Published at 04:15 (GMT) 04 May
Some comments from - Warren Buffett, with Charlie Munger, who marked 50 years of leading Bershire Hathaway,
Warren Buffett says stocks prices would look expensive if Fed interest rates normalised from their ultra-low levels. Expects USD to remain the world's reserve currency.
Will be very willing to act if economic turbulence of any kind occurs. Would rather keep $20bln cash cushion and make $40bln aquisition than simply keep that money in Cash.
Charlie Munger says Bershire is going to do fine after Munger and Buffett are gone.
On FX, Buffett signalling stocks may adjust levels (fall?) should Fed start to hike rates. With June (possibly July) rate hike still on the table given comments from Fed Williams and Mester last Friday. SF Fed John Williams says if US economic data comes in good enough, Fed could hike rates as soon as June, agreeing with Cleveland Fed Pres Loretta Mester. At same time Buffett signals his confidence in USD as reserve currency.
Dow closed on Friday +1.03%, or +183.54pts at 18,024.06. Nasdaq +1.29% or +63.97pts at 5,005.39. S&P +1.09% or +22.78pts at 2,108.29.
GBP/USD at 1.5155-60, range of 1.5136 to 1.5165 so far. GBP/USD weighed after failure to break 1.55 handle, then weaker GDP, PMI and now with election uncertainty drawing near. Stops below 1.5100.
EUR/USD at 1.1188-89, supported by recent squeeze up in EUR/Crosses - EUR/GBP, EUR/JPY, EUR/NZD, EUR/AUD, EUR/CHF - given some hopes of Greece deal. Offers at 1.1200-10/50, bids at 1.1140-50, stops below.
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