Aurelia Butler

Meanwhile, inflation for the month of May was expected to have been at 5.2%, according to the central bank’s monthly Market Expectations Survey (REM).The poll surveyed 41 analysts over several days. The economists consulted also slightly cut their economic growth projection for Argentina in 2022 to 3.3%, a contraction of 0.2 percentage points.Latin America’s third largest economy has been suffering from extreme inflation for years, and has been aggravated by the effects of Russia’s invasion of Ukraine.Argentina has just begun to emerge from a long recession.The economists surveyed also expect the average nominal exchange rate in Argentina to hit 157.97 pesos per dollar in December. More

NEW YORK (Reuters) – A rally that lifted U.S. stocks from the brink of a bear market faces an important test next week, when consumer price data offers insight on how much more the Federal Reserve will need to do in its battle against the worst inflation in decades.Despite a rocky week, the S&P 500 is still up over 5% from last month’s lows, which saw the benchmark index extend its decline to nearly 20% from its all-time high. The index was recently down about 14% from its Jan. 3 record after losing 1% in the past week. More upside could depend on whether investors believe policymakers are making progress against surging prices. Signs that inflation remains strong may bolster the case for even more aggressive monetary tightening, potentially spooking a market already battered by worries that a hawkish Fed could deal a serious blow to U.S. growth.“This market is likely to remain range-bound until we get a meaningful move lower in inflation,” said Mona Mahajan, senior investment strategist at Edward Jones, which currently favors large-cap stocks over small-cap, given the ability for larger companies to absorb higher input and wage costs. “Clearly, the print next week is going to be key.”The consumer price index (CPI) for the 12 months through April rose 8.3%, down from an 8.5% annual rate reported in the prior month, which was the largest year-on-year gain in 40 years. Friday’s inflation report for May is one of the last key pieces of data before the Fed’s June 14-15 meeting, at which the central bank is widely expected to raise rates by another 50 basis points.If inflation is “continuing to be a problem, the Fed may not have the option of coasting later this year,” said Paul Nolte, portfolio manager at Kingsview Investment Management, adding, “The higher the interest rates, the more the struggle for the market.”Nolte has lightened positions in equities broadly in the portfolios he manages, especially in growth stocks, and raised cash levels, pointing to factors such as still-lofty stock valuations.INVESTORS WEIGH DATA The CPI report comes as investors gauge how the 75 basis points of monetary tightening already delivered by the Fed this year is affecting growth. Employment data released Friday showed that U.S. employers hired more workers than expected in May and maintained a strong pace of wage increases, signs of strength that could keep the Fed on an aggressive monetary policy tightening path.Meanwhile, gloomy views from several top business leaders, including JPMorgan Chase (NYSE:JPM)’s Jamie Dimon and Tesla (NASDAQ:TSLA)’s Elon Musk, have weighed on hopes that the central bank can cool inflation without hurting the economy. Musk said in an email to executives that he has a “super bad feeling” about the economy and needs to cut about 10% of jobs at the electric carmaker, Reuters reported Friday. [L1N2XQ0PI]Investors’ view of inflation is critical to how they value equities, as higher prices have typically spurred the Fed to raise interest rates, with higher bond yields in turn reducing the value of future corporate profits. Rising prices also raise costs for businesses and consumers.The S&P 500 trades at around 18.7 times its trailing 12 month earnings, a rich valuation compared to other inflationary periods that suggests investors believe the current level of price increases may not last, according to Jeff Buchbinder, equity strategist at LPL Financial (NASDAQ:LPLA). LPL believes inflation will eventually fall this year and that companies have solid earnings momentum. The firm’s year-end target on the S&P 500 is between 4,800-4,900, which at the low end stood about 16% above the index’s level as of Friday afternoon.Others have been less optimistic. Morgan Stanley (NYSE:MS) strategists earlier this week called the latest rebound just a “bear market rally,” and, citing negative trends for earnings and economic indicators, projected the S&P 500 would drop to around 3,400 by mid-August.“There is consensus agreement that we have likely seen the high prints or the peak inflation numbers in the rear-view mirror,” said Art Hogan, chief market strategist at National Securities. “If that proves to not be true … that is going to tip over the apple cart for markets.” More

The UK will harvest less than half of its normal quantity of cucumbers and sweet peppers this year after many glasshouse growers opted not to plant them in the face of surging energy costs and labour shortages, according to the trade group for the main growing region.Lee Stiles, secretary of the Hertfordshire-based Lea Valley Growers Association, which represents businesses that grow three-quarters of the country’s cucumbers and sweet peppers, said about half of the glasshouses were empty this year.The remainder would yield less than usual because of growers cutting down on heating to save costs, he said. It is now too late to plant further crops, meaning the UK will not make up the lost volumes this year, Stiles added, predicting a 50 to 60 per cent drop in yields for cucumbers and sweet peppers nationally in 2022.“The gas price is still quite volatile and trying to get staff this time of year is nearly impossible, so it’s not worth planting, firstly because of the gas [prices] and secondly there is no guarantee they’re going to get the labour,” he said.At the start of 2021 growers were being charged 40p per therm for their natural gas, but prices have since surged as high as £8 in some cases as Russia’s invasion of Ukraine worsened market pressures, he said, adding that aubergine and tomato yields will also be affected.Jack Ward, chief executive of the British Growers Association, said while glasshouse growers were worst hit, labour and cost pressures had resulted in a roughly 20 per cent cut in planting of brassicas such as broccoli and cauliflowers. “The net result of all of this is that we have just shrunk our productive capacity,” Ward said.Until this year the UK was about 20 per cent self-sufficient in cucumbers and peppers, down from 100 per cent in the Victorian era when commercial salad glasshouses were first constructed, said Stiles.UK production mainly takes place in summer, while the country also imports from Spain, Morocco and the Netherlands, especially in winter. These imports are less fresh on arrival because of days spent in transit, while surging energy costs in the Netherlands have also reduced yields.“There will certainly be a shortage of British-grown produce but whether they can make that up with imports I’m not sure,” Stiles said.Growers have used savings to tide them over this year, but there is a risk of long-term shrinkage in the salads sector, which unlike other types of farming does not receive government subsidies, Stiles said.Growers who have pushed ahead with this year’s crop risk making a loss. “They’ve managed to come to some kind of arrangements with their supermarket customers based on the cost of production but the problem is that the input costs keep rising,” he said.The Lea Valley’s 400 acres of glasshouses grow about 80mn cucumbers and 100mn sweet peppers in a typical year, about three-quarters of the UK crop of each, the group said.Labour shortages in harvesting have worsened since Brexit ended free movement from Europe; farmers and growers have called for an annual allocation of 30,000 visas under a seasonal workers’ scheme to be expanded.A majority of last year’s seasonal workers came from Ukraine and the war has prevented many expected workers from arriving this year.The Department for Environment, Food & Rural Affairs said: “It’s crucial we do everything we can to support the farming sector. That’s why we have announced measures to support growers with the availability of fertiliser.” It added that the government had also given “greater certainty in accessing seasonal migrant labour” by extending the seasonal workers’ visa scheme to the end of 2024. More

(Reuters) – Goodwin Procter said Friday that it has hired two private equity partners for its Washington, D.C., and Santa Monica, California, offices.Andrew Kimball joined the firm in the nation’s capital from Kirkland & Ellis. Andrew Cheng, who spent more than 18 years at Gibson Dunn & Crutcher, has joined in Southern California.Cheng represents corporate borrowers, private equity sponsors and lenders for acquisition financings, royalty financings and special-situation financings, the firm said.Kimball’s practice focuses on structuring and negotiating acquisitions and divestitures, minority investments, leveraged buyouts and financial restructurings, it said.Kimball said a number of his private equity clients are focused on health tech and healthcare-adjacent industries. He said the firm’s technology and life sciences capabilities will help serve his clients’ long-term goals.Boston-founded Goodwin, an 1,800-lawyer firm, expanded its private equity practice in April when it opened an 11-attorney office in Munich.Representatives at Gibson Dunn and Kirkland & Ellis did not immediately respond to requests for comment Friday on their lawyers’ departures. Read More:Goodwin courts European private equity work with new Munich office https://www.reuters.com/legal/legalindustry/goodwin-courts-european-private-equity-work-with-new-munich-office-2022-04-13 More