Happy morning, Munchers! 🙏

Here is your daily dose of the news that matters, from Wall Street to Dalal Street - in 5 minutes and 12 seconds.

Let’s dive in.

What’s hot, what’s not?

Market Commentary

• Stocks and bonds both rose as traders assess the macro environment for more rate hikes.

• US markets are pricing in a 75 basis point hike - exact percentages available here.

• German economic activity contracted more than expected and Chinese export figures disappointed.

Story Roundup

1 - Germany gets it's hands dirty for energy. 🔥

Gas is getting pricey for Germany - so they need to go places they wouldn't like to otherwise.

Germany now relies on coal for 1/3rd of it's electricity needs.

This comes as the cost of using natural gas for electricity generation has tripled. Natural gas reliance fell about 20% to only 11%.

These numbers highlight the challenges that Europe's governments have - and just how tricky the energy crisis can be to safely navigate.

Hot stuff. (Stuff = the planet)

2 - Russia says no mo' gas until sanctions are reversed. ❌

Russia turned off Europe's gas taps - and he won't turn them on "until the collective West" lifts sanctions.

President Putin's spokesman blamed a few countries for Russia's failure to deliver gas - including the EU, UK, US and Canada - all of which have slapped numerous sanctions on Russia.

The Kremlin yet again wants Europe to roll back embargos - and in exchange, Russia will restart full gas deliveries.

Moral of the lesson?

Don't bite the hand that feeds you.

3 - Jeff Bezos gets displaced as 2nd richest man. 💸

As is with most things in life, an Indian dude comes on to the scene.

And it's happening with the Forbes lists - Gautam Adani is now the 2nd richest man in the world.

Adani's net worth has rocketed a jaw-dropping $60bn this year - the direct result of a 1,000%+ rally in Adani Group stock.

The Adani group has grown by spending a lot of borrowed money in a lot of new verticals - and it's paid off so far.

But sustainable is the name of the game. ⭐

4 - Fed official says that "rates may rise too much". 🤺

While the US Fed will remain absolute in it's inflation fight, there is a fear that they may raise rates too much - causing unnecessary harm.

Markets rallied over this news, especially when a Fed official said that "it is important to avoid the risk of pulling back too much".

There's definitely a firm push to raise rates to bring inflation back in - but we might see muted aggressiveness.

Low rates, more party. 🥳

5 - British Pound falls to a 37-year low against the Dollar. 📉

The Sterling is in some hot water.

It's down 17% for the year as tons of people leave the UK behind over a bleak outlook.

Both Goldman Sachs and Citibank see UK inflation at over 20% by the next year - stunning figures for a developed country with a population of 60 million.

The UK has also borrowed heavily - and an acute dependence on foreign capital is all leading to soaring debt costs due to higher rates.

Cracks in the current account are turning into chasms - and stuff looks to be getting weirder.

God save the Queen.

Hope you enjoyed this issue of the Market Munch. If you've got any feedback - good or bad (😏) you can hit reply to this email. Thanks a ton for reading!

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Cheers, and have a lovely day. 🙏

Aryaansh