What I Am Reading

Monday, June 27, 2022

Latest Morning Briefing

The best laid plans of climate activists have gone majorly awry: Soaring fossil fuel prices haven’t increased demand for and supply of “clean” energy sources, as they’d expected, while demand for fossil fuels exceeds supplies. And activists’ pressure on European governments to suppress production of fossil fuels has really backfired, creating an unholy dependence on Russian oil with dangerous geopolitical ramifications. As a result, fossil fuel sources are making a remarkable comeback. … Also: US analysts still haven’t gotten the recession memo, blithely raising estimates even though investors and managements alike are girding for the worst. Even analysts overseas have on rose-colored glasses, particularly in Europe where the risk of a recession is rising as energy shortages worsen.

Markets

Stocks gain sharply for day and week, while copper falls furtherReuters
What Do You Call the Market’s Cheapest Stocks? Bargains.Barron's
Value Investors Bet Recent Market Leadership Is Just the StartWall Street Journal
How an Income Fund Makes Stocks Safer With High-Yield BondsBarron's

Central banks

Central Banks Should Raise Rates Sharply or Risk High-Inflation Era, BIS WarnsWall Street Journal
How fighting inflation could imperil the euro zoneEconomist
The Bank of Japan v the marketsEconomist

Energy

Europe Turns to an Unlikely Source to Replace Russian Energy: UkraineWall Street Journal

US

Consumer Sentiment at Record Low Is Another Ominous Sign for EconomyWall Street Journal

Europe

China

China’s crackdown on the fun industry continuesEconomist

Geopolitics & trade

Industries & companies

Airlines:United Airlines Stock Has Slumped. Director Edward Shapiro Bought Up Shares.Barron's
Autos:Carvana Sought to Disrupt Auto Sales. It Delivered Undriveable Cars.Barron's
Autos:Tesla, Ford and GM Raise EV Prices as Costs, Demand GrowWall Street Journal
Consumer Discretionary:Amazon’s Prime Day Isn’t Quite the Blockbuster It Once WasWall Street Journal
Pharma:Pfizer’s Omicron-Targeting Covid-19 Vaccines Generate Stronger Immune ResponseWall Street Journal
Retail:Buy Starbucks Stock. The Coffee Giant’s Worst Problems Are Behind It.Barron's
Tech:Recruiters say the tech job market is still red-hot, despite isolated layoffs and cautious words from execsCNBC

Climate & Sustainability

Electrifying everything does not solve the climate crisis, but it is a great startEconomist

Beyond markets

World Health Organization says monkeypox is not a global health emergency right nowCNBC