Stansberry Research

Friday Morning Market Headlines

C. Scott GarlissStansberry NewsWire

Five Stories Moving the Market:

Fed’s Bullard says rates are getting closer to sufficiently high – Bloomberg. Federal Reserve Bank of St. Louis President James Bullard said interest rates are getting closer to a high enough level to bring down inflation, suggesting he’s comfortable with policymakers’ projections of how much further they will hike this year.

Villeroy says ECB interest rates should peak by summer – Reuters. The European Central Bank interest rates should reach a peak by this summer and hikes should not be "too mechanical", French ECB policymaker Francois Villeroy de Galhau said on Thursday.

Japan wants G-7 to team up against ‘economic coercion’ by China – Bloomberg. Japan wants the Group of Seven advanced economies to take a coordinated approach this year aimed at preventing the “economic coercion” that China has applied to some of its trading partners.

Fed's George says it will be key to hold rates up once hikes end – Reuters. Kansas City Federal Reserve leader Esther George said on Thursday that she hopes the central bank will continue its efforts to shrink its balance sheet, while also warning that she believes the Fed will need to press forward with rate rises and keep them high for some time once the tightening process ends.

Bostic says Fed still has much work to do in inflation fight – WSJ. Inflation is the biggest headwind to the U.S. economy, and Federal Reserve officials remain determined to push it down to their 2% target, Atlanta Fed President Raphael Bostic said.

Market Headlines:

Global Macro:

Japan’s new benchmark 10-year government note brings a fresh headache for the nation’s central bank in its battle against bond bears as the yield on the December 2032 note touched 0.50% in the secondary market after it was auctioned on Thursday – Bloomberg.

China's central bank and the banking and insurance regulator have established a dynamic adjustment mechanism on mortgage rates for first-time home buyers, the central bank said on Thursday, in a bid to further support the property sector - Reuters.

Russian President Vladimir Putin called Thursday for a 36-hour cease-fire during Russian Orthodox Christmas as his troops were getting pushed back and hit by Ukrainian forces - WSJ.

Japanese workers’ real wages fell by the most in eight years, suggesting that there’s still some way to go before the central bank can achieve its wage-growth accompanied price goal. – Bloomberg.

The UK government agreed to work with BioNTech SE to treat as many as 10,000 cancer patients with personalized therapies by 2030, a research partnership that will give the German company quicker access to patients it needs to test its drugs – Bloomberg.

The Federal Trade Commission on Thursday issued a plan to ban noncompete clauses, a proposal that would allow workers to take jobs with rival companies or start competing businesses but raises the prospect of legal opposition from companies that say the practice has a legitimate purpose - WSJ.

Republican congressman Kevin McCarthy lost a historic 11th round of voting in his bid to become Speaker of the House on Thursday night, after his efforts to offer fresh concessions to members of his own party fell on deaf ears and the impasse in Washington rolled on for a third day – FT.

Company Specific:

Samsung Electronics’ profit dropped by 69% in its worst fall in more than a decade, as an economic slowdown pummeled memory chip prices and demand for IT gadgets and servers – Bloomberg.

Citadel’s winning streak continued in 2022, with Kenneth Griffin’s hedge-fund and electronic-trading businesses both posting record revenues even as markets swooned, people familiar with the matter said - WSJ.

Panasonic Holdings plans to invest more than 50 billion yen ($375 million) over three years to expand production in China, betting on the country's long-term potential in the face of coronavirus and other headwinds – Nikkei Asia.

Massive crypto lender Genesis Global Trading laid off 30% of its staff and is considering filing for bankruptcy, according to people familiar with the matter, the latest sign of financial turmoil at the crypto lender - WSJ.

Silvergate Capital reported a sharp drop in fourth-quarter crypto-related deposits on Thursday as investors spooked by the collapse of FTX pulled out more than $8 billion in deposits – Reuters.

Bed Bath & Beyond warned it may file for bankruptcy protection and has substantial doubt that it can stay in business after enduring another quarter of deep losses and slumping sales - WSJ.