Stansberry Research

Wednesday Morning Market Headlines

C. Scott GarlissStansberry NewsWire

Five Stories Moving the Market:

Kevin McCarthy vows to remain in race for U.S. House speaker amid hardline opposition – Reuters. Republican Kevin McCarthy (R-CA) vowed on Tuesday to remain in the race to be the powerful U.S. House of Representatives speaker, hours after hardline members of his party repeatedly blocked his bid to lead their brand-new majority.

OPEC output edges higher as Nigeria cracks down on oil theft – Bloomberg. OPEC’s crude output edged higher by 150,000 barrels a day last month as Nigeria partially reversed a long-term slump by cracking down on oil theft.

Tech layoffs are happening faster than at any time during the pandemic – WSJ. Technology-driven companies across industries have been laying off workers at the fastest pace since the Covid-19 pandemic shocked the global economy in 2020, according to one data tracker.

U.S. Eastern electric grid narrowly dodged collapse during December storm – Bloomberg. The unprecedented strain on the electrical grid during December’s frigid storm was threatening to trigger cascading blackouts across the Eastern U.S. when Duke Energy Corp. called for rolling outages in North Carolina to stabilize the system, company officials said Tuesday.

Military analysts say Russia’s basic errors jeopardize its Ukraine forces – WSJ. Russian forces are repeating basic errors that are compromising the security and safety of their own soldiers in occupied Ukraine, according to military analysts, including failing to shut down cellphone use in areas where troops are concentrated within the range of Ukrainian artillery.

Market Headlines:

Global Macro:

European Central Bank Governing Council member Martins Kazaks expects interest rates to be raised “significantly” in February and March - Bloomberg.

U.S. President Joe Biden will hold talks with Japan Prime Minister Fumio Kishida at the White House on January 13 to discuss North Korea, Ukraine, China's tensions with Taiwan, and a "free and open Indo-Pacific," the White House said on Tuesday - Reuters.

New Chinese Foreign Minister Qin Gang offered effusive praise of Americans after stepping down as his nation’s top envoy to Washington, signaling that ties between the world’s biggest economies appear to be warming despite recent tensions over Taiwan - Bloomberg.

The Japanese government must talk with the next Bank of Japan governor about whether to rework the joint accord setting a 2% inflation target, Prime Minister Fumio Kishida said on a radio program that aired Tuesday – Nikkei Asia.

Most European Union countries favor introducing pre-departure COVID testing for travelers from China, the European Commission said on Tuesday, as Beijing plans to lift travel restrictions on its citizens despite a wave of COVID infections – Reuters.

Germany received its first shipment of liquefied natural gas — from the U.S. — at a new floating terminal in the North Sea port of Wilhelmshaven, a milestone in the nation’s quest to diversify its energy supplies - Bloomberg.

In their first joint statement on crypto, the Federal Reserve, Federal Deposit Insurance Corp (FDIC), and the Office of the Comptroller of the Currency (OCC) said they had concerns with the safety and soundness of bank business models that are highly concentrated in crypto – Reuters.

Former Federal Reserve Chair Alan Greenspan said a U.S. recession is the “most likely outcome” as the central bank tightens monetary policy to curb inflation, saying the recent deceleration in consumer-price increases isn’t enough to warrant a Fed reversal that is substantial enough to avoid at least a mild recession – Bloomberg.

U.S. Treasuries are off to the strongest start to a year since 2001 when markets correctly anticipated that then-Federal Reserve Chairman Alan Greenspan would slash the central bank benchmark – Bloomberg.

Company Specific:

Amazon said on Tuesday it had reached an agreement with certain lenders to provide the e-commerce giant an $8 billion unsecured loan to support capital expenditures, debt repayments, acquisitions, and working capital needs - Reuters.

A group of Microsoft employees has voted to form the software company’s first labor union in the U.S., marking the latest example of workers from top tech companies organizing in recent years - WSJ.

A unit of Tokyo Gas is in advanced talks to buy U.S. natural gas producer Rockcliff Energy from private equity firm Quantum Energy Partners for about $4.6 billion, including debt, people familiar with the matter said on Tuesday - Reuters.

Exxon Mobil and Chevron plan to spend most of their annual budgets in the Americas this year, with Chevron saying it will pour 70% of the capital allocated for production into oil fields in the U.S., Argentina, and Canada, and Exxon saying it will spend a similar portion of its budget in the Permian Basin of New Mexico and West Texas, Guyana, Brazil, and liquefied natural gas projects - WSJ.

Taiwan Semiconductor Manufacturing Co has sought to allay concerns that its massive investment in chip production in the U.S. could weaken Taiwan’s own strategically important industry at a time of heightened tensions with China – FT.