Stansberry Research

Thursday Morning Market Headlines

C. Scott GarlissStansberry NewsWire

Five Stories Moving the Market:

PBOC plans targeted stimulus as China focuses on price risks - Bloomberg. China’s central bank reiterated it will implement monetary policy that’s targeted and “forceful” this year to help support the economy, while the State Council warned of price risks in coming weeks.

Fed wants 'flexibility' on rates as inflation remains key focus – Reuters. All officials at the Federal Reserve's December 13-14 policy meeting agreed the U.S. central bank should slow the pace of its aggressive interest rate increases, allowing them to continue increasing the cost of credit to control inflation but in a gradual way meant to limit the risks to economic growth.

Amazon layoffs to hit over 18,000 workers, the most in recent tech wave – WSJ. Amazon’s layoffs will affect more than 18,000 employees, the highest reduction tally revealed in the past year at a major technology company as the industry pares back amid economic uncertainty.

NY Fed warns of debt crunch coming if Biden’s student-loan plan fails – Bloomberg. Student borrowers in the U.S. are struggling to keep up with other kinds of debt even while college payments are frozen, and a surge in delinquencies is likely if the government’s debt-relief plan fails, according to a new study.

Salesforce to lay off 10% of workforce, reduce offices – WSJ. Salesforce Co-Chief Executive Marc Benioff said that the cuts come as many of the company’s customers are taking a more cautious approach to spending, a trend that a growing number of software companies said they have been facing lately.

Market Headlines:

Global Macro:

Germany produced a record amount of electricity from wind on Wednesday, helping to reduce the need to burn fossil fuels as Europe battles an energy crisis - Bloomberg.

Western allies moved toward supplying armored battle vehicles to Ukraine but not the heavier tanks it has requested to fight Russia, while Washington predicted intense combat would continue for months on the eastern frontline - Reuters.

China’s abandonment of COVID Zero policies is stirring hopes that a demand recovery in the world’s biggest commodities importer will boost prices once the country gets over the current virus wave - Bloomberg.

Data from China shows that no new coronavirus variant has been found there, but also that the country under-represents how many people have died in a rapidly spreading COVID-19 outbreak, World Health Organization (WHO) officials said on Wednesday– Reuters.

U.K. Prime Minister Rishi Sunak pledged to reduce the national debt and cut inflation as he set out his priorities for the coming year against a backdrop of mounting strikes, a creaking National Health Service, and dire poll ratings for his ruling Conservative Party – Bloomberg.

Republicans in the House of Representatives failed for a second straight day to elect a leader on Wednesday, as a faction of holdouts repeatedly defied former President Donald Trump's call to unite behind his ally Kevin McCarthy (R-CA) - Reuters.

U.S. job openings remained elevated in November, highlighting how a resilient labor market is likely to keep the Federal Reserve tilted toward more restrictive policy in the months ahead - Bloomberg.

The U.S. auto industry posted its worst sales year in more than a decade in 2022 as supply-chain snarls and poorly stocked dealerships dented results for many car companies - WSJ.

Automakers had their worst year of U.K. sales in three decades, with only electric vehicles providing a bright spot. Battery-powered cars accounted for around 17% of new-vehicle registrations last year, overtaking diesel for the first time, the Society of Motor Manufacturers and Traders said Thursday – Bloomberg.

Company Specific:

Samsung Electronics’ quarterly profit will likely plunge 58% to its lowest in six years as a global economic downturn saps demand for electronic devices and clouds the outlook for the memory chip industry – Reuters.

Exxon Mobil, the largest U.S. oil company, said lower oil and natural gas prices had a negative impact on fourth-quarter earnings of about $3.7 billion compared with the preceding three months – Bloomberg.

Johnson & Johnson submitted its plan to spin off its consumer health business in the first significant filing of the new year for a US initial public offering – Bloomberg.

Samsung Electronics’ consumer gadgets chief expects demand for tech gadgets to remain sluggish through this year as high inflation, rising interest rates, and a strong dollar weigh on sales – WSJ.

A top European Union privacy regulator ruled that Meta Platforms can’t use its contracts with Facebook and Instagram users to justify sending them ads based on their online activity, delivering one of the bloc’s biggest blows yet to the digital-advertising industry - WSJ.