Written by Gary
Prepare For 3 Things: Big Government, Huge Boondoggles, and Massive Taxes (SPY +0.4%). SP 500 approaching 4K level as investors await Biden infrastructure push.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Perus Oil Industry Is Key To Its Pandemic RecoveryPeru has struggled for over a decade to build its hydrocarbon sector and boost crude oil reserves and production. 2020 was particularly difficult for the Andean countrys crisis-ridden petroleum industry. Ongoing social conflict, notably in Perus northeastern Amazon, the COVID-19 pandemic, and ongoing infrastructure outages all impacted hydrocarbon output. Those issues were amplified by the Latin American countrys long-running political crisis and the socioeconomic fallout from the pandemic. Like its Latin American neighbors, |
| U.S. Gasoline Demand Climbs Above 2020 LevelsGasoline sales in the U.S. exceeded 2020 levels for the first time this March after a tough year of decreased demand. Same-store sales of U.S. gasoline in gallons for the week ending March 20, 2021, were just over 10 percent higher than 2020 according to an Oil Price Information Service (OPIS) survey by IHS Markit of over 25,000 gas stations countrywide. Brian Norris, executive director of retail fuels at OPIS stated of the change, The year-on-year increase in fuel demand from March 2020 is certainly welcome news for the recovery |
| Libyas Oil Production Set To Stabilize In 2021Libya may be able to maintain its current level of oil production of around 1.2 million barrels per day (bpd) until the end of the year as the oil sector is finally receiving enough funding for field maintenance and development, Libyas Oil Minister Mohamed Oun told Bloomberg in an interview. Oun was sworn in as the first oil minister of the country since 2014 as the new Libyan unity government took office earlier this month. The new cabinet is the first unity government of the war-torn country since 2014, and could potentially pave the way |
| Coal Is In Terminal Decline, But Chinas Consumption Is ClimbingCoal, the dirtiest of the worlds fossil fuels, has been in terminal decline for years now. Investment in the once-vital commodity has crashed, and the ESG movement is only accelerating that trend. Analysts are no longer questioning whether the fuel will recover, and are instead asking which country will be the last to build a new coal plant. A report released this week by climate and energy think tank Ember found that global coal-fired electricity fell by 4 percent in 2020, a record drop. That loss in coal-fired power was made up for by |
| China’s Refiners Are An Existential Threat To Regional CompetitorsChinas build-up of oil refining capacity is threatening the viability of other Asian refiners as the country is about to become the worlds largest refiner this year amid still depressed demand for fuels. Bloomberg reports that the refining capacity of the country has increased threefold over the last 20 years and is on track to exceed the refining capacity of the United States this year as more new refineries come online. China had 1.4 million bpd in new refining capacity under construction as of November last year. This amount,distributed |
| Analysts See Oil Markets Balancing Out In H2 2021Despite recent signs of weakening oil demand as Europe grapples with a new wave of COVID cases, the crude oil futures market structure still points to demand beginning to outpace supply in the second half of 2021, analysts tell Reuters. The front-month spread of the Brent Crude futures prices flipped to contango in March, pointing to weaker demand and an oil oversupply in the immediate term. Last week, the nearest Brent Crude contract for May was trading at a discount to the next-month contract, the June contract,for the first time since |
| Starbucks strikes deal with EEOC over alleged racial bias in promoting employeesStarbucks said it has resolved allegations from the Equal Employment Opportunity Commission about alleged racial bias in its employee promotions. |
| Delta CEO blasts Georgia voting law as ‘unacceptable’ and ‘based on a lie’ after backlashDelta Air Lines’ CEO Ed Bastian condemned a controversial Georgia voting law after a backlash on social media. |
| CDC director says Covid variant from UK is becoming the predominant strain in many parts of the U.S.The variant, known as B.1.1.7, now accounts for 26% of virus cases circulating across the nation, CDC Director Dr. Rochelle Walensky said. |
| Kroger looks to make online grocery orders more profitable, double digital sales by end of 2023Company leaders said the supermarket operator will fulfill online orders more efficiently and grow its ads business as an alternate revenue stream. |
| DoorDash accuses software company Olo violating a contract by charging it too muchFood delivery app DoorDash is accusing software company Olo of breach of contract, fraudulent inducement and concealment. |
| GM CFO ‘increasingly confident’ in achieving 2021 earnings targets despite chip shortageGM expects the chip shortage to cut $1.5 billion to $2.5 billion from its free cash flow in 2021. |
| Ghost kitchens and meal kits: Kroger experiments with new ways to sell prepared foodKroger said it is experimenting with new ways to offer customers restaurant-quality meals from ghost kitchens or preassembled dinner kits. |
| Latino community hit ‘disproportionately hard’ in economic crises, Treasury Sec Yellen saysTreasury Secretary Janet Yellen explained that Latino-Americans have been hit the hardest by the last five economic crises in the United States. |
| After calls to boycott Coca-Cola, CEO says the company has always opposed new Georgia voting lawCoca-Cola CEO James Quincey said that the company has always opposed legislation in Georgia that restricts voter access. |
| Higher commodity costs lead to price hikes from Kimberly-Clark and other consumer giantsKimberly-Clark said Wednesday that it would hike prices on staples like Scott toilet paper and Huggies diapers. |
| Michael Jordan’s brand taking next steps in $100 million commitment to the Black communityMichael Jordan will launch a community grants program for organizations assisting Black communities through his apparel brand. |
| End of a Covid era: Delta to stop blocking middle seats on May 1Delta says it will start selling all seats on board starting May 1, ending more than a year of Covid-era capacity caps. |
| Bitcoin & Black Gold Soared In Q1, Treasuries Suffer Biggest Loss In Over 40 YearsBitcoin & Black Gold Soared In Q1, Treasuries Suffer Biggest Loss In Over 40 Years For the fourth straight quarter, US stocks dramatically outperformed Treasuries…
Source: Bloomberg S&P gained over 6% as Treasury’s total return fell over 4%…
Source: Bloomberg And despite all of JPM’s wailing of massive rebalance flows, Small Caps and Big-Tech have soared this week (as bonds were dumped)… |
| SEC Opens Probe Into Archegos Chaos, Deutsche Bank Confirms ‘Quick Sale’ To Avoid All LossesSEC Opens Probe Into Archegos Chaos, Deutsche Bank Confirms ‘Quick Sale’ To Avoid All Losses As more details from the now infamous debacle surrounding Tiger cub Archegos, whose massive derivative-based exposures spilled out into the open and transformed into the biggest and most painful rolling margin call to hit Wall Street since Lehman, we now know that at least six Prime Brokers scrambled to unwind the biggest hedge fund blowup since LTCM without hammering the overall market. To “make a living in this business… be first, be smarter, or cheat…” We previously noted that Morgan Stanley and Goldman Sachs were the “first” to break ranks and rejected the efforts of Credit Suisse’s emissaries who tried to create consensus to unwind the positions without sparking a panic. As we now also know, Nomura and Credit Suisse which dithered and were unsure what to do, seeing their stock crushed and their counterparty risk hedge premia explode higher. |
| Prepare For 3 Things: Big Government, Huge Boondoggles, Massive TaxesPrepare For 3 Things: Big Government, Huge Boondoggles, Massive Taxes Authored by Mike Shedlock via MishTalk, Progressives have their eyes on your wallet to pay for their big-government schemes. And it looks like Biden will oblige them.
$10 Trillion for Climate and Infrastructure The National Review reports Liberal Senators Push Biden for a $10 Trillion Climate and Infrastructure Bill
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| 72 Black Executives Joined By Delta, Microsoft In Opposing Georgia Election Law72 Black Executives Joined By Delta, Microsoft In Opposing Georgia Election Law As organized groups of social justice activists pressure US companies to oppose Georgia’s new election law, CEOs of major corporations are now coming out against the GOP-sponsored overhaul. On Wednesday, 72 black executives – led by former American Express CEO Ken Chenault and outgoing Merck CEO Ken Frazier – signed an open letter demanding that corporate America fight the Georgia legislation. “Fundamentally, if you can’t oppose this legislation ” that’s the lifeblood for black Americans, the right to vote. We can’t be silent, and corporate America can’t be silent. And if they can’t speak out on this issue, what can they speak out on?” Chenault said during an appearance on CNBC |
| Investors pursue Liberty Steel owner over unpaid debtsSteel magnate Sanjeev Gupta is under pressure from banks seeking to wind up parts of his metals group. |
| Mastercard fined £31m for breaching competition lawFive payments firms are accused of running a cartel to reduce competition in the market for pre-paid cards. |
| Deliveroo shares tumble on stock market debutDeliveroo shares close well below their expected price after big investors’ attitude to company soured. |
| Hedge fund fallout wipes over $9 bn from market value of Credit Suisse, NomuraThe bank’s market capitalisation has shrunk by five billion Swiss francs since Friday to 25.57 billion Swiss francs ($27.12 billion). Sources estimate Credit Suisse’s losses may total $5 billion but the bank declined to comment. |
| RBI consults banks on rupee intervention strategyBanks suggested that the central bank intervene in the spot market instead but do so in conjunction with liquidity draining measures such as Special Deposit Schemes (SDS), Market Stabilisation Bonds (MSS) or even RBI-issued bonds, although the latter will require a legislative change. |
| Investors’ wealth rises massively by over Rs 90.82 lakh cr in FY21In an unprecedented rally, the 30-share BSE Sensex jumped 20,040.66 points or 68 per cent this fiscal year, braving many uncertainties due to COVID-19-led disruptions. |
| Capitol Report: Biden to make pitch for $2.3 trillion infrastructure plan in Pittsburgh speech on Wednesday afternoonPresident Joe Biden on Wednesday is rolling out a massive infrastructure plan as he visits Pittsburgh. |
| The Margin: Miley Cyrus is giving out $1 million in stock with Cash App‘Nothing is more important than investing in yourself,’ the singer wrote on Twitter and Instagram |
| : Russia registers ‘world’s first’ COVID-19 vaccine for dogs, cats and other animalsRussia has registered the world’s first COVID-19 vaccine for animals, the country’s agricultural regulator said on Wednesday. |
Kenneth Chenault, left, a former chief executive of American Express, and Kenneth Frazier, the chief executive of Merck, organized a letter signed by 72 Black business leaders.Credit…Left, Justin Sullivan/Getty Images; right, Spencer Platt/Getty ImagesSummary of Economic Releases this Week
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