22Sep2022 Market Close & Major Financial Headlines: Markets Continue With Another Day In The Red

Volkswagen Warns: High Gas Prices Could Impact Car Production

Germany’s Volkswagen AG warned on Thursday that global auto production will be at risk in 2023 if Russia fails to resume deliveries of natural gas through Nord Stream 1. As long as Germany continues to fill its natural gas storage over the coming 5-6 months, Reuters cited a Volkswagen executive as saying on Thursday, the auto giant will be able to maintain production levels. However, the executive warned that by next year, with natural gas prices continuing upwards and supply still at risk over Nord Stream, production will be in question.

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Volkswagen-Warns-High-Gas-Prices-Could-Impact-Car-Production.html

Spain-France Natural Gas Pipeline Boosts Capacity By 18%

An existing natural gas pipeline from Spain to France via the Pyrenees has boosted its capacity by 18% and could be used immediately if France requests it, Spanish Energy Transition Minister Teresa Ribera said on Thursday while on a visit to one of the pipelines compressor stations. Spain and France are currently connected via two gas pipelines which could carry gas from Spain to its neighbor to the north if necessary. The interconnector which passes through Irun has successfully completed the technical start-up tests to

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Spain-France-Natural-Gas-Pipeline-Boosts-Capacity-By-18.html

One Million Puerto Ricans Still Without Power As Grid Crisis Persists

As Hurricane Fiona continues its path of destruction through the pacific, moving toward Bermuda as a Category 4 storm after lashing Turks and Caicos as a Category 3 storm, the flood waters in Puerto Rico are just starting to recede. As the storm quiets on the island, the full measure of the storms significant damage is being revealed in the United States island territory. Almost five years to the day after Hurricane Maria hit Puerto Rico, killing 2,975 people on the island and leaving huge swaths of the population without energy for

Read more at: https://oilprice.com/Energy/Energy-General/One-Million-Puerto-Ricans-Still-Without-Power-As-Grid-Crisis-Persists.html

14 Coal Plants Have Come Online Since China Vowed To Pull Overseas Support

A total of 14 coal-fired plants with Chinese backing have entered into operation in the world, mostly in Asia, since China pledged to end support for coal capacity construction overseas at this time last year, a new report from the Center for Research on Energy and Clean Air (CREA) showed. Last year in September, Chinese President Xi Jinping said at the 2021 UN general assembly that China would stop building new coal power plants abroad. China will step up support for other developing countries in developing

Read more at: https://oilprice.com/Latest-Energy-News/World-News/14-Coal-Plants-Have-Come-Online-Since-China-Vowed-To-Pull-Overseas-Support.html

Why India Is Suddenly Buying Less Russian Crude

India, which has been buying large volumes of Russian crude since the Russian invasion of Ukraine to take advantage of cheap oil, is set to slow purchases of Russian oil this month and look to more African and Middle Eastern supply as shipping rates on longer voyages have jumped. Before the war in Ukraine, India was a small marginal buyer of Russian oil. After Western buyers started shunning crude from Russia, India became a top destination for Russian oil exports alongside China. Indian refiners haven’t expressed hesitation to deal with Russia

Read more at: https://oilprice.com/Energy/Crude-Oil/Why-India-Is-Suddenly-Buying-Less-Russian-Crude.html

Cargo Leaves China For Afghanistan On New Route Bypassing Russia

China has dispatched a first load of freight to Afghanistan on a new road and rail route transiting Central Asia which will cut travel time by several weeks. The multimodal route starts in Chinas northwestern Xinjiang province then passes through Kyrgyzstan and Uzbekistan before entering Afghanistan. Cargo will travel along the first stage around 500 kilometers from the city of Kashgar in Xinjiang to Osh in southern Kyrgyzstan by road since there is no rail link, although one is planned eventually. The first containers left

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Cargo-Leaves-China-For-Afghanistan-On-New-Route-Bypassing-Russia.html

Bed Bath & Beyond’s merchandise problems will make it hard to pull off a turnaround this holiday season

A mountain of debt and strained relationships with merchandise providers could cripple Bed Bath & Beyond’s attempt to bounce back.

Read more at: https://www.cnbc.com/2022/09/22/bed-bath-beyond-merchandise-problems-could-cripple-turnaround-plan.html

FedEx hikes package rates, details cost cutting as demand weakens globally

FedEx announced rate hikes and detailed its cost-cutting efforts after warning last week it was seeing demand weaken globally.

Read more at: https://www.cnbc.com/2022/09/22/fedex-fdx-reports-q1-earnings.html

Ford to restructure supply chain following $1 billion in unexpected quarterly costs

The restructuring will be led on an interim basis by Ford CFO John Lawler until a chief supply chain officer is selected, Ford said.

Read more at: https://www.cnbc.com/2022/09/22/ford-to-restructure-supply-chain-after-1-billion-in-unexpected-costs.html

‘Avatar’ returns to theaters as Disney tries to hype audiences for its long-delayed sequel

Estimates for the “Avatar” rerelease range from $7 million to $12 million, with box-office analysts saying a figure in the mid-teens would be “huge.”

Read more at: https://www.cnbc.com/2022/09/22/avatar-returns-theaters-disney-hypes-way-of-water.html

Olive Garden sales fall short, but parent company Darden stands by outlook

Darden Restaurants reported mixed quarterly results but still reiterated its outlook for fiscal 2023.

Read more at: https://www.cnbc.com/2022/09/22/darden-restaurants-dri-q1-2023-earnings.html

Corporate climate commitments are improving, but the worst offenders are doing the least

The number of corporations pledging to emit net zero emissions by 2050 will more than double from this year to next year, from 102 to 238.

Read more at: https://www.cnbc.com/2022/09/22/corporate-climate-commitments-improving-with-exceptions-just-capital.html

Nearly 6 in 10 donors may give more to charity despite economic fears, study finds

Despite economic uncertainty, some donors may be eyeing bigger gifts for 2022, according to a study. Here’s what investors need to know.

Read more at: https://www.cnbc.com/2022/09/22/despite-fears-of-a-recession-many-may-give-more-to-charity.html

Amazon averaged 13 million viewers for its ‘Thursday Night Football’ debut, according to Nielsen data

Amazon, citing Nielsen data, averaged 13 million viewers in its first stream of “Thursday Night Football.”

Read more at: https://www.cnbc.com/2022/09/22/amazon-averaged-13-million-viewers-for-thursday-night-football-nielsen-data-shows.html

WHO warns ability to identify new Covid variants is diminishing as testing declines

Maria Van Kerkhove, the WHO’s Covid-19 technical lead, said the virus is spreading rapidly and continues to evolve even as deaths from the disease decline.

Read more at: https://www.cnbc.com/2022/09/22/who-warns-ability-to-identify-new-covid-variants-is-diminishing-as-testing-declines-.html

2 takeaways from Thursday’s ‘Morning Meeting’: We want to buy on market weakness

The Investing Club holds its “Morning Meeting” every weekday at 10:20 a.m. ET.

Read more at: https://www.cnbc.com/2022/09/22/2-takeaways-from-thursdays-morning-meeting-we-want-to-buy-on-market-weakness.html

U.S. ratifies global treaty to curb climate-warming chemicals in air conditioning, refrigeration

The Senate voted to ratify a global climate treaty that will phase down the use and production of HFCs, chemicals used in air conditioning and refrigeration.

Read more at: https://www.cnbc.com/2022/09/22/us-approves-kigali-amendment-to-curb-climate-warming-chemicals.html

Activist investor pushes Kohl’s to oust its CEO and chairman

Activist investor Ancora Holdings is pushing Kohl’s to remove both its CEO and its chairman.

Read more at: https://www.cnbc.com/2022/09/22/activist-investor-pushes-to-oust-kohls-ceo-and-chairman.html

Target plans to hire 100,000 seasonal workers for the holidays and start deals early

Target announced that it will hire 100,000 seasonal workers for the holidays and start markdowns the first week of October.

Read more at: https://www.cnbc.com/2022/09/22/target-plans-to-hire-100000-seasonal-workers-and-start-deals-early.html

Powell Contradicts Biden On Inflation: “Running Too High” Rather Than “Hardly At All”

Authored by Tom Ozimek via The Epoch Times,

In his much-anticipated remarks on the economy following the Fed’s policy meeting that saw another jumbo interest rate hike to tame soaring prices, Federal Reserve Chair Jerome Powell said inflation was “running too high,” contradicting President Joe Biden’s recent assertion that prices had risen “just an inch, hardly at all.”

Powell’s press conference on Sept. 21 followed a decision by the Federal Open Market Committee (FOM …

Read more at: https://www.zerohedge.com/political/powell-contradicts-biden-inflation-running-too-high-rather-hardly-all

Here Are Some Things The Fed Will Break If It ‘Contains Inflation’

What will stop The Fed?

Investors globally are wondering – after CPI sent the ‘peak inflation’ narrative to the bottom of the ocean and Powell’s Jackson Hole speech (and this FOMC statement and press conference) crushed the ‘Fed Pivot’ narrative – what other potential indicators/signals (aside from a multi-month slowdown in inflation of course) could prompt Powell and his pals to back off their uber-hawkishness?

We thought of six potential minefields that may have to be avoided if The Fed is to pull off its magic trick of hiking rates to over 4.6% and holding them higher for longer…

1. Frozen Credit MarketGiven the tightening in financial conditions – which Powell said The Fed watches closely – we would already expect corporate borrowing costs to be significantly higher than they are currently…

Read more at: https://www.zerohedge.com/markets/here-are-some-things-fed-will-break-if-it-contains-inflation

Is The Fed’s Heavy Lifting Almost Over?

Via Global Macro Monitor,

Don’t bank on it.

Avoiding a recession is not part of the Fed’s explicit dual mandate.

The Federal Reserve System has been given a dual mandate – pursuing the economic goals of maximum employment and price stability.

– St Louis Fed

Even after yesterday’s 75 bps hike, the real Fed Funds rate (see chart below) remains at about -5 percent.

Note from the chart the economy has never kicked into a recession with a negative real Fed Funds rate.  It’s amusing to watch the market watchers muse over how big a …

Read more at: https://www.zerohedge.com/markets/feds-heavy-lifting-almost-over

Judge In Trump Records Case Blocks Special Master From Viewing Materials Marked Classified

Authored by Zachary Steiber via The Epoch Times,

The U.S. judge in charge of disputes over records seized from former President Donald Trump’s home on Sept. 22 blocked the special master she appointed from viewing records with classified markings taken from Mar-a-Lago.

U.S. District Judge Aileen Cannon, a Trump appointee, removed the approximately 100 documents marked classified from her earlier order’s definition of “seized material.”

Cannon also struck two paragraphs from the earlier order:

One that stated the government would have to “Make available for inspection …

Read more at: https://www.zerohedge.com/political/appeals-court-rules-doj-can-regain-access-trump-raid-docs

UK may already be in recession – Bank of England

The warning comes as the Bank raises interest rates to 2.25% – the highest level for 14 years.

Read more at: https://www.bbc.co.uk/news/business-62991376?at_medium=RSS&at_campaign=KARANGA

National Insurance rise to be reversed in November

The 1.25% rise will be reversed from 6 November and a levy to fund health and social care will be axed.

Read more at: https://www.bbc.co.uk/news/business-62998661?at_medium=RSS&at_campaign=KARANGA

Avanti West Coast boosts services after timetables cut

Avanti West Coast says services will be further boosted once 100 new drivers complete training.

Read more at: https://www.bbc.co.uk/news/uk-england-63000308?at_medium=RSS&at_campaign=KARANGA

Tech View: Nifty recovers marginally from US Fed outcome; what should investors do on Friday?

“The Nifty remained volatile during the day as the market participants adjusted positions according to the FOMC outcome. On the daily chart, Nifty formed a small-bodied candle with wicks on both sides, suggesting indecisiveness,” Rupak De, Senior Technical Analyst at LKP Securities, said.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/nifty-recovers-marginally-from-us-fed-outcome-what-should-investors-do-on-friday/articleshow/94377996.cms

Nifty Bank: Key levels to watch out for on Friday

Nifty Bank witnessed selling pressure at higher levels and remains in a sell-on-rise mode as long as it stays below the level of 42,000. The index immediate downside support stands at 40,500 and a breach below this will open gates for further downside toward 39,000 level.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/nifty-bank-key-levels-to-watch-out-for-on-friday/articleshow/94379877.cms

Accenture forecasts revenue below estimates on IT spending cut, higher dollar

The company forecast current-quarter revenue between $15.20 billion and $15.75 billion, compared with analysts’ average estimate of $16.07 billion, according to data from Refinitiv.

Read more at: https://economictimes.indiatimes.com/markets/stocks/earnings/accenture-forecasts-revenue-below-estimates-on-it-spending-cut-higher-dollar/articleshow/94375226.cms

Yellen: Inflation will come down next year

Treasury Secretary Janet Yellen on Thursday said she believed high U.S. inflation would fall next year, but cautioned there are risks to the outlook.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7127-D810C2B0F605%7D&siteid=rss&rss=1

ETF Wrap: This ETF manager’s tactical models are ‘as bearish as they could possibly be’ as markets grapple with a ‘dangerous’ mix of rising rates and high inflation

This week’s ETF Wrap spotlights how two ETFs are tactically positioned as they outperform a U.S. stock market grappling with a “dangerous” mix of high inflation and rising interest rates.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7127-ACED8F43E896%7D&siteid=rss&rss=1

Key Words: Mitch McConnell said he is ‘done with’ Trump and ‘will never speak to him again,’ according to new book

McConnell reportedly told his aides he was done with Trump shortly after the Jan. 6 attack on the U.S. Capitol.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7126-E6E491303751%7D&siteid=rss&rss=1