WORD ON THE STREET 

Pilot Shortage, Ex- GS Head Warns Of Recession, Finland In NATO

• Another Doomsayer – Former Goldman Sachs (GS) CEO Lloyd Blankfein, one of Wall Street’s most respected voices, said a recession is “a very, very high risk factor.” While acknowledging the Fed has some “very powerful tools” and is generally “responding well,” he argued that inflation will likely be “sticky.” An increasing number of analysts worry that the Fed acted too little, too late when it comes to checking the danger of inflation. In other words, don’t count on gas prices coming down anytime soon.

• Dramatic Change In Finnish Foreign Policy – Finland, once an autonomous part of the Russian Empire, stuck to neutrality throughout the Cold War. That’s all in the past now. Finland has officially requested to join NATO, as has Sweden. If Vladimir Putin was hoping to scare neighboring nations away from the Atlantic alliance, he’s accomplished the exact opposite of his purpose.

• “Does Anyone Know How To Fly This Thing?” – Facing a potentially catastrophic pilot shortage, airline companies and the federal government are musing about some big reforms to expand the potential workforce. These include raising the mandatory retirement age to 67 (or even higher), reducing the amount of time needed in training, and even dropping degree requirements. None of these steps will do much in the short-term, meaning that the shortage is probably going to persist for years.

• World’s Biggest Company Reports 82% Leap In Profits – It’s not a tech company. It’s Saudi Aramco, the oil giant owned by the Kingdom, which reported net income of over $39.5 billion in just the first quarter. The surge in profits is a direct result of the dramatic increase in oil prices as Europe tries to decouple from Russian energy sources. Western leaders have tried to reduce oil prices by encouraging Saudi Arabia to produce more, but if the company keeps seeing profits like this, foreigners have little leverage.

HOT SPOTS: What’s Going on in Geopolitics

• Ukrainian Army Advances To Russian Border – Russian troops are falling back from Ukraine’s second-largest city, Kharkiv. As Vladimir Putin’s troops withdraw in confusion in the northeast theater, Ukrainian forces are at the borders of Russia itself. Meanwhile, NATO Secretary General Jens Stoltenberg says that Russia’s operation in Donbass has failed.  How much longer can Russia go on?

• China Attempting To Stimulate Economy – China is taking the opposite approach of the United States, slashing mortgage rates in an attempt to restart growth. The country is also lifting lockdowns in Shanghai, though the supply chain disruptions and decline in economic growth can’t be helped now. The jobless rate is also nearing pandemic-era highs.

• North Korea… Admits Bad News? – North Korean propaganda isn’t exactly known for promoting government failures. However, the government is reporting that a “fever whose cause couldn’t be identified explosively spread nationwide from late April.” It’s the first time the Hermit Kingdom has publicly admitted what is almost certainly a large-scale COVID-19 outbreak. In more positive news, South Korea announced it would spare no effort to help its northern neighbor, a sign the pandemic might have the silver lining of easing tensions between the kindred states.

CUTTING EDGE: What‘s Happening In Tech

• Navy’s High-Tech Craft Sinks For Unknown Reasons – We don’t know what it is, we don’t know what it does, what don’t know what sank it. All we know is that the U.S. Navy reported a “Class A” mishap, meaning something worth at least $2.5 million (probably far, far more) has sunk. “Due to the experimental nature of the technology coupled with OPSEC concerns, we are unable to provide any further details nor specifics of the incident,” said Naval Safety Command. The Navy claims the boat was “immediately recovered and restored,” though we just have to take their word for it.

• SpaceX Pulls Off Back-To-Back Launches… – In less than 24 hours, Elon Musk’s commercial space company launched two Falcon 9 rockets, each delivering 53 Starlink internet satellites into orbit. The company has pulled off 20 orbital flights YTD, with most of them dedicated to Starlink. More than 2,500 satellites have been launched so far.

• And Vows To Beat NASA To Mars – If you want something done right, you have to do it yourself. SpaceX President and CEO Gwynne Shotwell said that she thinks astronauts will make it to Mars “this decade” and return to the Moon “sooner.” If SpaceX even comes close to that target, it would mean beating NASA by more than a decade. NASA’s goal is to launch a crewed mission to Mars by 2040.

FOR YOUR CONSIDERATION