May 17 (Tuesday)
Latest Morning Briefing Executive Summary: Run(off) for the Hills?
It begins next month: the Fed’s plan to let its maturing securities run off its balance sheet without replacing them—a.k.a. quantitative tightening (QT). How right are investors to be freaked out? How legitimate are their suspicions that the Fed is erring on the side of overkill after having lost ground in the fight against inflation? … Today, we separate the fears from the facts and assess the likely impacts for the federal deficit, fixed-income markets, the stock market, and the economy. … Also: We lay out the runoff plan, review the last QT episode for insights, and put investors’ fears into perspective.
(subscribers’ link)
YRI
Daily Markets Overview
Replay of Dr. Ed’s webinar on May 16.
Markets
Yields slip, stocks struggle as economic fears grow | R
Oil settles higher on demand optimism, gasoline strength | R
Column: ‘TINA’ still driving hedge funds’ bullish dollar view | R
A $100 Billion Comedown: Soaring Defaults Shrink Asia’s Junk-Bond Market | W
Commodities
Column: European smelter hits mean another year of zinc shortfall | R
US
How to fix our medical supply chain problems | Washington Examiner
White House hits back at Amazon’s Bezos after Biden inflation spat | C
China
China’s Economic Distress Deepens as Lockdowns Drag On | W
Geopolitics & trade
European Foreign Ministers Fail to Sway Hungary on Russian Oil Ban | W
How Putin Drove Finland Into NATO’s Arms | W
Ukrainian force begins evacuating from last Mariupol stronghold | R
U.S., EU Boost Trade Ties to Remedy Supply Shortages, Counter Russia and China | W
U.N. Seeks to Ease Russian Blockade of Ukraine Grain Shipping to Avert Food Shortages | W
Biden’s Dance With a Latin Dictator | W
Yellen Pushes Polish Prime Minister on International Tax Deal | W
Corporate finance
JetBlue launches hostile takeover bid for Spirit Airlines | C
Musk says lower-price Twitter deal ‘not out of the question:’ report | C
Beyond markets
FDA Eases Baby-Formula Import Rules to Boost Supplies | W
Abbott reaches agreement with FDA to reopen baby formula plant | C
