Written by Gary
Fed’s “big tent” framework may fray under inflation surge (SPY +1.4%). Investors are growing more fearful of a Fed mistake.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Could Fracking Save Colombias Oil Industry?Despite being wracked by nationwide anti-government protests the prospects for Colombias beaten-down oil industry are improving. Most of the protests and blockades of major roads have been ended allowing onshore drillers to recommence operations. Another important development is the progress of allowing hydraulic fracturing in the strife-torn Andean country. This controversial technique for extracting oil and natural gas has faced strong and lengthy opposition in Colombia. It was touted by crisis-driven president Ivan Duque during late-2018 |
| Chinas Belt And Road Initiative Is Transforming Kazakhstans Energy SupplyAccording to a news report by Chinese state-run news agency Xinhua, the wind farm located in South Kazakhstan near the city of Zhanatas is an example of how the Belt and Road initiative is transforming Kazakhstans energy supply. The Belt and Road initiative, which China launched in 2013 is a global infrastructure project that sweeps over 70 countries around the world. Construction of the plant started in 2019. The fact that the pandemic did not slow down the project marked a commendable feat, said Guo Qiang, the plants general director. |
| Top Offshore Wind Firm: Big Oils Foray Into Green Energy Could Hike PricesThe biggest developer of offshore wind farms in the world, Denmark-based rsted, is concerned that the race of the biggest oil companies to enter offshore wind could lead to spikes in seabed acreage prices, which would undermine project competitiveness and the speed of technology development. Our concern is that if that inflation continues it will eventually come to the disadvantage of the speed with which we accelerate the technology or the competitiveness of the technology, rsteds chief executive officer Mads |
| Texas Grid Operators Have Another Mess On Their HandsIts been one heck of a year for Texas energy grids. Six months ago only a very select group of industry insiders and policy nerds had ever heard of The Electric Reliability Council of Texas (ERCOT). Now, theyre a national household name and the Lone Star States public enemy number one. ERCOT first gained its notoriety in February of this year when a severe cold snap led to devastating failures across Texan power grids. Lack of energy across huge swaths of the state in combination with the dangerously low temperatures |
| Venezuela Claims It Can Quadruple Its Oil Production By The End Of 2021Venezuela is investing in crude oil production recovery and aims to boost its output four times by the end of the year, to 1.5 million barrels per day (bpd), Oil Minister Tareck El Aissami, a close ally to Nicolas Maduro, told Bloomberg in a recent interview. Without any financing, with our own money, weve been able to invest enough to stop the slide and start a gradual recovery, El Aissami told Bloomberg. Despite the sanctions and despite the severe crisis which became even more severe with the pandemic and plunge in oil prices |
| Is China Finally Moving Away From Coal?The world finally seems to be leaning into the global clean energy transition in earnest. While world leaders have paid a lot of lip service to climate-smart developments in the past, many nations finally seem ready to put their money and their resources where their mouth is, with sweeping investments in renewables, clean energy technologies, and electric vehicles and the widespread development of green stimulus packages which feature clean energy as a central part of various countries post-pandemic economic recovery road maps. |
| WHO says delta is the fastest and fittest Covid variant and will ‘pick off’ most vulnerableDelta has the potential “to be more lethal because it’s more efficient in the way it transmits between humans,” the WHO’s Dr. Mike Ryan said. |
| The value-added tax brings in billions for other countries, but the U.S. doesn’t have oneValue-added taxes produce billions for other countries. Here’s how these levies work and why there’s no VAT in the United States. |
| Dr. Scott Gottlieb worries about spread of delta Covid variant among kids in schools this fall“I think we’re going to see that children and schools do become more of a focal point of spread,” ex-FDA chief Dr. Scott Gottlieb told CNBC on Monday. |
| Stocks making the biggest moves midday: DoorDash, MicroStrategy, ZipRecruiter and moreThese are the stocks posting the largest moves in midday trading. |
| U.S. to split 55 million Covid vaccine doses between Latin America, Asia and AfricaThe 55 million vaccine doses are the remaining portion of 80 million shots President Joe Biden has committed to donating abroad. |
| Harry Kane: Man City make £100 million transfer bid for Tottenham strikerCity are open to including players in addition to the cash offer, but Tottenham are expected to reject the bid. |
| Amazon Prime Day is on. These are the deals you can skipThere will be 2 million deals during Amazon’s shopping event. Some are better than others. |
| DoorDash and Albertsons partner on same-day grocery delivery from nearly 2,000 storesDoorDash is partnering with Albertsons Cos. to offer on-demand grocery delivery from nearly 2,000 of its stores, including Safeway, Vons and Jewel-Osco. |
| Bad at public speaking? Use this mental trick that takes just 15 minutes, says speech expertPublic speaking is one of the most common social fears. Most people assume it’s simply because they’re shy, but the real reason, according to a speech trainer, is because no one ever taught us how to express ourselves. Here are five simple steps to improvement. |
| How college athletes will be cashing in after Supreme Court NCAA rulingFormer Notre Dame QB Brandon Wimbush built an internet business for college athlete endorsements as the Supreme Court, states and Congress rule on pay. |
| Salad chain Sweetgreen confidentially files for initial public offeringSalad chain Sweetgreen has filed for an initial public offering after the pandemic fueled its surging digital sales. |
| MicroStrategy now owns over 100,000 bitcoins worth more than $3 billion after latest purchaseThe enterprise software company said Monday the average purchase price of its 105,085 bitcoin trove is $26,080 apiece, including fees and other expenses. |
| This Amazon Prime Day, it’s not about the deals. How other retailers are looking to win your businessShoppers booting up a web browser and expecting to see steep discounts around Amazon’s Prime Day megasale this year might come away disappointed. |
| Plunge ‘Protected’: BoJ-Buying, FedSpeak Bailout Friday’s ‘Bullard Bomb’Plunge ‘Protected’: BoJ-Buying, FedSpeak Bailout Friday’s ‘Bullard Bomb’ Last week ended this way… So someone had to do something!
h/t Japan’s Plunge Protection Team stepped in to rescue markets overnight as The Bank of Japan purchased 70.1b yen of ETFs Monday after the Topix declined by 2.5% in morning trading. That was the first “intervention” since April 21st… |
| Supreme Court Rules NCAA Went Too Far In Cracking Down On Student-Athlete PaySupreme Court Rules NCAA Went Too Far In Cracking Down On Student-Athlete Pay Authored by Matthew Vadum via The Epoch Times, The Supreme Court ruled unanimously this morning that the National Collegiate Athletic Association’s (NCAA) regulations that restrict benefits that may be given to student-athletes violate federal antitrust law.
The NCAA had argued that policing student-athlete pay helps to preserve the long-standing amateur status of college athletics. The high court was unmoved, rejecting the NCAA’s argument that it should enjoy antitrust immunity and affirmed a lower court’s order that will allow member schools to offer more education-related benefits to student-athletes. The June 21 ruling, which opens the door … |
| A Broad Bipartisan Infrastructure Deal Is Unlikely: GoldmanA Broad Bipartisan Infrastructure Deal Is Unlikely: Goldman In its latest Q&A assessment of the state of US fiscal policy, Goldman’s economics team writes that while it “still looks broadly on track to meet our expectations, risks continue to tilt in the direction of a smaller spending boost and smaller tax hike than the roughly $3 trillion and $1.5 trillion over ten years that we expect.” The bank then notes that “while a bipartisan deal on a broad infrastructure package cannot be ruled out, we continue to think the odds are against it, as there seems to be little agreement on financing it.” Instead, Goldman expects Congress to pass a narrower infrastructure package focused mainly on transportation. If so, expect congressional Democrats to begin moving a broader fiscal package under the reconciliation process. Reading recent headlines, one would be left with the impression of a wide range of spending outcomes ” a boost of a few hundred billion to as much as $6 trillion over ten years ” but the range of outcomes is not as wide as these figures imply. Most of the œtraditional infrastructure President Biden has proposed looks likely to pass, along with substantial R&D spending and renewal of personal tax credits that expire at year end. Together, these cost around 1% of GDP on an annual basis over the next few years. The remainder of the Biden agenda might boost spending by another1% of GDP, but Congress is expected to pare these proposals considerably. Meanwhile, tax increases also still look likely, assuming that Democrats pass legislation using the reconciliation process. That’s why Goldman has not changed its views much in this area, and still expects the corporate tax … |
| JPOW Jests…JPOW Jests… Via AdventuresInCapitalism.com, Wednesday afternoon, there was a press conference. Some dots were moved about on a piece of paper and JPOW threatened a few basis points of yield in a year or two. I didn’t bother to tune in because I had a hunch that nothing would happen. I was correct. Absolutely nothing happened at the meeting. If not for the price action in some securities I follow, it would be another day of boring summer trading.
Traders are addicted to trading, much like murderers fixate on murdering. The traders noticed a slight change in the Fed’s tone and sold anything tied to inflation. They whacked gold good. Then they went after the other commodities. When they were done there, they went after value stocks, before finishing the week by blasting a bunch of cyclical names. In summary, JPOW got what he wanted “he’s now the tough guy. For months, everyone had been going about life, noticing that prices were rapidly increasing. Now, JPOW can say … |
| Flexible ticket ‘will only save me £7 a year’ on my commuteNew flexible train tickets are aimed at commuters doing few days in office – but first impressions are muted. |
| Gupta-owner Jaguar Land Rover supplier in talks with lendersLiberty Aluminium Technologies employs 250 people across sites in Coventry, Witham and Kidderminster. |
| Morrisons’ share price soars 28% on takeover offerThe supermarket has rejected a proposal from a US private equity firm valuing the firm at £5.5bn. |
| Govt eases listing norms for companies having over Rs 1 lakh cr m-capSuch entities will be required to increase its public shareholding to 10 per cent in two years and raise the same to at least 25 per cent within five years. |
| Relief for PNB Housing Finance: SAT allows vote on Carlyle’s Rs 4,000-crore infusionThe shareholders’ meet is scheduled on June 22. Market regulator Securities & Exchange Board of India had last week told PNB Housing not to seek shareholders approval on the deal before carrying out a valuation on its business by an independent agency. |
| Fed’s “big tent” framework may fray under inflation surgeWhen the Fed unveiled its new framework just 10 months ago, with a view that employment could expand as much as possible as long as prices did not rise too fast, the language was kept vague on key points in order to maintain unanimous support. The limits to that “big tent” approach are now becoming clear. |
| May 2021 CFNAI Super Index Moving Average Index ImprovedWritten by Steven Hansen The economy’s rate of growth accelerated based on the Chicago Fed National Activity Index (CFNAI) 3 month moving (3MA) average – and the economy is slightly above the historical trend rate of growth.
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| Outside the Box: I’m rethinking how I hedge against inflation with TIPS and I Bonds ” here’s whyWhich is the better investment? |
| What’s Worth Streaming: Here’s what’s coming to Hulu in July 2021, and what’s leavingHighlights include the music documentaries ‘McCartney 3,2,1’ and ‘Summer of Soul.’ |
| : Investors are growing more fearful of a Fed mistakeStocks have slipped, and bonds have rallied, since the Federal Reserve unexpectedly forecast two interest rate hikes in 2023, and one regional Fed president said the first increase could come next year. |
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