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MONDAY, MAY 09, 2022 - 08:30 AM Get Informed

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Wall Street Bounces,… China’s Companies… U.S.-Saudi Oil Allian… ETF Volumes Surge … Investors Have Give…
CR E AT E NE W ACCO U NT

R E SE T YO U R PASSW O R D
Try a 14-day trial with Newsquawk and hear breaking trading news as it happens.
This site is protected by reCAPTCHA and the
Google Privacy Policy and Terms of Service US equity futures are lower by 1.1-1.4% (YM -1.1%, RTY -1.3%, ES -1.3%, NQ -1.4%), taking stocks back to the low-
apply. end of the 2022 range. Global equities have started the week in a defensive fashion, with continued concerns
surrounding global growth being exacerbated by a hawkish monetary policy impulse. Friday's jobs data topped
expectations, and didn’t provide anything to suggest that the Fed will deviate from its course of aggressive tightening.
Strategists at Morgan Stanley continue to argue the bearish thesis, and are looking for a substantial further selloff in Bring TME with you so that there's no
excuse not to be updated on constant
ZERO HEDG E READS US equities, despite its base case that a recession can be avoided (globally, MS sees scope for China GDP to observations and commentary relevant to
rebound later, says Europe's embargo on Russian oil is manageable, and thinks that the Fed will reverse course at the YOU.
first sign that it is doing too much). Meanwhile, JPMorgan's strategists–who have been bullish in recent months–have
ACT ING M AN
been telling their clients that Fed hawkishness might be peaking, and policy should become less problematic for 3 hours ago at 9:40
ALT-M AR K E T
equities. JPM notes that the spread between inflation break-evens and bond yields is narrowing and may therefore
BOMBTHROWER
limit expectations of further hawkishness; this could help growth stocks, and JPM recommends investors remain
CAP ITALIST E X P LO IT S
overweight value vs growth. But the bank says it is not looking for a big decline in growth names, and stability here
CH R IST O P H E B AR R AU D
should underpin the broader market, while it says that a less aggressive Fed could also improve the prospects for EM
D R . H O U SING B U B B LE
equities. More immediately, the data docket for Monday is thin: Employment Trends data for April and remarks from
D ANE R IC'S E LLIO T T W AV E S
Fed’s Bostic are the highlights. Our 'Day Ahead' calendar can be accessed here. For the week ahead, US CPI is the
F INANCIAL R E V O LU T IO NIST
main event; our week ahead briefing can be accessed here
F O R E X LIV E
F U ND IST KEY EQUITY LEVELS (via Credit Suisse):
G AINS PAINS & CAP ITAL
SPX: 4026/21, 4034/33, 4063/57, 4080, 4106, 4174/75, 4199, 4255, 4270, 4282. UPGRADE TO PREMIUM
G E F IR A
G M G R E SE AR CH
G O LD CO R E
IM P LO D E -E X P LO D E
INSID E R PAP E R
LIB E R T Y B LIT ZK R IE G
M AX K E ISE R
M ISE S INST IT U T E
M ISH TALK
NE W SQ U AW K
O F T W O M IND S
O IL P R ICE
OPEN THE BOOKS
PAND E M IC: W AR R O O M
EXPAND
NDX: 12208, 12299, 12592, 12628, 12710, 12948/82, 13345, 13542/56, 13607, 13690.
RUT: 1805, 1817/13, 1825, 1839/36, 1849, 1879, 1895/96, 1926/30, 1936, 1953/54.
COVID: CONTACT INFORMATION +
White House stepping up warnings about a COVID surge this autumn and winter, is making contingency plans SUGGESTED READING +
for how it will provide vaccines to Americans if Congress does not allocate more money for the COVID-19
response, NYT reports.
NYC's subways have regained ridership levels seen before the Omicron wave in December, Bloomberg
reported.
CHINA:
US-listed China Names - US and China regulators are in talks to settle a long-running dispute over the auditing
compliance of US-listed Chinese firms, Reuters reported citing sources.
Shanghai tightens lockdown to hit zero-COVID goal by late May, Reuters reported. Ahead of Communist Party
congress, China Premier Li warned that the employment outlook was complicated and grim, and local authorities
needed to focus on job stability.
Tesla (TSLA), Taiwan Semiconductor Manufacturing International Corp (TSM) - About 2,000 manufacturers
in Shanghai are likely to obtain fresh funds from banks to help speed up business reopening as the mainland's
financial capital edges closer to putting the latest Covid-19 outbreak under control, SCMP reported. PBOC asked
commercial lenders to grant easy credit to so-called "white-listed" companies, including car producer Tesla and
chip maker Semiconductor Manufacturing International Corp, to reinforce their operations, after reeling under 37
days of citywide lockdown.
GEOPOLITICS:
Russian Energy - EU officials proposed a ban on insuring ships that carry Russian oil, a move aimed at
blocking Russia’s access to global oil markets and the revenue that has fuelled its military invasion of Ukraine,
WSJ reported. Separately, Gazprom reassured European clients that they can keep paying for gas without
breaching sanctions, the latest indication that Russia may be trying to find a way to keep the gas flowing,
Bloomberg reported.
Iran Nuke Deal - EU is making a last-ditch attempt to save the Iran nuclear deal and break a deadlock triggered
by Tehran’s demand that Washington lift its terrorist designation on the Revolutionary Guards, FT reported. EU
seeking a "middle way" to end the impasse, and in return, Iran would drastically reduce its nuclear activity.
North Korea - The pariah state tested a submarine-launched missile on Saturday, which could extend the range
of the North’s nuclear arsenal, NYT reported; US warns that NK might soon test a nuclear device.
ENERGY:
Saudi OSPs - Saudi Arabia cut oil prices for buyers in Asia as coronavirus lockdowns in China weigh on
demand, countering uncertainty around Russia’s supplies as the Ukraine war drags on, Bloomberg reported.
Big Oil - Big oil companies are returning money to shareholders, not investing in new production, setting the
world up for an even tighter energy market in the years ahead, Bloomberg reported.
BP (BP), Shell (SHEL) - Positive mention in Barron's; newspaper said investors that do not mind risk should
consider buying, as both are well-run companies investing heavily in alternative energy.
Glencore (GLNCY), Shell (SHEL) - Activist Third Point has initiated a long position in Glencore in Q1, also
continued to add to its Shell long position.
Repsol (REPYY), Pieridae Energy (PEA) - Canada in talks with the companies to see how it can speed up
projects in New Brunswick and Nova Scotia to help boost supply to Europe, Reuters reported.
AGS:
Wheat - India has downplayed concerns over wheat export levels amid a heat wave threatening yields, Nikkei
reported; Delhi says it won't curb shipments amid supply disruptions caused by Ukraine war.
MATERIALS:
BHP (BHP) - Exec said that while lithium mining was within its skillset, BHP prefers large, long-life and scalable
projects in commodities with differentiated cost curves, Bloomberg reported.
INDUSTRIALS:
Rivian Automotive (RIVN), Ford Motor (F), JPMorgan (JPM) - Ford is selling 8mln Rivian shares as the
insider lockup for the stock expires on Sunday, sources told CNBC. JPMorgan also plans to sell a block of 13-
15mln shares for an unknown seller, CNBC said.
Autos - The Manheim Used Vehicle Value Index declined 1% M/M in April, CNBC reported; wholesale vehicle
prices have -6.4% since the January record; prices still high, and the index remains +14% Y/Y.
Tesla (TSLA), Uber Technologies (UBER), Grab Holdings (GRAB), Genuine Parts (GPC), O'Reilly (ORLY),
Monro (MNRO), Universal Technical Institute (UTI), Snap-On (SNA) - Positive mention in Barron's;
newspaper said identified these stocks as eight names to play the future of transportation.
General Motors Company (GM) - Positive mention in Barron's; newspaper said the stock was a buy; GM has
big ambitions and the stock is cheap stock. But the pace of its electric-car launches must catch up.
Toyota Motor Corporation (TM) - Cautious mention in Barron's; newspaper said it is trying to catch up in the
crowded EV race, and it may be too late.
Defense Names - US is pushing Taiwan to order missiles and smaller arms for asymmetric warfare has gained
urgency since Russia’s invasion of Ukraine, NYT reports.
Lockheed Martin Corporation (LMT) - Plans to nearly double production of the antitank Javelin missiles to
4,000 units annually.
Hochtief (HOCFY) - Q1 sales were up, EBITDA topped expectations, but left guidance unchanged. Q1 revenue
EUR 5.3bln, EBITDA EUR 268mln (exp. 265mln), net income EUR 118mln.
CONSUMER CYCLICAL:
Amazon (AMZN) - Amazon has fired senior managers tied to unionised warehouse in Staten Island; the
dismissals occurred outside the company's typical employee review cycle, were seen by the managers and other
people who work at the facility as a response to the victory by the Amazon Labor Union, NYT reported.
Amazon (AMZN) - NLRB determined that Amazon violated federal labour law by holding mandatory anti-union
meetings at a warehouse where workers were weighing whether to unionise, Axios reports.
Starbucks Corporation (SBUX) - Starbucks has requested a meeting with the Biden administration after
unionised workers talked to White House officials. The newswire separately reported that an NLRB official
issued a complaint alleging misconduct by Starbucks toward union members; Starbucks said the allegations
were false and lacked merit.
 Booking Holdings Inc. (BKNG) - Positive mention in Barron's; newspaper said travel stocks hadn't recovered
yet, and BKNG is a opportunity to play improved travel environment.
Fortune Brands Home & Security (FBHS) - Positive mention in Barron's; newspaper said it's remodeling itself
by spinning off its largest division into a stand-alone company that could draw in new investors and make the
stock sparkle.

TECH:

Microsoft Corporation (MSFT) - Microsoft preparing to expand access for 'Xbox Everywhere' game streaming
service through TVs, according to Venture Beat.
Uber Technologies (UBER) - Uber is to cut spending on marketing and incentives, and treat hiring as a
"privilege," its CEO said to staff, according to CNBC; Uber will now focus on achieving profitability on a FCF
basis rather than adj. EBITDA, CNBC said.
Infineon (IFNNY) - Raised outlook after better-than-expected results. Q2 revenue EUR 3.29bln (exp. 3.21bln),
adj. EPS EUR 0.44 (prev. 0.41), net income EUR 469mln. FY22 guidance has been upgraded again, to EUR
13.5bln +/- EUR 500mln (prev. 12.5-13.5bln). CEO said demand for its products continued to exceed supply
significantly.

COMMUNICATIONS:

Twitter (TWTR) - Elon Musk has claimed he can increase Twitter's annual revenue to USD 26.4bln by 2028, up
from USD 5bln last year, according to a pitch deck Musk presented to investors, NYT reports.
Twitter (TWTR) - A judge dismissed former President Trump's lawsuit against Twitter that challenged his
suspension from the platform.
Rogers Communications Inc. (RCI), Shaw Communications Inc. (SJR) - Rogers said Canada's antitrust
officials were opposed to its USD 16bln takeover of Shaw, casting doubt on whether the deal can close,
Bloomberg reported.
Formula One Group (FWONA) - Positive mention in Barron's; newspaper said the recent pullback in the stock
before the Miami Grand Prix could be a buying opportunity.

FINANCIALS:

Russia Exposure - Western banks are preparing for a USD 10bln hit on Russia projects as they pull out of the
country because of its invasion of Ukraine, FT reports.

UTILITIES:

Southwest Gas Holdings, Inc. (SWX) - SWX promotes Karen Haller to CEO and president, replacing John
Hester immediately, part of a settlement with activist investor Carl Icahn; Icahn will also get as many as four
board seats.
EDF (ECIFY) - Has cautioned that a new nuclear reactor in Essex, UK is at risk of collapse, due to political
opposition to the involvement of China General Nuclear.

HEALTH CARE:

Moderna Inc. (MRNA), Arbutus Biopharma (ABUS), Genevant Sciences - Moderna filed a motion to dismiss
some of the patent-infringement claims in the lawsuit by Arbutus and Genevant, as it fends off rival companies'
claims that its Covid-19 vaccine infringes their patents, WSJ reports.
Fresenius Medical (FMS) - US FDA is evaluating the potential risk of exposure to toxic compounds when using
certain haemodialysis machines made by the company.

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