September 27 (Tuesday)
Latest Morning Briefing Executive Summary: Powell’s Latest Pivot Shocks Markets
Pessimism and bearishness are widespread; from a contrarian standpoint, that spells buying opportunities for the long term. … Meanwhile, monetary tightening appears to be making headway against inflation given the dollar’s strength and weakening commodity prices. We think PCED inflation peaked in June and is on track to fall to 3.0%-4.0% next year. One more 75bps rate hike in November may be enough. … We’ve reassessed our economic and stock market forecasts given renewed Fed hawkishness. We still expect a growth recession and range-bound S&P 500, but with greater short-term downside risk. And we now see the 10-year bond yield peaking at 4.25%. … Also: A dizzying review of Powell’s recent pivots.
(subscribers’ link)
YRI
Daily Markets Overview
Replay of Dr. Ed’s webinar on September 26.
Markets
Dow Industrials Fall Into Bear Market | W
The Dow is in a bear market. What does that mean? | R
Everything-Selloff on Wall Street Deepens on 98% Recession Odds | B
Why Bonds Make Sense for Your Portfolio | Financial Advisors | U.S. News
Central banks
Fed officials stare down markets, say inflation is top focus | R
Boston Fed President Says More Rate Increases Needed to Cool Inflation | W
Cleveland Fed’s Loretta Mester Says More Restrictive Policy Needed for Longer | B
China’s Central Bank Moves Further to Bolster the Yuan | W
US
Remote Work Drove Over 60% of US House-Price Surge, Fed Study Finds | B
Silicon Valley Had Its Heyday. Can Tech Ecosystems Now Grow Inland? | N
Biden’s Student-Loan Forgiveness Plan Could Cost $400 Billion, CBO Says | W
Europe
British Pound, Bonds Roiled as Tax-Cut Plans Spook Investors | W
China
World Bank Cuts China Growth Forecast as Covid-19, Real-Estate Crunch Take Toll | W
China Industrial Profits Slump Further as Producer Prices Slow | B
China Reins In Its Belt and Road Program, $1 Trillion Later | W
Japan
Japan’s 20-Year Bond Yield Rises Above 1% for First Time Since 2015 | B
Japan prepares to bid farewell to slain Abe with controversial state funeral | R
Geopolitics & trade
Ukraine annexation votes to end amid Russian mobilisation exodus | R
Iran says U.S. attempting to use unrest to weaken country | R
Russia’s War in Ukraine to Cost Global Economy $2.8 Trillion, OECD Says | W
Putin grants Russian citizenship to whistleblower Edward Snowden | C
Industries & companies
Airlines: Southwest Airlines hired a record 3,000 flight attendants so far this year | C
Autos: Ford Seeks New Trial After $1.7 Billion Jury Verdict in Truck Rollover Lawsuit | W
Autos: China’s new electric cars cost more to insure than fuel-powered cars | C
Pharma: Biogen to pay $900 million to settle drug kickback allegations | C
Corporate finance
IPO Stocks Have Tumbled, Hobbling Demand for New Listings | W
Beyond markets
Latest Track for Tropical Storm Ian: Where It Will May Make Landfall | B
NASA’s DART Spacecraft to Crash Into Asteroid Tonight in Planetary Defense Test | W
