April 06 (Wednesday)

Latest Morning Briefing Executive Summary:  Another Earnings Season Seasoned with Inflation
Investors should have lots of questions for company managements during the upcoming earnings calls season. First-quarter macroeconomic and survey data paint a picture of modestly improving supply-chain problems but still high costs for manufacturers. For services providers, supply-chain and cost issues continue to strain their ability to meet demand. Profit margins should hold steady this year provided that price increases offset cost increases as we expect. … While earnings and revenue growth rates probably peaked during Q2-2021, analysts’ estimates suggest both remain solidly positive during Q1. … Also: Why the job market in Europe withstood the pandemic better than in the US.
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YRI
Daily Markets Overview
See subscribers’ link below for today’s Morning Briefing.
Replay of Dr. Ed’s webinar on April 4.

Markets
Markets Bet on Sharpest Fed Tightening in Almost Three Decades | B
Bonds: 10-year Treasury yield rises above 2.6% after Brainard speech | C
Global Bonds Slump to a Discount for First Time Since 2008 | B
Europe Market News: Stoxx 600 Drops as Investors Fret Over Fed’s Tightening | B
Euro slips to month-low as West prepares new Russia sanctions | R

Central banks
Key people from the Fed just spooked the markets — here’s what they said | C
Fed’s Brainard Says Reducing Elevated Inflation ‘Is of Paramount Importance’ | W
Fed’s Brainard sees balance sheet reduction soon and ‘at a rapid pace’ | C
Fed Minutes to Reveal Long-Awaited Details on Balance-Sheet Plan | B
BOJ will be ‘alarmed’ if yen crosses 130 per dollar, says ex-vice minister | C
ECB Needs Governments to Tackle Inflation Too, Panetta Says | B

US
The US Economy Is Booming. Why Are Economists Worrying About a Recession? | N
Yellen to Warn War Threatens ‘Enormous Economic Repercussions’ | B
Add Declining Immigration to Problems Weighing on the Labor Market | W
U.S. Trade Deficit Narrowed Slightly in February | W
New Fed study shows Biden owns our economic disaster | P

Europe
Germany Meat, Dairy Prices May Increase as Ukraine War Worsens Food Inflation | B

China
China’s Services Sector Posts Steepest Decline Since Pandemic’s Start | W

Geopolitics & trade
Russian forces pound key cities as West prepares new sanctions | R
Kyiv Residents Remain On Edge Despite Russian Retreat | W
Russia Sanctions: EU, US to Announce Penalties, Ban on New Investments | B
German coal importers say can handle Russian ban at a price | R
Ukraine’s Zelensky Calls for Removing Russia From U.N. Security Council After Alleged War Crimes | W
Survey: Nearly 70% of Americans worry about a nuclear attack. Here’s what could happen | C

Industries & companies
Pharma: U.S. Owes Pfizer $5 Billion for Covid Pills, Half of Proposed Aid Package | B

Technology
Amazon to Spend Billions on Space Launches as SpaceX Ramps Up Satellite-Internet Service | W

Corporate finance
JetBlue’s all-cash bid for Spirit Airlines complicates Frontier tie-up | C

Climate
IPCC report: Charts detail climate change | C

Virus
CDC director says high immunity in U.S. population provides some protection against omicron BA.2 | C
China’s Daily Covid Cases Top 20,000 as Isolation Expands | B
Shanghai eases child separation under COVID policy but extends lockdown | R
‘So many bodies piled up’: Hong Kong funeral services overwhelmed by COVID | R