Good morning. US stock futures dipped in Monday morning trading as investors explored whether the market rally was running out of steam.

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Top News

US retailers hit with threats, ransom demands

WHAT: The United States is experiencing a bomb threat frenzy and its got law enforcement and big box stores scratching their heads! According to the Wall Street Journal, law enforcement and retailers are teaming up to investigate a wave of bomb threats targeting grocery stores and other retailers such as Kroger, Walmart and Whole Foods.

WHY: The FBI said it was working with state and local law enforcement officials to ensure any suspicious activities were reported.

Banking group: Global economy at crossroads

WHAT: Hold on to your wallets and brace yourself because the Bank for International Settlements (BIS) is calling for more interest rate hikes! In a recently published report, the umbrella organization said the world economy was now at a “crucial point” with many countries struggling to rein in inflation. “The global economy is now at a critical juncture. Stern challenges must be address” BIS general manager Agustin Carstens said in the report.

WHY: The longer inflation remains elevated, the stronger and more prolonged the required policy-tightening, the BIS report said, warning that the possibility of further problems in the banking sector was now “material”.

Mexico imposes tariffs on US, Canada

WHAT: Mexico is getting feisty! They’ve decided to slap a hefty 50% tariff on white corn imports in the name of boosting their own production and keeping out genetically modified (GM) corn invaders. The move comes amid an ongoing trade dispute between Mexico and its trading partners to the north, Canada and the United States.

WHY: Mexico wants to restrict GM white corn for human consumption and eventually also veto GM yellow corn for animal feed. Both the US and Canada say such moves would harm trade in the region.

In Other News

Amazon commits big bucks to India

 WHAT: Amazon is going all-in on India! During discussions with Indian Prime Minister Narendra Modi on his trip to the US, Amazon CEO Andy Jassy said the e-commerce giant would be pouring an additional $15 billion in investments into the country.

WHY: The announcement follows Amazon’s cloud computing unit Amazon Web Services (AWS) saying last month it will invest 1.06 trillion rupees ($12.9 billion) in the country by the end of 2030.

Credit card rewards not so rewarding for some study finds

WHAT: In the world of credit cards there’s a great divide between the winners and the losers. The high credit score folks are raking in the rewards, while the low score consumers are left in the dust overspending just to chase those elusive perks. According to researchers from the Federal Reserve’s Finance and Economics Discussion Series, a whopping $15 billion is being shuffled annually from “poorer to richer”.

WHY: Rewards credit cards accounted for over 60% of all new credit card originations in 2019 according to the Consumer Financial Protection Bureau. That year, US banks paid out $35 billion in rewards.

YouTube dips toes in online gaming

WHAT: YouTube might soon be making the pivot to a gamer’s paradise! According to reports from the Wall Street Journal, the company sent out an email asking employees to sign up to test out a gaming product called “Playables”. A spokesperson for YouTube said gaming had “long been a focus” for the video sharing platform.

WHY: Hosting online games on YouTube, which is a popular place for users to stream games and watch livestreamed game footage, is part of CEO Neal Mohan’s push into new areas of growth amid a slowdown in advertising spending.

Key Economic Events

• Monday - No Major Economic News

• Tuesday - CB Consumer Confidence

• Wednesday - Fed Chair Powell Speaks

• Thursday - Fed’s Bostic Speaks

• Friday - U. Of. Mich. Consumer Sentiment

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