September 11 (Monday)

Latest Morning Briefing Executive Summary: ‘Talk To An Economist’
It’s worrying investors big time, but the escalating federal budget deficit doesn’t even merit an explanation from the administration driving it out of historically normal proportions. A federal deficit that’s rising as a percentage of nominal GDP at a time when GDP is rising is highly unusual. At risk is the bond market’s ability to finance the deficit at current interest rates. … This concern could make bond yields less sensitive to inflation (and the Fed’s reaction to it) and more sensitive to bond supply and demand. For now, we’re sticking with our back-to-the-old-normal bond yield forecast, based on our moderating inflation forecast, but we are increasingly concerned about the flood of Treasuries.
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YRI
Daily Markets Overview
Replay of Dr. Ed’s webinar on September 11.

Markets
Column: Mighty dollar shares in Fed’s heavy lifting | R
Japan Has a Long History of Disappointing Investors. Why This Rally Might Be Different. | W

Global
Trade Slump Reshuffles World’s Economic Cards in Favor of U.S. | W

Central banks
An Important Shift in Fed Officials’ Rate Stance Is Under Way | W
Federal Reserve’s ‘Last Mile’ of Inflation Fight Will Be No Cakewalk | B
Morning Bid: Japan jolt as inflation forks | R
Exclusive: China’s central bank to scrutinize bulk dollar purchases – sources | R

US
US Consumer Is Likely to Start Cutting Back, Hurting Economy and Stocks | B
Yellen ‘Feeling Very Good’ About Soft Landing for US Economy | B
Why the national debt can both help and hurt the US economy | C

Europe
Germany predicted to be the only major European economy to contract | C
Column: Europe’s gas storage must peak early this autumn | R

China
Xi Jinping’s Tight Control Hampers Stronger Response to China’s Slowdown | W
Column: China’s strong crude oil, coal and iron ore imports flatter to deceive | R

Geopolitics & trade
Biden backs World Bank for expanded role on global stage to counter China | C

Industries & companies
Banks: With economy holding up, why is the market so down on America’s banks? | C
Movie theaters: How Taylor Swift could change the movie theater industry | C
Pharma: Generic Drugs Should Be Cheap, But Insurers Are Charging Patients Thousands of Dollars For Them | W
Pharma: Ozempic, Wegovy may curb drinking, smoking: What we know | C
Retail: Walmart Goes All In on Africa | W
Tech: Qualcomm to supply Apple with 5G modems for iPhones through 2026 | C
Tech: Alibaba shares tumble after Daniel Zhang unexpectedly quits cloud business | C
 
Technology
Nvidia’s dominance in AI chips deters funding for startups | R

Corporate finance
Instacart seeks up to $7.7 billion valuation in IPO | C

Artificial Intelligence
Congress to hold new AI hearings as it works to craft safeguards | R

Beyond markets
UK begins Covid vaccine rollout early with new variant under watch | C