16May2022 Market Close & Major Financial Headlines: Wall Street Post Mostly Negatively As The Market Struggles To Recover From Multiple Weeks Of Losses, Mixed Market, Dow Slides After China Data Largely Disappoints Investors In Uncertain Session

Europes Economic Outlook Is Looking Bleaker By The Day

Russias invasion of Ukraine is generating fresh headwinds that will choke the European economy, reveal official forecasts published today. Surging energy prices caused by concerns over supply security following Moscow sending troops into Ukraine are set to strain households and businesses on the Continent. High input prices are likely to weigh on production, while elevated living costs will push spending lower than first expected. Weaker projected activity levels led the European Commission today to downgrade its forecasts for growth in

Read more at: https://oilprice.com/Energy/Energy-General/Europes-Economic-Outlook-Is-Looking-Bleaker-By-The-Day.html

Political Crisis Could Thwart Georgias Bid For EU Membership

On May 10, Georgian Prime Minister Irakli Garibashvili formally handed over a seven-volume tome to the European Union’s ambassador in Tbilisi, Carl Hartzell. Together with another weighty document submitted a week earlier, they represent the Georgian government’s answers to the 2,600-point EU questionnaire covering the state of the country’s politics, economy, and institutions and are meant to help assess its readiness to start the process of accession to the bloc. Now, over the coming weeks, the European Commission will prepare

Read more at: https://oilprice.com/Geopolitics/International/Political-Crisis-Could-Thwart-Georgias-Bid-For-EU-Membership.html

Shale Pioneer Harold Hamm Slams Biden’s “Failed” Energy Policies

The Biden Administration’s “failed policies on energy are not working” and this administration hasn’t changed its tune to the oil industry since day one in office, Continental Resources chairman and founder Harold Hamm told Fox Business in an interview on Monday. Shale pioneer and oil billionaire Hamm was commenting on the record-high prices of gasoline and diesel in America, noting that economic weakness is inevitable when the U.S. economy is faced with the highest diesel prices on record. As of May 16, the average nationwide gasoline price is

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Shale-Pioneer-Harold-Hamm-Slams-Bidens-Failed-Energy-Policies.html

Tin Supply Is Running Dangerously Low

Despite a strong rebound in output, the tin market is still dangerously short on supply. How will this affect the tin price forecast? Experts are rushing to weigh in. According to Reuters, the International Tin Association (ITA) reported that global refined tin production increased by 11% to 378,400 metric tons last year. But while output is up, so is demand. This is especially true of the electronics sector, which also accounted for the vast majority of last year’s demand. In December 2021, overall demand growth was 32.6% year over year.

Read more at: https://oilprice.com/Metals/Commodities/Tin-Supply-Is-Running-Dangerously-Low.html

Oil Prices Surge Past $113 As Shanghai Signals End Of Lockdown

Oil prices have topped $113 per barrel on optimism that China’s lockdowns are coming to an end and demand will not take a prolonged hit. In early afternoon markets Monday, news that Shanghai was seeing a strong recovery from COVID cases, with plans in place to ease lockdown restrictions beginning this week, outweighed a litany of bearish news for oil. Brent was at $113.6 per barrel on 1:38 pm EST, while WTI was trading at $113.5. Authorities in Shanghai on Monday said restrictions would finally ease, in stages, after nearly

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Oil-Prices-Surge-Past-113-As-Shanghai-Signals-End-Of-Lockdown.html

Germanys RWE To Follow Kremlins Rubles-for-Gas Scheme

Germany’s largest producer of power, the giant RWE utility, has opened an account to pay for Russian gas in euros, Reuters reports, which will then be converted to rubles, following European Union clarifications that essentially allow companies to follow the Kremlins gas-for-rubles scheme without violating sanctions. By the end of this month, contracts for Russian natural gas will come due for many European companies who have been struggling to determine how to pay for gas in Russian currency without falling afoul of EU sanctions.

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Germanys-RWE-To-Follow-Kremlins-Rubles-for-Gas-Scheme.html

JetBlue launches hostile takeover bid for Spirit Airlines

JetBlue wrote to Spirit shareholders Monday, offering $30 a share and encouraging them to vote against the Frontier deal.

Read more at: https://www.cnbc.com/2022/05/16/jetblue-launches-hostile-takeover-bid-for-spirit-airlines.html

How Carvana went from a Wall Street top pick to trading with meme stocks

Carvana has gone from Wall Street’s preferred used car retailer to trading like a meme stock amid cost-cutting measures and layoffs.

Read more at: https://www.cnbc.com/2022/05/16/how-carvana-went-from-a-wall-street-top-pick-to-meme-stock-trading.html

McDonald’s says it will sell its Russia business after previously pausing operations due to Ukraine war

McDonald’s said it will sell its business in Russia, a little more than two months after it paused operations in the country due to its invasion of Ukraine.

Read more at: https://www.cnbc.com/2022/05/16/mcdonalds-says-it-will-sell-its-russia-business-after-previously-pausing-operations-due-to-ukraine-war.html

Auction of Judy Garland ‘Wizard of Oz’ dress in jeopardy as judge sets hearing on ownership lawsuit

A Wisconsin woman is suing Bonham’s auction house and The Catholic University of America over the dress, which was worn by Judy Garland in “The Wizard of Oz.”

Read more at: https://www.cnbc.com/2022/05/16/auction-of-judy-garland-wizard-of-oz-dress-in-jeopardy-set-for-court-hearing.html

A severe pilot shortage in the U.S. leaves airlines scrambling for solutions

The U.S. is facing its worst pilot shortage in recent memory, forcing airlines to cut flights just as travelers are returning after more than two years of the Covid-19 pandemic.

Read more at: https://www.cnbc.com/2022/05/15/us-pilot-shortage-forces-airlines-to-cut-flights-scramble-for-solutions.html

Inflation is the ‘top problem’ facing America, with no other issue coming close, survey shows

Amid swelling prices, most Americans see inflation as the biggest issue facing the country — far exceeding other concerns, according to a survey.

Read more at: https://www.cnbc.com/2022/05/16/inflation-is-the-top-problem-facing-america-survey-shows-.html

Rivian’s shares sink after a report a legal battle with a supplier could delay Amazon vans

Rivian’s suit accuses Ohio-based Commercial Vehicle Group of violating its contract with Rivian by sharply raising its prices after the contract was signed.

Read more at: https://www.cnbc.com/2022/05/16/rivian-lawsuit-warns-amazon-vans-could-be-delayed-report-says.html

The plant-based food industry is facing a reset as Beyond Meat and Oatly shares suffer

Shares of Beyond Meat and Oatly have shed more than half their value this year.

Read more at: https://www.cnbc.com/2022/05/14/plant-based-food-stocks-beyond-meat-oatly-face-a-reset.html

Boeing considers redesigning problematic valve that has kept Starliner from flying NASA astronauts

Boeing is examining whether to redesign the propulsion valves on its Starliner crew capsule, a system has already kept the company from flying astronauts.

Read more at: https://www.cnbc.com/2022/05/12/boeing-considers-redesigning-crucial-valve-for-starliner-space-capsule.html

This flashy Bel Air mansion that was listed at $87.8 million flopped at auction — and now the seller is furious

“Horrible, Horrible, Horrible!” was how the seller, who filed for Chapter 11 last year, characterized the auction results to CNBC.

Read more at: https://www.cnbc.com/2022/05/13/bel-air-mansion-flops-at-auction-after-being-listed-at-87point8-million.html

NBA legend Dwyane Wade likes to take risks in business, and now he’s getting into NFTs

Wade, 40, purchased an equity stake in two sports teams, and he’s hosting a TV show. Wade is also taking a chance with the volatile NFT marketplace.

Read more at: https://www.cnbc.com/2022/05/14/dwyane-wade-likes-to-take-business-risks-and-now-hes-getting-into-nfts.html

Boeing management needs a reboot after losing its way, Ryanair CEO says

Ryanair CEO Michael O’Leary has called for a shakeup of management at U.S. aircraft giant Boeing, after delivery delays and a period of fractious negotiations.

Read more at: https://www.cnbc.com/2022/05/16/boeing-management-needs-a-reboot-after-losing-its-way-ryanair-ceo-says.html

After the ‘hippie’ bus and the Beetle, VW has its eyes on America once again

VW is targeting 10% market share in the U.S. as it looks to become “much more American.”

Read more at: https://www.cnbc.com/2022/05/16/after-the-hippie-bus-and-beetle-vw-makes-eyes-at-america-once-again.html

Growth Scare Sparks Stock Chaos; Bonds & Bullion Jump As Bitcoin & The Buck Dump

Growth Scare Sparks Stock Chaos; Bonds & Bullion Jump As Bitcoin & The Buck DumpThis morning’s 8-sigma miss to the downside for Empire Fed manufacturing dragged the US Macro Surprise Index into the red for the first time since February…

Source: Bloomberg

And combined with near record low liquidity in equity markets (Top of book liquidity in the S&P 500 futures (the most liquid future in the world) is $2.12M available on the touch. This ranks in the zeroth percentile aka less than 1st percentile the last decade)…

Read more at: https://www.zerohedge.com/markets/growth-scare-sparks-stock-chaos-bonds-bullion-jump-bitcoin-buck-dump

Morgan Stanley Sees S&P Tumbling As Low As 3,400: “That’s Where Valuation And Technical Support Lie”

Morgan Stanley Sees S&P Tumbling As Low As 3,400: “That’s Where Valuation And Technical Support Lie”In the latest Morgan Stanley Sunday Start note published over the weekend, which this time featured the bank’s chief US equity strategist, Michael Wilson (who after BofA’s Michael Hartnett, is easily the street’s second most bearish strategist), the bank’s strategist elevated his bearish view up another notch, writing that this bear market will not be over until one of two things happens: “either valuations fall to levels (14-15x) that discount the kind of earnings cuts we envision, or earnings estimates get cut.”

Writing after the torrid Friday bear-market dead-cat bounce, it is no surprise that Wilson said that “with valuations now more attractive, equity markets so oversold and rates potentially stabilizing below 3%, stocks appear to have begun another material bear market rally.” However, returning to his favorite bearish place, he adds that “after that, we remain confident that lower prices are still ahead.”

How much lower? Wilson’s answer: “in S&P 500 terms, we think that level is close to 3,400, which is where both valuation and technical support lie.”

Read more at: https://www.zerohedge.com/markets/michael-wilson-sees-sp-tumbling-low-3400-theres-where-valuation-and-technical-support-lie

Why Did Rand Paul Delay Washington’s $40 Billion Ukraine Giveaway?

Why Did Rand Paul Delay Washington’s $40 Billion Ukraine Giveaway?Authored by Ron Paul,

Even by Washington standards, the Biden Administration’s recent request for $33 billion for military aid to Ukraine was shocking. Surely a coalition of antiwar progressives and budget-hawk Republicans would oppose the dangerous and expensive involvement of the US in the Russia/Ukraine conflict? No! Not only did Congress not object: they added nearly seven billion MORE dollars to the package!

In the end, not a single House Democrat voted against further US involvement in the war, and just 57 Republicans said “no” to funding yet another undeclared war.

On the Senate side, Majority Leader Chuck Schumer (D-NY) and Minority Leader Mitch McConnell (R-KY) both demanded immediate passage of the huge giveaway to Ukraine. That’s Washington’s bipartisanship for you.

Then the junior Senator from Kentucky came to the Senate Floor and did the unthinkable in Washington: he delayed the vote.

“My oath of office is to the national security of the United States of America,” Sen. Rand Paul said.

“We cannot save Ukraine by dooming the US economy.”

He went on to point out that the US has spent nearly as much on Ukraine’s military as the entire military budget of Russia and that the US government has sent more military money to Ukraine than it spent in the entire first year of the US war in Afghanistan.

Sen. P …

Read more at: https://www.zerohedge.com/geopolitical/why-did-rand-paul-delay-washingtons-40-billion-ukraine-giveaway

“Debt Piles Haven’t Shrunk”: SocGen Warns Bear Market Will Lead To Fresh Corp Leverage Concerns

“Debt Piles Haven’t Shrunk”: SocGen Warns Bear Market Will Lead To Fresh Corp Leverage ConcernsThe relentless collapse in global equities, offset by the occasional bear market rally like Friday’s, may have been ignored by the rest of the corporate world but that is changing. Indeed, with the drop in market cap for the MSCI ACWI World now $12 Trillion, SocGen’s Andrew Lapthorne cautions that to see this decline happening alongside a drop in debt markets is unusual, and its consequences are likely to reverberate throughout financial markets for some time.

To be sure, there is a “glass half full” way of looking at the collapse: as the SocGen strategist notes, “this near-USD20tn drop in bond and equity market cap must be viewed in the context of the rapid growth in asset values over the last couple of years” and one could argue that all markets are doing is simply removing the excesses as monetary policy is tightened.

In fact, if we go back to trend, a simple trendline analysis argues for another $20tn decline from here.

Read more at: https://www.zerohedge.com/markets/debt-piles-havent-shrunk-socgen-warns-bear-market-will-lead-fresh-corp-leverage-concerns

Bank governor in ‘apocalyptic’ warning over rising food prices

Surging food prices are a “major worry” for the UK and other countries, Andrew Bailey warns.

Read more at: https://www.bbc.co.uk/news/business-61469532?at_medium=RSS&at_campaign=KARANGA

Twitter boss hits back on Musk doubts over fake accounts

Chief executive Parag Agrawal says the firm is confident that less than 5% of users are spam accounts.

Read more at: https://www.bbc.co.uk/news/business-61472388?at_medium=RSS&at_campaign=KARANGA

McDonald’s to leave Russia for good after 30 years

The chain opened in Moscow in 1990 as the Soviet Union was opening its economy to Western brands.

Read more at: https://www.bbc.co.uk/news/business-61463876?at_medium=RSS&at_campaign=KARANGA

LIC to list on exchanges on Tuesday. Check out signals from the grey market

Abhay Doshi, Co-founder, UnlistedArena, said LIC is likely to be listed near the issue price and investors may not a get a decent listing pop, thanks to a sharp correction in the secondary markets lately.

Read more at: https://economictimes.indiatimes.com/markets/ipos/fpos/lic-shares-to-list-on-stock-exchanges-tomorrow-check-out-signals-from-the-grey-market/articleshow/91589310.cms

Has the bear market started for global equities? Christopher Wood answers

“The transition from growth to value or cyclicals will be a multiyear transition if the Fed does not break the back of inflation. It will depend on how hawkish the Fed really tends to be. The Fed is talking extremely hawkish. We have real significant balance sheet contraction. My personal base case is at some point the Fed will back off before they really break inflation.”

Read more at: https://economictimes.indiatimes.com/markets/expert-view/has-the-bear-market-started-for-global-equities-christopher-wood-answers/articleshow/91591644.cms

Paradeep Phosphates IPO: Valuations reasonable but subscribe only if you can take risks, say analysts

Of the total IPO amount, the company will issue Rs 1,004 crore worth of shares to investors. It will utilize it to part-finance the acquisition of a plant in Goa and repayment of loans. Besides, its promoters and the Government of India will be selling Rs 498 crore worth of stocks via offer for sale.

Read more at: https://economictimes.indiatimes.com/markets/ipos/fpos/paradeep-phosphates-ipo-valuations-reasonable-but-subscribe-only-if-you-can-take-risks-say-analysts/articleshow/91597502.cms

: ‘We now have a food desert’: As Buffalo reels from racially-motivated shooting, the attack’s location spotlights another problem when it comes to race

‘A lot of people in this neighborhood, they walk to the grocery store,’ N.Y. Gov. Kathy Hochul said Sunday

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7D55-80F7F1B42B6A%7D&siteid=rss&rss=1

The Margin: How does the ‘great replacement’ conspiracy theory figure into the Buffalo shooting?

Also called white replacement theory, it falsely argues that white people are losing their political and cultural power.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7D54-B7CCBFFE5FC3%7D&siteid=rss&rss=1

The Margin: Who is Karine Jean-Pierre, the new White House press secretary making history Monday?

‘I am a Black gay immigrant woman. The first of all three of those to hold this position,’ she said during her first briefing on Monday.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7D55-33D99138983C%7D&