North American Morning Briefing: Stock Futures -2-

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Genesis Global Capital LLC’s late-night bankruptcy filing last week marked the end of an era for crypto lenders that tried to bring the centuries-old business model of banks to -digital currency space.

Many of the biggest names in crypto lending have failed in the last half year, highlighting the weak foundations, risky practices and lack of regulation in the sector. Now, millions of depositors who parked their savings with such lenders are in limbo as they hope to get some of their money back in slow-moving bankruptcy proceedings.

Microsoft Faces the Highest Bar in Technology

Microsoft may be planning to do more with less. Investors expect you to do much more.

The software giant heads into its fiscal second-quarter earnings report on Tuesday facing a shrinking PC market, a shrinking enterprise software market and even unclear demand for the once-hot cloud computing services.

Crypto Banks Borrow Billions from Banks with Home Loans to Plug Shortfalls

Two of the biggest banks for cryptocurrency companies are rushing to stem a flood of customer withdrawals by borrowing billions of dollars from Federal Home Loan Banks, the system originally designed to back mortgage loans in the 1930s .

Signature Bank leveraged its local home loan arm for nearly $10 billion in the fourth quarter, among the largest such loans of any bank since the start of 2020, according to a securities filing . Silvergate Capital Corp., a competing lender that shifted its business to crypto a decade ago, received at least $3.6 billion.

Tesla, Microsoft are Busy Earnings First Week of 2023

Microsoft Corp., Tesla Inc. and Johnson & Johnson post a busy first week of 2023 earnings as investors seek insight into the global economy amid growing concerns about a possible recession.

Other companies that will issue their latest quarterly reports include telecommunications companies AT&T Inc. and Verizon Communications Inc.; Visa Inc. and American Express Co.; and airlines including Southwest Airlines Co.

How Apple So Far Avoided Layoffs: Lean Hiring, No Free Lunch

The layoffs hit the technology industry hard except at Apple Inc.

The largest company in the world has so far avoided the reduction of jobs that goes by its peers including Microsoft Corp., Google, Meta Platforms Inc. and Inc.

The Fed Sets Course for a milder Interest Rate Increase in February

Federal Reserve officials are preparing to cut interest rate hikes for the second consecutive meeting and debate how much higher they will raise after gaining more confidence inflation will fall further this year.

They can start deliberating on 31 January-February. 1 gathering how much more softening in labor demand, spending and inflation they will need to see before rate hikes stop this spring.

Debt Ceiling Looms on Capitol Hill as Congress Gets Back to Work

WASHINGTON-A deeply divided Congress will return to work this week, pushing forward with partisan priorities in the Senate and House while also preparing for a fight over how lawmakers will tackle the cap increase of the debt ahead of a potential default later this year.

The Senate, narrowly controlled by Democrats as it opens its new session, is expected to focus primarily on confirming President Biden’s executive and judicial nominees in the coming weeks. Immigration is emerging as one area of ​​possible compromise after a group led by Sen. Kyrsten Sinema (I., Ariz.) and Sen. John Cornyn (R., Texas) co-hosted a bipartisan delegation of senators for the borders of Texas and Arizona. during the January holidays.

China’s Reopening Complicates Global Fight Against Inflation

HONG KONG-Just when signs point to easing inflation around the world, China’s economic reopening after years of tight pandemic controls is raising questions about whether it can spur spending again higher.

Many economists are not too worried, but say the initial uncertainty will complicate matters for the Federal Reserve and other central banks that have been raising interest rates to fight inflation by slowing economic growth.

US Treasuries at ‘tipping point’: Stocks, bonds correlation changes as fixed income market raises recession warning

Bonds and stocks may be returning to their usual relationship, a boon for investors with a traditional mix of assets in their portfolios amid fears that the United States will face a recession this year.

“The bottom line is that the correlation has now gone back to a more traditional one, where stocks and bonds don’t necessarily move together,” Kathy Jones, chief fixed-income strategist at Charles Schwab, said in an interview. -phone. “It’s good for the 60-40 portfolio because the point of that is to have diversification.”

Janet Yellen Abolishes $1 Trillion Currency Print to Avoid Default

LUSAKA, Zambia Treasury Secretary Janet Yellen said the Federal Reserve is unlikely to accept a $1 trillion platinum coin if the Biden administration tries to design one to avoid breaching the debt, and rejected an idea that was set up to bypass Congress on the issue. .

Some Biden administration officials and Democrats on Capitol Hill have discussed the possibility that the Treasury could use an obscure law authorizing platinum coins in the event of a potential default. Under the proposed scheme, the Treasury would mint $1 trillion in currency and deposit it at the Fed, and then withdraw the money to pay the country’s bills.

Investors Plow Into Renewable Energies, but the Projects are not being built

Even as developers plan an unprecedented number of grid-scale wind and solar installations, project construction is slowing in the United States.

Despite billions of dollars in federal tax credits up for grabs and investors eager to fund clean energy projects, the pace of development has slowed and many renewable energy plans face an uncertain path to completion. Snags in the supply chain, long waits to connect to the grid and challenging regulatory and political environments around the country are contributing to the slowdown, analysts and companies say.

The Offshore Oil Business Is Thriving

The $1.2 billion Deepwater Titan sat idle in a Singapore shipyard for five years, looking like an abandoned cruise ship with a derrick attached to its deck. Soon this vessel that spans three football fields will depart for the deepest waters of the Gulf of Mexico, where its crew will be able to dig 8 miles below the seabed in search of of oil for Chevron Corp.

The hunt for offshore oil has resumed, spurred by rising global energy demand, supply disruptions caused by the war in Ukraine and crude prices that remain above pre-pandemic levels . Other giant rigs such as Titan that were dormant towards the end of the last decade are also now operating in deep waters off the coast of Brazil, while non-propulsion rigs are mining in shallow waters in the east Middle after catching rides to that part of the world. on tugboats.

The Ultimate Contrarian Indicator to start the Year

The mood among the world’s financial elite as they gathered in the mountain resort of Davos, Switzerland, is typically a useful investment indicator: However, they feel, they do the opposite.

Not so much this year. Bankers, executives and politicians were more optimistic, but only relative to how pessimistic they were feeling a few months ago. Just like the markets, they had a bit of a rally, but are still down in the dumps compared to this time a year ago. They are also concerned with the same uncertainties that trouble investors.

A Sequence of Discoveries of Classified Documents Seem to Stain the White House

WASHINGTON-Democrats expressed concern on Sunday that multiple discoveries of classified documents in President Biden’s private home and former office will obstruct his agenda and open the door to further investigations led by House Republicans. as lawmakers return to Washington.

The Justice Department searched Mr. Biden’s home in Wilmington, Del., for more than 12 hours Friday, an examination that led authorities to take possession of additional items with classified markings and some related materials, according to a statement issued late Saturday by Mr. Biden’s personal attorney, Bob Bauer.

Jeff Zients will be named White House Chief of Staff

WASHINGTON-President Biden plans to name Jeff Zients, an investor and former Obama administration official who led the White House’s Covid-19 response, to be his next chief of staff, according to people familiar with the decision.

Ron Klain, Mr. Biden’s current chief of staff, is expected to step down in the coming weeks after more than two years on the job. The Washington Post earlier reported that Mr. Zients was expected to replace him. Mr. Zients did not respond to requests for comment, and the White House declined to comment.

Ukraine War Plunges Europe’s Leaders into Battle of Wills

Europe is winning its energy war with Russia. The region’s economy and politics are proving more stable than its leaders previously feared in their confrontation with Moscow. Now the question they are facing is whether they want Ukraine to win the shooting war.

The rift between Germany and many of its North Atlantic Treaty Organization allies, including the United States, over whether to supply Kyiv with German-made Leopard 2 tanks reflects continuing differences among Western leaders about the stakes and risks of Russia’s war on Ukraine.



Nothing scheduled

Economic Calendar (ET):

0830 Dec New House Price Index

Stocks to watch:

CryptoBlox To Acquire Digital Mining Infrastructure Company; Entered into Shr ‘Arm’s Length’ Definitive Purchase Agreement, Dated January 17, With CryptoTherm and 1289048 BC Ltd. to Acquire 100% of CryptoTherm’s Outstanding Manufacturing Shrs

Fission Uranium Fires Jeff Pryznyk as Environmental Manager; Pryznyk Replaces Aaron MacDonell, Who Resigned To Pursue Other Opportunities

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01-23-23 0621ET

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