What I Am Reading

Wednesday, April 26, 2023

Latest Morning Briefing

Fiscal Dystopia

If Congress doesn’t increase the federal debt ceiling soon, the government will no longer be able to pay its bills. Jim Lucier of Capital Alpha Partners reports on the progress of the Limit, Save and Grow Act, which may well pass the House this week. … The government has been in such pickles before, and the debt limit usually got raised before the 11th hour and a couple of times at the 12th hour. Of course, the recent consequences of the government’s unprecedented fiscal excesses have been massive federal deficits and inflation boosted by helicopter money. But doomsday as predicted by the doomsters has yet to arrive. We examine why. … Also: Joe looks at the profit margins that analysts expect for S&P 500 sectors and industries. YRI Daily Markets Overview

Markets

Column: Oil market has absorbed surprise production cut by OPEC+Reuters
Russian Oil Prices Surge, Put Sanctions to TestWall Street Journal
Yuan overtakes dollar to become most-used currency in China's cross-border transactionsReuters
Column: The world is not dumping its dollarsReuters

US

Economic Turmoil: Summers See 5% Inflation Sticking Without Major DownturnBloomberg
How the U.S. Economy Is Faring Under Joe Biden in Six ChartsWall Street Journal
Biden's impending WatergateWashington Times
Ironically, Biden’s the one making America great againThe Hill
US House Republicans revise debt ceiling bill after dissension in ranksReuters

Geopolitics & trade

India’s Population Surpasses China, Shifting Global OrderWall Street Journal
China’s Xi Makes First Call to Ukraine’s Zelensky Since Russian InvasionWall Street Journal
China’s Expanded Spy Law Adds to Chilling Effect of DetentionsWall Street Journal
China Dominates U.S. Solar Market as Lawmakers Tussle Over TariffsWall Street Journal
Kremlin warns of more asset seizures after move against Fortum and UniperReuters
U.S., South Korea Pledge Cooperation on Potential Use of Nuclear ArmsWall Street Journal

Industries & companies

Autos:Look Out, Tesla, There’s a Really Tiny Competitor in Your Rearview MirrorWall Street Journal
Banks:SVB Financial Group Stuck in Bankruptcy Stalemate with FDICBloomberg
Banks:Banking Problems May Be Tip of Debt IcebergWall Street Journal
Media:Disney sues Florida's DeSantis over efforts to 'weaponize' government over free speechReuters
Pharma:Merck Keeps Striking Out on Expanding Its Cancer-Drug JuggernautWall Street Journal

Corporate finance

U.K. Regulator Blocks Microsoft’s $75 Billion Activision Blizzard TakeoverWall Street Journal
The $11.8 billion mistake that led to Bed, Bath & Beyond's demiseCNN
SPACs Delivered Easy Money, but Now Companies Are Running OutWall Street Journal

Climate

‘The Greenest Bullet Train In The World’: Wes Edens Wants To Kickstart U.S. High-Speed Rail With A Vegas-L.A. LineFOX

Beyond markets

Elon’s Musk’s Twitter verification check mark debacle is getting worseVox
Schools Are Ditching Homework, Deadlines in Favor of ‘Equitable Grading’Wall Street Journal
So Many Ways to Communicate at Work, So Many Ways to MisfireWall Street Journal