September 06 (Tuesday)
Latest Morning Briefing Executive Summary: Back To The Old Normal?
Fed Chair Powell has put the kibosh on financial markets’ wishful thinking that the Fed will start easing monetary policy next year. How will the Fed—and investors—know when it has achieved optimal tightening, with monetary policy restrictive enough to tame inflation but not enough to touch off a recession? “Immaculate disinflation” has proven elusive in the past, but we think it’s possible today. A federal funds rate of 3.00%-4.00% might be the sweet spot, harkening back to the “Old Normal” before the 2008 financial crisis. … Also: Indicators suggest the broad economy is growing this quarter, though certain sectors aren’t. … And: Dr. Ed reviews “Candy” (+ + +).
(subscribers’ link)
YRI
Daily Markets Overview
Replay of Dr. Ed’s webinar on August 29.
Markets
Stocks Could Have a Messy Fall. Time to Embrace the Risks. | BR
Emerging Market Bonds May Be Buying Opportunity | BR
The digital yuan offers China a way to dodge the dollar | E
U.S. Dollar Strength Lifts Americans’ Relative Spending Power | W
Oil producer group OPEC+ surprises energy markets with a small production cut | C
Gasoline prices are expected to continue to fall after Labor Day and some states could see below $3 | C
Central banks
The Fed Isn’t Moving the Stock Market, or the Price of Credit | FO
US I
The Labor Shortage Will Get Worse and May Last for Decades | BR
UPS, Chipotle, and Other Stocks That Could Thrive as the Labor Shortage Lingers | BR
Yes, the unemployment rate rose. Here’s why that’s good news | NN
Now Is the Most Rewarding Time to Switch Jobs in Years | W
US II
American states are now Petri dishes of polarization | E
Biden’s Student-Debt-Forgiveness Plan May Cost Up to $1 Trillion, Challenging Deficit Goals| W
Affordable-Housing Projects Derailed as Developers Struggle for Financing | W
Europe
Russia’s Nord Stream Pipeline Closure Lands Economic Blow Against Europe | W
Europe scrambles to protect citizens from sky-high energy prices | E
Macron: France, Germany to provide each other with gas, electricity, to weather crisis | R
Germany keeps two nuclear reactors on standby to weather gas crisis | R
Gazprom: off-line Nord Stream compressor station now deemed hazardous | R
Italy’s election and the war against corruption | E
China
China’s Economic Slump Bodes Ill for Birth Numbers | W
A Slowing China Helps Rein In Inflation Around the World | W
China Blinked on Public-Company Audits. It Won’t Happen Twice. | BR
Industries & companies
Materials: Column: European smelter closures fracture aluminum pricing | R
Retail: Buy Target Stock. The Retailer’s Problems Won’t Last Forever. | BR
Corporate finance
CVS to buy home health giant Signify Health for about $8 billion | C
Volkswagen to List Porsche in One of Biggest IPOs in Years | W
Beyond markets
Can We Save the Planet and Still Eat Meat?
