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See - Sada Elbalad
3 days ago
- Business
- See - Sada Elbalad
Gold Swings Between Dollar Pressure ,Trump's Surprises
Waleed Farouk Gold prices fell slightly in local markets during trading on Saturday, coinciding with the global stock market's weekly holiday. The ounce ended the week with a 2% decline, amid a combination of mixed economic data and the political controversy surrounding tariffs in the United States. Gold prices fell in local markets by about 15 Egyptian pounds during trading today, compared to yesterday's close. The price of a gram of 21-karat gold reached 4,590 Egyptian pounds, while the price of an ounce of gold closed the week at $3,358, a decline of $68. The price of a gram of 24-karat gold reached 5,246 Egyptian pounds, the price of a gram of 18-karat gold reached 3,934 Egyptian pounds, the price of a gram of 14-karat gold reached about 3,060 Egyptian pounds, and the price of a pound of gold reached about 36,720 Egyptian pounds. Gold prices in local markets fell by EGP 15 during trading on Friday. The price of a gram of 21-karat gold opened at EGP 4,620 and closed at EGP 4,605. Meanwhile, an ounce fell by $27, opening at $3,317 and closing at $3,290. The slight decline in gold prices came despite a decline in US Treasury yields, supported by a firmer dollar, which limited gold's ability to achieve further gains. He stated that recent US inflation data, particularly the core personal consumption expenditures index, showed a decline in the pace of inflation, with the annual reading for April reaching 2.5% compared to 2.6% in March. Meanwhile, the overall inflation rate declined to 2.1% compared to 2.3% the previous month, increasing market expectations of an expected interest rate cut in 2025. Despite signs of a slowdown in inflation, gold prices failed to record a tangible recovery. The recovery in the US consumer confidence index, issued by the University of Michigan, from 50.8 to 52.2, and the improvement in GDP growth expectations, according to the Atlanta Federal Reserve, from 2.2% to 3.8%, also contributed to supporting the dollar's strength and reducing investor appetite for gold. Former US President Donald Trump reignited trade tensions following his statements accusing China of not adhering to the Swiss trade agreement, asserting that "China has completely violated the agreement," he said. Following these statements, markets witnessed noticeable confusion, with stock indices declining, while the dollar regained some momentum, leading to fluctuations in gold prices. In a notable development, a US Federal Appeals Court reinstated most of the tariffs Trump had previously imposed on April 2, known as "Liberation Day," after the International Trade Court invalidated them as illegal. Gold prices also jumped to over $3,363 per ounce, their highest level since early April, following Trump's surprise announcement of raising tariffs on imports from the European Union. However, he reversed the decision on Sunday evening, postponing implementation until July 9, based on what he said was a request from European Commission President Ursula von der Leyen. Despite recent volatility, data confirms that gold remains one of the most prominent beneficiaries of escalating geopolitical tensions and financial uncertainty, especially in light of expectations of interest rate cuts and increased risks associated with the dollar and paper currencies. The US core personal consumption expenditures (PCE) index for April showed an ongoing deflationary trend, driven by the Federal Reserve's tightening interest rates. The reading reached 2.5% year-on-year, down from 2.6%. The headline inflation rate was 2.1% year-on-year, lower than March's 2.3% increase. The University of Michigan Consumer Confidence Index improved in May from 50.8 to 52.2, exceeding estimates in its final reading. It's worth noting that inflation expectations have declined. Over the next 12 months, the forecast fell from 7.3% to 6.6%, and over the next five years, it fell from 4.6% to 4.2%. Following the release of the data, the Atlanta Federal Reserve's preliminary GDP Now reading for economic growth for the second quarter of 2025 rose sharply from 2.2% to 3.8%. Federal Reserve officials announced their findings on Thursday, confirming that monetary policy is in good shape and that it will take time to see a shift in the balance of risks related to the Fed's dual mandate. San Francisco Federal Reserve President Mary Daly emphasized that the labor market remains strong, but that reaching the 2% inflation target may not be achieved before the end of 2025, increasing the likelihood of the Fed cutting interest rates twice, as markets currently expect. While markets are pricing in a 52 basis point easing by the end of the year, observers believe that Trump's continued dominance of the political scene, the return of tariffs, and conflicting economic data are all factors that will enhance gold's appeal as a risk hedge. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks News Shell Unveils Cost-Cutting, LNG Growth Plan
Epoch Times
04-05-2025
- Business
- Epoch Times
Buffett Says Recent Market Volatility ‘Really Nothing,' Urges Investor Calm
Warren Buffett on May 3 urged long-term investors not to be shaken by short-term swings and focus on fundamentals amid recent market volatility. 'What has happened in the last 30, 45 days … is really nothing,' Buffett told shareholders at Berkshire Hathaway's annual shareholder meeting on May 3 in Omaha, Nebraska. 'This is not been a dramatic bear market or anything of the sort.' Buffett made clear that wild market swings, while unsettling in the moment, are nothing to panic about. 'If it makes a difference to you whether your stocks are down 15 percent or not, you need a somewhat different investment philosophy,' he said. 'The world is not going to adapt to you. You're going to have to adapt to the world.' He reminded attendees that Berkshire Hathaway's stock has dropped by 50 percent three times in its history, and each time, the fundamentals of the company remained sound. 'People have emotions,' he said. 'But you got to check them at the door when you invest.' Related Stories 2/22/2025 11/2/2024 Berkshire Hathaway's own first-quarter The massive cash pile—larger than the GDP of many countries—reflects not just Buffett's trademark caution but also the challenge of finding investment opportunities in an uncertain economic environment. Buffett's comments at the 60th annual meeting in Omaha came as investors continue to digest the ripple effects of President Donald Trump's sweeping tariff policy, which triggered a market pullback last month and renewed concerns over the possibility of a short-term recession. Trump, for his part, has Markets have shown signs of stabilizing. The S&P 500 capped its longest winning streak since 2004 last week, and the Dow Jones Industrial Average rose more than 560 points on Friday. Meanwhile, the U.S. economy Private domestic investment jumped by nearly 22 percent—a development economist Stephen Moore described as 'rocket fuel for future growth that America needs'—and the Atlanta Federal Reserve currently In its quarterly filing, Berkshire warned that 'considerable uncertainty remains' due to 'ongoing macroeconomic and geopolitical events,' including tariffs, supply chain inefficiencies, and fluctuating customer demand. 'It is reasonably possible there could be adverse consequences on most, if not all, of our operating businesses,' the company noted. Beyond markets, the 94-year-old Buffett also revealed that he plans to retire at the end of the year. 'I think the time has arrived where Greg should become the Chief Executive Officer of the company at year end,' Buffett said, referring to Berkshire vice-chairman Greg Abel. Four years ago, Buffett picked Abel to be his successor at the helm of Berkshire, but prior to Saturday's announcement, he gave no indication when he would retire. Buffett also weighed in on broader policy issues, particularly trade and energy. 'Balanced trade is good for the world,' he said. 'In the United States, we should be looking to trade with the rest of the world. We want a prosperous world.' He also noted that America's fragmented energy infrastructure poses challenges and called for smart policies. 'It is important that the United States have an intelligent energy policy, just as it was important during World War II that we learned how to make ships instead of cars extremely fast,' he said. 'And we figured out the answer. We combined private enterprise with ... the power of ... government,' he said. Trump has made
Forbes
30-04-2025
- Business
- Forbes
U.S. Economy Shrank During 2025's First Quarter As GDP Slipped 0.3%
As recession fears reverberate from Washington to Wall Street, Wednesday brought the most comprehensive yardstick yet of the health of the U.S. economy yet as the government released the first estimate of the country's gross domestic product over the first three months of 2025. Real gross domestic product (GDP) grew -0.3% on a quarter-over-quarter, seasonally adjusted annual rate, according to the Bureau of Economic Analysis. Consensus economist forecasts pegged last quarter's real GDP growth at 0.4%, according to Dow Jones data, a stark decrease from the prior period's 2.4% expansion. Data from sources following underlying measures of economic activity suggested Wednesday's GDP reading could be even worse than that; the Atlanta Federal Reserve's GDPNow model called for -0.4% GDP during Q1 when excluding gold imports and exports, while Goldman Sachs' tracker indicates a 0.2% contraction. That is the weakest economic growth for the U.S. since 2022's first quarter. Negative GDP growth is rare for the U.S., occurring just three times over the last decade: 2020's first two quarters as the COVID-19 pandemic ground the global economy to a halt, including a record 28% GDP contraction during the second quarter, and Q1 2022, when the Fed enacted its first interest rate hike in more than three years as inflation soared to a multidecade high. The U.S. will be one step closer to entering a recession, at least by one definition. A technical recession occurs when economic output contracts over consecutive quarters, meaning a negative reading during the second quarter would indicate such a downturn. The National Bureau of Economic Research defines a recession as 'a significant decline in economic activity that is spread across the economy and lasts more than a few months,' meaning consecutive quarters of slightly negative GDP growth may not officially trigger a recession. Some trusted observers of the economy believe the U.S. could already be on the cusp of a recession, such as BlackRock CEO Larry Fink, while major banks largely view it as a tossup whether or not the U.S. enters such a downturn, including the U.S.' largest bank JPMorgan Chase, whose economists forecast a 60% chance of a recession this year. The GDP reading comes as economists debate the growing disconnect between 'hard' and 'soft' economic metrics. Hard data such as job growth and retail sales indicate a steady economy while survey-based measures reveal Americans' faith in the economy has dropped precipitously, as the University of Michigan's consumer sentiment poll revealed the weakest sentiment since July 2022. The disconnect comes as Trump has pursued the most aggressive tariffs since before World War I during the early stages of his second term. The ever-changing nature of Trump's trade stances have also complicated analysis of the regularly scheduled updates on the U.S. economy. For example, this week's GDP reading includes data through March 31 – two days before Trump's 'Liberation Day' tariff announcement which triggered historic stock market losses, and nine days before Trump backpedaled on many of his most aggressive country-by-country import taxes. 'Tariffs function like a tax hike, tighten financial conditions, and increase uncertainty for businesses,' Goldman economists led by David Mericle wrote in a Sunday note to clients, explaining how the levies weigh on GDP growth. One Community. Many Voices. Create a free account to share your thoughts. Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space. In order to do so, please follow the posting rules in our site's Terms of Service. We've summarized some of those key rules below. Simply put, keep it civil. Your post will be rejected if we notice that it seems to contain: User accounts will be blocked if we notice or believe that users are engaged in: So, how can you be a power user? Thanks for reading our community guidelines. Please read the full list of posting rules found in our site's Terms of Service.
Forbes
29-04-2025
- Business
- Forbes
Forecasts Call For Weakest GDP Growth Since 2022 As Recession Fears Loom
As recession fears reverberate from Washington to Wall Street, Wednesday will bring the most comprehensive yardstick yet of the health of the U.S. economy when the government releases the first estimate of the country's gross domestic product over the first three months of 2025. Some measures tracking U.S. economic activity predict the U.S. economy actually shrank during the ... More first three months of 2025. Pictured is the Port of Long Beach. The Bureau of Economic Analysis will release its estimate of first-quarter gross domestic product (GDP) at 8:30 a.m. EDT Wednesday here. Consensus economist forecasts peg last quarter's real GDP growth at a quarter-over-quarter, seasonally adjusted annual rate of 0.4%, according to Dow Jones data, a stark decrease from the prior period's 2.4% expansion. That would be the weakest economic growth for the U.S. since 2022's second quarter. Data from sources following underlying measures of economic activity suggest Wednesday's GDP reading could be even worse than that. The Atlanta Federal Reserve's GDPNow model calls for -0.4% GDP during Q1 when excluding gold imports and exports, while Goldman Sachs' tracker indicates a 0.2% contraction. The U.S. has not had a quarter of economic contraction since Q1 2022, when GDP contracted by 1%. Negative GDP growth is rare for the U.S., occurring just three times over the last decade: 2020's first two quarters as the COVID-19 pandemic ground the global economy to a halt, including a record 28% GDP contraction during the second quarter, and Q1 2022, when the Fed enacted its first interest rate hike in more than three years as inflation soared to a multidecade high. If Wednesday reveals subzero GDP growth, the U.S. will be one step closer to entering a recession, at least by one definition. A technical recession occurs when economic output contracts over consecutive quarters, meaning a negative reading during the second quarter would indicate such a downturn. The National Bureau of Economic Research defines a recession as 'a significant decline in economic activity that is spread across the economy and lasts more than a few months,' meaning consecutive quarters of slightly negative GDP growth may not officially trigger a recession. Some trusted observers of the economy believe the U.S. could already be on the cusp of a recession, such as BlackRock CEO Larry Fink, while major banks largely view it as a tossup whether or not the U.S. enters such a downturn, including the U.S.' largest bank JPMorgan Chase, whose economists forecast a 60% chance of a recession this year. The GDP reading comes as economists debate the growing disconnect between 'hard' and 'soft' economic metrics. Hard data such as job growth and retail sales indicate a steady economy while survey-based measures reveal Americans' faith in the economy has dropped precipitously, as the University of Michigan's consumer sentiment poll revealed the weakest sentiment since July 2022. The disconnect comes as Trump has pursued the most aggressive tariffs since before World War I during the early stages of his second term. The ever-changing nature of Trump's trade stances have also complicated analysis of the regularly scheduled updates on the U.S. economy. For example, this week's GDP reading includes data through March 31 – two days before Trump's 'Liberation Day' tariff announcement which triggered historic stock market losses, and nine days before Trump backpedaled on many of his most aggressive country-by-country import taxes. 'Tariffs function like a tax hike, tighten financial conditions, and increase uncertainty for businesses,' Goldman economists led by David Mericle wrote in a Sunday note to clients, explaining how the levies weigh on GDP growth.
Yahoo
17-04-2025
- Business
- Yahoo
Trump Tariff Plunge: 3 Phenomenal Stocks to Buy at Bargain Prices Right Now
Just because Wall Street has proved to be a superior wealth creator over the long run doesn't mean stocks are impervious to bouts of volatility. Since President Donald Trump announced his "Liberation Day" tariffs on April 2, we've witnessed some of the wildest swings in the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) since their respective inceptions. On April 3 and April 4, the benchmark S&P 500 produced its fifth-largest two-day decline in history. Meanwhile, on April 9, the Dow Jones, S&P 500, and Nasdaq Composite logged their largest respective single-session point gains on record, as well as some of their best days in history from a percentage perspective. These gyrations have seen the Dow and S&P 500 firmly enter correction territory, and the Nasdaq plunge into a bear market. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » While there are a number of catalysts whipsawing Wall Street, including the historical pricey-ness of stocks, it's the president's tariff talk that stands alone atop the proverbial pedestal. Initially, President Trump declared a 10% sweeping global tariff, which was accompanied by a series of higher reciprocal tariffs on countries that have historically run adverse trade imbalances with the U.S. Trump's stated goal with tariffs is to generate additional revenue for the U.S. economy, protect American jobs, and encourage companies to make their products on U.S. soil (thereby avoiding any added taxes). But what's laid out on paper doesn't always translate to the real world. For instance, Trump's "Liberation Day" announcements make little differentiation between output and input tariffs. An output tariff is a duty placed on finished goods imported into the U.S. Meanwhile, input tariffs are added to goods used to complete products domestically. Input tariffs run the risk of reigniting the prevailing rate of inflation and making U.S. goods less price-competitive with those being imported from overseas markets. There's also the possibility of Trump's tariffs inciting an even larger trade war with China, as well as U.S. allies. It's a worrisome development considering the Atlanta Federal Reserve's GDPNow model is forecasting the steepest organic contraction in the U.S. economy for the first quarter since the Great Recession (excluding the COVID-19 pandemic quarters). Furthermore, Trump's propensity to change his tune on tariffs is causing instability on Wall Street. Despite the president instituting a 90-day pause on reciprocal tariffs on April 9 -- this is what caused the aforementioned largest single-day point gains in history for the Dow, S&P 500, and Nasdaq -- there's no cohesive or consistent message as to which products will be subjected to tariffs. But there is one silver lining to be found among this chaos. Statistically, a highly volatile market has been the ideal time for long-term investors to put their cash to work in high-quality companies at a discount. Amid the Trump tariff plunge, three phenomenal businesses are ready to be bought right now at bargain prices. The first unstoppable business that's become an amazing deal during the turmoil created by Trump's tariff announcements is pharmaceutical behemoth Pfizer (NYSE: PFE). While it's possible pharmaceutical stocks may be included in future tariffs, this isn't a deal-breaker for Pfizer or investors. What's interesting about Pfizer stock is that the company has been punished for its own success. In 2020, it generated $41.9 billion in full-year sales, with no revenue from COVID-19 treatments. By the end of 2024, Pfizer delivered $63.6 billion in net sales, with roughly $11 billion coming from its COVID-19 vaccine (Comirnaty) and oral therapy (Paxlovid), on a combined basis. Even though COVID-19 sales have fallen from north of $56 billion in 2022 to $11 billion last year, Pfizer is still in considerably better shape than it was when the decade began. Something else investors can take solace in is the fact that most healthcare stocks are highly defensive. No matter how volatile things get on Wall Street, people don't stop becoming ill or requiring prescription medicines. Demand for the company's novel therapies tends to be consistent year after year. This year should be particularly exciting for Pfizer given that it's moved past the acquisition-related expenses that held its bottom line down in 2024. The $43 billion deal to acquire cancer drug developer Seagen in late 2023 should transform Pfizer's oncology pipeline, bolster its bottom line, and result in meaningful cost savings in 2025 (and beyond). Best of all, shares of the company are historically cheap and producing a jaw-dropping annual yield. Investors can pick up Pfizer stock right now for an estimated 7 times forecast earnings for 2026. To boot, its nearly 8% dividend yield is nearing the highest level in the company's storied history. A second superb stock to buy right now amid the Trump tariff plunge is oil and gas goliath Enterprise Products Partners (NYSE: EPD). With the spot price of crude oil recently hitting a four-year low, it's understandable why investors might be leery about putting their money to work in oil and gas stocks. In particular, the margins of upstream drilling companies are adversely impacted by sizable declines in the spot price of crude. However, Enterprise Products Partners is an energy middleman, known as a midstream company, which is largely insulated from these wild fluctuations in the spot price of energy commodities. Enterprise owns more than 50,000 miles of transmission pipeline, 26 fractionation facilities, and can store in excess of 300 million barrels of petroleum/refined liquids. What makes this company so special is the nature of the contracts it signs with upstream drilling companies. Aside from being long-term, these contracts are predominantly fixed-fee. This fixed-fee aspect removes inflationary pressures and spot-price volatility from the equation, which leads to highly predictable operating cash flow looking a year or more into the future. Operating predictability is especially important for midstream companies like Enterprise Products Partners. On top of the occasional bolt-on acquisition, it's spent approximately $7.6 billion on major capital projects set to come online between now and the end of 2026. Many of these projects are geared at expanding its natural gas liquids exposure and should provide an immediate lift to its profitability. To round things out, Enterprise has raised its distribution for 26 consecutive years (it's currently yielding north of 7%), is valued at less than 10 times forecast earnings in 2026, and should enjoy a notable uptick in distributable cash as its capital expenditures decline after this year. The third phenomenal stock that's ideally positioned to benefit in the Trump tariff plunge is auto parts retailer AutoZone (NYSE: AZO). Keeping in mind that the Trump administration has changed its tune on which products/goods are subject to tariffs on multiple occasions, placing tariffs on foreign-produced vehicles will likely incentivize drivers to keep their existing vehicles even longer. A May 2024 report from S&P Global Mobility, a division of the better-known S&P Global, found the average age of vehicles on U.S. roads had hit an all-time high of 12.6 years. For added context, this is up 1.5 years from the average vehicle age in 2012. Better-built vehicles, coupled with tariffs, should mean AutoZone will be relied on in a growing capacity by vehicle owners. With macro factors undeniably working in AutoZone's favor, the company is capitalizing by rapidly expanding its distribution network. Specifically, it's building 200 mega-hubs, each of which is expected to carry up to 110,000 stock keeping units. The idea here is to centralize these mega-hubs such that customers always have the ability to get the part(s) they need with relative ease. But what AutoZone might be best-known for is its superior share repurchase program. Since fiscal 1998 (the company's fiscal year ends in late August), it's spent $37.8 billion to buy back more than 155.4 million shares. In total, the company has reduced its outstanding share count by 90.3% in 27 years. Companies with steady or growing net income and declining outstanding share counts should see their earnings per share climb over time. The last puzzle piece is AutoZone's still-attractive valuation. The company's forward price-to-earnings ratio of 21 remains inexpensive considering its unrelenting buyback program, ideal tariff positioning, and the steady aging of American vehicles on public roadways. Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Pfizer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $526,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $687,684!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 156% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 14, 2025 Sean Williams has positions in Pfizer. The Motley Fool has positions in and recommends Pfizer and S&P Global. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. Trump Tariff Plunge: 3 Phenomenal Stocks to Buy at Bargain Prices Right Now was originally published by The Motley Fool Sign in to access your portfolio
