Summary: Global stocks are bouncing this morning on stronger than expected profit results from companies with market power able to put up their prices faster than costs, while some investors also went bargain hunting among tech stocks officially in correction territory after a 10% fall in 2022.

Profitable buying US stocks rose 0.5% to 1.5% in positive trade this morning as better-than-expected earnings results from some tempted buyers back, particularly for tech stocks hammered so far this year by a 10% fall back into correction territory. There are also hopes China’s monetary policy easing last week will support economic growth and offset some of the Fed’s expected tightening.

Chain broken But one former-favourite, Peleton, saw its shares drop 20% after it halted production in the wake of a slump in sales now that many workers have gone back to their offices, or at least don’t want to buy any more of the internet-connected stationary bikes. The purely fictional heart attack suffered by the character Mr Big while riding a Peleton in And just like that hasn’t helped sales either. 

Bubble bursting? Prominent US fund manager Jeremy Grantham has described stock valuations as in a “super bubble” and warned in a letter to investors overnight that even intervention by the Federal Reserve can’t prevent an eventual plunge of almost 50%. (YahooFinance)

This lady’s not for turning European Central Bank president Christine Lagarde has rejected calls for the ECB to follow the Fed’s lead and start tightening monetary policy, saying Europe’s economy was not as robust and its inflation not as high as in the United States. “The cycle of the economic recovery in the U.S. is ahead of that in Europe. So we have every reason not to act as quickly or as ruthlessly as one might imagine with the Fed,” she said overnight. (Reuters)

Brace for it Auckland’s hospitals are bracing for a peak of 190 covid patients in hospital on any day in an omicron outbreak with 1,800 cases a day (RNZ, Stuff). However, other epidemiologists are saying 1,800 cases a day estimate for Auckland may be an underestimate, given others have modelled national caseloads of tens of thousands a day.

Gearbox broken The Kaiarahi Interislander ferry was catastrophically damaged when its gearbox failed last year, briefings to the minister show, according to a report in the NZ Herald).

Fresh on BusinessDesk this morning

Brent Melville reports ANZ is expecting house prices to drop 7%.

Paul McBeth writes his weekly column on the CCCFA changes.

Jenny Ruth reports from an interview with Nikko Asset Management’s NZ director George Carter that it isn’t pulling out of Cathie Wood’s Ark ETF.

Rebecca Howard reports on how Canadian dairy exporters haven’t been following the new rules in the CPTPP.