Written by Gary
ECRI’s WLI growth rate decline continues and Michigan consumer sentiment declined (SPY -0.8%). US stocks dip, Americans prepping for highest inflation since 2008.
The Market in Perspective
Here are the headlines moving the markets. | |
Uncertainty Has Overtaken Oil Markets Once AgainUncertainty appears to have overtaken oil markets once again as a potential OPEC+ agreement gives hope to oil bulls while fears of weak gasoline demand in the U.S. adds downward pressure to prices.Friday, July 16th, 2021The baseline amendment agreement between Saudi Arabia and the UAE foreshadowed a familiar path forward for the oil markets, at the same time the lack of detail on how exactly major OPEC+ producers would bring back production maintains a hefty level of uncertainty. Meanwhile, weak demand numbers from the US have cast doubts upon | |
U.S. Senate Plans To Penalize Utilities That Miss Climate TargetsAs the Biden Administration carries on at least in spirit with its green energy agenda, U.S. Senate Democrats are looking to penalize energy utilities that fail to meet clean energy targets. The plan would also reward utilities that do meet them. The clean energy standard plan that is currently being considered would require that 80% of all electricity be carbon-free by 2030, such as electricity derived from solar, hydropower, or wind power, and is part of the $3.5 billion budget blueprint. Such a tall order would require | |
Another Major Firm Quits Oil Drilling In Great Australia BightAfter European and U.S. supermajors quit exploration for oil and gas in the Great Australian Bight, now Santos and Murphy Oil relinquished on Friday their right to drill in the large open bay off the southern coastline of mainland Australia. Australia-based Santos thus becomes the fourth major oil and gas firm to abandon efforts to drill in a pristine part of the ocean off Australias southern coasta move hailed by Greenpeace as a momentous win for people and planet. On Friday, Santos said via a spokesman in a | |
U.S. Rig Count Rises Despite Oil Price UncertaintyThe number of oil and gas rigs in the United States is up 5 this week, according toBaker Hughes, with the total rig count at 484, up 231 from the same time last year. The U.S. oil rig count rose by 2 this week to 380. The number of gas rigs increased by 3 and now sits at 104. The number of miscellaneous rigs stayed the same. U.S. drillers continue to show remarkable restraint in this higher priced environment, even as more acreage becomes profitable to develop. The EIAs estimate for oil production in the United States for the week | |
Nigeria Approves New Petroleum Bill After 20-Year DelayNigeria’s House of Representatives voted on Friday to approve a new petroleum industry bill in Africa’s top oil producer and exporter, putting an end to 20 years of debates and delays. The House voted in favor of the bill on Friday, after the Senate had endorsed the new legislation on Thursday, Bloomberg reports. The new petroleum bill is aimed at attracting more foreign capital to the country’s oil sector, Nigeria says. The Petroleum Industry Bill (PIB) has been two decades in the makingto overhaulthe way Nigeria will share its oil | |
Weak Fuel Demand Sends Indias Oil Imports To 9-Month LowIndian refiners imported in June 2021 the lowest volume of crude oil in nine months, as purchases slowed down in April and May when India imposed regional mobility restrictions to curb a resurgence in COVID cases, Reuters reported on Friday, quoting tanker data from trade sources. India is estimated to have imported around 3.9 million barrels per day (bpd) of crude oil in June, which was down by 7 percent compared to the imports in May. The June 2021 imports were still higher than in the same month of 2020, when Indiaand most of the worldwas | |
Impossible Foods plans to release meatless chicken nuggets this fallImpossible Foods is planning to release a meat-free chicken nugget this fall. | |
Phoenix Suns arena will be named Footprint Center in ‘one of the most unique partnerships in sports’Footprint is an engineering company that wants to eliminate single-use plastic and use the Suns home complex to test new technologies. | |
Walmart loses EEOC disability lawsuit that alleged discrimination against a longtime employee with Down syndromeA jury found that the retailer’s alleged actions violated the Americans with Disabilities Act, which prohibits discrimination based on an employee’s disability. | |
Covid deaths on the rise again in the U.S. after weeks of decline, CDC saysDeaths from Covid-19 are increasing after weeks of decline, along with hospitalizations and cases, the CDC said Friday. | |
Dr. Scott Gottlieb says U.S. is ‘vastly underestimating’ level of Covid delta spreadFormer FDA chief Dr. Scott Gottlieb told CNBC he expects further spread of the Covid delta variant, which is “clearly far more contagious” than earlier strains. | |
Lordstown Motors confirms DOJ probe into SPAC deal and preordersLordstown Motors said it has “cooperated, and will continue to cooperate, with these and any other regulatory or governmental investigations and inquiries.” | |
England’s lifting of Covid lockdowns is a danger to the entire world, experts warnGlobal scientists have criticized the U.K. government’s plans to ease almost all Covid-19 restrictions, calling it unethical and dangerous for the whole planet. | |
How shipping behemoth Maersk is navigating the global container crisisMaersk announced in May its first-quarter revenue was $12.4 billion. | |
Millions of Brits set for self-isolation as restrictions ease and Covid cases soarMore than 500,000 people in Britain were told to self-isolate last week by the government-backed Covid-19 Test and Trace app. | |
Here’s how Black Americans can begin building wealth right nowWhile societal changes are needed to address the wealth gap, there are also steps Black Americans can take right now to start building wealth, experts say. | |
Square is building a decentralized finance business using bitcoinSquare wants to make it easier to build “decentralized financial services” using bitcoin. | |
Plans for huge new gigafactory in England take shape, as countries ramp up battery-making capacityFactory would be built in a part of England known for its longstanding connection to vehicle manufacturing. | |
Big-Tech Breaks Weekly Win Streak, Bonds Shrug Off Inflation-FestBig-Tech Breaks Weekly Win Streak, Bonds Shrug Off Inflation-Fest It was a week of transitory-trampling inflation prints with CPI, PPI, Import/Export Prices, UMich inflation expectations, and the concomitant ‘hangover’ as buyers’ sentiment (for homes/cars/durables) crashed due to the soaring prices… and stocks did not like it (especially Small Caps). As we noted earlier, there was a big drop in gamma after the open’s OPEX which enabled today’s pain (the last 3 Fridays have been big up days)… Nasdaq has been up 8 weeks in a row before this week… S&P 500 e-mini futures have printed all-time highs in 13 of the last 16 sessions. This was the first weekly drop in Nasdaq since mid-May, and the worst week for Russell 2000 since Jan 2021… and worst week for Small Caps since Oct 2020. The market’s message to Powell… | |
Biden Admits Communism Is A “Failed System”, Socialism’s No Better, & Cuba A “Failed State”Biden Admits Communism Is A “Failed System”, Socialism’s No Better, & Cuba A “Failed State” Authored by Lorenz Duchamps via The Epoch Times, The authoritarian and communist regime of Cuba is a œfailed state and universally, communism is a œfailed system, President Joe Biden said while speaking from the White House on Thursday.
Biden’s remarks were the strongest signal yet by the president in support of Cubans demonstrating against the ruling regime of leader Miguel Diaz-Canel “also the head of the Cuban Communist Party. | |
Speculation Abounds Over Brazilian President’s Health Given “No Timeline” For Leaving HospitalSpeculation Abounds Over Brazilian President’s Health Given “No Timeline” For Leaving Hospital Brazil’s president Jair Bolsonaro initially entered the hospital early Wednesday over what his communications team described as a chronic hiccup problem, and a possible corresponding issue centered on abdominal pain. He had described to reporters the night before that he’d been hiccupping for over a week and called it a “crisis” in those moments the hiccups unexpectedly come back, often making his ability to talk smoothly very difficult. Initially the president’s office said he was being kept under observation for doctors “to identify the cause of chronic hiccups” – but on Friday that appears to have changed. The medical team treating him says he’s doing well and will “soon” be discharged, but a partial intestinal obstruction is now keeping him there with “no timeline” set for his exit.
What initially appeared a mere 24 to 48 hour observational stay apparently could turn indefinite as speculation abounds. “Bolsonaro is making progress and continues rece … | |
The Fed’s “Inflation Bubble”The Fed’s “Inflation Bubble” By James Carson, former chief economist at Alliance Bernstein The Federal Reserve continues to argue that the US is experiencing an “inflation bubble.” Even though the uptick in consumer prices has run hotter and longer than policymakers expected, the “inflation bubble” will deflate at some point. Policymakers offer no timeline for the moderation but continue to promote the view that inflation will drift back to the 2% mark, implying that the economy has a preset ceiling of inflation and nothing more. The Fed’s inflation story is paradoxical. It comes from an institution that has long argued inflation is a monetary phenomenon. The current policy stance is the most accommodative monetary stance in history, so expectations of more inflation, not a reversal, should be expected. Also, the Federal Reserve, which has long argued that it’s impossible to identify an asset bubble beforehand, can now suddenly see an “inflation bubble” and also predict its end. Investors need to be aware that inflation cycles do not die on their own. But die when there is a sustained tightening of monetary policy. Also, inflation cycles have bad endings for the simple reason they create liquidity on the way up, and a sharp reversal in liquidity occurs, negatively impacting the economy and finance once the cycle ends. Transitory Inflation No More The June reports on consumer and producer price inflation struck a significant blow to the “transitory” inflation argument. Both showed substantial and broad-based gains, resu … | |
Uber will continue to require riders to wear masksThe ride-hailing firm says passengers will still need to wear a face covering after rules relax on Monday. | |
Covid: Fully jabbed UK arrivals from France must still quarantineA planned relaxation of rules on Monday will not apply due to cases of the Beta variant, the government says. | |
Warnings grow about staff forced to self-isolateAlarm mounts over fears of a “surge” in workers and medical staff forced to quarantine after being “pinged”. | |
HDFC Bank Q1 preview: Profit may grow 228%, NIM seen stable at 4.3%To recall, the private bank in its Q1 update had suggested a 14.4 per cent YoY growth in credit growth at Rs 11,47,500 crore for the June quarter, which was way higher than the system’s 5.5 per cent growth. | |
Retail investors, Q1 earnings may help Nifty50 cross the 16,000 markMoney managers expect the market momentum to remain positive for the time being given the near 2 per cent rise in the benchmarks this week despite the large initial public offering of Zomato, which saw bids worth over Rs 2 lakh crore. | |
India’s largest money manager ends love affair with PSU stocksSBI Mutual Fund, the biggest public money manager, is now selling the PSU stocks that it had accumulated over the last one year. The buy-sell data for June showed SBI MF sold 2.75 crore shares of oil explorer Oil & Natural Gas Corporation, 1.56 crore shares of SAIL and over 57 lakh shares of Bharat Electronics. | |
09 July 2021 ECRI’s WLI Growth Rate Decline ContinuesWritten by Steven Hansen ECRI’s WLI Growth Index which forecasts economic growth six months forward was marginally declined but remains in expansion. | |
Preliminary July 2021 Michigan Consumer Sentiment DeclinedWritten by Steven Hansen The preliminary University of Michigan Consumer Sentiment for July came in at 80.8, down from June’s 89.5, and down from May’s 82.9. | |
Bond Report: Treasury yields rise Friday but 10 and 30-year debt mark third straight weekly slideYields for U.S. government debt on Friday rise slightly, but long-dated bond yields rang up a third straight weekly drop after Federal Reserve Chairman Jerome this week reiterated the central bank’s view that rising inflation is likely to be transitory and that tapering of asset-purchases, including government debt, isn’t imminent. | |
: NFL star Saquon Barkley will accept all future endorsement money in bitcoinNew York Giants running back Saquon Barkley will now take the millions he earns from endorsements exclusively in bitcoin. | |
Market Snapshot: U.S. stocks dip, head for weekly decline as sentiment survey shows Americans prepping for highest inflation since 2008U.S. stock indexes are down Friday afternoon, as data showing a fall in consumer sentiment overshadow an earlier report on a sharp rise in retail sales, while corporate earnings reports remain mixed. |
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