Stansberry Research

Friday Morning Market Headlines

C. Scott GarlissStansberry NewsWire

Five Stories Moving the Market:

Fed's Bullard favors getting rates above 5% 'as soon as possible'Bloomberg. Federal Reserve Bank of St. Louis President James Bullard said the U.S. central bank should raise interest rates above 5% expeditiously to ensure price pressures are subdued.

Fed's Harker ready to downshift to 25-basis-point interest-rate hikesReuters. Federal Reserve Bank of Philadelphia President Patrick Harker said Thursday that while the central bank needs to raise rates more to cool off inflation, it can probably do so at a much slower pace compared to the action of last year.

Inflation report tees up likely quarter-point Fed rate rise in FebruaryWSJ. Fresh data showing inflation eased in December are likely to keep the Fed on track to reduce the size of interest-rate increases to a quarter percentage point at its meeting that concludes on February 1.

Fed's Barkin says appropriate to raise rates 'more deliberately'Bloomberg. Federal Reserve Bank of Richmond President Thomas Barkin said inflation has been slowing down and the central bank doesn't need to raise interest rates as aggressively as it did last year.

Inflation is turning the cornerWSJ. Just as the U.S. got used to thinking high inflation could be here to stay, signs are emerging that most of the surge through 2021 and the first half of 2022 was actually transitory – as Federal Reserve officials originally thought.

Market Headlines:

Global Macro:

China’s annual trade surplus hit a record high in 2022 in yuan terms, as surging exports through the first half of the year offset a global drop-off in demand that worsened in the final quarter - Bloomberg.

The International Monetary Fund is not expected to downgrade its forecast for 2.7% growth in 2023, the head of the global lender said on Thursday, noting that concerns about an oil price spike had failed to materialize and labor markets remained strong – Reuters.

The head of the United Nations atomic agency plans to visit Ukraine next week to deploy international inspectors at all of the war-torn country’s nuclear plants, amid the threat of a renewed Russian offensive – WSJ.

Foreign investors sold a record 10.79 trillion yen ($82.9 billion) more in Japanese government bonds than they bought in 2022, Ministry of Finance data out Thursday shows, underscoring their role in driving the recent upward pressure on yields – Nikkei Asia.

Parts of China’s economy are bouncing back, but Infections have skyrocketed, medical facilities are stretched to their limits and the elderly are dying, with Lunar New Year holiday travel risks furthering the spread - WSJ.

Mortgage costs for first-time home-buyers in Britain have risen to their highest since 2008, reflecting a surge in interest rates over the past year, Nationwide Building Society said on Friday – Reuters.

House Speaker Kevin McCarthy (R-CA) wrapped up his first week in the role by saying that House Republicans would keep up a rapid pace as they move to control spending and investigate the Biden administration - WSJ.

U.S. inflation eased in December for the sixth straight month following a mid-2022 peak as the Federal Reserve aggressively raised interest rates and the economy showed signs of cooling – WSJ.

Genesis Global Capital and Gemini Trust were sued by the U.S. Securities and Exchange Commission, which claims they were selling unregistered securities to U.S. investors - Bloomberg.

Alphabet’s Google and Nvidia have expressed concerns to the Federal Trade Commission about Microsoft’s acquisition of Activision Blizzard, adding fuel to the government’s case against the $69 billion deal, according to people familiar with the matter - Bloomberg.

Company Specific:

ConocoPhillips, which abandoned Venezuela after its assets were nationalized in 2007, is now open to a deal to sell the country’s oil in the U.S. as a way to recover the close to $10 billion it is owed by Venezuela, according to people familiar with discussions between the company and Venezuela representatives - WSJ.

Taiwan Semiconductor said it is considering building a second plant in Japan and is evaluating the possibility of a first in Europe as the world's largest contract chipmaker responds to customers' demands for a more geographically diverse supply chain - Nikkei Asia.

Sam Bankman-Fried said he did not steal money and blamed the collapse of his now-bankrupt FTX exchange on a broad crash in cryptocurrency markets, in a highly unusual blog post on Thursday, a month after his arrest on U.S. fraud charges - Reuters.

Warner Bros. Discovery is raising the monthly price for the ad-free tier of its HBO Max streaming service amid an industrywide slowdown in subscriber growth and a rising emphasis on profits – WSJ.