Wall Street Today | Larry Summers Says Soft Landing 'Looks More Possible'

Moomoo Recap US wrote a column · Feb 5, 2023 18:42

Wall Street Today | Larry Summers Says Soft Landing 'Looks More Possible'

MACRO

Central Bankers Curb Their Enthusiasm for Rate Hikes

In the wake of the Federal Reserve's quarter-point move — and a market rally driven by investor euphoria that the inflation shock is finally fading — its peers are already well on the way to stopping as well.

Among the highlights this week, both the Reserve Bank of Australia on Tuesday and the Reserve Bank of India the following day will probably deliver quarter-point hikes in borrowing costs that might mark their final salvos for now.

Larry Summers Says Soft Landing 'Looks More Possible': Unemployment vs. Inflation

Former Treasury Secretary Lawrence Summers says the Fed can pull off a soft landing, but warns that it would be a "big mistake" to think that the economy is "out of the woods".
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SECTORS

Oil Market Faces Production Issue in 2024, Goldman’s Currie Says

Oil will rise back above $100 a barrel this year and may face a serious supply problem in 2024 as spare production capacity runs out, according to $Goldman Sachs (GS.US)$. "The commodity super cycle is a sequence of price spikes with each high higher and each low higher,” said Currie, who heads commodities research at Goldman. By May, oil markets should flip to a deficit of supply compared to demand, he said. That could use up much of the unused capacity global producers have, which will be positive for prices, he said.

Cloud Leaders Amazon, Google And Microsoft Show the Once-Booming Market Is Cooling Down

$Amazon (AMZN.US)$, $Microsoft (MSFT.US)$, and $Alphabet-A (GOOGL.US)$ the three leaders in the market for cloud-based storage and servers, all reported deceleration in their respective businesses. On Thursday, Amazon Web Services and Google Cloud, which also includes Workplace productivity software, showed revenue for the fourth quarter that was below analysts'estimates.

Amid Food Inflation, More Shoppers Turn to Dollar Stores for Groceries

Over the past year, food prices overall have risen more than 10%. Egg prices, alone, soared 60%, butter is up more than 31% and lettuce jumped 25%, according to Labor Department data through December.

Rising food costs are pushing consumers to get more creative about where they go for groceries. Discount dollar stores are becoming a key destination for affordable essentials, including perishable and nonperishable goods, according to a recent report.

COMPANY

UPS and The Teamsters Prepare for High-Stakes Talks with Union Contract Set to Expire

$United Parcel Service (UPS.US)$ in April will start to negotiate a new national union contract, with the current one set to expire on July 31. CEO Carol Tomé believes negotiations will conclude before the end of July.

"Whether there is a strike of UPS workers is up to UPS," said a spokesperson for the Teamsters.

Tesla Rival Xpeng Launches Flagship EVs In Europe In International Push

$XPeng (XPEV.US)$ a Chinese electric vehicle startup, on Friday launched two of its flagship cars across a number of European countries, as it continues its aggressive international push.

The company said a revamped version of its P7 sedan and its G9 sports utility vehicle (SUV) are available to order in Denmark, Norway, the Netherlands and Sweden. On the whole, Xpeng has priced its P7 sedan below $Tesla (TSLA.US)$'s in Demark, Norway, the Netherlands and Sweden

Broadcom Chief Hock Tan Seeks More Acquisitions After $69B VMware Deal

Although mega tech mergers came with heightened scrutiny these days, acquisitions remained a “key part of our strategy”, Tan said in an interview with the Financial Times. $Broadcom (AVGO.US)$ maintained a “select” list of “companies with assets that we would love to buy”, Tan said. “On that list, there are some in semiconductors, there are some in software.”

Source: Bloomberg, Dow Jones, CNBC, FT

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