The man who seized one of Argentina’s ships now warns there will be a wave of emerging-market defaults

The US Dollar Emerging Markets Bond ETF iShares JPMorgan EMB,
-0.51%
this year it has dropped 16%.

Most of Newman’s comments are trained on how private sector investors should handle defaults, rather than the broad market or economic impact.

What makes it different this time, Newman writes, is China’s role in lending.

Newman, needless to say, says China has set a debt trap to seize key assets around the world. “When Sri Lanka, as expected, found itself unable to meet its debt, China set the trap, insisting on payment, offering to exchange debt for more concessions and large tracts of land and offering additional money to help. to overcome the political class “. he writes.

Related: China has made hidden loans worth $ 385 billion abroad

Newman says international financial institutions, Western governments, “wrinkle” non-governmental organizations and the international press will ask private sector creditors to offer concessional terms such as Sri Lanka. “Why do this,” he replies. “Unless a debtor demonstrates the will and ability to reinvent, and unless all creditors, including China and the IFIs, agree to disclose all of their claims and agree to negotiate a resolution on commercial terms, any restructuring will fail.” .

Elliott is not reported to be one of Sri Lanka’s top private investors, whose ranks in April included Fidelity Investments, Lord Abbett, T. Rowe Price, Payden & Rygel and SEI Investments, according to Bloomberg News . Official investors in Sri Lanka’s $ 35 billion debt pile include the Asian Development Bank, China, Japan, the World Bank and India, according to the Sri Lankan government.

The buzz

Today is the day the Federal Reserve’s plan to start reducing its $ 9 trillion balance sheet, letting its stack of bonds go uninvested, begins on Wednesday. Daylight saving time begins with a reduction of $ 47.5 billion a month, and once white pants are stored, the pace increases to $ 95 billion every month.

The Institute for Supply Management’s manufacturing index, construction spending, and job opening reports expire at 10 a.m. Eastern Time. The Fed Chairman of St. Louis, James Bullard, is due to speak at 1 p.m., and the Fed’s Beige Book will be at 2 p.m. Vehicle manufacturers will report on their May sales throughout the day.

Atlanta Fed Chairman Raphael Bostic, in an exclusive interview with MarketWatch, said his suggestion that the central bank take a “pause” in September in its push to raise interest rates should not be it should in no way be interpreted as a “fed up of the Fed” or the belief that the central bank would come to the rescue of the markets. U.S. Treasury Secretary Janet Yellen admitted to CNN that she was wrong about the direction of inflation.

Salesforce.com CRM,
-2.94%
shares rose 8% in pre-market trading after increasing their earnings forecast for the year. HP HPQ,
+ 0.23%
remained stable after exceeding earnings and sales estimates.

After closing, GME GameStop meme stock results,
-9.09%
as well as Chewy CHWY pet product retailer,
-8.52%,
which GameStop President Ryan Cohen co-founded. NetApp NTAP,
-1.51%
and Hewlett Packard Enterprise HPE,
-1.20%
they are also programmed to report results.

The markets

A mixed open ES00,
-0.04%

NQ00,
-0.22%
look in store after the S&P 500 SPX,
-0.63%
he broke a three-day streak of victory on Tuesday.

Or GC00,
-0.79%
futures fell, while oil CL.1,
+ 1.19%
futures went up.

The graph

John Hussman, president of the Hussman Investment Trust and a longtime bearer, says stock market sales still have a long way to go.

“At extreme points like this, it is useful to remember that risk management is generous. While market advances in overvalued conditions can make investors feel like they are “losing” returns, those speculative returns are invariably eliminated over the entire market cycle, ”he says.

The best tickers

These were the busiest stock market tickers at 6am in the East.

Random readings

Tesla CEO Elon Musk doesn’t seem to be a fan of working from home.

A license dispute could mean the end of Elvis-themed weddings in Las Vegas.

Mice are afraid, not of cats, but of bananas.

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