Written by Gary
Stocks Explode Higher After Powell Says Will Give SLR Update (SPY +0.3%). Stocks hit records after Fed signals no interest rate hikes through 2023.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Why The West Is Worried About China’s Renewable Energy DominanceOver the past decade, no major energy source has grown faster than solar power. According to the 2020 BP Statistical Review of World Energy, installed solar photovoltaic (PV) capacity has grown at an average annual rate of over 42% over the past 10 years, translating into a doubling of global capacity every 1.7 years on average. Although that blistering pace could start slowing down as installed capacity grows, solar will likely remain the fastest-growing energy source for the foreseeable future.Much as with other energy sources, however, |
| Nigeria Bribery Case Ends In Victory For Shell, EniAn Italian court has ruled that oil giants Royal Dutch Shell PLC and Eni SPA are not guilty in a bribery case involving a Nigerian oilfield that has spanned years, according to the Wall Street Journal. Shell, Eni, and Enis CEO Claudio Descalzi, have been on trial for years in the infamous OPL 245 case. Shell, Eni, Descalzi, and others, were accused of knowing that more than $1.1 billion of the $1.3 billion deposited a decade ago into an escrow account controlled by the Nigerian government would eventually be used as bribes to secure oil |
| Cautious Refiners May Deal Major Blow To Oil Tanker MarketU.S. gasoline demand has rebounded to nearly pre-pandemic levels, but after a horrendous 2020, American refiners are looking to cut costs wherever and whenever possible in light of the still-sluggish fuel demand recovery in some key export markets for U.S. refined petroleum products. U.S. refiners have shunned hiring tankers for long periods under the so-called time charter contracts to minimize expenses at a time when the demand picture outside the United States is still a risky unknown. The last thing you need is to get stuck with several |
| EV Metal Index Doubles As Lithium And Cobalt Prices ExplodeDespite a 43% drop from Decembers record, largely due to seasonal factors, the January 2021 MINING.COM EV Metal Index, which tracks the value of battery metals in newly registered passenger EVs (including hybrids) around the world, still ranks as the fourth-best month on record. Just over $290.5 million worth of lithium, cobalt, nickel and graphite hit roads in January, up 124.6% from the same month last year, when the global impact of the coronavirus was not yet being felt. Total battery capacity of EVs sold during the month |
| China Cant Resist Irans Cheap OilThe source of Irans relative independence in international affairs can be attributed to its oil and gas wealth. The countrys massive oil resources have contributed to a steady source of income which has fueled Tehrans foreign policy. The election of President Trump in 2016 was the beginning of the biggest crisis in Iran since the war with neighboring Iraq in the 1980s. Chinese support is proving to be crucial as its buyers are stocking up on oil. The recent import volumes are so massive that certain Chinese ports are clogged |
| Did Warren Buffett Anticipate A Bull Run In Natural Gas?Lower production of U.S. natural gas and rising global demand for the commodity are setting the stage for a bull market in natural gas in the medium to long term, which Warren Buffett may have predicted when he invested in U.S. natural gas assets in the summer of 2020. Last July, an affiliate of Berkshire Hathaway bought all of the gas transmission and storage assets of Dominion Energy in a nearly$10-billion deal, including debt assumption. For Berkshire Hathaway, it was the first major acquisition since the start of the coronavirus pandemic |
| Covid-19 worsened the single-use plastics problem. Here’s why it could also fuel solutionsThe pandemic fueled demand for single-use plastic and packaging, but advocates say it has also only underscored the need for sustainability. |
| Restaurant tech firm Olo shares soar more than 20% in IPO as online ordering surgesOlo, which makes online ordering software for restaurants, saw shares soar as much as 24% in its public market debut on Wednesday. |
| Starbucks sets goal of making its green coffee carbon neutral by 2030Starbucks said at its annual shareholder meeting on Wednesday that it plans to make its green coffee carbon neutral by 2030. |
| Biden administration to invest $10 billion in Covid testing for schools in push to reopenThe Biden administration’s focus on testing stands in contrast to the Trump administration, which downplayed the need to ramp up availability of testing. |
| Starbucks to test Cold Pressed Espresso as cold drink sales overtake hot beveragesStarbucks CEO Kevin Johnson said that more than half of the drinks sold by the coffee chain are cold, not hot. |
| Disneyland to reopen on April 30, Disney CEO Bob Chapek saysDisney’s two California theme parks will reopen on April 30, CEO Bob Chapek said Wednesday on CNBC’s “Squawk Alley.” |
| Tesla operating in Autopilot hits police car in Michigan, officials sayThe crash is the latest in a string of accidents involving Tesla vehicles that have sparked investigations by federal safety officials. |
| CDC considers shortening Covid social distancing recommendations for schools to 3 feet, director saysA new study suggests that a social distance of 3 feet may be as safe as 6 feet, provided that everyone is masked. |
| Luke Shaw? Jude Bellingham? England options and talking points assessed ahead of squad announcementSky Sports breaks down the talking points and selection dilemmas for Gareth Southgate as he prepares to name his England squad on Thursday. |
| Watch live: White House press briefing with Education secretaryWhite House Press Secretary Jen Psaki and Secretary of Education Miguel Cardona are set to hold a news conference Wednesday afternoon. |
| U.S. could start vaccinating young kids in early 2022, Dr. Fauci saysThe U.S. could begin vaccinating older kids against Covid-19 this fall while elementary-aged children may start getting their shots early next year. |
| Sun Country Airlines jumps 40% in trading debut as investors bet on travel reboundSun Country Airlines shares jumped 40% in their trading debut, signaling strong investor appetite for airline stock as the industry plots a rebound. |
| Ford to launch flexible work-from-home plan as employees return to offices this summerHow much a Ford employee will be able to work remotely will be based on their job responsibilities as well as discussions with their managers. |
| Powell Pumps Bitcoin, Bonds, & Big-Tech; Crashes DollarPowell Pumps Bitcoin, Bonds, & Big-Tech; Crashes Dollar While The Fed gushed over just how dovish it was today, willing to do absolutely nothing despite forecasting significant economic growth, inflation, and employment gains (with median rate expectations remaining at lows), there was a hawkish tilt across members who see multiple rate hikes in 2022 and 2023…
Source: Bloomberg But hopeful comments about SLR helped remove some overhangs, sending stocks and bonds soaring as the dollar dumped. Treasuries erased the day’s early weakness… |
| Goldman: We Were Wrong About The FedGoldman: We Were Wrong About The Fed Yesterday, when we looked at Goldman’s forecast for monetary policy over the next few years, one thing stood out: the bank’s expectation that the median 2023 dot would show one rate hike, a hawkish prediction that spread like wildfire across markets and prompted speculation among some, such as JPM, that a shorter liftoff telegraphed by the Fed would spark a “repricing” across the entire rates complex which then obviously would also impact risk assets. It’s also why others – such as Nomura’s Charlie McElligott – said that the fate of that 2023 median dot could lead to a surge – either higher lower – in stocks depending on whether the Fed would go ahead with this tighter signaling.
Well, we now know that the Fed would have none of this, and whil … |
| Morgan Stanley Becomes First Major US Bank To Offer Crypto FundsMorgan Stanley Becomes First Major US Bank To Offer Crypto Funds Morgan Stanley is about to become the first major US bank to offer its wealth-management client access to cryptocurrency funds. In a major coup for former hedge fund manager Mike Novogratz, a veteran crypto bull who held on during the long bear market that started after the late-2017 peak, MS is reportedly offering some clients access to two funds managed by Novo’s Galaxy Digital, along with a third fund that’s a joint offering from FS Investments and bitcoin company NYDIG.
According to CNBC, which broke the story (the financial news channel often brings on Novogratz to comment on the cryptocurrency market), MS sent its financial advisors an email Wednesday alerting them to the new offerings. The crypto funds will only be offered to clients who describe their risk tolerance as “aggressive” and who have at least $2MM in assets held by the firm. MS’s wealth division manages $4 trillion for mostly high-net-worth indi … |
| Stocks Expode Higher After Powell Says Will Give SLR Update “In Coming Days”Stocks Expode Higher After Powell Says Will Give SLR Update “In Coming Days” In our initial response to the FOMC statement, we noted that while the Fed was far more dovish than most – and certainly Goldman which reset expectations with its prediction for 1 rate hike in the median 2023 dot – there was no comment on one of the most closely watched topics: the SLR, or the Supplementary Liquidity Ratio which some believe is a critical constraint for banks to retain more treasurys/reserves/deposits ahead of what will be over $1 trillion more in QE. Specifically, we said “curiously, there was no mention of SLR at all, but considering the flood of dovishness in the Fed’s statement, we can only assume that the Fed will promptly kick the can on that particular issue as well.” Sure enough, Powell did just that when during his press conference the Fed Chair said that the Fed would address the SLR in the coming days: POWELL: WE’LL HAVE SOMETHING TO ANNOUNCE ON SLR IN COMING DAYS And since it is now painfully obvious that Powell will never again do anything to rock the boat, we are certain that an SLR extension is coming in the coming days, the news of which will unleash another buying spree…
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| Disney parks to re-open – but no screaming pleaseDisney’s California parks will re-open after more than a year – but with some changes. |
| US economy to grow faster than forecast, says Federal ReserveThe Federal Reserve upgrades its forecasts as the vaccine programme and stimulus measures kick in. |
| Uber minimum wage ‘will make a difference’Some drivers welcome Uber concessions on pay and pensions, but others said it made no difference. |
| Fed keeps zero-rate outlook, sees inflation bump as short-livedœFollowing a moderation in the pace of the recovery, indicators of economic activity and employment have turned up recently, although the sectors most adversely affected by the pandemic remain weak, the Federal Open Market Committee said in its policy statement. |
| Tata Communications OFS closes; govt to mop up nearly Rs 5,440 croreThe offer received overall bids for 6.12 crore shares as against 4.6 crore shares on offer. Though the floor price for the OFS was fixed at Rs 1,161, most of the bids came in at Rs 1,184. |
| Smart money dumping consumption stocks as interest shifts to capex cycleThe Nifty consumption index has underperformed the benchmark Nifty 50 by 6% since the beginning of 2021. |
| : Amid vaccine hurdles, EU battles to save summer vacations with COVID travel passA “digital green certificate will be a proof of COVID-19 vaccination, immunity and test results, preventing the need for quarantines or travel bans. |
| Bond Report: Treasury yields come off highs Fed soothes rate-hike fearsU.S. Treasury yields edged up Wednesday in choppy trade after the Federal Reserve’s policy update show senior central bankers don’t expect a rate hike until the end of 2023, one year later than the market’s expectations. |
| Best New Ideas in Retirement: Airbnb executive and ‘modern elder’ Chip Conley’s pitch to reinvent retirement livingAt ‘regenerative’ communities, the golf course is replaced by a midlife wisdom school. |
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