May 08 (Monday)

Latest Morning Briefing Executive Summary: Pandemic Of Pessimism
The stock market has been climbing since mid-October even though pessimism has prevailed among economists and stock market strategists. Today, we examine this “pandemic of pessimism”—how widespread it is, our perspective on the bearish case, what the Fed’s staff thinks is ahead for the US economy, and a few of the voices of doom. … We counter that the stock market’s trend is driven mostly by the earnings trend; we doubt QT will send either southward. Earnings growth may be weak in our rolling recession forecast, but growth it will be nonetheless. The labor market’s remarkable resilience reflects the economy’s resilience.
(subscribers’ link)

YRI
Daily Markets Overview
Replay of Dr. Ed’s webinar on May 1.

Markets
Investors Flock to Safety Plays, but Stock ‘FOMO’ Lingers | W

Global
Emerging Markets Enter Into High-Anxiety Phase With Turkey Vote | B

US
Jobs Report: Labor Market Trends Are the Federal Reserve’s Friend | B
Yellen warns of ‘economic chaos’ unless Congress resolves debt ceiling | C
Yellen warns of ‘constitutional crisis’ if Congress fails to act on debt | R
Food Banks See Surge in Demand Driven By Inflation, End of Covid Aid | B
 
Europe
Situation around Europe’s largest nuclear power plant is ‘potentially dangerous,’ watchdog warns | C

China
China’s Gold Splurge Reaches Sixth Month as Reserves Rise Again | B

Geopolitics & trade
Japan’s Kishida Visits South Korea as Two U.S. Allies Confront ‘Grave’ Security Issues | W
Taiwan’s Trade Clash with China Could Benefit the U.S. | W
U.S. and Allies Look at Potential China Role in Ending Ukraine War  | W
China Embarrasses King Charles at His Coronation | W

Industries & companies
Autos: Ford, Tesla CEOs Exchange Jabs and Praise Amid Heated EV Rivalry | W
Financials: Banks Are in the Grips of Investor Crisis of Confidence | W
Financials: Bank Stocks Nearing a Crisis-Era Threshold Raises Warning Sign | B
Financials: Regional Banking Crisis Roils Investors But Deposits Remain Stable-Ish | B
Tech: Tech Workers Aren’t as Rich as They Used to Be | W

Technology
U.S. Sanctions Drive Chinese Firms to Advance AI Without Latest Chips | W
How to Use Chatbots in Duolingo, Expedia, Snapchat, Grammarly and Khan Academy | W
In a new hacking crime wave, more personal data is being held hostage | C

Beyond markets
Anti-monarchists criticise ‘heavy-handed’ arrests at King Charles’ coronation | R