17 Mar

The ECB raised the interest rate by 0.5%. The US Launches BTFP Program for Banks

By JustMarkets

The US indices rose Thursday after reports that major Wall Street banks pledged billions of dollars to bail out First Republic Bank. JPMorgan Chase & Co (JPM), Bank of America Corp (BAC), and Wells Fargo & Company (WFC) led a group of major banks that will rescue First Republic Bank (FRC) deposits totaling $30 billion. As the stock market closed on Thursday, the Dow Jones Index (US30) increased by 1.17%, and the S&P 500 Index (US500) added 1.76%. NASDAQ Technology Index (US100) gained 2.48% yesterday.

The new Bank Term Funding Program (BTFP) is very popular among banks. The US banks took $303 billion in “cash” from the Fed over the week. Many analysts believe the new BTFP instrument is a hidden quantitative easing (QE) program. In general, if you evaluate the situation in a comprehensive way: bankruptcies of banks in the USA, the problem of Switzerland’s largest bank, and liquidity problems in a number of market segments (government debt). All these are direct consequences of the aggressive increase of rates in response to inflation, which was a consequence of previous unbridled monetary and fiscal policy. The Fed simply has no choice but to shift policy tightening toward easing. The US Federal Reserve’s monetary policy meeting next week will show the FOMC’s reaction.

The Federal Reserve’s cornerstone method for determining whether US banks can survive an economic crisis has had a huge misstep over the years: regulators have not tested a scenario resembling the 2023 economy and current financial conditions. Fed officials promoted annual stress tests as the primary supervisory method for assessing the health and soundness of the nation’s largest banks. According to regulatory experts, a more realistic stress-testing scenario would not have solved the institutional problems that led to SVB’s decline. But the lack of modeling of an interest rate hike does point to a hole in the way Fed officials think about financial risk.

European stocks rose yesterday. Germany’s DAX (DE30) gained 1.57%, France’s CAC 40 (FR40) jumped by 2.03%, Spain’s IBEX 35 index (ES35) added 1.50%, Britain’s FTSE 100 (UK100) closed up by 0.89%.

The ECB raised its rate by 50bp to 3.5% and will start cutting its bonds portfolio by 15bn euros a month. Further monetary policy will be determined by new data on inflation as well as the banking sector. The ECB’s latest set of forecasts, released Thursday, shows that inflation is still slightly above the bank’s medium-term target of 2% in 2025. At the same time, it raised growth forecasts for the single currency bloc and now sees GDP growth of 1% this year.

A rapid drop in US Treasury bond yields has driven the rise in precious metals in recent days. Yields are now near their lowest level since September 2022 amid a dovish revision to the Fed’s monetary policy outlook. Gold is considered a safe haven asset, so it performs well in times of heightened uncertainty, high volatility, and financial stress. Therefore, it is not surprising that it has rallied strongly over the past few trading sessions. If the US Federal Reserve announces its latest rate hike next week, gold and silver prices could get additional support, especially if bank problems worsen.

Asian markets were mostly down yesterday. Japan’s Nikkei 225 (JP225) decreased by 0.80%, China’s FTSE China A50 (CHA50) fell by 0.60%, Hong Kong’s Hang Seng (HK50) ended the day down by 1.72%, India’s NIFTY 50 (IND50) added 0.08%, and Australia’s S&P/ASX 200 (AU200) ended the day up by 0.40%.

New Zealand’s GDP fell by 0.6% in the last quarter. For the RBNZ, this is a clear signal that it is time to cut down the tightening program, as the economy has shrunk faster than the central bank forecasts. If the second quarter of 2023 also sees a decline, it would mean that New Zealand is in about a six-month recession. According to Stats NZ, the decline in manufacturing activity was the biggest contributor to the decline, with the sector down by 1.9%. Overall, 9 of the 16 industries tracked by Stats NZ fell, especially in retail, housing, arts, leisure, and transportation.

S&P 500 (F) (US500) 3,960.28 +68.35 (+1.76%)

Dow Jones (US30)32,246.55 +371.98 (+1.17%)

DAX (DE40) 14,967.10 +231.84 (+1.57%)

FTSE 100 (UK100) 7,410.03 +65.58 (+0.89%)

USD Index 104.44 -0.20 (-0.19%)

Important events for today:
  • – Eurozone Consumer Price Index (m/m) at 12:00 (GMT+2);
  • – US Industrial Production (m/m) at 15:15 (GMT+2);
  • – US Michigan Consumer Sentiment (m/m) at 16:00 (GMT+2).

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Economics & Fundamentals Financial News
17 Mar

Week Ahead: More big swings for USDCHF?

By ForexTime

The Swiss Franc has been the most volatile G10 currency against the US dollar this week.

The turmoil from recent days surrounding Silicon Valley Bank and Credit Suisse has roiled USDCHF, while altering the market’s expectations for key central bank meetings due in the coming week.

And there could be more volatility in store for this FX pair, in a week that features these economic data releases and events:

Monday, March 20

  • CNH: China loan prime rates
  • EUR: ECB President Christine Lagarde speech

Tuesday, March 21

  • AUD: RBA meeting minutes release
  • EUR: Germany March ZEW survey expectations
  • CAD: Canada February consumer price index (CPI)
  • Nike earnings

Wednesday, March 22

  • NZD: New Zealand 1Q consumer confidence
  • GBP: UK February CPI
  • USD: Fed rate decision

Thursday, March 23

  • CHF: Swiss National Bank rate decision
  • NOK: Norges Bank rate decision
  • GBP: Bank of England rate decision
  • USD: US weekly jobless claims

Friday, March 24

  • JPY: Japan February CPI
  • EUR: Eurozone January manufacturing and services PMIs
  • GBP: UK February retail sales; March PMIs, consumer confidence

 

 

Typically, in a week like the upcoming one, we’d be focusing on the US Federal Reserve (Fed) and the Bank of England (BOE), being the central banks of larger economies compared to the Swiss National Bank (SNB).

However, given the recent Credit Suisse crisis, the SNB has muscled its way into the spotlight, along with its currency, the Swiss Franc (CHF).

 

Here are 3 reasons to watch how USDCHF fares next week:

1) Swiss National Bank’s take on Credit Suisse crisis

The SNB carries out its monetary policy assessment just 4 times per year, half the number of policy meetings that the Fed has scheduled for 2023.

For the upcoming SNB meeting, markets had expected another hike of 50-basis points (bps), following the central bank’s hikes last year totalling 175bps.

Yet, the Credit Suisse saga that’s unfolding in the SNB’s own backyard, noting the irony of Switzerland’s long-held stature as a banking haven, adds a dramatic dimension to the press conference by SNB President Thomas Jordan next week.

And the Swiss Franc (CHF) may react less to the actual adjustment to the policy rate, but rather any commentary that President Jordan may offer surrounding the Credit Suisse crisis.

Note how CHF weakened against every single one of its G10 peers as the CS drama played out across global financial markets this week:

The stakes are high for the SNB.

After all, CS is Switzerland’s second biggest lender, with the bank’s assets equal to about 70% of the country’s GDP!

Furthermore, the Bank of International Settlements has listed Credit Suisse as one of the top-30 banks most important to the global financial system.

 

Credit Suisse’s importance prompted the SNB to step in and extend a US$ 54 billion (CHF 50 billion) credit line to the embattled bank to help shore up liquidity.

Also, following the central bank’s previous policy meeting in December 2022, the SNB President had deviated from the norm of not commenting on individual commercial banks and publicly supported Credit Suisse’s ongoing 3-year transformation to its business.

Having already extended verbal, written, and liquidity support, should the SNB even hint that it has to step in with further aid for CS, that may actually have the unintended effect of weakening the Swiss Franc on the notion that Credit Suisse’s turmoil is not yet over.

2) Fed’s dilemma between inflation and financial stability

Last week, markets had assigned a 70% chance that the Fed would trigger a 50-bps hike at its March meeting.

That would reassert its aggressiveness in its fight against inflation after having downshifted to a relatively smaller 25-bps hike at its previous policy meeting held on January 31 – February 1st, 2023.

But that calculus has been altered dramatically, as the collapse of Silicon Valley Bank continues reverberating across the US banking sector.

With the Fed having to shore up financial stability in its own backyard, markets believe policymakers cannot follow through with yet another larger rate hike, which are intended to incur further damage to the economy so as to subdue US inflation that’s still stubbornly elevated.

Hence, at the time of writing, markets have whittled down their forecasts to an 81% chance of a 25-bps hike by the Fed next week.

Similar to the SNB (and the ECB’s press conference this week), concerns surrounding financial stability risks are set to dominate Fed Chair Powell’s session with the media after the FOMC meeting concludes.

Should markets even get a whiff that Chair Powell and his colleagues are growing more concerned about potential contagion risks and are refusing the shut the door on winding down, or perhaps even an abrupt pause, to the Fed’s rate-hike cycle, such policy clues may weaken the US dollar and drag USDCHF lower.

3) USDCHF’s one-week implied volatility surges to fresh year-to-date high

All of the above is clearly not lost on markets, prompting a surge in the expected volatility for USDCHF over the next one-week period.

 

With the banking woes of late leaving policymakers, both the Fed and the SNB, between a rock and a hard place:

  • Do these central bankers keep focusing on their ongoing battle against inflation and persist with a 50-bps hike, risking further damage to its financial sector that’s still raw and vulnerable?
  • Or do the likes of the SNB and the Fed opt for a relatively smaller 25-bps hike to preserve the still-fragile sentiment surrounding banks, but risk letting inflation rage further?

 

With so much at stake, markets are ready to react to the slightest clues.

The central bank that shows the greater concern for its own banking sector, should see its currency weaken further.

  • Should fears surrounding Credit Suisse spike anew over the coming week, that could even launch USDCHF above its 100-day simple moving average.
  • On the other hand, if yet another US bank is added to this infamous list which already features the likes of Silicon Valley Bank, Signature Bank, and First Republic, fresh alarms surrounding the US banking sector may drag USDCHF back into sub-0.920 domain.

 

Key levels for USDCHF

RESISTANCE

  • 0.93393: previous cycle high
  • 100-day SMA
  • 0.9440 region: early-March peaks

 

SUPPORT

  • 50-day SMA
  • 0.920 psychologically-important region
  • 0.905 – 0.907: year-to-date lows

 

 

From current levels, Bloomberg’s FX model points to a 73% chance that USDCHF will trade within the 0.9088 to 0.9420 range over the next week.

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Financial News Forex and Currency News
17 Mar

The Shocking Truth About the FDIC and Your Bank Deposits

Why you can’t rely on the FDIC if your bank goes under

By Elliott Wave International

Editor’s note: The failures of Silicon Valley Bank and Silvergate Bank have many observers of the banking system discussing the possibility of contagion. Even so, many depositors feel safe because their deposits are covered up to $250,000 by the F.D.I.C. (Federal Deposit Insurance Corporation). However, this feeling of safety may very well be misplaced.

Here are some important insights about the F.D.I.C. and the safety of your bank deposits.

Millions of U.S. bank depositors feel safe in the knowledge that the Federal Deposit Insurance Corporation will protect their accounts, even if their bank goes under.

Yes, it’s true that the FDIC says it will do so. As their website states:

The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.

But, the question is: Does the FDIC have the wherewithal to fulfill its promise?

In the event of a major financial crisis, the answer is an emphatic “no.” Not even close.

Here’s what the Elliott Wave Theorist said in August 2008, near the middle of the 2007-2009 financial crisis:

The FDIC is not funded well enough to bail out even a handful of the biggest banks in America. It has enough money to pay depositors of about three big banks. After that, it’s broke.

No doubt, most bank depositors would be shocked to learn this.

But think about it: No single entity could possibly insure all of the nation’s bank deposits.

Yet, that FDIC sticker on the front of your bank is very reassuring. The discussions with your banker about your deposit “insurance” might be reassuring.

But, something that is not quite so reassuring is from none other than a former vice-chairman of the FDIC itself. Here’s what Thomas Hoenig wrote for the Los Angeles Times in a Dec. 18, 2014 article titled, “FDIC couldn’t cover a big bank bailout without taxpayer support”:

As a reminder, when the financial industry imploded in 2008, Congress had to pass a special law to fund a $700-billion bailout… . The Federal Deposit Insurance Corp. had nowhere near enough resources to fund their resolution.

Today, with assets of nearly $11 trillion and derivatives worth $4 trillion, the eight largest U.S. banks are far bigger and hold more derivatives than in 2008. Compare those numbers with the FDIC insurance fund of $54 billion. [Emphasis added]

These are eye-opening statistics.

The best way to protect your deposits is to adequately research the banks in your community, and pick one where the banks’ officers handle their customers’ deposits prudently.

Indeed, the Theorist once remarked:

Relatively safe banks may become even safer. If they have the sense to inform the public of their relative safety aspect, depositors in a developing financial crisis will move funds out of weak banks into stronger ones, making the weak ones weaker and the relatively strong ones stronger.

But, as you’ve seen, it’s a myth that the FDIC can always protect your bank deposits, and it’s not the only myth. We have more.

You can see them in EWI’s classic report, “Market Myths Exposed.” It’s part of your free 21-day Elliott wave journey across U.S. markets — FreePass for a Changed World.

You’ll discover the 10 most nefarious myths and how they undermine your financial safety. Myths like:

  • News and Events Drive the Markets
  • Earnings Drive Stock Prices
  • To Do Well Investing, You Have to Diversify
  • And 7 more

Don’t delay. Join FreePass for a Changed World and read the FREE “Market Myths Exposed” report instantly.

This article was syndicated by Elliott Wave International and was originally published under the headline The Shocking Truth About the FDIC and Your Bank Deposits. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Economics & Fundamentals Financial News
16 Mar

Defense Products Firm To Be Cash Flow Positive This Year

Source: Darren Odell  (3/15/23)

This Australian company, which is experiencing sales momentum and attracting defense contractors’ attention, also is a takeout target, noted a Peloton Capital report.

DroneShield Ltd. (DRO:ASX; DRSHF:OTC) will be operating cash flow positive by year-end and “is an acquisition target,” purported Peloton Capital analyst Darren Odell in a March 9 research note.

With respect to achieving this cash goal, the Australian counterdrone products and solutions company has the following many factors working in its favor, Odell wrote.

1) DroneShield recently raised AU$29.4 million (AU$29.4M) through its stock purchase plan resulting from the AU$10.9M placement last month.

“The recent capital raise has provided DroneShield the ability to build inventory in anticipation of material contracts (and fulfill smaller contracts faster) that are expected to close, in the short to medium term,” wrote Odell.

2) DroneShield recently landed two contracts totaling AU$22M.

3) The company has a robust AU$200M sales pipeline consisting of multiple contracts, each worth more than AU$10. Peloton Capital expects DroneShield to close three large and several smaller deals this year.

“Our DroneShield valuation to AU$0.84 is based on increased confidence on the closure of larger contracts in 2023 and beyond,” wrote Odell.

Compared to Peloton’s AU$0.84 target price, DroneShield’s current share price is about AU$0.335. The company is a Buy.

4) Existing contracted customers in the Five Eyes countries will likely buy more products from DroneShield.

5) The U.S. Department of Defense recommends DroneShield.

6) The Russia-Ukraine war has heightened interest in products like those sold by DroneShield.

Attractive to Potential Buyers

With respect to DroneShield likely being acquired, Odell indicated the following factors support the belief it will happen.

1) One of DroneShield’s shareholders, owning about a 5% interest, is Epirus, a California-based unmanned aerial vehicle firm.

2) Private equity backs DroneShield.

3) The U.S. government recommends DroneShield.

4) Global defense contractors have taken note of DroneShield and its recent contracts.

 

Disclosures:
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: DroneShield Ltd. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of DroneShield Ltd., a company mentioned in this article.

Disclosures For Peloton Capital, DroneShield Ltd., March 9, 2023

This report is provided by Peloton Capital Pty Ltd (Peloton) (ABN 22 149 540 018, AFSL 406040) and is general in nature. It is intended solely for the use of wholesale clients, within the meaning of the Australian Corporations Act 2001. This report must not be copied or reproduced, or distributed to any person, unless otherwise expressly agreed by Peloton. This document contains only general securities information or general financial product advice. The information contained in this report has been obtained from sources that were accurate at the time of issue, including the company’s ASX releases which have been relied upon for factual accuracy. The information has not been independently verified. Peloton does not warrant the accuracy or reliability of the information in this report. The report is current as of the date it has been published.

In preparing the report, Peloton did not take into account the specific investment objectives, financial situation or particular needs of any specific recipient. The report is published only for informational purposes and is not intended to be personal financial product advice. This report is not a solicitation or an offer to buy or sell any financial product. Peloton is not aware whether a recipient intends to rely on this report and is not aware of how it will be used by the recipient. Before acting on this general financial product advice, you should consider the appropriateness of the advice having regard to your personal situation, investment objectives or needs. Recipients should not regard the report as a substitute for the exercise of their own judgment.

Peloton may assign ratings as ‘speculative buy’, ‘buy’ and ‘sell’ to securities from time to time. Securities not assigned are deemed to be ‘neutral’. Being assigned a ‘speculative buy’, ‘buy’ or ‘sell’ is determined by a security total return potential, with the total return potential being aligned to the upside or downside differential between the current share price and the targeted price within a specified time horizon, if deemed appropriate. The views expressed in this report are those of the analyst/author named on the cover page. No part of the compensation of the analyst is directly related to inclusion of specific recommendations or views in this report. The analyst/author receives compensation partly based on Peloton revenues as well as performance measures such as accuracy and efficacy of both recommendations and research reports.

Peloton believes that the information contained in this document is correct and that any estimates, opinions, conclusions or recommendations are reasonably held or made at the time of its compilation in an honest and fair manner that is not compromised. However, no representation is made as to the accuracy, completeness or reliability of any estimates, opinions, conclusions or recommendations (which may change without notice) or other information contained in this report. To the maximum extent permitted by law, Peloton disclaims all liability and responsibility for any direct or indirect loss that may be suffered by any recipient through relying on anything contained in or omitted from this report. Peloton is under no obligation to update or keep current the information contained in this report and has no obligation to tell you when opinions or information in this report change.

Peloton does and seeks to do business with companies covered in research. As a result, investors should be aware that the firm may have a conflict of interest which it seeks to manage and disclose. Peloton and its directors, officers and employees or clients may have or had interests in the financial products referred to in this report and may make purchases or sales in those the financial products as principal or agent at any time and may affect transactions which may not be consistent with the opinions, conclusions or recommendations set out in this report. Peloton and its Associates may earn brokerage, fees or other benefits from financial products referred to in this report. Furthermore, Peloton may have or have had a relationship with or may provide or has provided, capital markets and/or other financial services to the relevant issuer or holder of those financial products.

Specific Disclosure: Peloton Capital raised $40.3m for DroneShield (DRO), announced March 2023, for which it earned fees.

Specific Disclosure: The analyst does hold securities in DRO.

Specific Disclosure: The report has been reviewed by DRO for factual accuracy.

Specific Disclosure: As at 9th March, Peloton Capital held c.1m DRO shares and 15m call options. This position may change at any time and without notice, including on the day that this report has been released. Peloton and its employees may from time-to-time own shares in DRO and trade them in ways different from those discussed in research. Peloton Capital may arrange the buying and selling securities on behalf of clients.

Financial News Stock Market News
16 Mar

Murrey Math Lines 16.03.2023 (USDCHF, XAUUSD)

By RoboForex.com

USDCHF, “US Dollar vs Swiss Franc”

On H4, USDCHF pair has broken through the 200-day Moving Average and is now above it, which indicates a possible bullish trend. The RSI is approaching the overbought area. In this situation we should expect the price to test 5/8 (0.9338) and its further breakdown and increase to resistance level of 6/8 (0.9399). A break-down of the support at 4/8 (0.9277) will cancel this scenario. In this case the pair may fall to the 3/8 (0.9216).

USDCHF_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

On M15, the upper line of the VoltyChannel indicator has been broken. This event increases the probability of further price growth.

USDCHF_M15
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

XAUUSD, “Gold vs US Dollar”

On H4, level 8/8 (1937.50) and broke away from it, which indicates a possible corrective decline in the price. Convergence is observed on the RSI, which is also a signal of drop in the price. As a result, the price is likely to break down the level of 6/8 (1906.25) and then fall to the support level 4/8 (1875.00). Overcoming resistance at 7/8 (1921.88) can cancel this scenario. If that happens, the price of gold might return to the 8/8 (1937.50).

XAUUSD_H4
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

On M15, a break-down of the bottom line of the VoltyChannel indicator will be an additional signal for the downside movement of the price.

XAUUSD_M15

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Financial News Forex and Currency News
16 Mar

European indices collapsed because of the problems with Credit Suisse. Oil falls amid intensifying banking crisis

By JustMarkets 

The released US producer price index data came in better than expected. Factory inflation decreased by 0.1% last month. Markets reacted with a drop in US Treasury bond yields. This indicates an impending change in the Fed’s rhetoric and the imminent end of the rate hike cycle. Federal funds futures show a 40% probability that the rate will remain unchanged at the March 22 meeting and a 60% probability that 25 bps will raise the rate to the 5.00% level. At the same time, it is expected that the maximum rates will be formed already at the next meeting, and by the end of 2023, the Fed will cut the rate to 3.75%. At the close of the stock market on Tuesday, the Dow Jones Index (US30) was down by 0.87%, and the S&P 500 Index (US500) fell by 0.70%. The NASDAQ Technology Index (US100) gained 0.05% yesterday.

Concerns about the deepening banking crisis persist. Shares of the struggling Swiss bank Credit Suisse fell to a new historic low. Credit Suisse’s biggest sponsor, the National Bank of Saudi Arabia, said it would not provide further financial assistance to the bank. The bank’s shares fell more than 26%. After European markets closed, Swiss regulators said that Credit Suisse was now meeting capital and liquidity requirements and that the Swiss National Bank would provide additional liquidity if needed. It became known today that Credit Suisse will exercise an option to borrow up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank under two lines of credit to strengthen liquidity conditions. This situation has led to renewed sell-offs among European banks: French Societe Generale, Spanish Banco de Sabadell, and German Commerzbank fell sharply yesterday, pulling European indices into the abyss. German DAX (DE30) shed by 3.27%, French CAC 40 (FR40) fell by 3.58%, Spanish IBEX 35 (ES35) lost 4.37%, British FTSE 100 (UK100) closed yesterday down by 3.83%.

The consumer price index in France rose from 6.0% to 6.3% in annual terms. Inflationary pressures in Europe remain resilient and figures from Germany, Spain, and France clearly show it. Reuters reported yesterday that the European Central Bank intends to stick to its plans to raise its key rate by 50 basis points at its meeting today. ECB head Christine Lagarde’s remarks on the European central bank’s future plans are also worth a closer look. The Office for Budget Responsibility (OBR) forecast, taking into account the new UK budget, argues that the country will not enter a technical recession as originally thought. Instead, the UK economy is expected to contract by a modest 0.2%. The government has also pledged to halve inflation, and further OBR projections suggest that inflation will fall to 2.9% by the end of 2023.

Gold strengthened its position at $1900 on Wednesday, hitting a new six-week high. The banking crisis is forcing investors to hide money in precious metals. The technical on spot gold suggests it could go much higher. The fundamental picture now is also in favor of further growth in gold and silver.

Crude oil prices are down for the third straight day. The US WTI crude oil has fallen below $70 a barrel. The collapse of SVB, the problems of Credit Suisse, and the general financial instability contribute to the decline in quotes. While US authorities tried to ease fears of a broader contagion in the banking sector, the financial turmoil at Swiss bank Credit Suisse posed an additional threat to the global economy. At the same time, the IEA (International Energy Agency) reported an increase in oil inventories, pushing oil supply to an 18-month-high.

Asian markets were mostly up yesterday. Japan’s Nikkei 225 (JP225) gained 0.03%, China’s FTSE China A50 (CHA50) added 0.02%, Hong Kong’s Hang Seng (HK50) jumped by 1.52%, India’s NIFTY 50 (IND50) declined by 0.42% and Australia’s S&P/ASX 200 (AU200) was positive 0.86% by Wednesday.

Bank of Japan (BOJ) Governor Haruhiko Kuroda, who is retiring in April, said his ten-year monetary experiment, during which $3.7 trillion was injected into the economy, was “half successful.” In addition to lowering borrowing costs, Kuroda’s policies sought to sway public opinion and lead the public out of deflation with a powerful kick of monetary stimulus. Kuroda left a mixed legacy for the Bank of Japan: his massive stimulus was praised for pulling the economy out of deflation, but it reduced bank profits and distorted market functions through prolonged low rates. In 2016, Kuroda added a cap on long-term rates as part of a policy called yield curve control (YCC), which is still in effect. Many analysts expect the Bank of Japan to begin dismantling Kuroda’s stimulus policy under a new governor, Kazuo Ueda.

In Australia, the latest labor market data showed that the economy added 64,600 jobs last month, with the unemployment rate falling to a record 3.5%. The stronger-than-expected employment figures for February reinforced fears of further interest rate hikes by the Reserve Bank of Australia (RBA).

S&P 500 (F) (US500) 3,891.93 −27.36 (−0.70%)

Dow Jones (US30)31,874.57 −280.83 (−0.87%)

DAX (DE40) 14,735.26 −497.57 (−3.27%)

FTSE 100 (UK100) 7,344.45 −292.66 (−3.83%)

USD Index 104.74 +1.14 (+1.10%)

Important events for today:
  • – Japan Trade Balance (m/m) at 01:50 (GMT+2);
  • – Australia Unemployment Rate (m/m) at 02:30 (GMT+2);
  • – Italian Consumer Price Index (m/m) at 11:00 (GMT+2);
  • – US Building Permits (m/m) at 14:30 (GMT+2);
  • – US Initial Jobless Claims (w/w) at 14:30 (GMT+2);
  • – US Philadelphia Fed Manufacturing Index (m/m) at 14:30 (GMT+2);
  • – Eurozone ECB Interest Rate Decision at 15:15 (GMT+2);
  • – Eurozone ECB Monetary Policy Statement at 15:15 (GMT+2);
  • – Eurozone ECB Press Conference at 15:45 (GMT+2);
  • – US Natural Gas Storage (w/w) at 16:30 (GMT+2).

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Economics & Fundamentals Financial News
16 Mar

Silicon Valley Bank: how interest rates helped trigger its collapse and what central bankers should do next

By Charles Read, University of Cambridge 

A former prime minister of Britain, Harold Wilson, is famous for remarking that a week is a long time in politics. But in the world of finance, it seems everything can change in just two days.

Only 48 hours elapsed between a statement from US-based Silicon Valley Bank (SVB) on March 8 that it was seeking to raise US$2.5 billion (£2 billion) to repair a hole in its balance sheet, and the announcement by US regulator the Federal Deposit Insurance Corporation that the bank had collapsed.

At its peak in 2021, SVB was worth US$44 billion and managed over $200 billion in assets. America’s 16th largest deposit-taking institution just a week ago, it has now become the second biggest banking failure in US history. Only the collapse of Washington Mutual during the 2008 global financial crisis was larger.

Although SVB had been ailing for some time, the speed of its collapse took nearly all commentators – as well as its customers, mostly from the tech sector – by surprise. Tech firms around the world have their cash locked up in SVB deposits and were concerned about how they would pay their workers and their bills until government support was announced in the US, alongside HSBC’s deal to buy SVB’s UK arm.

And it looks like the run on SVB that heralded its collapse – by some metrics the fastest in history – is spreading to other institutions with similar characteristics. On March 12, two days after SVB’s collapse, regulators in New York closed Signature Bank, citing systemic risk.

But was what happened to SVB unpredictable, unpreventable and unavoidable? My research suggests not. My latest book about the history of financial crises, Calming the Storms: the Carry Trade, the Banking School and British Financial Crises Since 1825, was coincidentally launched the day before SVB failed and describes three situations in which a banking crisis may unfold.

Why SVB collapsed

One potential cause is when changes in interest rates between countries cause movements in capital flows to suddenly start or stop as investors chase better rates. This affects the availability of finance. This is what happened during the 2007 credit crunch that preceded the global financial crisis, but it wasn’t behind SVB’s collapse.

SVB’s failure does tie in with the other two situations I describe in my book.

The first is when interest rates rise rapidly. The cause may be a central bank reacting to a surge of inflation, a war or a tight labour market. Indeed, the Federal Reserve, alongside other central banks, has raised rates from a band of 0.25%-0.5% to 4.5%-4.75% over the past 12 months.

Higher rates tighten credit conditions. This makes it harder for financial institutions to finance themselves, while also damaging the value of their existing loans and assets.

The second is when short-term interest rates rise above long-term rates, as has happened in America over the past few months. During the pandemic, tech startups with spare cash from funding rounds in a world of easy money placed their deposits with SVB. With little demand for loans from this sector, SVB invested most of the money in long-term bonds – mostly mortgage-backed securities and US Treasuries.

In short, SVB was taking funds mainly on short-term deposit and tying them up in long-term investments. Then, over the past few months, short-term rates rose higher than the returns on longer-dated bonds (see chart below). This is because interest rates were soaring, thanks to the Fed’s rate hikes.

US interest rate changes

Line graph showing long- and short-term US interest rates rising over time, with short overtaking long in 2022.
Author provided from OECD data

With funding rounds harder to come by in a high-interest rate environment, tech firms began to withdraw and spend their deposits. At the same time, these higher rates resulted in falling prices for the bonds in which SVB had been investing. That squeezed SVB’s profit margins and put its balance sheet on shaky ground.

This situation was made worse because SVB needed to sell some of its longer-dated bonds at a loss to fund the deposits its customers were withdrawing from the bank. The news of the sales made depositors withdraw more funds, which had to be funded through more sales. A doom loop ensued.

The March 8 announcement that SVB was looking to raise US$2.5 billion to plug the hole in its balance sheet left by these asset fire sales triggered the bank run that finished it off.

Concerns about systemic risk

How worried should we be about the collapse of SVB? It is not a major player in the world’s financial system. It is also almost unique in modern banking in terms of its dependence on one sector for its client base and the vulnerability of its balance sheet to interest rate rises.

But even if SVB’s collapse does not trigger a wider financial crisis, it should serve as an important warning. Rapidly rising interest rates over the past year have made the global economy fragile.

The world’s central bankers are treading a narrowing path of trying to combat inflation without harming financial stability. Central bankers must manage interest rates more carefully, while regulators should discourage the finance sector from borrowing short to lend long without sufficient hedging of the risks this entails.

It is also important that central banks monitor the impact that interest rate differences and cross-border capital flows have on the credit that’s available to both banks and businesses. Even if the failures of SVB and Signature prove to be no more than “little local difficulties” (to quote another past UK prime minister, Harold Macmillan), the systemic risks that their collapse have highlighted can no longer be ignored.The Conversation

About the Author:

Charles Read, Fellow in Economics and History at Corpus Christi College, University of Cambridge

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Opinions Stock Market News
16 Mar

STOX50 Wobbles As Markets Eye ECB Amid Credit Suisse Drama

By ForexTime 

European shares traded mixed on Thursday as investors remained guarded towards the chaos revolving around Credit Suisse Group AG ahead of the European Central Bank (ECB) meeting.

Despite Credit Suisse receiving a US $54 billion lifeline from the Swiss National Bank, Switzerland’s central bank, some caution still lingered in the air.  The STOX50 Index which represents the 50 largest companies from 11 Eurozone countries struggled for direction this morning amid the lingering unease. However, the banking sector flashed green with Credit Suisse shares rallying over 20% following the emergency loan. With the ECB meeting just a few hours away and investors digesting the series of events concerning Credit Suisse, markets may switch into standby mode until another fundamental spark is brought into the picture.

Taking a brief look at the technical picture, the STOX50 is under pressure on the daily charts. The recent breakdown and daily close below the 4100 support level may open the door to further downside.

It’s all about the ECB meeting…

The European Central Bank is set to announce its rate decision this afternoon at 13:15 GMT.

According to a survey of economists by Bloomberg, most expect a 50-basis point hike. However, when factoring the negative developments concerning Credit Suisse – expectations may differ from reality.

The red flags appeared last week (March 9th) after Credit Suisse was forced to delay the publishing of its annual report thanks to a last-minute query from the US Securities and Exchange Commission. Yesterday (March 15th) the alarm bells rang after Ammar Al Khudairy, the chairman of Credit Suisse’s largest shareholder, Saudi National Bank, said that he would “absolutely not” make further investments in Credit Suisse. These comments sent shockwaves across financial markets and compounded recent fears following Silicon Valley Bank’s failure.

A battle between ECB hawks and doves

There is no doubt that the Credit Suisse drama will add more flavor to the pending ECB meeting.

Growing fears around the overall health of the financial system following the latest developments could empower ECB doves. This may result in the ECB opting for a smaller-than-expected rate hike to prevent further damaging the financial system. On the other hand, inflation still remains hot with core inflation hitting a record high of 5.6% year-on-year in January. This could serve as a strong enough argument for ECB hawks  – resulting in a 50-bp hike. Whatever the outcome, it will be a challenging meeting for the ECB and will certainly set the tone for the euro this month.

How does this impact the STOX50 Index?

Now, this is where things get interesting.

Given today’s environment, a larger-than-expected rate hike may fuel recession risks for the Eurozone while further damaging confidence about the health of the financial system. This would be bad news for European stock markets as the risk aversion, empowers equity bears – sending the STOX50 lower. It will be interesting to see whether the ECB mentions anything about the Credit Suisse situation.  If the central bank strikes a confident tone and suggests that the Credit Suisse situation is temporary, this could boost investor confidence – ultimately supporting the STOX50.

A deep dive into the technicals…

The STOX50 index on the D1 time frame was in a strong uptrend that made a last higher top at 4325.0 on 6 March. The bears then saw an opportunity and started coming into the market in more numbers.

After the top at 4325.0, the price broke through the 15 and 34 Simple Moving Averages (SMA) and the Momentum Oscillator changed course to the downside, both also confirming the increased bearish momentum in the market. A weekly support level was also breached and this became a new resistance level.

A possible critical support level formed when a lower bottom was recorded at 4070.6 on 13 March. Bulls tried to push the market up without success and the price formed a lower top on 14 March at 4190.4, touching the new weekly resistance level.

The very next day the bears broke through the critical support level at 4070.6 and three possible price targets were projected from there. Attaching the Fibonacci tool to the lower bottom at 4070.6, and dragging it to the lower top at 4190.4, the following targets were calculated. The first target can be estimated at 3996.6 (161.8%) which is located at the next weekly support level. The second price target may be calculated at 3876.8 (261.8%) and the price will have to break through yet another weekly support level to reach the third and final target which might be expected at 3682.9 (423.6%).

If the resistance level at 4190.4 is broken, the above scenario is canceled and must be re-assessed.

As long as the bears stay in control, the outlook for STOX50 on the D1 time frame will remain negative.

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Financial News Stock Market News
15 Mar

Data Communications Co. To Buy Printing Firm

Source: Chris Thompson  (3/14/23)

The strategic merger between these two Canadian entities should enhance the acquirer’s “capabilities and growth potential,” noted an eResearch Corp. report. 

Data Communications Management Corp. (DCM:TSX; DCMDF:OTCQX) agreed to acquire the Canadian operations of R.R. Donnelley & Sons, called Moore Canada (RRD Canada), for CA$123 million (CA$123M), which should provide beneficial synergies, reported eResearch Corp. analyst Chris Thompson in a March 10 research note. The transaction should close in Q2/23.

“We believe the deal will be accretive to Data Communications Management’s financial profile as it accelerates [the company’s] revenue and EBITDA growth and diversifies its revenue base,” Thompson wrote. “It could help accelerate sales growth, lower some organizational costs, and enhance operational efficiency, which could lead to an improved overall financial performance.”

In other news, the analyst reported Data Communications reported strong preliminary full-year 2022 (FY22) financial results, noteworthy for higher-than-expected revenue as well as year-over-year (YOY) increases in revenue, gross profits, and EBITDA.

Boosts to Target Price

Thompson highlighted that the merger and strong FY22 are “positive for the company valuation, according to our model.” Incorporating last year’s revenue increases eResearch’s target price on Data Communications to CA$4.59 per share, whereas accounting only for the acquisition takes it to CA$5.92 per share. Combining both raises it to CA$6.02 per share.

Data Communications is rated Buy.

The private equity investment firm, however, plans to keep its target price as is, now CA$4.50 per share, until the merger closes or final FY22 financial results are released.

Compared to the current CA$4.50 per share target price, this provider of marketing and business communication solutions is currently trading at about CA$2.06 per share, noted Thompson. This price difference implies significant potential gains for investors. Data Communications is rated Buy.

Impacts of the Deal

Thompson highlighted the acquisition should boost Data Communications’ capabilities and growth potential given RRD Canada’s “highly complementary” operating model and the expectation RRD Canada will bring online more products, services, and technological abilities.

RRD Canada provides print and print-related services to thousands of Canadian customers through 10 locations and with 1,000 employees. Last year, RRD generated about CA$250M in revenue. With the merger, Data Communications will be able to offer RRD’s services and solutions to its existing customers and take advantage of cross-selling opportunities.

According to the terms of the share purchase agreement, Data Communications will acquire three RRD Canada-owned sites at an implied value of about CA$30M. After closing, Data Communications plans to pursue a sale and leaseback agreement for each of these locations.

The acquisition would take Data Communications’ 16 locations to 21 and its number of enterprise clients to 400-plus from 250. These additional clients would add scale, for instance, to Data Communications’ marketing workflow technology platform, DCMFlex, and its digital asset management platform, ASMBL.

Snapshot of 2022 Finances

For FY22, Data Communications reported preliminary revenue of between CA$270M and CA$274M. This is higher than eResearch’s estimate of $265.3M and reflects a 15–16.5% increase over FY21 revenue.

Similarly, gross profit last year was between 30.5% and 31%, up 20–21% from that in FY21. FY22 EBITDA was between CA$35.5M and CA$36.5M, a 41–45% YOY increase.

Total debt, net of cash, down dropped about 35% from 2021’s amount. Data Communications plans on paying for the acquisition of RRD entirely through committed credit facilities noted Thompson.

Data Communications is scheduled to release full financial FY22 results on March 21, 2023, and hold an investor call and webcast the next day.

Sign up for our FREE newsletter

Disclosures:

1) Doresa Banning wrote this article for Streetwise Reports LLC as an independent contractor. They or members of their household own securities of the following companies mentioned in the article: None. They or members of their household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Data Communications Management Corp. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures for eResearch, Data Communications Management Corp., March 10, 2023

ANALYST ACCREDITATION

eResearch Analyst on this Report: Chris Thompson CFA, MBA, P.Eng. Analyst Affirmation: I, Chris Thompson, hereby state that, at the time of issuance of this research report, I do not own common shares, share options, or share warrants of DATA Communications Management Corp. (TSX:DCM).

eRESEARCH DISCLOSURE STATEMENT

eResearch is engaged solely in the provision of equity research to the investment community. eResearch provides published research and analysis to its Subscribers on its website (www.eresearch.com), and to the general investing public through its extensive electronic distribution network and newswire agencies. eResearch makes all reasonable efforts to distribute research material simultaneously to all of its Subscribers. eResearch does not manage money or trade with the general public, provides full disclosure of all fee arrangements, and adheres to the strict application of its Best Practices Guidelines. eResearch accepts fees from the companies it researches (the “Covered Companies”), and from financial institutions or other third parties. The purpose of this policy is to defray the cost of researching small and medium-capitalization stocks which otherwise receive little or no research coverage.

DATA Communications Management Corp. paid eResearch a fee to have it conduct research and publish reports on the Company for one year.

To ensure complete independence and editorial control over its research, eResearch follows certain business practices and compliance procedures. For instance, fees from Covered Companies are due and payable before research starts. Management of the Covered Companies is sent copies, in draft form without a Recommendation or a Target Price, of the Initiating Report and the Update Report before publication to ensure our facts are correct, that we have not misrepresented anything, and have not included any non-public, confidential information. At no time is management entitled to comment on issues of judgment, including Analyst opinions, viewpoints, or recommendations. All research reports must be approved, before publication, by eResearch’s Director of Research, who is a Chartered Financial Analyst (CFA).

All Analysts are required to sign a contract with eResearch before engagement and agree to adhere at all times to the CFA Institute Code of Ethics and Standards of Professional Conduct. eResearch Analysts are compensated on a per-report, per-company basis and not based on his/her recommendations. Analysts are not allowed to accept any fees or other considerations from the companies they cover for eResearch. Officers, analysts, and directors of eResearch are allowed to trade in shares, warrants, convertible securities, or options of any of the Covered Companies only under strict, specified conditions, which restrict trading 30 days before and after a Research Report is published.

Financial News Stock Market News
15 Mar

How to use free satellite data to monitor natural disasters and environmental changes

By Qiusheng Wu, University of Tennessee 

If you want to track changes in the Amazon rainforest, see the full expanse of a hurricane or figure out where people need help after a disaster, it’s much easier to do with the view from a satellite orbiting a few hundred miles above Earth.

Over 8,000 satellites are orbiting Earth today, capturing images like this, of the Louisiana coast.
NASA Earth Observatory

Traditionally, access to satellite data has been limited to researchers and professionals with expertise in remote sensing and image processing. However, the increasing availability of open-access data from government satellites such as Landsat and Sentinel, and free cloud-computing resources such as Amazon Web Services, Google Earth Engine and Microsoft Planetary Computer, have made it possible for just about anyone to gain insight into environmental changes underway.

I work with geospatial big data as a professor. Here’s a quick tour of where you can find satellite images, plus some free, fairly simple tools that anyone can use to create time-lapse animations from satellite images.

For example, state and urban planners – or people considering a new home – can watch over time how rivers have moved, construction crept into wildland areas or a coastline eroded.

A squiggly river moves surprisingly quickly over time.
Landsat time-lapse animations show the river dynamics in Pucallpa, Peru.
Qiusheng Wu, NASA Landsat
Animation shows the shoreline shrinking.
A Landsat time-lapse shows the shoreline retreat in the Parc Natural del Delta, Spain.
Qiusheng Wu, NASA Landsat

Environmental groups can monitor deforestation, the effects of climate change on ecosystems, and how other human activities like irrigation are shrinking bodies of water like Central Asia’s Aral Sea. And disaster managers, aid groups, scientists and anyone interested can monitor natural disasters such as volcanic eruptions and wildfires.

The lake, created by damming the river, has shrunk over time.
GOES images show the decline of the crucial Colorado River reservoir Lake Mead since the 1980s and the growth of neighboring Las Vegas.
Qiusheng Wu, NOAA GOES
A volcanic eruption bursts into view.
A GOES satellite time-lapse shows the Hunga Tonga volcanic eruption on Jan. 15, 2022.
Qiusheng Wu, NOAA GOES

Putting Landsat and Sentinel to work

There are over 8,000 satellites orbiting the Earth today. You can see a live map of them at keeptrack.space.

Some transmit and receive radio signals for communications. Others provide global positioning system (GPS) services for navigation. The ones we’re interested in are Earth observation satellites, which collect images of the Earth, day and night.

Landsat: The longest-running Earth satellite mission, Landsat, has been collecting imagery of the Earth since 1972. The latest satellite in the series, Landsat 9, was launched by NASA in September 2021.

In general, Landsat satellite data has a spatial resolution of about 100 feet (about 30 meters). If you think of pixels on a zoomed-in photo, each pixel would be 100 feet by 100 feet. Landsat has a temporal resolution of 16 days, meaning the same location on Earth is imaged approximately once every 16 days. With both Landsat 8 and 9 in orbit, we can get a global coverage of the Earth once every eight days. That makes comparisons easier.

Landsat data has been freely available to the public since 2008. During the Pakistan flood of 2022, scientists used Landsat data and free cloud-computing resources to determine the flood extent and estimated the total flooded area.

Images show how the flood covered about a third of Pakistan.
Landsat satellite images showing a side-by-side comparison of southern Pakistan in August 2021 (one year before the floods) and August 2022 (right)
Qiusheng Wu, NASA Landsat

Sentinel: Sentinel Earth observation satellites were launched by the European Space Agency (ESA) as part of the Copernicus program. Sentinel-2 satellites have been collecting optical imagery of the Earth since 2015 at a spatial resolution of 10 meters (33 feet) and a temporal resolution of 10 days.

GOES: The images you’ll see most often in U.S. weather forecasting come from NOAA’s Geostationary Operational Environmental Satellites, or GOES. They orbit above the equator at the same speed Earth rotates, so they can provide continuous monitoring of Earth’s atmosphere and surface, giving detailed information on weather, climate, and other environmental conditions. GOES-16 and GOES-17 can image the Earth at a spatial resolution of about 1.2 miles (2 kilometers) and a temporal resolution of five to 10 minutes.

Animation showing swirling clouds off the coast and the long river of moisture headed for California.
A GOES satellite shows an atmospheric river arriving on the West Coast in 2021.
Qiusheng Wu, GOES

How to create your own visualizations

In the past, creating a Landsat time-lapse animation of a specific area required extensive data processing skills and several hours or even days of work. However, nowadays, free and user-friendly programs are available to enable anyone to create animations with just a few clicks in an internet browser.

For instance, I created an interactive web app for my students that anyone can use to generate time-lapse animations quickly. The user zooms in on the map to find an area of interest, then draws a rectangle around the area to save it as a GeoJSON file – a file that contains the geographic coordinates of the chosen region. Then the user uploads the GeoJSON file to the web app, chooses the satellite to view from and the dates and submits it. It takes the app about 60 seconds to then produce a time-lapse animation.

How to create satellite time-lapse animations.

There are several other useful tools for easily creating satellite animations. Others to try include Snazzy-EE-TS-GIF, an Earth Engine App for creating Landsat animations, and Planetary Computer Explorer, an explorer for searching and visualizing satellite imagery interactively.The Conversation

About the Author:

Qiusheng Wu, Assistant Professor of Geography and Sustainability, University of Tennessee

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Economics & Fundamentals Opinions Programming
← Previous Page
Next Page →