Written by Gary
World Health Organization warns of global uptick in Covid cases after weeks of decline (SPY -1.3%). Beige Book: growth continues to be modest and rising bond yields weigh on market.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Debt Stricken Mexican Oil Major Pemex Scrambles To Boost ProductionAfter decreasing production to match lower demand in 2020, Mexico plans to boost oil exports in 2021 as worldwide demand gradually increases once again. OPEC members heavily reduced oil production and export levels in 2020 amid a precipitous drop in demand. Although Mexico initially supported this initiative to stabilise pricing, the head of state-owned Mexicos Petroleos Mexicanos (Pemex) announced this week that production would pick up to pre-reduction levels this year. Ulises Hernandez, general director of PMI which |
| IEA Head: Indias Coal Exit Cannot Happen Without Financial SupportIndia and other developing nations should get international financial support, as well as strong government commitment and aid, in order to phase out coal and contribute to emissions reduction, Fatih Birol, the Executive Director of the International Energy Agency (IEA), said on Wednesday at an energy event. The world as a whole needs to exit coal, he said, but noted that for many coal-dependent nations, including India, the exit would need a lot of international financial assistance, and it would not be fair to ask emerging economies to stop using |
| China Makes Move On Riyadh As Washington Considers SanctionsPanda Express isnt just a fast-food chain in Saudi Arabia. Soon itll be the daily Air China flight bringing Chinese businessmen and officials to the kingdom. Saudi Arabia recently achieved the distinction of joining Turkey as an American ally subject to sanctions. The sanctions followed the U.S. Director of National Intelligence report that an operation to capture or kill Saudi activist (and Qatari agent of influence) Jamal Khashoggi in October 2018 was approved by Saudi crown prince Mohammed bin Salman. |
| Turkeys Perfectly Timed Gas DiscoveryTurkeys energy import bill has been a major drag on its economy for decades. In 2019, the country imported $41 billion worth of energy among which 45 billion cubic meters of natural gas. Besides LNG imports, the most important exporters are Russia, Azerbaijan, and Iran. Turkey’s high import dependency explains the enthusiasm with which the discovery of the gas field was announced. There is widespread skepticism about whether the publication was too premature. However, it can be better understood if geopolitical factors and the near expiration |
| Russia Considers Cutting Government Borrowing As Oil Prices RallyRussia could end up borrowing US$6.8 billion (500 billion Russian rubles) less than planned this year as rising oil prices help its key oil revenues to rise, Bloomberg reported on Wednesday, quoting two officials with knowledge of the plans. The rally in oil prices, which have risen by around 30 percent this year, also coincides with Russias economy emerging from the slump during the pandemic. Last year, Russias economy was suffering the consequences of the oil price crash it helped create with the temporary rift with its OPEC+ partner |
| Wall Streets Sees 2,000% Growth For Booming EV MarketTo say that 2020 was an unusual year in markets would be a vast understatement. The last year not only went on record for the quickest and deepest bear market decline in history but also saw an unprecedented level ofglobal stimulus, the highest volatility (VIX) on record, negative oil prices, and, thankfully, the fastest recovery from a bear market. But, perhaps, the biggest megatrend of them all: ESG Investing finally came of age in 2020. A recent report by clean energy watchdog Bloomberg New Energy Finance (BNEF) proves that the renewable |
| Aston Martin launches first F1 car in over 60 yearsBritish luxury carmaker Aston Martin on Wednesday launched a new Formula One car ahead of its return to the most famous motor racing event in the world. |
| GM extends plant shutdowns due to global semiconductor chip shortageThe decision to extend the shutdowns is in an effort to prioritize chips for production of GM’s full-size pickup trucks and SUVs. |
| FedEx pledges $2 billion toward carbon-neutral operations by 2040, aims for an all-electric fleetLogistics giant FedEx said on Wednesday that it aims to replace all of its parcel pickup and delivery vehicles with a sustainable electric fleet by 2040. |
| Insurers launch pilot program aimed at getting 2 million American seniors vaccinatedThe program ” Vaccine Community Connecters ” is designed to educate seniors on the vaccines, help schedule appointments for shots, and arrange transportation. |
| Walmart says it will support U.S. manufacturers with $350 billion of added businessThe retailer said the decision will benefit the environment and the U.S. economy, too, by sourcing goods closer to customers and creating demand for jobs. |
| Sands to sell its Las Vegas properties for $6.25 billion as it shifts focus to Macao, SingaporeBefore the pandemic, Sands’ properties in Asia accounted for roughly 90% of its revenue with investments planned to expand in Macao and Singapore. |
| President Joe Biden slams governors for lifting mask mandates, calls it ‘Neanderthal thinking’While daily new cases of Covid-19 are significantly down from the peak in early January, the decline has plateaued in recent days at a worryingly high level. |
| SpaceX aborts Starship prototype launch, will try again later todayElon Musk’s SpaceX is preparing to launch the latest prototype of its next-generation Starship rocket on Wednesday. |
| Asian-owned small businesses saw an outsized pandemic impact last yearResearch shows Asian-owned businesses saw the biggest decline in working business owners through the end of 2020. |
| World Health Organization warns of global uptick in Covid cases after weeks of declineDr. Mike Ryan suggested that the uptick could be because “we may be relaxing a little before we’ve got the full impact of vaccination.” |
| Shares of Oscar Health dip in NYSE market debut begins trading at $36 per shareOscar had priced its shares at $39 apiece, above its target range of $36 to $38. |
| Crafts retailer Michaels will go private in $3.3 billion deal with Apollo GlobalApollo will acquire all outstanding Michaels stock for $22 per share, or a 47% premium to the arts and crafts retailer’s closing price on Friday. |
| Alamo Drafthouse files for Chapter 11 bankruptcy, will sell assets to Altamont Capital and Fortress InvestmentTexas-based cinema chain Alamo Drafthouse is the latest theater group to file for Chapter 11 bankruptcy. |
| Stocks & Bonds Hammered As Hindenburg Omen StrikesStocks & Bonds Hammered As Hindenburg Omen Strikes Amid the chaotic swings of the last few days, a “Hindenburg Omen” has been triggered in the Nasdaq for the first time since the pre-COVID peak. While there are slightly different constructions of it, and there is disagreement on what thresholds should be used to trigger an alert, Refinitiv notes that a more stringent construction of the indicator shows a signal popped up Tuesday on the Nasdaq. The last signal developed 12 trading days ahead of the Nasdaq’s Feb. 19, 2020 top and what would then prove to be a 33% swoon in the tech-laden index into its March trough.
Source: Refinitiv And while Nasdaq Composite triggered the ominous sounding warning, As Tom McClellan notes, the bro … |
| We Are Witnessing A Last Minute Mass Exodus Before The Final Collapse Of Our Major CitiesWe Are Witnessing A Last Minute Mass Exodus Before The Final Collapse Of Our Major Cities Authored by Michael Snyder via The Economic Collapse blog, Americans fled the big cities œin droves in 2020, and one recent survey discovered that even more Americans are planning to move in 2021. The corporate media is attempting to frame this mass exodus as a temporary phenomenon, but there is nothing temporary about it. Millions upon millions of people can see that our society is literally melting down all around us, and they want to get somewhere safe while they still can. In recent weeks, I have written articles about the specific problems that we are witnessing in Chicago and San Francisco, but the truth is that virtually all of our major cities are coming apart at the seams, and this is motivating more people than ever to seek greener pastures. |
| How High Could Inflation Soar In Coming Months… And What Will The Fed DoHow High Could Inflation Soar In Coming Months… And What Will The Fed Do While we have duly noted the soaring prices in the recent manufacturing and services ISM surveys, which earlier today rose to the highest level since 2008…
… the reality is that these indexes don’t do justice to the price panic on the ground. For that we check in on what some of the respondents were saying in the latest Mfg ISM, which were in a word – shocking: œThings are now out of control. Everything is a mess, and we are seeing wide-scale shortages. (Electrical Equipment, Appliances & Components) œPrices are rising so rapidly that many are wondering if [the situation] is sustainable. Shortages have the industry concerned for supply going forward, at least deep into the second quarter. (Wood Products) œPrices are going up, and lead times are grow … |
| SpaceX Aborts First Starship Test Flight; Prepares “For Another Flight Attempt”ÂSpaceX Aborts First Starship Test Flight; Prepares “For Another Flight Attempt” Update (1543 ET): About a half-hour after Elon Musk tweeted to his 48.4 million followers: “5 mins to Starship test flight attempt” – 30 minutes later, he follows up the tweet with an explanation behind the aborted launch:
Musk does say another launch could happen later today. * * * Update (1524 ET): NASASpaceFlight.com’s commentators on the “LIVE: Starship SN10 Flight Test” live stream launch of the SpaceX’s Starship said an “auto abort” has occurred. The reason has yet to be determined.Â
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| Budget 2021: Million more set to pay income tax by 2026People who get a pay rise between this April and 2026 may find themselves paying a higher rate of tax. |
| Budget 2021: 10 ways Rishi Sunak’s speech affects youChancellor Rishi Sunak’s Budget is packed with policies that will affect your finances. Here is a guide. |
| Budget 2021: Rishi Sunak warns tax rises to follow spending spreeThe UK economy is expected to recover six months faster than expected from the pandemic, the chancellor says. |
| Policybazaar.com IPO in 12-15 months; parent firm gets capital boost from Bay CapitalBay Capital, which manages money on behalf of institutions and endowments from the US and the Europe, has infused an undisclosed sum into the parent company PB Fintech of Policybazaar.com. |
| Gold disappoints in 2021, but rising inflation may bring back demandThe biggest hurdle for gold over the last few couple weeks was the significant selloff in bonds, which drove bond yields higher. |
| Sensex zooms 2,300 points in 3 days after Black Friday: Get ready for a choppy marketAfter falling over 1,900 points last Friday, ‹Sensex has zoomed 2,300 points so far this week. Nifty has seen a similar jump to reclaim Mt 15,000. |
| March 2021 Beige Book: Growth Continues To Be Modest
The consolidated economic report from the 12 Federal Reserve Districts (Beige Book) stated: “Economic activity expanded modestly from January to mid-February for most Federal Reserve Districts”. The previous report stated: “Most Federal Reserve Districts reported that economic activity increased modestly since the previous Beige Book period, although conditions remained varied: two Districts reported little or no change in activity, while two others noted a decline. Reports on consumer spending were mixed”. |
| February 2021 ISM and Markit Services Surveys Move In Opposite DirectionsWritten by Steven Hansen
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| Market Extra: Day-trading Redditors nearly crashed the stock market. Now they’ve been packaged into a new ETF.An ETF that’s backed in part by Dave Portnoy, the self-proclaimed head of the hordes of retail investors who have upended markets in recent weeks, raises questions about market manipulation. |
| : London set to overhaul listing rules to attract tech IPOs and cash in on blank-check boomGovernment-backed review proposes allowing dual-class shares to give founders greater control of their businesses. |
| : Why the U.K. is set to ease IPO rules to better compete with New York or EuropeA review commissioned by the U.K. government suggests an overhaul of the London Stock Exchange’s listing rules, to enable London to better compete with New York or European bourses such as Amsterdam. |
Written by Steven Hansen
The ISM improved but remained in expansion whilst the Markit PMI improved advanced further into expansion.Summary of Economic Releases this Week
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