Report by GL Indexes

Ahead of the next FOMC in mid-June, Michael Howell questions the importance of the rate-setting ritual. He argues that the bond market, not the US Fed, is the main force shaping the economy and equity markets. More specifically, what matters most is not bond yields but rather bond volatility. Investors should be watching the MOVE index and closely examine the US Treasury’s actions in the bond market, because they may now matter more than the policy rate itself. Michael argues that the Fed has been sidelined, losing much of its traditional influence over financial conditions. Still, it plays an important financial stability role in smoothing funding operations and specifically maintaining harmony in the crucial repo / collateral markets. Also, he notes that lower policy rates are not always stimulative. Because the private sector is a net creditor to the government, rate cuts can reduce interest income to bondholders and potentially dampen spending.

Report by Global Mining Research

The proposed acquisition of Foran Mining Corp by Eldorado Gold Corp, following Harmony Gold Mining Co Ltd acquiring MAC Copper, highlights the appeal of base metal mines for some gold miners. A few companies are forecast to increase base metal exposure, namely Torex Gold Resources Inc with Media Luna, Eldorado Gold Corp with the start-up of Skouries and the acquisition of Foran Mining Corp for the new McIlvanne Bay copper-zinc mine. Two primary reasons for gold stock to chase base metals are operations with minor gold can be reported as “low-cost gold mines” and the EV thematic remains appealing. Copper remains the preferred base metal for GMR, but gold is the preferred commodity for 2026. Recommended gold stocks are Barrick Gold Corp, Agnico Eagle Mines Ltd (upgraded to BUY) and Kinross Gold Corp in the seniors and Equinox Gold Corp, Genesis Minerals Ltd, IAMGOLD Corp and OceanaGold Corp for near-term growth-oriented stocks.

Report by MDC Financial Research

MDC follows significant legal disputes to provide clients with actionable investment ideas that tend to be non-correlated with the market. They currently believe that the following companies will likely be involved in significant litigation in 2025 and 2026: Abbott Laboratories, Avadel Pharmaceuticals, Axsome Therapeutics, Bausch Health, Bayer, Burford Capital, Corcept Therapeutics, Exelixis, GSK, Harmony Biosciences, Johnson & Johnson, Liquidia, Live Nation, Reckitt and Sotera Health.

Technology

Report by Radio Free Mobile

Huawei’s migration of its smartphone business to its home-grown Harmony OS is the first concrete sign that Richard Windsor’s long-predicted splitting of the Internet into two pieces has begun and everyone, not just China, will be poorer because of it. Richard thinks that every technology standard created from here on will have a Chinese version and a Western one which are developed independently and are incompatible. This is why he has been forecasting that the long-term growth of the technology industry will be lower. Huawei is the first to go down this route, but he has no doubt that there will be many others over the next few years.

Report by Metals Focus

Metals Focus has recently published its annual report on environmental, social and governance in the gold mining industry, covering the last decade for 17 of the largest gold miners. Key findings include a reduction in combined scope 1 and 2 greenhouse gas emissions by 5.4% y/y in 2023, with Harmony reporting the highest emissions intensity; a rise in payments to governments by 12%, with Barrick leading the way; a fall in community investment by 16%, with Polyus the largest contributor; and the lowest level of fatalities on record amidst improving injury rates. Please contact us to find out more.