Stansberry Research

Thursday Morning Market Headlines

Stansberry NewsWire

Five Stories Moving the Market:

BOJ to review side-effects of massive easing at next week's meeting – Reuters. The Bank of Japan will review the side effects of its monetary easing at next week's policy meetings and may take additional steps to correct distortions in the yield curve, Yomiuri Shimbun reported on Thursday.

ECB’s De Cos sees ‘significant’ rate hikes at coming meetings – Bloomberg. The European Central Bank will deliver big increases in borrowing costs at its upcoming meetings, according to Governing Council member Pablo Hernandez De Cos.

Fed’s Collins backs slowdown as support mounts for a smaller rate move - NY Times. Susan M. Collins, the president of the Federal Reserve Bank of Boston, said she was leaning toward a quarter-point interest rate increase at the central bank’s next meeting.

Chinese bank deposits exceed loans by $6.5 trillion as caution prevails – Nikkei Asia. Money in China is stuck in banks, with the gap between deposits and loans hitting the highest on record at the end of last year amid an uncertain economic outlook.

Rehn says ECB needs several more significant rate hikes – Reuters. The European Central Bank must still raise interest rates "significantly" over its coming meetings to restrict growth and dampen inflation, which has been far too high, Finnish central bank chief Olli Rehn said on Wednesday.

Market Headlines:

Global Macro:

Russia has replaced the general in charge of its trouble-plagued war against Ukraine, amid signs of dissension among President Vladimir Putin’s top allies — a shake-up that critics said would not address what ails the Russian military – NY Times.

The U.S. and its allies are preparing their next round of sanctions onRussias oil industry, aiming to cap the sales prices of Russian exports of refined petroleum products in an expansion of novel penalties the West has imposed on the countrys crude – WSJ.

Foreign currency reserves worldwide shrank 10% in the first nine months of last year as countries like Japan scrambled to defend their currencies against a rapidly strengthening dollar – Nikkei Asia.

The U.S. and Taiwan intend to focus on five areas this weekend during their first round of negotiations toward a trade agreement and indicated readiness to break out subset deals as the sides make progress, according to U.S. and Taiwan officials – WSJ.

President Volodymyr Zelensky urged NATO to do more than just promise Ukraine its door is open at a July summit, saying Kyiv needs "powerful steps" as it tries to join the military alliance – Reuters 

South Korea’s Hanwha Group plans to spend $2.5 billion to build an entire solar-manufacturing supply chain in Georgia, the biggest solar investment spurred so far by the massive tax incentives the U.S. introduced last year – WSJ 

Britain's official statistics office said on Wednesday it would delay the publication of producer price inflation data for November and December until January 25 after it investigated the reliability of some of the prices used in the figures – Reuters 

Japan and the U.K. have signed a landmark defense pact that allows forces from both countries to be deployed to the other for training, joint exercises, and disaster relief activities – Nikkei Asia.

A leading Chinese solar panel maker has leased space for its first U.S. factory in another win for the Biden administration’s efforts to build up the nation’s clean energy manufacturing base – WSJ.

European natural gas prices declined for a second day as strong LNG supply vied with forecasts for colder weather next week that could boost demand - Bloomberg.

President Biden called on lawmakers of both parties to come together to pass legislation to hold big technology and social-media companies accountable, accusing some in the industry of exploiting users’ personal data and endangering children – WSJ 

The U.S. hasn’t changed its policy on sending Navy vessels through the Taiwan Strait, the Pentagon said, describing a decline in the number of transits last year as nothing out of the ordinary – Bloomberg 

Airlines were trying to recover from a temporary outage to a critical pilot-alert system that left planes unable to depart on Wednesday, snarling thousands of flights for hours and stranding travelers across the country – WSJ 

The head of the U.S. Consumer Product Safety Commission said the agency has no plans to ban gas stoves, days after one of his colleagues said a ban was one option under consideration in comments that ignited a political firestorm – Bloomberg 

Company Specific:

Walt Disney and billionaire Nelson Peltz are squaring off for a boardroom battle after the home of Mickey Mouse denied the prominent activist investor a seat on its board - Reuters.

Teslais considering more than $775 million in expansions at its electric-vehicle plant near Austin, Texas, an indication the automaker is maintaining production growth ambitions in the face of Wall Street concerns over demand for its cars – WSJ 

BlackRock plans to dismiss about 500 employees, roughly 2.5% of its global workforce, after the world’s biggest asset manager grappled with sharp declines last year in equity and bond markets – Bloomberg 

Citigroupis shuffling the leadership of its wealth-management business, whose growth has fallen short of targets during a market downturn that has sapped demand for its services – WSJ 

Verily Life Sciences, a healthcare unit ofAlphabet, is laying off more than 200 employees as part of a broader reorganization, the first major staff reductions to hit Google’s parent following a wave of layoffs at other technology companies – WSJ.