Written by Gary
The JEDI reboot allows U.S. to correct its mistake (SPY +0.4%). Fed dived into taper debate at June meeting, but nothing seems imminent, minutes show.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Will This Push Foreign Oil Companies Out Of Mexico?The Mexican government launched a quest against foreign oil companies operating in the country pretty much from day one in office. First, it suspended new oil and gas auctions and began a review of the contracts signed by the previous government as it searches for evidence of corruption. Then, it proposed law after law to expand the clout of state-owned Petroleos Mexicanos (Pemex) on the local market at the expense of private companies. Now, the government has awarded Pemex operatorship of the biggest private discovery of oil in Mexico. The Zama |
| U.S. Shale Races To Hedge Production Amid OPEC+ UncertaintyU.S. shale producers started boosting this week hedges to lock in the price of oil they plan to pump in the coming months, after the OPEC+ drama left the market uncertain about the future of oil prices and the alliance itself, Bloomberg reported on Wednesday, quoting sources with knowledge of the rise in hedge trades. Typically, the U.S. shale patch is hedging a part of its future oil production at a certain oil price. In this way, producers are protecting themselves against sharp drops in market benchmarks and ensure revenues for their |
| Can The U.S. Keep Clean Energy Jobs Within Its Borders?In an incredible show of bipartisan support on a spending bill, a phenomenon all but unheard of in the United States these days, the Senate voted in a landslide to pass a 2,400-page bill that allocates nearly a quarter-trillion dollars toward supporting the expansion of research and development in the United States. This is an incredible feat, especially when you consider all the quibbling over the much-debated and highly partisan infrastructure negotiations that stole the spotlight away from the R&D spending bill last month. What could possibly |
| The EU Proposes To Exempt Private Jets From Fuel TaxAccording to Argus Media, the European Commission has proposed exempting private jets and cargo flights, two of the most polluting forms of transportation, from the planned EU jet fuel tax. A draft indicates that the tax would be phased-in for passenger flights, including ones that carry cargo. The draft, which the commission will present on 14 July with its proposed revisions to the bloc’s 2003 energy-taxation directive, indicates there could be an exemption from taxation for energy products and electricity used for intra-EU air navigation of |
| U.S. Fossil Fuel Consumption Plunged Most On Record In 2020Total U.S. consumption of petroleum, natural gas, and coal slumped by 9 percent in 2020 reaching the lowest level since 1991 and marking the largest annual decrease in U.S. fossil fuel consumption in both absolute and percentage terms since at least 1949, the EIA said this week. Lockdowns and economic responses to COVID-19, as well as relatively warmer weather last year, were the key reasons for the plunge in consumption of transportation fuels, heating fuels, and fossil fuels used for industrial purposes. The U.S. transportation sector, |
| Chinas Oil Industry Is Undergoing A Serious MakeoverChinas establishment of a national pipeline network, PipeChina, last October is creating a shift in Chinas oil and gas industry, which aims to create greater competition and encourage new players in the sector. PipeChina acquired the oil and gas pipeline assets, storage facilities, and import terminals of the three state-run firms, China National Petroleum Corp. (CNPC/PetroChina), China Petrochemical Corp. (Sinopec), and China National Offshore Oil Corp. (CNOOC) upon its creation last year in an attempt to make the industry |
| ‘Black Widow’ sets sights on record pandemic opening as advanced ticket sales soarAs of Wednesday, the Marvel flick is outpacing presales for “F9” and “A Quiet Place Part II” during the same period, Fandango told CNBC. |
| Chevy Bolt EV belonging to Vermont lawmaker who has backed industry catches fireA Chevrolet electric vehicle owned by Vermont state Rep. Timothy Briglin, who has backed the industry, caught fire while charging in his driveway, police said. |
| NBA wants to play the ‘positive role’ and help defuse U.S.-China tensionsÂThe NBA’s business operations in China is worth more than $5 billion, and the league plans to continue showing its product despite a feud between the two global superpowers. |
| WHO urges extreme caution against completely lifting public health measuresWHO officials said that countries around the world should be careful not to fall back on the progress made in the last year. |
| CDC data shows highly transmissible delta variant is now the dominant Covid strain in the U.S.The highly transmissible delta variant is now the dominant coronavirus strain in the U.S., surpassing the alpha variant, according to the CDC. |
| Amtrak invests $7.3 billion in new fleet of modern trains to service NortheastAmtrak’s new fleet of trains will service the Northeast Corridor and feature upgrades such as hybrid batteries. |
| Scaramucci says China’s Didi crackdown an assault on capitalism, ‘form of political terrorism’“We’ve got to give a big pushback to what’s going on because it’s an assault on capitalism,” Hedge fund founder Anthony Scaramucci told CNBC. |
| American Airlines says it flew three times as many passengers over July 4 weekend compared with 2020American Airlines says it carried three times as many passengers over July 4 weekend compared with 2020. |
| Dollar General hires chief medical officer as it looks to become a health-care destination in rural areasThe fast-growing discounter has many stores in parts of the country with few nearby grocery stores or major pharmacies. |
| Bloomingdale’s is getting ready to open its first-ever Bloomie’s store. Here’s a look insideBloomingdale’s announced Wednesday that its first-ever Bloomie’s location will be opening in Fairfax, Virginia, on Aug. 26. |
| Health experts are anxious to prevent a ‘catastrophic’ winter flu seasonExperts are warning the public that there could be a very significant flu season this coming winter. |
| France is preparing a new law to make Covid vaccinations compulsory for health care workersFrench lawmakers are now preparing a new law that would effectively force health care workers to get their covid shot. |
| Bonds, Bitcoin, & Big-Tech Bid As Small Caps Continue To SlideBonds, Bitcoin, & Big-Tech Bid As Small Caps Continue To Slide A quite day on the macro front early on (JOLTS was ugly again), spooked only by more crackdowns by Beijing on China’s big-tech companies, was interrupted (only modestly) by Fed Minutes hinting at tapering to come but just enough dovishness to mean nothing at all. Nasdaq’s Golden Dragon China Index plunged to 8-month lows (down over 35% from the February highs)…
Source: Bloomberg But “all is well”… Because US big-techs rallied once again (growth) as Small Caps (value) extended their losses…(NOTE the same pattern yesterday with a big drop at the open and dip-buyers at the European close – Small Caps just couldn’t hold it this time)… |
| “Not True”: RNC Denies Report Saying Russian Hackers Breached GOP With Ransomware Attack“Not True”: RNC Denies Report Saying Russian Hackers Breached GOP With Ransomware Attack Authored by Jack Phillips via The Epoch Times, The Republican National Committee (RNC) confirmed Tuesday that none of its data was accessed in a hack of a third-party provider, a spokesperson said.
Danielle Alvarez, the RNC’s communications director, released a statement saying it was informed by Microsoft that their systems might have been breached, but that œno RNC data was accessed. The RNC, according to the statement, œwill continue to work with Microsoft, as well as federal law enforcement officials on this matter. Several news outlets, including Bloomberg Ne … |
| Ford’s Mustang Mach-E Wins Car And Driver’s 2021 EV Of The Year In Glowing Review That Lambastes TeslaFord’s Mustang Mach-E Wins Car And Driver’s 2021 EV Of The Year In Glowing Review That Lambastes Tesla At the same time Elon Musk fumbles to deliver a Full-Self Driving beta that was due out weeks ago for his Teslas, Ford’s EVs are starting to rack up critical acclaim. In an absolutely glowing writeup by Car and Driver, Ford’s Mustang Mach-E was recently named 2021 EV of the year. The review also takes shots at Tesla, stating that the Mach-E improves on many features that Tesla first offered.  “If an automaker wanted to convert people from EV skeptics to EV evangelists, it’s hard to imagine a better vehicle for the job than the Ford Mustang Mach-E,” the review starts by saying. It continues: “The Mach-E has the range and charging speed to wave off the most common EV criticisms, and thanks to Electrify America’s recent work, there’s a nationwide charging network that makes long interstate trips not just possible but tolerable.” |
| Goldman Trader: For All That Hand Wringing Around Value-Vs-Growth, Just Two Trades MatterGoldman Trader: For All That Hand Wringing Around Value-Vs-Growth, Just Two Trades Matter From Tony Pasquariello, global head of hedge fund coverage for Goldman Sachs’ Global Markets Division Markets & Macro six bigger picture thoughts and some quick points after not staring at screens for a week: 1. The reflation trade continues to ebb across the rates complex, and post-payrolls one can argue the core of the FOMC now has some cover to wait and see how labor market disruptions play out in H2’21 (while noting I find it very interesting that continuing jobless claims are declining much more quickly in states that ended top-up benefits early). that said, when core PCE prints 3.4% y/y (the highest reading since 1992) and commodities continue to surge higher (pull up a chart of BCOM), it strikes me you’re supposed to keep an eye on the reflation ball in the places where it’s still working … while pressing the œmiddle seam framework for sector selection.
2. Said another … |
| Backlash against longer hours to ease lorry driver shortageGrant Shapps says the move will ease a driver shortage, but the industry calls it a sticking plaster. |
| Gates Foundation agrees break-up back-up planThe deal would give Melinda Gates the option to resign and receive “personal resources” for further charity work. |
| Warnings of staff shortages due to self-isolationBusiness groups say the delay in easing self-isolation rules will hit firms that rely on young workers. |
| Fed officials saw progress toward taper move, minutes showVarious participants mentioned that they expected the conditions for beginning to reduce the pace of asset purchases to be met somewhat earlier than they had anticipated at previous meetings |
| PNB Housing, parent firm differ view on Carlyle deal recastIn a fresh twist to the Rs 4000-crore capital deal, the PNB board wanted it to consider restructuring the deal following an independent valuation as suggested by the market regulator. |
| Dolly Khanna sold 5 lakh shares of this chemical maker in June quarterKhana sold 4.64 lakh shares of the company during the quarter, bringing her stake in the firm to 1.17 per cent from 1.31 per cent earlier, the company’s June quarter shareholding data showed. |
| The Fed: Fed dived into taper debate at June meeting, but nothing seems imminent, minutes showFederal Reserve officials had a lengthy discussion about when to slow down asset purchases, but nothing seemed imminent, minutes of the central bank’s June meeting released Wednesday showed. |
| : ‘We need to invest in our people’: Biden pitches child-care and education plans in IllinoisPresident Joe Biden on Wednesday in Illinois pitched his plans for new investments in child care, education and other social spending, as he ramps up a push for his economic agenda. |
| MarketWatch First Take: The JEDI reboot allows U.S. to correct its mistakeThe abrupt cancellation of a large and important cloud-computing defense contract that took years to complete is actually good for the country. |
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