Written by Gary
FOMC Meeting Minutes: Pandemic Continues To Weigh On Monetary Policy (SPY +0.1%). Mall vacancies jump at fastest pace on record and rising fuel stocks push oil prices lower.
The Market in Perspective
Here are the headlines moving the markets. | |
Optimism Grows Over Oil Demand RecoveryOPEC and partners are betting on a significant boost in oil demand over the coming months as member states get ready to ramp up oil production. OPEC, Russia, and their allies are planning to increase oil production by 2.1 million bpd by as early as July this year, suggesting the confidence they have in a market rebound. The organizations output cuts of 7 million will be eased significantly each month between now and July. Saudi Arabia is also expected to ease its voluntary output cuts to increase production by 1 million bpd by | |
China’s ‘Official’ Oil Imports Drop As It Buys More Iranian CrudeChinas crude oil imports are estimated to have declined by 8.81 percent month over month in March to stand at 11.26 million barrels per day (bpd), energy analytics services provider OilX said, noting that its assessment doesnt show massive crude flows from Iran into China last month. In recent weeks, various reports have suggested that China has beenconsiderably boostingits crude oil imports from Iranso much so that the ports in the Shandong province, where most independent refiners are based, are experiencing tanker | |
The Oil Industry Receives An Unexpected Boost From BidenThe election of President Joe Biden has been the cause of much hand-wringing in the United States oil and gas sector. The current U.S. president has made clean energy and climate change a central part of his platform, at what many fear will be the expense of shale, one of the nations key economic sectors. Unfortunately, our economic bedrock of oil and gas is under attack by an administration that is bent on eliminating millions of jobs, Republican Congressman Brian Babin told the public back in February at a press event along | |
Mining Giant Rio Tinto Starts Lithium Production In The U.S.Rio Tinto (ASX, LON, NYSE: RIO) haskicked off lithium production from waste rockat a plant located at a borates mine it controls in California. The demonstration facility is the next step in scaling up a breakthrough lithium production process developed at the Boron mine. The method allows Rio Tinto to recover the critical mineral and extract additional value out of waste piles from over 90 years of mining at the operation.An initialsmall-scale trial in 2019 successfully proved the process of roasting and leaching waste rock to | |
U.S. Jobs In Nuclear And Oil Sectors Pay More Than RenewablesJobs in the nuclear power generation and oil and gas in the United States pay more than jobs in renewables, a wages report showed this week, as the Biden Administration pledges to create thousands of clean energy jobs. While all jobs in energy pay higher than the national median hourly wage of $19.14, workers in the nuclear industry get a median hourly wage of $39.19, those in natural gas pay $30.33, coal jobs pay a $28.69 hourly wage, and oil jobs pay $26.59, according to the new report from the National Association of State Energy Officials (NASEO), | |
OPEC+ Was Wise To Ease Output Cuts Despite Demand ConcernsOil prices are pulling back this week as concerns about the rising number of COVID-19 cases and imposed lockdown measures in Europe and many other countries around the world continue to be the main cause of uncertainty in the markets. But despite all the volatility, the near-term forecasts remain bright. OPEC+ decision seen bullish for the markets The somewhat surprising decision from OPEC+ to ease its production cuts by 2.1 million bpd did not lead to a collapse in prices, on the contrary, oil prices were up by almost 4% shortly after the | |
Best Buy testing new membership program with perks like unlimited tech support, free shippingThe retailer is following the playbook of Amazon, Walmart and others who have used membership programs to try to win more of customers’ wallets. | |
Carnival says bookings are rising at record pace, could switch home ports if US rules are too restrictiveCarnival Cruise Line said Wednesday that it has seen a record level of bookings during the first quarter, up about 90% from fourth-quarter levels. | |
Jamie Dimon slams state and local tax repeal as a benefit to the richThe JPMorgan CEO said just five states continue to fight for unlimited state and local tax deductions because those states reap 40% of the benefit. | |
Hospitals are seeing more young adults with severe Covid symptoms, CDC saysHospitals are seeing more and more younger adults in 30s and 40s admitted with severe disease from the coronavirus. | |
Proof of Covid-19 vaccination, tests should only be temporary travel requirements, industry group saysThe head of the International Air Transport Association says requirements like proof of vaccines or negative Covid tests should be lifted after the pandemic. | |
CDC says variant from the UK is now the most common strain circulating in the U.S.The variant, known as B.1.1.7, is “now the most common lineage circulating in the United States.” CDC Director Dr. Rachelle Walensky said. | |
IMF’s top economist says Covid vaccines are the ‘main weapon’ to achieve a faster economic recoveryExperts have highlighted why it’s in everybody’s interests to make sure adequately supplied inoculation programs are rolled out across the globe. Â | |
U.S. begins study assessing allergic reactions to Pfizer and Moderna Covid vaccinesThe NIH said it has begun looking at why some people have suffered from allergic reactions after receiving the Pfizer-BioNTech and Moderna Covid-19 vaccines. | |
Mall vacancies jump at fastest pace on record, hitting new high, as retailers cull store countsIf you noticed more darkened windows and empty stores at the mall recently, you’re not alone. | |
U.S. surpasses 150 million vaccine shots under Biden, on track to hit president’s new 200 million goalThe U.S. has administered 150 million Covid vaccine shots since Biden’s inauguration and is on pace to hit the president’s new goal of 200 million shots. | |
How Mercedes-Benz became so prestigious, and why it is challenged by a new eraMercedes-Benz was there at the dawn of the automotive industry and has long been a leader. But some say it has been slow to adapt to a new electric era. | |
Nike suspends endorsement of NFL star Deshaun Watson over sexual misconduct allegationsApple’s Beats by Dre brand also terminated its endorsement deal with Watson. | |
Ready to dress up again, teens turn to online brands Shein and Princess Polly, and thrift storesTeen spending is slowly ticking up from a two-decade low, according to Piper Sandler’s 41st biannual œTaking Stock with Teens report. | |
Small Caps & Cryptos Clubbed As Bonds & The Buck BounceSmall Caps & Cryptos Clubbed As Bonds & The Buck Bounce Stocks slipped a bit around 1115ET when Fed’s Kaplan warned “I do worry about excesses and imbalances,” adding that “failing to communicate Fed exit could stoke risk-taking.” Kaplan went to say that The Fed “should withdraw some accommodation once the pandemic is over.” Then Yellen unveiled her Tax America plan and that spooked stocks further. Stocks then rallied on The Fed minutes which really didn’t say much at all – and were thus interpreted as dovish, as there was little to no sense that policy makers were worried about an overheating U.S. economy. As is clear, Small Caps were the day’s biggest losers with Nasdaq holding modest gains and the Dow/S&P flat… The short-term rates market continued its very recent dovish tilt today after The Fed minutes, now pricing in slightly less than one rate hike by the end of 2022 (still way ahe … | |
Biden Says Infrastructure Plan Vital To Keeping Pace With ChinaBiden Says Infrastructure Plan Vital To Keeping Pace With China Update (1430ET): Biden tried to sell his infrastructure plan as critical to keeping the US competitive against China, and is overdue after decades of under-investment in infrastructure. “It’s a once-in-a generation investment in America,” Biden said. “It is a the single largest investment in American jobs since World War II,” he said. He also once again claimed that American voters – including Republican voters – support the infrastructure plan (even as most polls show Republicans overwhelmingly support Biden’s predecessor, and oppose the new administration’s agenda). But because of the depredations of the pandemic, Biden insisted his bill needed to go beyond rebuilding roads and bridges. He said the US needs to finance expanded Internet access, replace lead water pipes in communities – since nobody knows which town will be the next Flint, Mich., or so Biden said – and building out charging stations for electric vehicles, absorbing billions of dollars in capex costs that might have fallen to American corporations like Tesla. Because if the US loses the race to switch to electric cars, China just might “own the future.”
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Netanyahu Warns Israel Will “Act” Against Iran If Biden Restores Nuclear DealNetanyahu Warns Israel Will “Act” Against Iran If Biden Restores Nuclear Deal Authored by Dave DeCamp via AntiWar.com, While talks to revive the Iran nuclear deal, known as the JCPOA, kicked off in Vienna, Israeli Prime Minister Benjamin Netanyahu railed against the agreement and said Israel must “act” against Tehran. “The danger that Iran will return ” and this time with an international imprimatur ” to a path that will allow it to develop a nuclear arsenal is on our doorstep on this very day,” Netanyahu said at a meeting of his Likud party in the Knesset on Tuesday. Like most Israeli officials, Netanyahu claims the JCPOA is somehow a path to a nuclear-armed Iran even though the agreement puts strict limits on the Islamic Republic’s nuclear program. And after the JCPOA expires, Iran would still be bound by the Non-Proliferation Treaty, which Israel refuses to sign since it has a sec … | |
Cuomo To Hit Richest New Yorkers With Top Tax Rate Over 50%, More Than Most Europeans PayCuomo To Hit Richest New Yorkers With Top Tax Rate Over 50%, More Than Most Europeans Pay That giant sucking sound is the richest New Yorkers – tired of virtue signaling in a city that is about to tax them as much as Europe’s socialist paradise – packing up their belongings and bailing for Palm Beach. Why? Because days after we reported that New York Millionaires are about to be slapped with the highest income tax in the country, surpassing even the liberal utopia that is California, we now have some more details on what will likely be a 50% tax on the richest New Yorkers. As Bloomberg writes, last August scandal-plagued NY Governor Andrew Cuomo begged the rich to return to the state, saying œ ‘we’ll go to dinner, I’ll buy you a drink, come over, I’ll cook. What he didn’t say is that while he would pay for a drink, it’s the rich that would be stuck with the very hefty bill. Details of said bill emerged on Tuesday when state lawmakers and Cuomo reached an agreement to raise taxes as part of a $212 billion budget deal. Under the deal, the top tax rate would temporarily increase to 9.65% from 8.82% for single filers earning more than $1.1 million. Income between $5 million and $25 million would be taxed at 10.3% and for more than $25 million it would be 10.9%. The new rates would expire in 2027. | |
JP Morgan boss plans for ‘significantly’ less office spaceJamie Dimon’s shareholder letter includes thoughts on home working and Brexit – Europe has “upper hand”. | |
Driving lessons to resume in England and Wales on 12 AprilLessons can start on 12 April and tests will return 10 days later, the transport secretary says. | |
Deliveroo shares rise on first full trading day as some riders go on strikeWednesday is the first day of trading for 70,000 retail investors, as 400 UK riders are expected to stage a strike. | |
RBI amends India’s criticized inflation-forecasting modelDubbed as the Quarterly Projection Model 2.0, the RBI’s economists describe the framework as a forward-looking, open economy, calibrated, new-Keynesian gap model. The previous version had often been criticized for over-estimating upside risks to inflation. | |
Fed saw ‘some time’ before taper conditions met, minutes showœParticipants noted that it would likely be some time until substantial further progress toward the Committee’s maximum-employment and price-stability goals would be realized, according to minutes from the March 16-17 Federal Open Market Committee meeting published Wednesday. | |
Rupee may lose further ground as RBI’s bond-buying plans dent sentiment: AnalystsAnalysts said that Wednesday’s loss — wherein the rupee tumbled 105 paise to end the day at 74.47 against the US dollar — has turned the rupee into Asia’s worst performing currency so far this month. | |
17 March 2021 FOMC Meeting Minutes: Pandemic Continues To Weigh On Monetary Policy— this post authored by Steven Hansen The 17 March 2021 meeting statement presented the actions taken. This post covers the economic discussion during this FOMC meeting between the members. An interesting quote:
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February 2021 Trade Data SlowsWritten by Steven Hansen Trade data headlines show the trade balance continues to worsen with imports declining slower than exports. | |
: ‘This week isn’t the same without you’ ” Tiger Woods’s absence felt at the MastersWoods isn’t playing this year because of injuries from a car crash in February. | |
: Toshiba considers $20 billion CVC buyout offer, but Japanese government would have to approve the dealToshiba shares jumped 18% on Wednesday before trading was suspended in Tokyo. | |
Bond Report: U.S. Treasury yields hold ground after dovish Fed minutesU.S. Treasury yields lacked direction on Wednesday after the release of the minutes from the Federal Reserve’s March meeting showed the U.S. central bank was likely to stay dovish for an extended time. |
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