Written by Gary
Wall street futures on a stronger-than-forecast jobs report adding 850K jobs (SPY +0.3%). Rail Week Ending 26 June 2021 – Continued Slowing In Intuitive Sectors.
Here is the current market situation from CNN Money | |
European markets are mixed. The DAX is higher by 0.06%, while the CAC 40 is leading the FTSE 100 lower. They are down 0.43% and 0.07% respectively. |
What Is Moving the Markets
Here are the headlines moving the markets. | |
South Sudan Hits Peak Production As It Prepares For First Oil AuctionTime is running out for South Sudan, which is now preparing for its first oil auction, as officials reveal that the countrys four existing blocks have reached and passed peak production and are now in decline. Ministry of Petroleum Undersecretary Awow Daniel Chuang told Bloomberg that Blocks 3 and 7 in Upper Nile have fallen to 103,000 barrels per day from an initial 120,000 bpd, while Blocks 1, 2 and 4 have dropped from 53,000 bpd to 48,000 bpd. Overall, crude oil production has declined from 185,000 bpd to 165,000 bpd. | |
Shadow Lenders Take Over In The U.S. Shale PatchBanks have started to cut their exposure to the U.S. shale patch, seeing more than 100 producers and oilfield services firms go bust last year and feeling the environmental, social, and governance (ESG) pressure to reduce credits to fossil fuels. While traditional lenders are cutting their losses and de-risking energy loan portfolios, alternative capital providers are stepping up to scoop up U.S. energy debt at a discount and take part in debt or equity transactions that could give them returns sooner than a loan would for a bank. Since | |
Ukraine Cries Blackmail As Gazprom Reduces Gas Supply To EuropeDespite a strong rebound in European natural gas demand, Russias gas giant Gazprom has not booked additional entry capacity to Europe via Ukrainea move that Ukraines gas transmission system operator described as blackmail. Gazprom did not book additional capacity via Ukraine at this weeks monthly auction, which will effectively mean that supplies to Europe would be reduced by 2 billion cubic meters in July, Upstream quoted Gazprom as saying. The Russian gas monopoly will also shut for maintenance the Yamal-Europe | |
Is This The Next Big Thing In Lithium Battery Tech?With the rush of newly minted investors into the EV space, news about electric vehicle technology now rivals that of climate change. Most of the news is good and the latest in batteries is no exception: researchers have managed to make a lithium metal battery last for 600 cycles. Heres some clarification upfront: lithium-ion batteries are made up of a lithium-containing cathode and an anode, usually made from graphite. They also feature an electrolyte solution through which lithium ions shuffle back and forth as the battery charges and discharges. | |
Qatar Sets New Record With $12.5 Billion Bond IssuanceQatar Petroleum has raised $12.5 billion in a four-tranche bond in the largest corporate issuance in the Middle East and the biggest debt sale in emerging markets this year. The state company of Qatar, one of the worlds top liquefied natural gas (LNG) exporters, said on Thursday it had placed five-, 10- and 20-year conventional tranches, and a dual-listed 30-year Formosa tranche. The Formosa bond is typically issued in Taiwan, but is denominated by a currency other than the Taiwan dollar. This is the largest US dollar fixed rate oil | |
Perus Oil Industry Is Bouncing Back Despite Election ChaosEven after surviving an extremely difficult 2020, marred by a constitutional crisis, violent protests, and the COVID-19 pandemic, there are signs of worse ahead for Perus beaten-down oil industry. The Andean country was engulfed by political turmoil in the lead-up to the 2021 presidential elections with two controversial candidates reaching the second-round run-off. After a close-run vote, leftist Pedro Castillo appears to have emerged victorious over business-friendly Keiko Fujimori, daughter of disgraced former presidentAlberto Fujimoriwho | |
‘We don’t know how much money we have’ “California fire victims are at the mercy of Wall StreetPG&E’s bankruptcy filing, effectively barred victims from suing the company. Instead, a fund was created, but it has been underperforming the market. | |
GM moves to secure critical U.S.-sourced lithium for electric vehicle batteriesGM said it is investing millions of dollars into a company that plans to extract lithium from the Salton Sea Geothermal Field in Imperial, California. | |
Manhattan real estate prices reach record as buying ‘frenzy’ takes holdThe price jumps and shrinking inventory suggest the Manhattan real estate rebound is continuing to gain momentum. | |
Three Middle East countries led the world on vaccines early. Then they went in different directionsIsrael, the UAE and Bahrain are still among the top 10 most vaccinated countries, but charts show that their Covid infection trends have varied greatly. | |
Tokyo Olympics should go ahead as there’s no ‘huge risk,’ World Athletics President saysWorld Athletics President Sebastian Coe said he’s “not sure that there is a huge risk attached” to the Tokyo Olympics going ahead. | |
The White House is taking right approach in fighting the Covid-19 delta variant, Gottlieb saysThe White House is taking the right approach in fighting the delta variant by deploying response teams to vulnerable communities, Dr. Scott Gottlieb said. | |
Denny’s CEO says hiring workers has been a challenge ” but wages are not a ‘barrier’“It’s really more about people building confidence to go back to work,” Denny’s CEO John Miller told CNBC. | |
Toyota tops GM sales in the U.S., expected to be America’s best-selling automakerThe last time GM wasn’t the best-selling automaker for a quarter in the U.S. was when Ford outsold them in the third quarter of 1998, Edmunds reports. | |
1,000 counties in the U.S. have Covid vaccination coverage of less than 30%, CDC saysUnvaccinated counties could see increased rates of delta variant transmission. | |
5 things to know before the stock market opens FridayU.S. stock futures were flat Friday morning ahead of the release of the key June jobs report. | |
Krispy Kreme shares rise 23% despite disappointing pricing, opening tradeKrispy Kreme made its return to the public markets on Thursday after five years away. | |
White House to deploy response teams across the U.S. to combat highly contagious delta Covid variantThe White House is deploying response teams across the U.S. focused on combatting the highly contagious delta variant, the Biden administration announced. | |
Porsche ramps up its EV roadmap but will still invest in gas cars, North America CEO saysThe automaker will invest in all-electric cars, plug-in hybrid models, and internal combustion engines, Porsche Cars North America CEO Kjell Gruner told CNBC. | |
June Payrolls Big Beat: 850K Jobs Added Smashing Expectations As Unemployment Rate RisesJune Payrolls Big Beat: 850K Jobs Added Smashing Expectations As Unemployment Rate Rises After several months of major payroll disappointments, the BLS finally realized it has to come up with a strong number and it did just that moments ago when it reported that in June the US added 850K jobs, well above the 720K expected, and almost 50% more than last month’s 583K, in a welcome sign that the chronic labor shortages may finally be ending. Developing Tyler Durden Fri, 07/02/2021 – 08:33 | |
Rabo: “The Fed Needs To Get Markets Off Heroin… Have You Seen Junkies Without Heroin?”Rabo: “The Fed Needs To Get Markets Off Heroin… Have You Seen Junkies Without Heroin?” By Michael Every of Rabobank Today will be all about US payrolls, and how much they rise. Consensus is 720K, up from 559K last month, with the unemployment rate to dip from 5.8% to 5.6%. Let’s see what the messaging will be on this if we get another disappointing report (but, hey, more stimulus!) or a stronger-than-expected report (Hey, jobs! But, oops, perhaps less stimulus?). What it won’t be about is the IMF predicting the Fed will need to hike rates in late 2022 or early 2023, and probably to start to taper in H1 2022; and that œmanaging this transition — from providing reassurance that monetary policy will continue to deliver powerful support to the economy to preparing for an eventual scaling back of asset purchases and a withdrawal of monetary accommodation — will require deft communications under a potentially tight timeline. Allow me to communicate that better: œThe Fed needs to get markets off heroin. The markets will respond with appropriate adroitness to this deft communication as part of a possibly constrictive chronological progression ” just as they always do. Allow me to communicate that better: œHave you seen junkies without heroin? Meanwhile consumer perceptions of inflation will continue to rise as oil prices move over $75 into summer, with more output from OPEC+ maybe now not arriving as a new deal stalls, and with the Iran nuclear / oil deal still not ready to go either, apparently. Let’s add US … | |
Unstoppable Oil Could Be Nail In Coffin For StocksUnstoppable Oil Could Be Nail In Coffin For Stocks By Kriti Gupta, Bloomberg reporter and macro commentator Stock investors worried about inflation should pay close attention to the rising price of oil. It could be the final kick needed to derail the consumer-spending spree behind the U.S.’s surging growth. From groceries to housing materials to gasoline, life is getting expensive for the average American, even those lucky enough to hold on to their jobs through the pandemic. Take food. In the last six months alone, the Bloomberg Agriculture Subindex has risen 20% — a margin not seen since 2010-2012. That was when the world’s supplies were roiled by a series of global weather events, including a severe U.S. drought and a massive Russian fire that destroyed some of the nation’s grain crop. Countries where bread is a staple, like Egypt and Tunisia, were hit badly. Geopolitical analysts say it helped set off the Arab Spring. Not that anything so dramatic seems to be building up. But it’s worth realizing the real-world consequences of climbing raw material prices like we’re seeing right now. Oil prices have returned to levels last seen in 2018 before the trade war with China began. In the first half of 2021, oil rose 45% on the heels of a gain of some 26% in the six months before. It’s now around $75 a barrel and strategists and trading houses are predicting it will hit $100. As much as it may help producers, it’s bad news for consumer-driven economies like the U.S. That’s where it matters for stocks. Consumer spending is already moderating and the effects of the fiscal stimulus will likely roll off by September-end. R … | |
Didi Shares Plunge After China Launches “National Security” InvestigationDidi Shares Plunge After China Launches “National Security” Investigation One day ahead of this week’s blockbuster DIDI IPO in which the Chinese Uber sold at the top of its $13-14 range, broke for trading at $16.75 then tumbled only to rebound on Thursday, we warned readers that this is one they want to stay away from as a result of Beijing’s aggressive intervention in publicly traded tech giants, to wit:
It took exactly 3 days since our warning and 2 days since DIDI’s IPO for this forecast to come true because this morning, DIDI shares havbe cratered more than 10%, plunging from $17 to as low as $15, after a report that China had launched an investigation into Didi Chuxing. | |
Asda to allow permanent hybrid working for officesThe supermarket says most of its 4,000 head office staff can choose to work at home or other locations. | |
M&S Bank branch closures reflect shift to onlineAll 29 in-store branches are shutting on Friday, ahead of the withdrawal of M&S Bank from current accounts. | |
Restaurants and bars forced to shut due to staff isolatingThe industry wants a “test to release” system to solve worker shortages as cases rise. | |
Chris Wood banks on realty, oil to drive his newly launched India portfolioWood has allocated 17 per cent to real estate stocks — Godrej Properties, Century Textiles and DLF — in his newly launched portfolio. Financials and energy sectors are the other two sectors that have large weightage in the portfolio. | |
CLSA sees sharp business recovery in Hindustan UnileverCLSA said said Hindustan Unilever has used the pandemic and inflationary setting to its advantage. | |
Sell this Jhunjhunwala stock, 5 others to protect your hard-earned wealthDalal Street has seen a lot of buying in the last 15 months. Thanks to that, almost all benchmark indices hit their fresh highs and many stocks did the same. But, as the valuations have soared, many money managers including S Naren of ICICI Prudential AMC, feel it is time to accumulate cash. Here are some stocks that analysts believe you should sell right now. | |
Rail Week Ending 26 June 2021 – Continued Slowing In Intuitive SectorsWritten by Steven Hansen Week 25 of 2021 shows the same week total rail traffic (from the same week one year ago) improved according to the Association of American Railroads (AAR) traffic data. Total rail traffic is now showing strong year-over-year growth as it is being compared to the recession period one year ago. The rate of year-over-year growth is slowing. | |
MarketWatch Premium: If you’re thinking of buying gold, know that price gains are capped for nowThe path of least resistance for gold is up in the near term. But bullion’s sentiment foundation is not strong enough to support more than a relatively modest rally. | |
Futures Movers: Oil prices edge lower as OPEC+ tries again to reach decision on raising outputOil futures edge lower as traders await a meeting of the Organization of the Petroleum Exporting Countries and its allies that was postponed until Friday after a dispute emerged over plans to further ease production curbs through he end of the year. | |
The Moneyist: My husband lives in my $650K home. He complains about paying ‘rent’ of $2,000 a month ” and wants to use that money to trade stocks‘He says he doesn’t want to pay rent, as he is not getting anything in return and the money is wasted. He thinks I am making money from him.’ |
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