Stansberry Research

Wednesday Morning Market Headlines

C. Scott GarlissStansberry NewsWire

Five Stories Moving the Market:

BOJ keeps yield control policy unchanged – Reuters. The Bank of Japan on Wednesday maintained ultra-low interest rates, including its 0.5% cap for the 10-year bond yield, defying market expectations it would phase out its massive stimulus program in the wake of rising inflationary pressure.

ECB is pondering slower hikes after half point in February – Bloomberg. European Central Bank policymakers are starting to consider a slower pace of interest-rate hikes than President Christine Lagarde indicated in December, according to officials with knowledge of their discussions.

China says economy to return to faster growth as COVID isolation ends – WSJ. President Xi Jinping‘s top economic adviser sought to restore global investor confidence in a Chinese economy much battered by the country’s self-imposed Covid isolation, saying in a high-profile speech on Tuesday that China’s growth would return to pre-pandemic levels this year as the country reopens to the world.

ECB’s Villeroy says resilient economy makes rate hikes easier – Bloomberg. European Central Bank Governing Council member Francois Villeroy de Galhau said the resilience of the continent’s economy in the face of the energy crisis makes ramping up interest rates less complicated.

NY Fed says U.S. household spending gains moderated in December – Reuters. American households are cutting back on spending, but are doing so from very high levels, a New York Federal Reserve report showed on Tuesday.

Market Headlines:

Global Macro:

Japan's core machinery orders fell 8.3% in November from the previous month, government data showed on Wednesday – Reuters.

Russia detailed its plans to boost the size of its military as Ukraine warned that Moscow may be preparing an offensive and Ukrainian President Volodymyr Zelensky called on Western allies to accelerate the provision of arms to the country - WSJ.

Business confidence at big Japanese firms slid in January with manufacturers showing a negative reading for the first time in two years, the Reuters Tankan survey found, reflecting a slow recovery from the pandemic amid a global economic downturn and rising living costs – Reuters.

Chancellor Olaf Scholz said he’s sure Germany will avoid a recession this year, offering reassurance for Europe’s largest economy as it faces down Russia’s energy squeeze - Bloomberg.

Business leaders and economists gathered in Davos, Switzerland, for the World Economic Forum’s annual event say they see the world buffeted by high inflation—and high interest rates that central banks have pushed through to combat it - has created a threat of recession – WSJ.

Mexico's economy expanded by about 3% in 2022, Finance Minister Rogelio Ramirez de la O said in a statement on Tuesday, as Latin America's No. 2 economy sought to recover lost ground from a pandemic-led slowdown – Reuters.

U.S. consumers are still in "pretty good shape," even as the Federal Reserve raises interest rates to tame inflation, Bank of America Chief Executive Brian Moynihan told Reuters during the World Economic Forum's annual meeting – Reuters.

Global housing markets will face significant declines this year and next as interest rates stay high, according to Harvard University Professor Kenneth Rogoff – Bloomberg.

Company Specific:

United Airlines reported stronger than expected fourth-quarter profit as demand for air travel is still outpacing the industry’s ability to meet it, airline executives have said, helping to keep airplane seats packed and fares relatively high - WSJ.

Moderna’s vaccine against RSV was highly effective in preventing the lung disease in older people, paving the way for the company to seek its first approval outside COVID-19 - Bloomberg.

U.S. engineering and industrial software company Emerson Electric on Tuesday disclosed a nearly $7 billion offer for National Instruments, which it has been trying to buy unsuccessfully for several months - Reuters.

Walt Disney fired back against activist investor Nelson Peltz, saying Tuesday that he didn’t understand the company’s business and shouldn’t be granted a seat on the board - WSJ.

Microsoft plans to cut thousands of jobs with some roles expected to be eliminated in human resources and engineering divisions, according to media reports on Tuesday - Reuters.

Apple unveiled its latest iteration of the MacBook Pro, a move that will test its sway with consumers as demand for personal computers is expected to slump – WSJ.