Welcome back to Power Lunch. Global bond yields have certainly been on the move this week. It's settling down a little bit today.Um but trade tensions are back to the four. From Washington to Asia Asia, rising rhetoric over tariffs adding a fresh layer of risk pushing investors to repric everything from sovereign debt to corporate bonds. The 10-year yield today is finally kind of, you know, coming down a little bit.You can see it there on the chart. It was trading above 4.4% 4% for the second day in a row. ...

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the economic outlook for **India** within the **Asia Pacific** region, particularly in the context of ongoing trade tensions and their impact on growth prospects [1][2]. Core Insights and Arguments 1. **Growth Outlook**: Despite skepticism from investors regarding India's growth narrative, the report argues that a recovery in domestic demand is underway, which will help India outperform other economies in the region [7][9]. 2. **Monetary and Fiscal Policy**: The unexpected slowdown in growth was attributed to a double tightening of fiscal and monetary policies, which was not warranted by macro stability indicators [11][12]. 3. **Government Expenditure**: Government spending, which constitutes 28% of GDP, contracted significantly but is now recovering, particularly in capital expenditure, which is projected to grow by 10.1% in the upcoming fiscal year [12][24]. 4. **GST Revenue Growth**: Goods and Services Tax (GST) revenue growth has accelerated, indicating a positive trend in economic activity, with a growth rate of 10.7% in early 2025 compared to previous quarters [22][23]. 5. **Services Exports**: Services exports have become increasingly important, reaching approximately **US$414 billion**, which is close to the size of goods exports. This sector has shown resilience and growth, even amid global trade slowdowns [38][39]. 6. **Inflation and Real Incomes**: A decline in food inflation is expected to improve real household incomes, supporting consumption recovery. Headline inflation has decreased to **4.3%** from a peak of **6.2%** [33][34]. 7. **Private Consumption Recovery**: Private consumption growth has shown signs of recovery, with real growth accelerating to **6.9%** year-on-year in the last quarter of 2024 [55][57]. 8. **Capex Outlook**: The report anticipates a recovery in government capital expenditure, while private capital expenditure is expected to recover at a slower pace due to global uncertainties [65][66]. Additional Important Insights 1. **Trade Risks**: India faces direct tariff risks, particularly concerning its high tariff rates on select imports. However, its low goods exports to GDP ratio suggests it is less exposed to global trade slowdowns compared to other Asian economies [74][75]. 2. **Trade Deal Prospects**: A potential trade deal with the US is anticipated by Fall 2025, which could help mitigate tariff impacts, although uncertainties remain regarding the specifics of any tariff increases [76][81]. 3. **Job Market Trends**: Job creation is expected to improve, supported by robust services exports, which should lead to stronger urban consumption over time [60][61]. This summary encapsulates the key points discussed in the conference call, highlighting India's economic recovery prospects, the role of government policy, and the importance of services exports in the current economic landscape.

Economic Overview - Concerns about a slowing economy have intensified, with the Federal Reserve unlikely to implement rate cuts soon due to persistent inflation [1][8] - Consumer confidence has dropped significantly, with the Conference Board's consumer survey index falling to 98.3 in February, below the expected 102.3 [7] Inflation Data - The consumer price index (CPI) rose by 0.5% in January, following a 0.4% increase in December, marking the largest jump since August 2023 [5] - Year-over-year, CPI increased by 3% in January, up from 2.9% in December, the highest annual gain since April 2024 [6] Consumer Staples Investment - Investing in consumer staples stocks is recommended as they are considered defensive during economic uncertainty [2] - Suggested stocks include Carriage Services, Inc. (CSV), Lancaster Colony Corporation (LANC), Tyson Foods (TSN), and Molson Coors Beverage Company (TAP), all carrying a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [2] Company Profiles - **Carriage Services, Inc. (CSV)**: Expected earnings growth rate of 7.2% for the current year, Zacks Rank 2, beta of 0.91, and a dividend yield of 1.12% [12][13] - **Lancaster Colony Corporation (LANC)**: Expected earnings growth rate of 6.1% for the current year, Zacks Rank 2, beta of 0.31, and a dividend yield of 1.99% [14][15] - **Tyson Foods (TSN)**: Expected earnings growth rate of 22.6% for the current year, Zacks Rank 2, beta of 0.72, and a dividend yield of 3.26% [16][17] - **Molson Coors Beverage Company (TAP)**: Expected earnings growth rate of 6.5% for the current year, Zacks Rank 1, beta of 0.81, and a dividend yield of 3.07% [18][19] Investment Strategy - The recommended investment strategy focuses on low-beta stocks with high dividend yields and favorable Zacks Ranks [3]