U.S. Underlying Inflation Reinforces Fed Hike Expectations

The transcript discusses economic indicators like PPI and CPI, noting that inflation is not being passed to consumers. It highlights the impact of inflation on corporate margins, with firms absorbing costs to maintain market share. The banking sector is analyzed, emphasizing the challenges of margin expansion and the effects of tax cuts. Strategies for non-commodity businesses, such as wealth management, are explored. The discussion concludes with insights on inflation and market softness, particularly in housing and medical care.

What are the implications of the PPI not passing through to consumers?

How are firms responding to the pressure on their corporate margins?

What does the term 'Amazon effect' refer to in the context of pricing strategies?

What is the expected impact of inflation on corporate margins according to the discussion?

What factors are contributing to the softness in the housing market?