What we’re reading (10/5)
“GM Has At Least 20 Million Vehicles With Potentially Dangerous Air-Bag Parts” (Wall Street Journal). “The number of affected GM vehicles—a figure that hasn’t been disclosed publicly—makes the Detroit-based automaker among the most exposed in a push by U.S. auto-safety regulators to recall 52 million air-bag inflators designed by Tennessee-based auto supplier ARC Automotive, according to people familiar with the matter.”
“Fed’s Bid To Avoid Recession Tested By Yields Nearing 20-Year Highs” (Bloomberg). “The surge — 10-year Treasury yields rose more than half a percentage point the past month to surpass 4.7% — heightens the danger in the near-term of a financial blowup akin to the regional bank breakdown in March. Longer run, it threatens to undercut the economy by markedly raising borrowing costs for consumers and companies.”
“The Collapse In Treasury Bonds Now Ranks Among The Worst Market Crashes In History” (Insider). “Compared with previous bond-market meltdowns, long-term Treasurys are seeing one of the most extreme undoings in history. The losses are over twice as big as those seen in 1981 when 10-year yields neared 16%.”
“Copper’s Price Curve Hasn't Looked Like This In Decades” (OilPrice.com). “The copper market is in a state of extreme contango—a state of the futures curve where futures contracts trade at a premium to the spot price and signal weak prompt demand.”
“Negotiations Between The UAW And GM Are Showing Signs Of Progress” (CNN Business). “Three weeks into the United Auto Workers strike, signs of progress have emerged in talks between the union and General Motors. GM said it provided a counteroffer to the UAW’s most recent proposal, which it said is the sixth by the company since the start of negotiations.”
