Stansberry Research

Wednesday Morning Market Headlines

C. Scott GarlissStansberry NewsWire

Five Stories Moving the Market:

Japan’s November factory output falls on weakening global demand – Reuters. Japanese factories slashed output for a third consecutive month in November, dragged down by weak demand for machinery products amid a deteriorating global economic outlook.

ECB’s Guindos sees euro economy in a ‘very difficult situation’ – Bloomberg. European Central Bank Vice President Luis de Guindos said the euro area faces a “very difficult economic situation” that will test individuals and businesses as, “the high inflation rates that we are seeing across Europe are coinciding with an economic slowdown and low growth.”

Russia bans sales of oil to countries imposing price cap – WSJ. The action follows moves by the Group of Seven nations barring Western companies from insuring, financing, or shipping Russian crude at prices above $60 a barrel.

BOJ debated rising wages, fading deflation risks at December meeting – Reuters. Bank of Japan policymakers saw the need to keep ultra-low interest rates but discussed growing prospects that higher wages could finally eradicate the risk of a return to deflation, a summary of opinions at their December meeting showed.

Inflation-wary shoppers pull back as goods pile up in stores – Bloomberg. A pullback in consumer spending poses a particular existential threat for the retailers in the deepest financial trouble, with more than $21 billion of bonds and loans tied to the industry trade at distressed levels, including debt for chain stores like Bed Bath & Beyond and Party City.

Market Headlines:

Global Macro:

Russian Foreign Minister Sergei Lavrov said Ukraine must surrender or face continued war, even as Moscow’s troops have been forced to retreat in a series of damaging defeats - Bloomberg.

Taiwan is set to more than double its four-month compulsory military service for men to one year as part of a defense overhaul, following a lengthy debate within the government in the face of China's growing threats – Nikkei Asia.

India’s $50 billion fintech industry will face hurdles in the form of tougher regulatory scrutiny and tighter liquidity leading to higher cost of capital for some companies next year, Rakesh Pozhath, partner at consulting firm Bain & Company, said - Bloomberg.

Ukraine’s foreign minister said that his government is aiming to have a peace summit by the end of February, preferably at the United Nations with Secretary-General António Guterres as a possible mediator, around the anniversary of Russia’s war - Politico.

The Biden administration is weighing new precautionary measures for travelers entering the U.S. from China as sales of air tickets out of China soared following Beijing’s decision to reopen its borders to international travel for the first time in almost three years, according to U.S. officials - WSJ.

Wholesale power prices surged more than 6,000% in parts of the country during the worst of the recent brutal cold snap — a sign that Americans are likely to face significantly higher winter heating costs once the bills get mailed out - Bloomberg.

The Food and Drug Administration is studying whether legal cannabis is safe in food or supplements and plans to make recommendations for how to regulate the growing number of cannabis-derived products in the coming months, agency officials said - WSJ.

Annual price growth in the increasingly fragile U.S. housing market slid into the single digits in October for the first time in about two years when mortgage rates that month surged above 7% and further stifled demand, a pair of closely watched surveys showed on Tuesday - Reuters.

Consumers’ appetite for electronics has weakened against a backdrop of rising interest rates, a falling stock market, and recession fears, causing semiconductor inventories to swell – WSJ.

Company Specific:

Prices of used Teslas are falling faster than those of other carmakers and the clean-energy status symbols are languishing in dealer lots longer - a potential threat to new car prices that are already getting cut - Reuters.

AMC Entertainment Chief Executive Officer Adam Aron on Tuesday asked the theater chain operator's board to freeze his compensation next year because of a sharp drop in the company's shares - Reuters.

Walt Disney’s Avatar: The Way of Water generated $95.5 million in domestic ticket sales over the long weekend, surpassing projections - Bloomberg.

FTX customers filed a class-action lawsuit against the failed crypto exchange and its former top executives including Sam Bankman-Fried on Tuesday, seeking a declaration that the company's holdings of digital assets belong to customers - Reuters.