Morning Reads

Morning Reads

• Business Is State-Controlled
• China Delays Indefinitely the Release
• China’s Economy Needs to Double
• New U.K. Finance Minister Drops Almost All of Tax-Cut Plan
• How Russian Ships Are Laundering Grain
• Saudi Arabia’s Super Fund Leans
• Big Coal Uses This Playbook to Avoid Cleaning Up its Messes
• New England Risks Winter Blackouts as Gas Supplies Tighten
• Democrats Spent $2 Trillion
• Despite What the Experts Told You, This Was Never ‘Inflation’
• The Rent Revolution Is Coming
• What the $24.6 Billion Kroger-Albertsons Merger
• Goldman Shakes Up Leadership Ranks in Yet Another Overhaul
• Bank of America Profit Drops on Loan-Loss Reserve Build
• Procter & Gamble Bets Inflation
• Families Still Struggle
• Sports TV Rights Are Costlier Than Ever
• Ye to Buy Controversial Social Networking App Parler

Option

Futures

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• S&P 500 futures are 1.2% above fair value; the Nasdaq 100 futures are 1.4% above fair value; and the DJIA futures are 1.0% above fair value
• Key factors driving the futures market:
  • UK Finance Minister Hunt announces reversal of most of mini-budget plan
  • Bank of America (BAC) posts better-than-expected earnings results
  • Sovereign bond yields drop following UK budget news (10-yr gilt -43 bps to 3.95%)
  • Morgan Stanley Strategist Wilson sees scope for sizable technical rally to 4,150 if recession or earnings capitulation can be avoided, according to Bloomberg
• Chinese President Xi reaffirms China's zero Covid policy and says he prefers peaceful reunification with Taiwan but won't rule out use of force if it was necessary, according to New York Times
• Goldman Sachs (GS) is pursuing a corporate reorganization, according to Bloomberg
• Meta Platforms (META) is struggling with its metaverse transition, according to The Wall Street Journal
• Brokerage research calls of note:
  • Upgrades: CHD, CLX, NET, FRC, FCFS, PLD, RDN
  • Downgrades: ACI, EPC, KR, LYG, WLK, XPO, ERO, FOXA, HIMS, HBM, NWSA, NMIH, OPEN, TRNO
• WTI crude futures -1.1% to $84.65/bbl; nat gas futures -6.7% to $6.03/mmbtu; copper futures +0.6% to $3.44/lb
• 2-yr note yield -6 bps to 4.44% and 10-yr note yield -7 bps to 3.94%