May 18 (Wednesday)
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
Stock Selloff Crunches SPAC Creators as They Race to Find Deals | W
Energy
EU makes plans to tackle energy price spikes, any Russian gas cut-off | R
EU unveils escape route from Russian fossil fuels by 2027 | R
How Germany Is Racing to Sever Dependence on Russian Energy | W
U.S. Floats Tariff on Russian Oil as EU Oil-Sanction Talks Drag On | W
U.S. Allows Chevron to Maintain Venezuela Operations but Won’t Permit Drilling | W
Central banks
Powell says the Fed will not hesitate to keep raising rates until inflation comes down | C
Powell Says Fed Has Resolve to Bring U.S. Inflation Down | W
Global
Countries banning food exports amid rising prices, inflation | C
US
U.S. Retail Sales Grew 0.9% in April | W
Weekly mortgage demand from homebuyers tumbles 12% | C
House Plans Vote on Baby Formula Legislation Wednesday | W
Europe
UK inflation hits 40-year high of 9.0%, squeezing households harder | R
China
Goldman Sachs cuts its China GDP forecast on Covid controls | C
China’s New Home Prices Fall for the First Time in More Than Six Years | W
China is second-biggest bitcoin mining hub as miners go underground | C
China Eastern Black Box Points to Intentional Nosedive | W
Geopolitics & trade
Finland, Sweden Apply for NATO Membership, Breaking Decades of Neutrality | W
Russia says nearly 700 more Mariupol fighters surrender | R
Russia Weighs Fate of Ukrainian Defenders in Mariupol | W
Russia military veteran Khodaryonok in damning assessment of Ukraine war | C
As inflation slows and ruble rallies, Russia is hoping to avoid a crisis | C
Industries & companies
Financials: JPMorgan investors hand Dimon rare rebuke, object to $53 million bonus | C
Covid
When Africans asked for COVID shots, they didn’t get them. Now they don’t want them | R
North Korean leader Kim slams officials’ ‘immaturity’ in response to COVID outbreak | R
Beyond markets
Mother Sues TikTok After Alleging 10-Year-Old Daughter Died From Doing ‘Blackout Challenge’ | W
