Good morning. US stock futures inched higher in Tuesday morning trading as investors await Federal Reserve Chair Jerome Powell's comments on the state of the US economy.

"If your investing approach requires you to be Nostradamus to succeed, then you are destined to fail"

Barry Ritholtz

Top News

Bank exec: US recession coming in Q3

• The CEO of Bank of America Brian Moynihan said that the US economy would enter a technical recession starting in the third quarter of 2023.

• Moynihan, who was speaking at The Financial Review's Business Summit in Australia, added that the recession would not be deep and said that interest rates would begin to fall in the second quarter of 2024.

Regulator reforms challenged by Wall Street

• The New York Stock Exchange, Charles Schwab and Citadel Securities jointly requested the US Securities and Exchange Commission to withdraw two proposed rules meant to restrict stock trading.

• The SEC in December proposed requiring nearly all retail stock orders to be sent to auctions, as well as a new standard for brokers to show they get the best possible executions for their client's orders.

US state attorneys increase pressure on TikTok

• 45 US state attorney's general demanded that TikTok, the Chinese-owned social media app, provide requested materials in a nationwide consumer protection enquiry.

• In March 2022, 8 states, including California and Massachusetts launched a bipartisan nationwide probe of TikTok focusing on whether the popular video-sharing app causes physical or mental health harm to young people.

This Startup Is Transforming the $4.8T Wellness Market

Mental health is a massively untapped $100B opportunity in an estimated $4.8T global wellness market.

After seeing their mother struggle with depression, brothers & Forbes 30 Under 30 winners Steve and Daniel Lee started Aura Health, the all-in-one mental wellness marketplace with 7 million users and 100k+ paying subscribers.

Aura has investments from well known Silicon Valley investors such as Cowboy Ventures & Berkeley SkyDeck and executives from Spotify, Facebook, Masterclass, and Apple. And they’re just getting started

[Only 13 days left] Invest in Aura Health and receive 10% bonus shares.

Disclosure: This is a paid advertisement for Aura Health Regulation CF Offering. Please read the offering circular at invest.aurahealth.io

*Thanks to our sponsors for keeping this newsletter free

In Other News

Meta heading to court

• Meta Platforms was unsuccessful in its attempt to dismiss a lawsuit in a Boston federal court that alleges the company stole confidential information from the artificial intelligence startup Neural Magic.

• Meta will have to face a trial over accusations that it took Neural Magic's "breakthrough" algorithms that enable AI systems to process information more quickly, a US District judge said.

Paramount considers cutting BET stake

• According to sources familiar with the matter, Paramount Global is exploring the sale of a controlling interest in its BET Media Group, which oversees operations for Black Entertainment Television, VH1 and related ventures.

• Paramount has been trying to consolidate and refocus its movie and TV offerings around its Paramount+ streaming service and reduce debt as management copes with a decline in traditional TV viewing.

Latam countries to feel brunt of climate change

• A recently published Moody's Analytics report warns that Latin America may lose almost 20% of its GDP by the end of the century due to climate change unless new policies are put into place to mitigate its effect.

• The analysis examined three possible scenarios for the region, accounting for costs of climate changes physical toll -- infrastructure damage, poorer health -- as well as the cost of policy interventions aimed at reducing climate changes impact.

Key Economic Events

• Tuesday - US Semi-Annual Monetary Policy Report

• Wednesday - ECB's Lagarde Speaks, US Trade Balance

• Thursday - No Major Economic News

• Friday - US Unemployment Rate

Notable Briefs

• If you're about to receive an inheritance, here's what you need to know!

• How many credit cards is enough?

• Here are 14 tips on how you can prepare for homeownership!

• Was this forwarded to you? Sign up here.

• Want to advertise in Daily Market Briefs? Go here.