July 29 (Friday)
Latest Morning Briefing Executive Summary: The Fed, Earnings, Chips & AI
Investors cheered the Fed’s no-surprises announcement of another 75bps hike in the federal funds rate yesterday. Moreover, Q2 earnings reports have been confirming our soft-landing scenario for the economy, and S&P 500 companies’ earnings are expected to hold up respectably this year and next. … But Q2 reports revealed pain points for certain industries—e.g., retailers that cater to lower-income consumers felt the brunt of inflation-strained consumer budgets. … Semiconductor makers on Q2 calls addressed worries about customers’ inventory buildups. … And: What won’t AI be transforming? Today, we look at how AI is facilitating new drug development.
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YRI
Daily Markets Overview
Replay of Dr. Ed’s webinar on July 25.
Central banks
The U.S. economy is shrinking. The Fed’s rate hikes may have only just begun to bite | R
BOJ policymakers debated chance of Fed-driven U.S. recession | R
US I
GDP Report May Have Showed a Decline, but It’s Not a Recession | Morningstar
U.S. GDP Fell at 0.9% Annual Rate in Second Quarter; Recession Fears Loom Over Economy | W
Recession or Not, the Recovery Has Ended | W
Mortgage Rates Fall to 5.3%, Continuing Volatile Stretch | W
Inflation-exhausted Americans: Let’s just go out for steak | NN
Big cities are where the jobs are — but millennials aren’t moving | Vox
The Crisis Facing Nursing Homes, Assisted Living and Home Care for America’s Elderly | PO
US II
Manchin’s climate turnaround: Climate groups react | C
Manchin, Schumer Revived Climate Bill in Secret Talks, Now Seek Democrats’ Support | W
China competitiveness and chip bill passes House, goes to Biden | C
Europe
How the German Economic Machine Broke Down | W
Japan
Japan’s factory output zooms as China eases COVID curbs | R
Emerging
Analysis: S.Korea’s sudden property slump tests world’s most indebted consumers | R
They Flocked to China for Boom Times. Now They’re Thinking Twice. | N
Jack Ma Plans to Cede Control of Ant Group | W
Geopolitics & trade
Don’t ‘play with fire’ over Taiwan, China’s Xi warns in call with Biden | R
