-exit-could-get-bumpy\">Bloomberg<\/a>.<\/p>\n<p><strong>Crypto VC Paradigm One just became the industry\u2019s largest-ever fund after raising <\/strong><strong>a whopping USD 2.5 bn from investors. <\/strong>Backed by Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang, the three-year-old VC is targeting investments in the \u201cnext generation of crypto companies and protocols,\u201d <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-11-15\/coinbase-co-founder-launches-2-5-billion-crypto-venture-fund\">Bloomberg<\/a> reports. The fund has raised almost double what they initially targeted from investors after the group\u2019s first fund, which launched in 2018 with USD 400 mn, reported an annual rate of return upwards of 200% in 1H2021, according to <a href=\"https:\/\/www.ft.com\/content\/b07d9777-8ac7-47ac-a358-12924711f2c8\">the FT<\/a>.<\/p>\n<p><strong>But some gold-rush skepticism remains: <\/strong>Twitter, for one, isn\u2019t biting. Investing the group\u2019s assets in crypto \u201cdoesn\u2019t make sense right now,\u201d CFO Ned Segal told <a href=\"https:\/\/www.wsj.com\/articles\/twitter-cfo-says-investing-in-crypto-doesnt-make-sense-right-now-11637027310?mod=hp_lista_pos5\">the WSJ<\/a>. Volatility in digital currencies was the primary reason for the company\u2019s aversion to the asset class, he explained, echoing the concerns of a number of executives at large public companies <a href=\"https:\/\/www.wsj.com\/articles\/companies-want-fasb-to-focus-on-crypto-esg-related-rule-making-11633347900?mod=article_inline\">requesting US regulators write specific rules<\/a> on how to treat cryptocurrency assets.<\/p>\n<p><strong>El Erian isn\u2019t bullish on BTC, either:<\/strong> Allianz Chief Economist Mohamed El Erian wants \u201cspeculators\u201d to drop out of the BTC race before he considers buying in again, after selling his BTC holdings a few months before its record-breaking rally <a href=\"https:\/\/www.forbes.com\/sites\/investor\/2021\/10\/14\/bitcoin-rally-reaches-its-risky-level-for-october\/?sh=4b176dc5b161\">began<\/a> in mid-September, he told <a href=\"https:\/\/www.cnbc.com\/2021\/11\/16\/mohamed-el-erian-says-he-bought-bitcoin-but-sold-too-early.html\">CNBC<\/a>.<\/p>\n<p><strong>The notoriously volatile currencies are a \u201cvery disruptive force\u201d but they are not going to become global currencies,<\/strong> the markets sage said. Nevertheless, their importance requires preemptive regulatory discussions if they are to avoid regulatory headwinds like those currently facing Internet giants Google, Amazon and Facebook, he added.<\/p>\n<div class='stock-ticker-panel'>\n<table class='table stock-ticker-table table-striped markets-table'>\n<tbody>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>EGX30 <\/strong><\/p>\n<\/td>\n<td>\n<p> 11453.3<\/p>\n<\/td>\n<td>\n<p>+0.4% (YTD: +5.6%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD (CBE)<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 15.66<\/p>\n<\/td>\n<td>\n<p>Sell 15.76<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD at CIB<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 15.66<\/p>\n<\/td>\n<td>\n<p>Sell 15.76<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Interest rates CBE<\/strong><\/p>\n<\/td>\n<td>\n<p>8.25% deposit<\/p>\n<\/td>\n<td>\n<p>9.25% lending<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Tadawul<\/strong><\/p>\n<\/td>\n<td>\n<p>11,833.54<\/p>\n<\/td>\n<td>\n<p>+0.05% (YTD: +36.2%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>ADX<\/strong><\/p>\n<\/td>\n<td>\n<p>8,337.69<\/p>\n<\/td>\n<td>\n<p>-0.2% (YTD: +65.3%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>DFM<\/strong><\/p>\n<\/td>\n<td>\n<p>3,261.66<\/p>\n<\/td>\n<td>\n<p>-0.8% (YTD: +30.9%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>S&P 500<\/strong><\/p>\n<\/td>\n<td>\n<p>4,688.47<\/p>\n<\/td>\n<td>\n<p>-0.3% (YTD: +24.8%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>FTSE 100<\/strong><\/p>\n<\/td>\n<td>\n<p>7,301.64<\/p>\n<\/td>\n<td>\n<p>-0.4% (YTD: +12.9%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Brent crude<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 80.21<\/p>\n<\/td>\n<td>\n<p>-2.7%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Natural gas <\/strong>(Nymex)<\/p>\n<\/td>\n<td>\n<p>USD 4.82<\/p>\n<\/td>\n<td>\n<p>-7.0%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Gold<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 1,870<\/p>\n<\/td>\n<td>\n<p>+0.9%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>BTC<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 60,091<\/p>\n<\/td>\n<td>\n<p>-0.8% (as of midnight)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><strong>THE CLOSING BELL-<\/strong><\/p>\n<p><strong>The EGX30 rose 0.4% at yesterday\u2019s close<\/strong> on turnover of EGP 810 mn (45.1% below the 90-day average). Local investors were net sellers. The index is up 5.6% YTD.<\/p>\n<p><strong>In the green: <\/strong>Heliopolis Housing (+3.7%), Egypt Kuwait Holding-EGP (+2.5%) and AMOC (+2.5%).<\/p>\n<p><strong>In the red: <\/strong>Rameda (-5.8%), Aspire Capital (-3.7%) and Raya Holding (-2.3%).<\/p>\n<p><strong>Stocks are sliding in Asia this morning<\/strong> as nerves over rising interest rates and economic growth continue to hold sway. Things aren\u2019t looking much better in Europe and the US, where the markets are expected to open in the red later today.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>US stocks fell again yesterday as investors fretted over how central banks will react to rising inflation. The S&#038;P 500 slipped 0.3% and the Dow closed 0.6% in the red as solid retail earnings failed to offset concerns about rising interest rates in the coming months. This came on the same day as Goldman Sachs [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7210],"tags":[344,9861,72,119,182,349,122,121],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-555574","post","type-post","status-publish","format-standard","hentry","category-planet-finance","tag-cryptocurrency","tag-el-erian","tag-enterpriseam","tag-financial-markets","tag-inflation","tag-interest-rates","tag-planet-finance","tag-sp-500","wpautop","entry"],"acf":{"mongo_id":"b3313ecd-77ed-435e-aae6-d0cf48d116a6","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[555551],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Inflation weighs on stocks as Goldman CEO warns on rate hikes - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/11\/18\/inflation-weighs-on-stocks-as-goldman-ceo-warns-on-rate-hikes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Inflation weighs on stocks as Goldman CEO warns on rate hikes\" \/>\n<meta property=\"og:description\" content=\"US stocks fell again yesterday as investors fretted over how central banks will react to rising inflation. 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The US Federal Reserve and European Central Bank slashed covid-era asset purchases at their respective meetings,\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":566246,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/06\/rising-us-inflation-a-worry-for-emerging-markets\/","url_meta":{"origin":555574,"position":1},"title":"Rising US inflation a worry for emerging markets","author":"enterpriseam admin","date":"6 June 2021","format":false,"excerpt":"Heightened inflation in the US is likely to spell trouble for emerging economies as rising yields squeezes countries with hefty debt loads and precarious public finances, analysts tell the Financial Times. \u201cEmerging economies should be worrying more about US inflation than about their own,\u201d Tatiana Lysenko, lead economist for emerging\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":562885,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/09\/rising-inflation-a-time-bomb-says-deutsche-bank\/","url_meta":{"origin":555574,"position":2},"title":"Rising inflation a \u201ctime bomb,\u201d says Deutsche Bank","author":"enterpriseam admin","date":"9 June 2021","format":false,"excerpt":"Rising inflation could be a ticking \u201ctime bomb\u201d: Deutsche Bank economists have warned of an impending global economic crisis starting 2023 due to the possible adverse effects of inflation, CNBC reports. 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