Bloomberg - Evening Briefing - Wall Street hits a homer

Euro-zone inflation climbed to another all-time high, supporting calls for the European Central Bank to follow up its first interest-rate hike since 2011 with another one. But the euro-zone economy expanded by more than three times the amount economists expected, putting it on a firmer footing. Over in the US, the stock market wrapped up a chaotic week with solid earnings from tech megacaps. Indeed, July surprisingly turned out to be the best month for the S&P 500 since November 2020, while the Nasdaq 100 had its strongest performance since April of that year. Despite worrisome signals from economic proxies like Walmart and United Parcel Service, the earnings season as a whole turned out brighter than expected, with about 75% of S&P 500 firms that reported beating estimates. That’s fueling speculation that Corporate America just might be able to weather the current storm. Still, for those individuals out there thinking about finally taking a peek at their 401(k) balance, the first half stock market wipeout continues to make that a very bad idea. —David E. Rovella

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

Wall Street loathes bank stress tests. The regulatory checkups by the Federal Reserve, instituted after the 2008 financial crisis with the aim of averting another one, run banks’ balance sheets through doomsday scenarios to gauge whether they’d make it through. This year banks were tested on a hypothetical cocktail of surging unemployment, collapsing real estate prices and a plunge in stocks. This is how they did.

With polls showing the Republican-appointee controlled Supreme Court having lost credibility with most Americans (let alone a reputation of being apolitical), and national upheaval continuing after its rejection of federal abortions rights, slashing of gun regulations, narrowing of church-state separation and other decisions that have been GOP priorities, Samuel Alito, author of the abortion ruling, added fuel to the fire by mocking his critics while on a trip to Europe. 

Samuel Alito Photographer: Chip Somodevilla/Getty Images North America

Alibaba Group has moved a step closer toward getting booted off US stock exchanges because American inspectors are unable to access its financial audits. The Securities and Exchange Commission on Friday added the largest US-listed Chinese company to a growing roster of firms that face removal because of Beijing’s refusal to permit American officials to review their auditors’ work. The publication of the businesses’ names, which was required by a 2020 law, starts a three-year clock to a final delisting. 

The widening monkeypox outbreak is sparking concern that the virus could spread among a surprising cohort particularly prone to transmitting contagious infections: kids. The US government meanwhile plans to begin offering reformulated Covid-19 booster shots in September after Pfizer and  Moderna moved up the time-lines for the vaccines. As part of the plan, there will be no second booster round this summer of the current vaccine for most people under 50.

An electron microscopic image of a monkeypox virion Source: CDC

More text messages tied to Jan. 6 are missing. These belonged to two top Homeland Security officials under Donald Trump: acting secretary Chad Wolf and acting deputy secretary Ken Cuccinelli, the Washington Post reported. The deletion of the messages, like those sent by Secret Service employees on Jan. 6, were reported to Homeland Security inspector general Joseph Cuffari, a Trump appointee. According to the Post, Cuffari didn’t inform Congress about the deleted DHS messages until recently, just as he delayed informing it about the Secret Service texts. Cuffari announced his own probe of the Secret Service matter after the Post revealed the delay, a move which has served to block the Jan. 6 committee’s effort to find the texts. Congress recently failed in an effort to replace Cuffari as lead investigator. Another Trump appointee, Secret Service Director James Murray, announced he was delaying retirement to address the growing scandal at and multiple investigations of his agency.

With the rush to electric vehicle adoption, charging networks are being rolled out across countries, government-backing is growing and automakers are promising a host of green cars, Anjani Trivedi writes in Bloomberg Opinion. Yet, even if all this happens, it’s worth wondering how power systems will handle all the demand. China may have a solution to keep EVs from melting the grid.

Maybe it’s better to just take the subway. Air Taxis keep crashing and burning during testing. One prototype suffered a software glitch, lost control and planted in a field. Another’s computer erroneously thought it was on the ground, shutting off power in mid-flight and plunging right to the pavement. Batteries on two more burst into flames. Where to?

Joby’s all-electric aircraft Source: Joby Aviation Inc.

• This is what’s inside Biden’s revived “Build Back Better” bill.
• Russia is wiring dollars to Turkey for $20 billion nuclear plant.
• Chinese government asked TikTok for a stealth propaganda account.
• China’s Politburo ignites talk about $220 billion in more debt.
• Republicans block health benefits to veterans exposed to toxic burn pits.
• Wondering how bad the crypto kids are doing? Check your watch.
• No, crime in New York City is not running rampant. 

Even as much of the fitness industry contracted during the first years of the Covid-19 pandemic, Jazzercise had revenue of $73 million last year. How is it that an exercise business that harks back to the era of Jane Fonda workout tapes, neon spandex and legwarmers remains alive—and thriving— in 2022? It’s thanks to a combination of online streaming, firsthand C-suite research of customer demands and the willingness to adapt.

From left: Judi Sheppard Missett, Shanna Missett Nelson, and Skyla Nelson Photographer: Michelle Groskopf

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