1. Credit Spreads Not Signaling Danger
During a huge risk-on advance, US High yield spreads have tightened 152 bps since April 7. With spreads now at 309 bps above Treasuries, credit market investors are back to pricing in a very optimistic outlook with no recession and few defaults.
Charlie Bilello
2. AI Premium to Overall Market at 2017 Levels
The P/E premium vs the overall market for a basket of 48 AI-related stocks is back down at levels last seen in 2017.
Daily Chart Book
3. Emerging Markets Ex-China Breakout
Topdown Charts
4. PPI Number Good for Lower Inflation
Liz Ann Sonders
5. Housing Market Needs Lower Rates
Inflation rose to levels not seen since the 1980s and high mortgage rates have largely frozen the US housing market, as housing affordability plunged to its lowest level in decades.
Cresset
6. Defense Spending Not Slowing Down
Barron’s
7. Aerospace/Defense ETF
CNN
8. NATO Arms Supplies by Country of Origin
Semafor
9. With US trade war, China now top buyer for Canadian crude on Trans Mountain Pipeline
Via Reuters: China has emerged as the top customer for Canadian oil shipped on the expanded Trans Mountain pipeline, ship tracking data showed, as a U.S. trade war has shifted crude flows in the year since the pipeline started operating.
China’s new interest in Canadian oil comes as U.S. President Donald Trump’s trade war has strained relations between longtime allies Washington and Ottawa. It also reflects the impact of U.S. sanctions on crude from countries like Russia and Venezuela.
10. 49ers to Sell Nearly 6% Stake at Record Sports Team Valuation
Via Sportico: The owners of the San Francisco 49ers have reached an agreement to sell about 6% of the NFL franchise to a trio of Bay Area families at a valuation higher than $8.5 billion, according to a person familiar with the details, the highest valuation ever for a global sports team in a transaction.
The buyers are the Khosla family, the Griffith family and Deeter family, said the person, who was granted anonymity because the details are private. The Khosla family is buying the biggest stake, the source said, but it is unclear exactly how the 6% is being broken up between the three.
The NFL’s finance committee has reviewed the deals, though they still require more formal approval. A representative for the 49ers declined to comment. Attempts to reach the three families weren’t immediately successful.
The 49ers are owned by the York family. Sportico values the team at $6.86 billion.
The transaction continues a trend of recent minority stake sales in the world’s most valuable sports league. While the NFL opened its ownership ranks to private equity last year, some continue to prioritize individual investors. The Eagles recently sold two minority stakes to individuals at an $8.1 billion valuation. The New York Giants are in the market looking to sell about 10%, and the current owners’ preference is for high-net-worth individuals, not institutional funds, Sportico previously reported.