01June2022 Market Close & Major Financial Headlines: Wall Street’s Major Indexes Turn Sharply Down During Last Half-Hour, S&P Global Manufacturing PMI Final MAY fell to 57 from 59.2, Investors Worry Over Economic Growth As Fed Sees Losing Control Of Inflation Expectations As Inflation Continues To Surge

Canadian Oil Asks For More Subsidies Despite Soaring Profits

The Canadian tar sands are having a hell of a year. Canada’s largest oil and gas producer, Canadian Natural Resources Ltd., more than doubled its profits year-on-year in the first quarter of 2022. CNRL is now the fourth most valuable publicly traded oil and gas producer in North America, an incredible feat considering that just a year and a half ago, it was in question whether or not the oil sands would survive at all, thanks to increased scrutiny of the sectors mega-dirty crude bitumen and rising costs of operations. The sudden

Read more at: https://oilprice.com/Energy/Energy-General/Canadian-Oil-Asks-For-More-Subsidies-Despite-Soaring-Profits.html

Iron Prices Climb As China Reboots Its Economy

It’s still touch-and-go for the steel sector in China despite the sprouting of the first shoots of a possible manufacturing recovery. However, last Monday, benchmark iron ore prices in the country gained a surprising 7%. This is the biggest daily rise in two-and-a-half months. Is it a sign that we should be more optimistic or just a dead cat bounce? Chinas Slow Road to Recovery Chinese manufacturing activity has thus far been down in 2022 due to a fresh COVID-19 outbreak. However, since mid-May, the market has shown some signs of recovery,

Read more at: https://oilprice.com/Metals/Commodities/Iron-Prices-Climb-As-China-Reboots-Its-Economy.html

Could Blue Carbon Credits Be The Future Of Sustainable Financing?

The Bahamas has become the latest emerging market to seek to leverage its natural environs to fund projects to protect its environment, announcing plans to sell blue carbon credits before the end of the year. In late April the government unveiled plans that would give companies the opportunity to purchase the credits to offset their own carbon emissions. The proposed deal is based on the Bahamas estimated 4270 sq km of mangrove forests, seagrass beds, and other ecosystems that absorb and store significant amounts of carbon. Upon announcing

Read more at: https://oilprice.com/The-Environment/Global-Warming/Could-Blue-Carbon-Credits-Be-The-Future-Of-Sustainable-Financing.html

Windfall Tax To Cost UK-Focused Oil Firms More Than $3 Billion

The new windfall tax on profits of oil and gas companies in the UK is expected to cost the medium-sized North Sea-focused companies a total of $3.3 billion through 2025, according to investment bank Jefferies. Following months of rumors and indecision, the UK government announced last week a 25% Energy Profits Levy, commonly referred to as a windfall tax, as part of a package to ease the cost-of-living crisis stemming from huge rises in household energy bills. The move has long been opposed by the industry, which argued that a windfall

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Windfall-Tax-To-Cost-UK-Focused-Oil-Firms-More-Than-3-Billion.html

Russia Holds Nuclear Drills As Biden Unveils New Aid Package For Ukraine

Russia’s nuclear forces have launched fresh drills northeast of Moscow, in the Ivanovo province, according to new Russian defense ministry statements Wednesday. Reuters cited Interfax news agency to report that “Some 1,000 servicemen are exercising in intense maneuvers using over 100 vehicles including Yars intercontinental ballistic missile launchers,” based on the Russian MoD statement. Some Western media reports are seeing the drill as a response and warning to Washington over the White House approving yet more military aid and weapons to Ukraine,

Read more at: https://oilprice.com/Geopolitics/International/Russia-Holds-Nuclear-Drills-As-Biden-Unveils-New-Aid-Package-For-Ukraine.html

Deutsche Bank Unit CEO Resigns Over Greenwashing Raid

The CEO of a Deutsche Bank subsidiary resigned Wednesday, just a day after German authorities launched a heavy-handed raid on the companys offices in Frankfurt over allegations of greenwashing. A whistleblower claimed that DWS, a Deutsche Bank subsidiary managing some $900 billion in assets, misled investors in its 2020 annual report by claiming that more than $450 billion in its assets met environmental, social and governance (ESG) criteria. Deutsche Bank holds an 80% stake in DWS. On Wednesday, DWS CEO Asoka

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Deutsche-Bank-Unit-CEO-Resigns-Over-Greenwashing-Raid.html

Mortgage rates rise sharply after three weeks of easing

Mortgage rates are surging higher again this week after falling for the past three weeks.

Read more at: https://www.cnbc.com/2022/06/01/mortgage-rates-rise-sharply-after-three-weeks-of-easing.html

United Airlines plans $100 million expansion of pilot training center during hiring spree

United’s Denver campus will be able to accommodate 52 full-motion simulators after the extension is complete.

Read more at: https://www.cnbc.com/2022/06/01/united-airlines-plans-100-million-expansion-of-pilot-training-center.html

Star Wars is mostly TV now — and the Disney franchise’s often-fractured fanbase is cool with that

By the time Taika Waititi’s untitled Star Wars film hits theaters in 2023, it will have been four years since the franchise has been on the big screen.

Read more at: https://www.cnbc.com/2022/06/01/star-wars-is-mostly-tv-now-fans-are-cool-with-that-love-obi-wan-kenobi.html

Ford CEO expects to see industry consolidation as the costs of transition to electric vehicles rise

Jim Farley said the massive amounts of capital needed to invest in EV technologies will force smaller companies to be acquired.

Read more at: https://www.cnbc.com/2022/06/01/ford-ceo-expects-ev-transition-to-force-industry-consolidation.html

Unprecedented water restrictions begin in Southern California as drought worsens

The new rules, which limit outdoor watering to once a week, impact more than 6 million residents in Southern California.

Read more at: https://www.cnbc.com/2022/06/01/southern-california-water-restrictions-start-today-amid-drought.html

Investors revisit muni bonds amid higher yields and strong credit

It’s been a tough year for muni bonds with investors cashing out amid rising interest rates. But higher yields and strong credit may be sparking a shift.

Read more at: https://www.cnbc.com/2022/06/01/investors-revisit-muni-bonds-amid-higher-yields-and-strong-credit.html

GM slashes prices of Chevy Bolt electric vehicles despite rising commodity costs

GM cut the price of the Bolt EV by $5,900 compared with the 2022 model year, with a starting price of $26,595.

Read more at: https://www.cnbc.com/2022/06/01/gm-slashes-prices-of-chevy-bolt-evs-despite-rising-commodity-costs.html

Delta hikes sales forecast to pre-pandemic levels thanks to jump in travel demand and fares

Delta said it expects revenue to get back to 2019 levels this quarter.

Read more at: https://www.cnbc.com/2022/06/01/delta-raises-revenue-forecast-on-higher-demand-and-fares.html

United Auto Workers union accuses GM joint venture of denying access to organize workers

The United Auto Workers union is accusing a new General Motors joint venture of denying its access to workers to conduct a preliminary organizing vote.

Read more at: https://www.cnbc.com/2022/05/31/autoworker-union-accuses-gms-joint-venture-of-denying-access-for-organizing.html

Chinese electric car start-up WM Motor files to go public in Hong Kong

Chinese electric car start-up WM Motor filed Wednesday to go public on the Hong Kong Stock Exchange.

Read more at: https://www.cnbc.com/2022/06/01/chinese-electric-car-start-up-wm-motor-files-to-go-public-in-hong-kong.html

Mortgage demand falls to the lowest level since the end of 2018, even as interest rates ease a bit

Applications for a mortgage to purchase a home fell 1% last week compared with the previous week, according to the Mortgage Bankers Association.

Read more at: https://www.cnbc.com/2022/06/01/mortgage-demand-falls-to-lowest-level-since-2018-even-as-interest-rates-ease.html

WHO says monkeypox has been spreading undetected as global cases rise to more than 550

“We don’t really know whether it’s too late to contain. What the WHO and all member states are trying to do is prevent onward spread,” Lewis said.

Read more at: https://www.cnbc.com/2022/06/01/who-says-monkeypox-has-been-spreading-undetected-as-global-cases-rise-to-more-than-550.html

Croatian EV supercar maker Rimac raised 500 million euros to make parts for Big Auto rivals

Rimac raised 500 million euros to expand its ability to build high-performance EV components for bigger automakers.

Read more at: https://www.cnbc.com/2022/06/01/croatian-ev-supercar-maker-rimac-raises-500-million-euros-.html

Stocks, Bonds, & Bitcoin Dumped As Dimon Doubles-Down On Dour Outlook

Stocks, Bonds, & Bitcoin Dumped As Dimon Doubles-Down On Dour OutlookJamie Dimon’s pessimistic shift from “storm clouds” last week to a “hurricane is down the road”, prompted market weakness shortly after the open…

“That hurricane is right out there down the road coming our way,” he added.

“We just don’t know if it’s a minor one or Superstorm Sandy. You have to brace yourself.”

It appears Dimon went full ‘Leeroy Jenkins’ with his flip-flop…

Which makes sense since US Macro conditions have notably worsened in the week since he last commented…

Source: Bloomberg

… but other Fedspeak didn’t help with Bostic first…

Atlanta Fed President Raphael Bostic, in an exclusive interview with …

Read more at: https://www.zerohedge.com/markets/stocks-bonds-bitcoin-dumped-dimon-doubles-down-dour-outlook

Facebook Slumps After Sheryl Sandberg Steps Down As COO

Facebook Slumps After Sheryl Sandberg Steps Down As COOJust moments after Amber Heard was found guilty of defaming Johnny Depp with malice, the stock of Facebook – which bizarrely still calls itself Meta at least until the company decides to change its name back to normal – tumbled on news that Sheryl Sandberg is stepping down as chief operating officer.

Sandberg, who Bloomberg describes as “one of the most recognized figures in global business after helping Facebook transform from a startup into a multibillion-dollar advertising powerhouse” although we are confident others would have less effusive descriptions of the 52-year-old, will remain on the board of Meta according to a post on the social network Wednesday. Javier Olivan, who has led the company’s growth efforts for years, will take Sandberg’s place as COO when she formally steps down in the fall.

Sandberg, a Democrat who previously served as chief of staff for Treasury Secretary Lawrence Summers, joined Facebook in 2008 and was key to turning it into a social media giant that generated almost $120 billion in revenue last year. Along the way, she became an influential author – publishing “Lean In” in 2013 – and served as the highest-profile face of the company next to CEO Mark Zuckerberg. She also answered for Facebook’s privacy and policy missteps over the years, attempting to improve its relationship with the public and regulators.

In an interview with Bloomberg, Sandberg called her time at Meta the “honor and privilege of a lifetime,” but joked that it’s also “not the most manageable job anyone has ever had.”

“It’s a decision I didn’t come to lightly, but it’s been 14 years,” she …

Read more at: https://www.zerohedge.com/markets/facebook-slumps-after-sheryl-sandberg-steps-down-coo

Goldman Sachs Reportedly In Talks With FTX For Bitcoin, Crypto Derivatives

Goldman Sachs Reportedly In Talks With FTX For Bitcoin, Crypto DerivativesAuthored by Shawn Amick via BitcoinMagazine.com,

Goldman Sachs is reportedly looking to integrate services with Bitcoin and crypto exchange FTX.

Goldman Sachs is reportedly in talks with FTX to facilitate derivatives trading for bitcoin and other cryptocurrencies.

FTX is seeking a license modification that will allow it to function as both an exchange and intermediary for derivatives.

If FTX is successful in acquiring the license, it could begin the removal of intermediaries, such as Goldman, in derivatives markets.

Goldman Sachs is discussing derivatives trading with bitcoin and other cryptocurrencies through a possible partnership with cryptocurrency exchange FTX, according to a report from Barron’s.

“We have multiple FCMs [futures commission merchants] already committed to integrating technologically with the exchange,” Brett Harrison, the president of FTX’s U.S. division, said in an interview with Barron’s.

“There are several large ones you can probably name.”

Read more at: https://www.zerohedge.com/crypto/goldman-sachs-reportedly-talks-ftx-bitcoin-crypto-derivatives

JPM Sees Oil Rising Up To $136 This Month Depending On What China Does, As Trader Bets Millions On Crude Explosion To $200

JPM Sees Oil Rising Up To $136 This Month Depending On What China Does, As Trader Bets Millions On Crude Explosion To $200When it comes to forecasts for the price of oil, two distinct camps have emerged on Wall Street. In one, we have Citi, whose chief commodity strategist, Ed Morse, has been pounding the table calling for lower oil and most recently telling BBG TV that the fair value of Brent futures is in the $70 range even though the international benchmark is trading around $120 a barrel. Needless to say, Morse has been dead wrong so far, and anyone who listened to him has suffered catastrophic losses on the short side, although maybe he will be correct in the end: his forecast is predicated on unprecedented demand destruction, with Citi cutting its demand estimate for products to 2.2 million barrels a day, down from 3.6 million barrels at the start of the year. Alas, despite record prices for every energy product, there has so far been zero demand destruction as even Bloomberg’s resident in-house commodity expert Javier Blas pointed out earlier today.

OIL MARKET: After a short-lived correction in late May, refining margins are rocketing again, with the WTI 3-2-1 crack margin surging above $52.5 a barrel. The refined products markets continues to lead (where’s the demand destruction?), encouraging higher refinery runs #OOTT

— Javier Blas (@JavierBlas) June 1, 2022

Read more at: https://www.zerohedge.com/markets/jpm-sees-oil-rising-136-month-depending-what-china-does-trader-bets-millions-crude

Canceled flights: Tui customers angry over handling of travel misery

Passengers express fury over what they see as poor treatment after travel giant axes flights.

Read more at: https://www.bbc.co.uk/news/business-61657590?at_medium=RSS&at_campaign=KARANGA

Sheryl Sandberg to leave Facebook after 14 years

Her departure comes as the social media company faces challenges, including a slowdown in sales.

Read more at: https://www.bbc.co.uk/news/business-61666340?at_medium=RSS&at_campaign=KARANGA

Shell’s Jackdaw gas field given go-ahead by regulators

The UK government is seeking to boost domestic energy output following Russia’s invasion of Ukraine.

Read more at: https://www.bbc.co.uk/news/uk-scotland-scotland-business-61666693?at_medium=RSS&at_campaign=KARANGA

Trade Setup: Imperative for the markets to open and stay above 16,500 levels

In other words, it would be imperative for the markets to open and stay above the 16,500 levels. Any slip below this point is likely to invite incremental weakness.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/trade-setup-imperative-for-the-markets-to-open-and-stay-above-16500-levels/articleshow/91946176.cms

Tech View: Nifty50 forms bearish candle, analysts say ‘buy on dips’

“Taking that into account, Nifty50 can be expected to trade positive in the next session. In that scenario, the index can initially head to test its 200-day EMA, placed around 16,740 levels.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty50-forms-bearish-candle-analysts-say-buy-on-dips/articleshow/91942471.cms

Rakesh Jhunjhunwala sells 25 lakh shares of Delta Corp; stake falls to 6.2%: Report

According to a regulatory filing by the company, the seasoned investor and his better half jointly held a 7.5 per cent stake in the company at the end of March 2022.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/rakesh-jhunjhunwala-sells-25-lakh-shares-of-delta-corp-stake-falls-to-6-2-report/articleshow/91941765.cms

HPE stock dives after earnings and sales miss amid ‘inflationary environment and ongoing supply chain disruptions’

Hewlett Packard Enterprise Co. reported flat results from a year ago Wednesday amid doubts about the environment for business spending on technology and shares dove in late trading.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7DF3-C880DC46F3CB%7D&siteid=rss&rss=1

Sheryl Sandberg leaving Facebook after 14 years

Sheryl Sandberg, whose 14-year run at Facebook was marked by record sales and a string of controversies, is stepping down as chief operating officer of Meta Platforms Inc.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7E02-021920350A42%7D&siteid=rss&rss=1

Crypto: DOJ charges ex-NFT marketplace employee with insider trading

The Department of Justice has charged Nathaniel Chastain, a former product manager at the NFT marketplace OpenSea, with criminal insider trading, the government said Wednesday.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7E01-4448AD731146%7D&siteid=rss&rss=1