Happy morning, Munchers! 🙏

New month, let's get into it.

As always, here is your daily dose of the news that matters, from Wall Street to Dalal Street - in 4 minutes and 57 seconds.

Let’s dive in.

What’s hot, what’s not?

Market Commentary

• US markets drifted into the red, closing down 1% as investors start to sell the rally.

• General cynicism on how central banks set the stage kept global markets down.

• King Dollar remained at it's throne as the Fed's hawkishness sends it flying.

Story Roundup

1 - Russia finally halts gas supply to Europe. 🔥

The world's playing checkers while Russia's playing chess.

Yesterday, they completely halted flow of natural gas to Europe, squeezing European gas supply.

Russia supplies about 40% of European gas through this pipeline - and this gas is used for everything from - electricity generation- heating up homes- running cars

They're claiming that it needs to be done because of maintenance issues. If they find nothing wrong, they'll put the line back up.

Light-headed. 💀

2 - Ukraine fights back with a counter-attack. 💣

Ukraine isn't taking it sitting down.

Yesterday, they launched a counter-attack, with the goal of recapturing territory from Russia.

Despite Ukraine's constant complains that they're low on weaponry. they've struck regardless.

They are claiming that they've broken through Russia's first line of defence, while Russia says that the attack has failed, while it's own invasion is going well. 💀

The goal is to recapture a lot of coastal land, and give Ukraine access to key ports.

He-said, she-said with a lot at stake. 💀

Video is here.

3 - Klarna's in hot water. And the temperature's creeping up. 🌡️

Losses at fintech giant Klarna quadrupled in the first half.

The payments company reported losses of $58m for the first half, compared to $13m a year earlier.

Revenues increased about 24%, but profitability is no-where in sight.

This year has bruised them a lot - - nonexistent demand- an 86% drop in valuation- rising interest rates- and now this!

Buy now, profit later?

Looks like never for quite a lot of their investors. 🔥

4 - Japanese Yen hits a 24-year low. 💀

Japan's central bank has been trying some unorthodox policy of late.

They've been loosening their economy while others tighten, and this has spooked investors a little as the Yen hit 140/dollar.

That's the lowest level in almost a quarter of a century, and comes after some super hawkish comments from global central banks.

Time will tell where this one's headed. ⛵

5 - German businesses halt production in face of unseen prices. 🏭

Inflation is biting, and it's biting where it hurts.

In a move never seen before, German manufacturers have chosen to stop production outright.

Energy prices (gas, oil and electricity) all remain elevated at levels 10-14x their 20-year average.

It's an alarming development, since industry gets ruptured, putting pressure on supply.

This ultimately leads to higher prices for the little guy.

Seatbelt szn. Buckle up. 🤷

Hope you enjoyed this issue of the Market Munch. If you have any feedback, positive or negative, hit my line at [email protected] or +971 50 708 8469.

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Cheers.

- A