Written by Gary
Fed’s Powell says economy ‘a ways off’ from bond taper, says inflation will dwindle (SPY +0.2%). Treasury yields slip as Powell promises purge ppi panic.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Kuwait Looks At Huge Wealth Fund To Move Beyond OilKuwaits life-after-oil fund may have become one of the worlds biggest sovereign wealth funds thanks to the countrys healthy oil industry, as it continues to prepare for a life after oil as it invests heavily in the sector while it still can. The Future Generations Fund, managed by the Kuwait Investment Authority or KIA, is thought to be worth around $700 billion at present, according to sources in the country, after closing at $670 billion at the end of the fiscal year in March, making it the worlds largest oil fund |
| Nigeria May Finally Approve New Oil Bill After 2 Decades Of WorkAfrica’s largest oil producer and exporter, Nigeria, is expected to pass its new petroleum billtwenty years in the makingas early as Wednesday, despite last-minute amendments that have created some controversy. The country’s petroleum industry bill was submitted at the Senate at the end of last month. The Petroleum Industry Bill (PIB) has been two decades in the makingto overhaulthe way Nigeria will share its oil resources with international oil companies and aim to attract new investment in oil and gas. Community leaders |
| China’s New Carbon Market Doubles Share Of World Emission TradingChina, the world’s largest polluter, is set to launch its nationwide emissions-trading system on Friday, sources with knowledge of the plans told The Wall Street Journal on Wednesday. China’s entry into the carbon market would double the share of greenhouse gas emissions being traded under such schemes around the world, the Journal notes. The step toward creating a national emissions-trading system is part of the Chinese pledge to reach net-zero emissions by 2060, a decade later than the deadline for most developed economies, 2050. The national |
| Countering Chinas Dominance In The Rare Earths SectorEnergy Fuels Inc. and Neo Performance Materials Inc. announced that they have executed the first shipment of mixed rare earth carbonate from a mill in Utah to a separation facility in Estonia. On July 7, Energy Fuels announced the first shipment, containing approximately 20 metric tons of the mixed rare earth carbonate, from the White Mesa Mill in Utah. The material was en route to Neo Performance Materials rare earths separation facility. The announcement represents the start of a fledgling U.S.-E.U. rare earths supply chain. Both the U.S. |
| How Venezuela’s Oil Crisis Triggered Mass Protests In CubaCuba has seen in recent days the biggest protests in decades as thousands of people took to the streets in the Communist-run country to demand freedom. But they also protest against the severe economic crisis and power outages. The pandemic exacerbated a crisis that has been brewing for years due to the U.S. sanctions against Cuba and, more recently, American sanctions against Cubas staunch ally, Venezuelas Nicolas Maduro. The crumbling Venezuelan oil industry means that less fuel oil from the country sitting on the worlds |
| EU Proposes Jet Fuel Tax In Latest Ambitious Climate PackageThe European Commission unveiled on Wednesday its latest plan to support the European Union in becoming a carbon-neutral bloc by 2050 and slash net greenhouse gas emissions by at least 55 percent by 2030, compared to 1990 levels. To ensure the EU would reach those targets, as laid out in the European Green Deal, the European Commission adopted on Wednesday a package of proposals to align the EUs climate, energy, land use, transport, and taxation policies with the goals. The package proposed by the Commission needs to be adopted by all member |
| GM warns some Bolt EV owners: Don’t park them inside or charge them unattended overnightTwo Bolt EVs caught fire even after they were repaired as part of a recall of nearly 69,000 of the vehicles that were flagged for fire risks. |
| Covid cases are surging again in Latin America and the U.S., WHO officials warnSpikes in infections are also exacerbating instability and violence across several countries in Latin America and the Caribbean. |
| Nearly 3,000 guests, crew disembark cruise in Singapore after positive Covid case left them confined in cabinsNearly 3,000 guests and crew are disembarking a Dream World Cruise in Singapore after being confined for hours due to one positive Covid-19 case. |
| Delta CEO says delta Covid variant has had no impact on bookingsDelta CEO says delta Covid variant has had no impact on bookings |
| Oatly accused of overstating revenue and greenwashing by activist short Spruce PointActivist short Spruce Point Capital Management has accused Oatly of shady accounting practices and misleading investors about its sustainability practices. |
| Software company SeatGeek boosts NBA ticketing partnerships with Brooklyn Nets dealBSE Global, which operates the Brooklyn Nets, will leverage SeatGeek’s technology for ticket sales starting in October. |
| Delta reports first profit since 2019 thanks to federal aid, improving revenue as travelers returnDelta’s quarterly report came in better than Wall Street estimates as travelers returned and federal aid drove it to its first profit since 2019. |
| American Airlines shares surge on carrier’s better second-quarter forecastAmerican Airlines forecast it will report a “slight” pretax profit for the second quarter and better revenue than previously estimated, sending shares higher. |
| Jeep unveils 2022 Compass SUV ahead of EV pushThe compact SUV is the brand’s best-selling vehicle globally. It’s scheduled to arrive in North American showrooms in the fall, starting at $24,995. |
| UK government plans to slash transport emissions by decarbonizing aviation, trucks and railFocus on decarbonization of trucks would complement plans to electrify cars and vans. |
| Investment in space companies hit record $4.5 billion in the second quarter, report saysPrivate investment in space companies hit $4.5 billion in the second quarter, according to a report by New York-based firm Space Capital. |
| Schumer proposes federal legislation to decriminalize marijuanaThe proposed Cannabis Administration and Opportunity Act would remove marijuana from the controlled substances list. |
| Ex-Trump Treasury Secretary Steven Mnuchin’s firm leads $275 million investment in CybereasonMnuchin’s firm, Liberty Strategic Capital, is investing $200 million, while Neuberger Berman and SoftBank are investing $75 million. |
| Bonds, Bitcoin, Bullion, & Big-Tech Bid As ‘Powell Promises’ Purge PPI PanicBonds, Bitcoin, Bullion, & Big-Tech Bid As ‘Powell Promises’ Purge PPI Panic Hawkish fears from soaring PPI were almost instantly purged by promises of ‘no taper anytime soon’ from Powell but when details emerged about the Democrats’ massive tax-anything-that-moves (and is not black or poor) sparked a puke in stocks and bond yields. But stocks all rebounded as Powell began speaking again… this is so f**king sad!!! However, when Powell started to talk about inflation and housing data – tying himself in Gordian knots – stocks started to fade again… Once he stopped talking, stocks rose…but Small Caps were monkeyhammered… again!
The ongoing collapse of Small Caps (value) relative to Nasdaq (growth) pushed the ratio to its lowest since the start of December… < … |
| SEC’s SPAC Probe Focuses On Conflicts At Goldman, Morgan Stanley And Other Major UnderwritersSEC’s SPAC Probe Focuses On Conflicts At Goldman, Morgan Stanley And Other Major Underwriters As their performance slipped leaving legions of retail traders holding the bag (while ‘SPAC King’ Chamath Palihapitiya was rewarded for each deal with a juicy ‘promote’) the SEC launched an investigation into Wall Street’s SPAC dealings, while also imposing new accounting rules requiring all warrants handed out to insiders be explicitly disclosed to the public in the company’s filings. According to a Reuters scoop published Tuesday, the SEC is ramping up its investigation into whether banks acting as underwriters for these SPAC listings face potential conflicts of interest.
While the SPAC boom has slowed since its peak in late 2020/early 2021 (a record $100 billion was raised for SPACs in Q1 2021), new blank-check … |
| Biden Rails Against Texas For “Making It Easy To Vote & Hard To Cheat” According To Gov AbbottBiden Rails Against Texas For “Making It Easy To Vote & Hard To Cheat” According To Gov Abbott Authored by Jenny Goldsberry via SaraACarter.com, Texas Governor Abbott responded to President Biden’s remarks about the newest election bill in Texas in a video statement Tuesday.
This isn’t the first time the two have clashed, either. œYou might remember, President Biden called me a neanderthal for opening Texas 100 percent and no masks, Abbott said.
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| US Consumers So Far Completely Undeterred By Delta VariantUS Consumers So Far Completely Undeterred By Delta Variant Despite the recent jump in Delta variant covid cases in the US, economic data continues to show that consumers are actively spending on services and remain undeterred despite the media’s best efforts to spark a fresh pre-lockdown panic. First, a quick update on the current state of the virus in the US. Average daily virus cases jumped by 28.3% to 17.4k during the week ending July 9, and the 7-day moving average of virus cases increased to 17.4k during the week ending July 9. This is the highest level since May 31 and a 28.3% increase from the week ending July 2. As BofA note this morning, from July 2 to July 9, forty states have recorded growth in daily cases and states where vaccine rates are lower are experiencing faster case growth. As shown in the chart below, the bank finds that growth in virus cases and vaccination rates at the state level exhibit a negative relationship.
Along with low vaccine rates, the Delta variant, which is more infectious than earlier strains, has driven the … |
| Masks ‘expected’ to be worn in shops after 19 JulyThe government says shoppers will still be expected to wear to masks but it will not be required legally. |
| John Lewis and Waitrose plan to cut 1,000 jobsJohn Lewis and Waitrose want to make the cuts as part of a shake-up of store management. |
| Waterstones to encourage shoppers to wear masks in storesBookseller is one of the first major chains to state policy for shops, but its stance attracts a mixed response. |
| ITC’s CMD Puri sees surge in pay despite travails of pandemic yearThe ITC CMD’s overall remuneration jumped 47 per cent from the previous year to Rs 10.1 crore, one of the highest among key managerial personnel at the company. |
| Fed’s Powell says economy ‘a ways off’ from bond taper, inflation to ease“Inflation has increased notably and will likely remain elevated in coming months before moderating,” Powell said, restating the U.S. central bank’s faith that current price increases, despite the concerns they are raising about unmoored inflation, are tied to the reopening of the economy and will prove fleeting. |
| Oil prices drop after Saudi-UAE reach output compromiseBrent crude was down 57 cents, or 0.75 per cent, at $75.92 a barrel by 1120 GMT after dropping by over $1 earlier. West Texas Intermediate was off by 58 cents, or 0.77 per cent, at $74.67 a barrel. |
| Bond Report: Treasury yields slip as Powell says inflation will dwindleYields on U.S. government debt fell on Wednesday as investors digested the first of two days of congressional testimony from Federal Reserve Chairman Jerome Powell, which could offer more clarity on the central bank’s monetary policy plans in the face of surging inflation. |
| Deep Dive: 19 dividend stocks to help you combat inflationThese stocks have dividend yields that are at least three times as high as the yields on 10-year U.S. Treasury notes. |
| The Number One: The top U.S. cities labeled as dangerous ‘heat islands’ include a few small-population surprisesHurricane dangers and rising waters aren’t the only climate-change consideration for this U.S. city of nearly 400,000 people and over 18 million annual visitors, including to its famous Mardi Gras celebration. |
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