Written by Gary
Eviction ban on firms behind on rent is extended by nine months (SPY -0.6%). FOMC Meeting: A Near Copy Of The Last Meeting: No Change To The Fed Funds Rate
The Market in Perspective
| Here are the headlines moving the markets. | |
 | High Oil Prices Set Supermajors Up For A Promising Earnings SeasonThe worlds largest oil companies are set to report next month another set of strong quarterly earnings amid significantly higher oil prices and global oil demand in the second quarter compared to the same period last year. Europes largest oil firmsShell, BP, TotalEnergies, Eni, and Repsolhad already seen solid earnings for the first quarter as lockdowns eased and oil price rose with a tightening market. For the second quarter, results would be higher, and certainly much higher than for the second quarter of 2020. |
| Carbon Trade Could Be 10 Times Bigger Than Global Crude Oil MarketThe growing market for paying for carbon emissions could become a larger market than the one for crude oil, according to the head of carbon trading at Trafigura, one of the worlds largest commodity traders. The carbon market has the potential to become 10 times larger than the global crude oil market, Hannah Hauman, Global Head of Carbon Trading at Trafigura, said at FT Commodities Global Summit on Wednesday, as carried by Bloomberg. The biggest commodity traders are looking at growing opportunities in carbon trading and trading in energy |
| Can Fracking Save Colombia?Colombia remains one of most likely candidates to stop producing oil. Not because of environmental concerns or renewables energy taking over, the reason is much more prosaic it would run out of crude. Thanks to an extensive appraising drive in the 1990s, Colombias proven crude reserves at some point totalled 3.2 billion barrels, however the gradual wearing thin could not be stopped, even the relatively recent exodus of Venezuelan oil specialists postponed the moment of depletion but never really cancelled it. Colombias Mines |
| Banks Want Climate Goals For Lending Money To Commodity TradersEnvironmental, Social, and Governance (ESG) criteria have become top of the agenda for bank loans to commodity traders, as lenders increasingly demand to see climate goals when they consider extending credits to oil trading houses, the heads of finance at some of the worlds largest traders said on Wednesday. Muriel Schwab, group chief financial officer at trader Gunvor, told the FT Commodities Global Summit that banks are creating ESG and sustainability teams and those are shaping up to be a new form of compliance of the future. We |
| $100 Oil Predictions Soar As Analysts Warn Of Supply CrisisIncredible demand, inflation, and shareholder pressure on oil supermajors to drastically cut emissions could lead to an oil crisis within three years, with very high oil and gasoline prices, David Tawil, president of Maglan Capital, told Fox Business on Wednesday. Tawil has been very bullish on oil for some time, and thinks that the prices could hit $100 per barrel soon. In the near term, oil prices have more room to rise, both from inflationary standpoint but also from demand standpoint, he told Fox Business. Oil prices are set to |
| Lundin Energy Boasts Carbon Neutral Oil ProductionLundin Energy, a minority partner of Equinor in the giant Norwegian oilfield Johan Sverdrup, said on Wednesday that all future barrels of it would sell from Western Europes biggest field would be certified as carbon neutrally produced. Lundin holds 20 percent of the Johan Sverdrup oilfield, which is operated by Norways energy giant Equinor. The field has already been independently certified as having approximately 40 times lower emissions than the world average. Lundin Energy further worked to offset net residual |
| Africa sees 44% spike in new Covid infections, 20% increase in deathsStudies show that lack of access to hospital beds and oxygen is contributing to mortality rates in Africa. |
| The pandemic made lifestyles more active, outdoor-focused, Dick’s Sporting Goods CEO Lauren Hobart saysThe retail chief said Wednesday that sales have persisted in popular pandemic categories like golfing and biking. |
| McDonald’s CEO says dine-in is here to stay despite online and drive-thru sales growthMcDonald’s CEO Chris Kempczinski said Wednesday that dine-in is here to stay, despite off-premise growth during the pandemic. |
| Patient receives first infusion of Biogen’s controversial Alzheimer’s drugA 70-year-old man from Rhode Island on Wednesday was the first to receive an infusion outside of a clinical trial of Biogen’s Alzheimer’s drug, Aduhelm. |
| WHO says delta Covid variant has now spread to 80 countries and it keeps mutatingThe WHO is also tracking recent reports of a “delta plus” variant that has an additional mutation, said Maria Van Kerkhove, the WHO’s Covid-19 technical lead. |
| Adidas CEO Kasper Rorsted says consumers will force fashion industry to be more sustainableThe scrutiny will force the fashion industry, which produces 8% to 10% of global carbon emissions, to improve, Adidas CEO Kasper Rorsted said. |
| Pfizer CEO sees a return to ‘normal’ globally by the end of 2022By the end of 2022, there should be enough Covid vaccine doses for most world leaders to successfully inoculate their populations, Pfizer’s Albert Bourla said. |
| Despite pressure from investors, GM CEO insists the company is more valuable keeping its EV battery groupKeeping the unit within GM will create more value for the company than spinning it off, CEO Mary Barra said. |
| Tripadvisor launches service that it says offers bigger discounts on hotels, flightsTripadvisor announced Wednesday the launch of Tripadvisor Plus, a travel subscription service that provides access to travel savings and other perks. |
| GM ups spending on EVs and autonomous vehicles by 30% to $35 billion by 2025 on higher profitsGM, America’s largest automaker, is racing to catch up to Tesla on EVs and become a leader in the space against other well-established automakers such as VW. |
| Novartis CEO says future pandemics are bound to happen. Here’s how to prepare for the next oneThe CEO of Swiss pharmaceutical giant Novartis outlined how policymakers and the health industry can improve pandemic preparedness. |
| Diageo becomes first spirits company to sign sponsorship deal with NFLSmirnoff Vodka owner Diageo has signed a multiyear deal with the NFL to become the league’s first spirits sponsor. |
| Ford’s luxury Lincoln brand aims for half of sales to be electric vehicles by 2026Lincoln expects about half of its sales to be all-electric models by 2026, as it plans to offer new EVs across its portfolio of vehicles within the next decade. |
| Powell Pummels Bonds & Bullion, Saves Stocks With “Grain Of Salt”Powell Pummels Bonds & Bullion, Saves Stocks With “Grain Of Salt” Stocks (and everything else) puked on The Fed statement and dotplots (amid hawkish signals for Fed Funds and PCE)… but then Powell saw what happened and stepped in to save the day with some epic cognitive dissonance. This seemed an appropriate analogy…
The message from Powell today was simple – Don’t believe your lying eyes about inflation; The Dot Plot is useless, ignore that too; and ignore that fact in the past, tapering was bearish – this time, Taper is bullish! Plunge Protectors stepped in fast and ignited enough momentum to get Nasdaq and Small Caps into the green (but just could not hold it and everything ended red – though well “off the lows”)… |
| Wall Street Expects Fee Bonanza As $1 Trillion In Mutual Funds Become ETFsWall Street Expects Fee Bonanza As $1 Trillion In Mutual Funds Become ETFs This week, a quiet milestone in the changing nature of the asset-management industry passed without much notice from the heavily preoccupied financial press – and no, we’re not talking about Invesco’s latest volley in the buy-side fee wars. On Monday, Dimensional Fund Advisors converted $29 billion in mutual funds into ETFs via Citigroup, one of Wall Street’s biggest transfer agents, which served as the intermediary for the transaction. Now, executives in Citi’s ETF business are babbling to Bloomberg about how the slow decline of the mutual fund industry (in favor of faster, cheaper ETFs) is about to kick into hyperdrive.
2020 was a very good year for ETFs but not for mutual funds. ETFs had net inflows of $502 billion, led by taxable-bond ETFs, which collected nearly half those as … |
| Even The Fed Doesn’t Believe The Fed AnymoreEven The Fed Doesn’t Believe The Fed Anymore Authored by Simon Black via SovereignMan.com, More than twenty years ago when I was a young Army intelligence officer fresh out of the academy, my commander summoned me to his office one afternoon because he had a ‘special mission’ for me. I was beyond excited. My assumption was that it would be a clandestine assignment to lead one of our unit’s counterintelligence teams in the Middle East. Or perhaps it would be temporary duty as an aide to the commanding general who would be visiting soon. It was none of the above. Instead, my commander looked at me and said, œLieutenant, I need you to plan our unit’s long-term budget for the next ten years, and I want it on my desk this afternoon. Huh? Aside from the obvious disappointment of being handed such a lame assignment, I was dumbfounded that they would entrust something like budget planning to a 22-year old with zero experience in the matter. But the task took me all of 15 minutes to complete. I looked at what our unit’s current budget was for that fiscal year ¦ and then I spent a few minutes researching the inflation rate. According to Yahoo (yes, this was so long ago that people still primarily used Yahoo instead of Google), the projected inflation rate was 2%. So basically I just added 2% to our spending every year for the next 10 years, and poof, long-term budget complete. That’s the day I learned how gover … |
| “What The Hell?!” Biden Loses It After CNN Reporter Shouts Putin Question“What The Hell?!” Biden Loses It After CNN Reporter Shouts Putin Question President Biden finished fielding questions following his solo press conference after today’s some two-and-a-half hour long bilateral summit with Putin in Geneva (shorter than widespread expectations). Just as he was walking away from the podium, reporters in the press pool continued shouting him down with questions. It seems many weren’t satisfied with his apparently more amicable and conciliatory than expected stance on Putin and Russia generally. Specifically it seems some were disappointed that he didn’t personally condemn Putin with harsher language, and that’s when this unexpected scene played out… “What the Hell?” the US President shouted back at CNN’s Kaitlan Collins after she got his attention by calling out his saying he was “confident” about the future trajectory of US-Russia dialogue.Â
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| Federal Reserve warns US economy path depends on virusThe US central bank brought forward its projection for an interest rate hike into 2023 on Wednesday. |
| Eviction ban on firms behind on rent is extended by nine monthsThe government’s ban on landlords evicting companies in rent debt will now end in March 2022 |
| ‘Mediocre’ male managers are stopping women’s riseA survey of women in finance finds men are progressing because they are better at office politics. |
| Two out of every three traded stocks double in a year as bulls charge D-StreetET Intelligence Group’s analysis of the returns of 2,346 traded stocks since April 2020 show that two out of every three stocks have gained at least two-fold while 300 stocks have gained five times or more. |
| Borrowing costs begin to rise as lockdown conditions ease in IndiaœAs the lockdown conditions ease and economic growth revives leading to a pickup in the credit demand, banks will need to mobilise deposits, which can possibly come at slightly higher rates than what they now are, said Anil Gupta, vice president, sector head ” Financial Sector Ratings, ICRA. |
| NCLT raises doubt over confidentiality of liquidation valuation of VideoconThe liquidation value of Videocon Industries and its 12 group companies was Rs 2,568.13 crore and fair value of the assets was Rs 4,069.95 crore. While the bid amount submitted by Twin Star Technologies in the resolution plan was Rs 2,962.02 crore. |
| 16 June 2021 FOMC Meeting Statement: Almost A Photocopy Of The Previous Meeting With No Change To The Federal Funds RateWritten by Steven Hansen The Federal Reserve’s meeting statement included no rate change (as it is already at zero), and the meeting statement was literally unchanged.
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| : 5 things NOT to buy on Amazon Prime DayAmazon’s annual Prime Day kicks off on June 21 and ends on June 22. |
| Market Snapshot: Dow trims losses as Fed’s Powell cheers economic recovery, after slightly ‘hawkish’ update on monetary policyU.S. stock indexes pare losses Wednesday afternoon, as Wall Street reacted to Federal Reserve Chair Powell’s optimistic tone on the U.S. economic recovery after a slightly “hawkish” policy update that raised inflation forecasts and brought forward the timing of an interest rate rise. |
| : Why HP CEO sees a continued boom for laptopsThe head of HP Inc. says the pandemic has fundamentally changed the way people think about personal computers in a way that he believes will drive sustained demand going forward. |
Summary of Economic Releases this Week
Earnings Summary for Today
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