- Tesla halts Shanghai production due to difficulty securing parts.
- El Salvador’s President tweets that they bought the dip in Bitcoin.
- UK BRC Retail Sales declines on an annual basis for first time in a year.
- Ferdinand Marcos Jr set to win Philippines’ Presidential election by a landslide.
- China turns into net exporter of aluminium.
- EU softens oil sanctions.
- One of Andy Warhol’s iconic Marilyn Monroe paintings sells for $195m, becoming the most expensive piece of American art, although below the $200-300m estimates.
US stocks were hit as the withdrawal of liquidity continues, the S&P500 closed down 3.2% breaching the 4,000 level, its lowest in a year. The US 10 year yield plummeted from 3.13% to almost 3.00% which helped shore up Asian stocks overnight. Today brings a plethora of Fed speakers and the Bundesbank’s Nagel as well as results from Bayer, Nintendo and Wynn Resorts.
The Week That Will Be
Inflation, Chinese numbers Wednesday, US inflation hardly matters to the Fed in the short term; UK GDP, the number on Thursday isn’t of much concern its growth in the next quarter that counts seeing as the world has changed so much in three months; The ECB, hawks completed their ascendency with Schnabel converting to a July hike; UK Politics, Boris will probably be breathing a sigh of relief now that Keir Starmer is under the lockdown breach spotlight, but the reality is it will pressure Boris more if Starmer has to go. The election results were the thousandth nail in his coffin anyway; Volatility, US stock rollercoaster will continue and QT risks market dysfunction as well, red flag upon red flag.
On this day in 1975 Sony introduced the Betamax video cassette recorder.