• More inflation data in the week ahead – Economists and analysts remain focused on inflationary data in the week ahead. Recent spike in January jobs report could mean a more aggressive Federal Reserve with interest rate hikes. According to economic projections, CPI data is expected to hit 7.2% on Thursday, levels unseen since 1982.
• Tensions heighten on the Russian Ukrainian border – According to recent reports, Russian forces are at 70% of the level required for a full invasion. As of Friday, the number of tactical battalions hit 83 and 14 more are in transit. U.S. Official’s estimates say the Ukraine could suffer 5,000- 25,000 casualties, Russia 3,000-10,000 and civilian casualties could amount to 25,000-50,000.
• Private Equity firms invest $2 billion in sports deals – According to PitchBook, Professional sports leagues have seen an influx of roughly $2 billion from PE firms, and the NBA was the hot spot. With the expectation for increasing growth over the next decade, NBA teams reach new levels of valuation. PitchBook estimates the NBA returns on average 1,057%, versus the 458% at the S&P over the time span of 2002 to 2021.
• Chinese markets look set for modest gains – Returning from the week-long holiday Chinese stocks appear to be gearing up for early gains as Hong Kong listed names increase on the backs of easing regulatory concerns (Vishnoi, 2021). U.S. ETF CSI 300 index added 1.6% in the recent trading week, up the most in two months. The Heng Seng index also rose 3% Friday following the Lunar break. Worries of a weakening economy led largely by the property sector debts and Beijing’s monetary easing still remain present.
• What fueled the January Job’s report? – January’s job’s report showed that the U.S. added over 450,000 jobs despite what many economists expected to be much lower, and negative in some cases. The majority of jobs came from the leisure and hospitality sector (151K), followed by professional and business services (86K), retail trade (61K) and transportation and warehousing (54K).