Bloomberg - Evening Briefing - Just don’t panic

Bloomberg Evening Briefing

The same traders whose fear of the Fed sent markets hurtling into bear territory Monday are girding for a long dark night as stocks head for their longest slide in months. Investors are keen to see whether the central bank, which meets tomorrow, gives any indication as to whether it will raise rates at a faster clip. Stocks notwithstanding, President Joe Biden touted the humming US economy with its low unemployment, saying the powerful recovery from the pandemic recession will become more evident when inflation subsides. “I truly believe we made extraordinary progress by laying a new foundation for our economy,” Biden said Tuesday at a meeting of the AFL-CIO, the biggest US labor confederation. In addition to tapping the nation’s Strategic Petroleum Reserve to address high gas prices and working with European partners on plans to get Ukrainian grain to market, Biden cited proposals aimed at bringing down the cost of child care and prescription drugs and said the wealthiest Americans must “pay their fair share” in taxes. “I have a plan to bring down the cost of gas and food,” he said, seeking to position the Democratic Party for the coming midterm elections, but adding “it’s going to take time.” In Europe,​​ a new survey by economists shows many expect the Bank of England to raise interest rates faster and further than anticipated just a month ago as it battles the highest inflation in decades. As for all those investors out there watching their portfolios shrink, remember not to panic. Here’s your markets wrap

Bloomberg is tracking the coronavirus pandemic and the progress of global vaccination efforts.

Here are today’s top stories

In another sign of the worsening cryptocurrency spiral, the biggest US crypto exchange, Coinbase Global, will fire 18% of its workforce. In the past weeks the crypto market has plunged into turmoil with the Terra stablecoin collapse and crypto lender Celsius Network freezing withdrawals amid what looks like the digital equivalent of a bank run. 

Though Kremlin forces have been methodically destroying Ukrainian cities and killing thousands of civilians, Russia has begun to run out of weapons and soldiers with which to prosecute its war of aggression. It’s even dragging in old tanks from far-flung military districts after having much of its armor wiped out by Ukrainian forces during its botched initial invasion. As a result, Russia may be only a few months from needing a major regroup, senior European officials said. It’s a fresh sign things aren’t going as planned for Moscow, despite its gains in the East. Meanwhile a new tally shows Ukraine has suffered $4.3 billion in damage to farmland, machinery and livestock as a result of Vladimir Putin’s war. 

Maksym Katerin stands in the yard of his damaged house on June 13 after his mother and stepfather were killed during shelling in the eastern Ukraine city of Lysychansk. Photographer: Aris Messinis/AFP

Increased health risks, long waits and decades of debt. Should the Republican-appointee controlled US Supreme Court overturn Roe v Wade in the coming weeks, 26 American states are set to ban or severely restrict abortion. The consequences will be swift for millions of women across the country: For a look at what would happen, just look to Texas

As oil prices rise, the US is reaching out to a historical ally, one recently implicated in the brutal murder and dismemberment of American resident and Washington Post columnist Jamal Khashoggi. Biden will seek to mend ties with Saudi Arabia (despite its human rights record) and its de-facto ruler, Crown Prince Mohammed Bin Salman, during a trip there next month. It’s a reversal of Biden’s pledge to make the kingdom a “pariah.” 

Nobel Peace Prize laureate Yemeni Tawakkol Karman stands in front of an image of Jamal Khashoggi as she speaks during a 2018 commemoration in Istanbul, where Khashoggi was murdered. Photographer: Ozan Kose/AFP

US health officials are assessing Covid-19 vaccines for young kids this week. A manufacturing hub in central China is allegedly abusing its Covid control measures in order to prevent protests. And new data shows Black South Africans were more likely to be hospitalized at a younger age, less likely to have access to intensive care units and ventilators and had higher mortality from the disease than White South Africans.

Intense weather made worse by the climate crisis is wreaking havoc around the world. Europe is combatting a blistering heat wave where temperatures in Spain are soaring to 40 degrees Celsius (100 degrees Fahrenheit). Massive floods in Yellowstone National Park have washed away roads, bridges and homes. And in Arizona, New Mexico and other Western US states hit hard by drought, wildfires are exploding as officials struggle to contain them.

A fresh delay for another US weapons program, courtesy of one of America’s biggest defense contractors. Boeing said it expects to deliver Orca, the Navy’s 70-ton underwater drone, up to three years late. Roughly the size of a subway car, it’s part of a broader push for more pilotless options under the sea. 

The Orca prototype was christened in Newport, California, on April 28. Boeing says the real thing is going to take a lot longer. Source: Naval Sea Systems Command

What you’ll need to know tomorrow

Is There a Vacation Home Housing Bubble? 

Across the US, people are quitting their jobs to become short-term landlords on Airbnb and VRBO. They’re amassing small empires of vacation homes with a special kind of business loan: It lets borrowers including the self-employed qualify based not on their salaries but on projected future income of the property they’re buying. Last year, investment-property loans without taxpayer backing totaled $9.9 billion, an eightfold increase since 2018. The vast majority qualified because of rental income. Is this the start of another housing bubble?

Smoky Mountains vacation home rentals in Wears Valley, TN. Photographer: Tamara Reynolds for Bloomberg Markets

Older messages

The bear is roaring

Monday, June 13, 2022

Bloomberg Evening Briefing View in browser Bloomberg With a deafening roar, the US stock market ran headlong into bear territory, the S&P sinking 20% below a January peak and hitting its lowest

Soft landing or recession?

Saturday, June 11, 2022

Bloomberg Weekend Reading View in browser Bloomberg Follow Us Get the newsletter Prospects for global growth or the potential for a US recession seem to depend on who you ask. Outspoken corporate

‘Attempted coup’

Friday, June 10, 2022

Bloomberg Evening Briefing View in browser Bloomberg The first public hearing of the Congressional committee investigating the Jan. 6, 2021, attack on the US Capitol left no doubt as to its position on

The insurrection hearings

Thursday, June 9, 2022

Bloomberg Evening Briefing View in browser Bloomberg Seventeen months after the world witnessed the unthinkable, a violent mob including white supremacists and so-called militia members ransacking the

Self-fulfilling prophecy

Wednesday, June 8, 2022

Bloomberg Evening Briefing View in browser Bloomberg It's been a wild year on Wall Street so far, and all that tumult has some traders concerned about extreme scenarios that might engulf the $23

📍 New Summer Schedule Just Dropped!

Tuesday, July 5, 2022

Including our *new* Ellevest Explains: Dealing with Inflation. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

😫 Is there anything worth investing in?

Monday, July 4, 2022

Elon has work to do | What happened, Germany? | TOGETHER WITH Hi Reader, here's what you need to know for July 5th in 3:05 minutes. 🐻 If 2020 taught us anything, it's that panic-buying will get

Satellites can now find the sources of methane leaks. The tech will reshape global climate accountability.

Monday, July 4, 2022

New satellite technology makes it easier to detect methane leaks and to fight the climate crisis. The technology will help drive accountability. View in browser Business Insider Business Insider


Monday, July 4, 2022

Prepare for a Brutal Q2 Earnings Season ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

🤓 Goldman’s recession manual

Sunday, July 3, 2022

Chipmakers aren't foolproof after all | Copper sinks | TOGETHER WITH Hi Reader, here's what you need to know for July 4th in 3:12 minutes. 👴🏼 One day you'll be telling your grandkids

Longreads + Open Thread

Saturday, July 2, 2022

Microsoft, Long Wars, Taste, Axie Infinity, Student Loans, Roads, Singapore ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The bear market will drag on until inflation subsides and investors should brace for earnings cuts next quarter, according to the investment chief at a $1.2 trillion asset manager

Saturday, July 2, 2022

"We're worried about companies' forecasts for the second half of this year," said Nuveen's investment chief. View in browser Business Insider Business Insider Business Insider

Mortgage meltdown

Saturday, July 2, 2022

Bloomberg Weekend Reading View in browser Bloomberg Follow Us Get the newsletter After a white-hot streak during the first two years of the pandemic, business has started to evaporate for mortgage

Slowing growth

Friday, July 1, 2022

Bloomberg Evening Briefing View in browser Bloomberg JPMorgan cut its US midyear economic growth forecast after an influx of weaker data this week—most notably a slowdown in consumer spending. The bank

Creating a Culture: The Case of Credit Suisse

Friday, July 1, 2022

Plus: Money Men, Pagaya, Research Budgets ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌