10 things before the opening bell
Welcome back, readers. Today we're breaking down the IEA's plan to cut into oil demand, as well as expert stock picks for an uncertain landscape. We also dive into what a Saudi Arabia-China oil deal in yuan could mean for the rest of the world.
Let's begin.
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1. The International Energy Agency has some ideas to slash oil demand. On Friday, the IEA released a 10-point plan for an emergency reduction of oil demand in light of Russia's "appalling aggression" against Ukraine.
The conflict has pushed the world toward its biggest oil supply shortage in decades, the agency said. Its ideas include slashing speed limits and making public transportation more affordable, though the IEA acknowledged the supply shortage will still likely worsen.
"Emergency measures can quickly cut global oil demand by 2.7 million barrels a day, reducing the risk of a damaging supply crunch," the IEA said in its 10-point plan.
Other ideas included working from home when possible and car-free Sundays in cities. If implemented, the IEA predicts the plan could cut oil demand down by 2.7 million barrels per day within four months.
Russia's war with Ukraine began on February 24, and has prompted Western nations to impose economic sanctions that included bans on Russian oil imports.
Oleg Elkov/Gety Images
In other news:
2. Global stocks are on the backfoot today. Little progress in Ukraine peace talks and the European Union mulling a ban on Russian energy exports are undermining sentiment and pushing the oil price up sharply. Here's what's going on.
3. Earnings on deck: Nike, Rubicon Technology, and Jaguar Mining, all reporting.
4. The CIO of wealth management at $6.5 trillion Morgan Stanley shared what trades she's betting on right now. Even as leadership in the stock market changes "profoundly," Lisa Shalett is eyeing these three high-conviction moves — and she shared her two best ideas for inflation hedges.
5. A yuan-based oil deal between China and Saudi Arabia could upend the global currency order. The impact of the West's economic sanctions on Russia have put other countries on notice. An economist broke down why the Saudis could look to make a move — and where China could look to spread the yuan next.
6. Investing in stocks over the next several years might be rocky for those looking to simply buy and hold. Stifel's chief equity strategist foresees a lost decade for stocks coming up. Here's how investors should prepare for the potential of 0% returns through 2031.
7. Russia isn't using cryptocurrencies to evade economic sanctions, digital experts told US lawmakers. They said there is no evidence of this, and that Russia is far too big an economy to use crypto in a last-minute pivot. Still, Russia did recently license its biggest lender to issue and exchange digital assets.
8. These small-cap stocks have at least 70% upside, according to a 34-year market veteran. Recession risk is rising as the Fed raises rates, but Kevin Rendino, CEO of 180 Degree Capital, has his eye on three stocks that he thinks will profit anyway.
9. Morningstar shared the companies they view as high-quality bargains to snap up right now. "Stock market losses in 2022 have opened opportunities for investors to scoop up high-quality stocks at discount prices," Lauren Solberg said. See the firm's list of eight stocks.
S&P Global Ratings
10. Rating agency S&P Global has downgraded Russia's credit rating, as well as a slew of corporate ratings, since the war in Ukraine began. Russia's sovereign rating was cut deep into junk territory, and the agency said there are already 30 companies that have tumbled just as far. See the five charts that tell the tale of "Russia Inc."
Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn.)
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