22June2022 Market Close & Major Financial Headlines: Wall Street Equities Gapped down At The Opening, Dow Slid 355 points, Most Of Session In The Green, Finally Closing Fractionally In The Red, High Gas And Food Prices Remain A Big Investor Concern

U.S. Oil And Gas Exports Are Fueling Higher Domestic Prices

The U.S. oil and natural gas industry long fought for and in the last decade finally won release from federal restrictions that limited exports. The ostensible reason was that because of the so-called “shale revolution” in the country’s oil and gas fields, the United States would have plenty of oil and gas to spare for export. The real reason behind the push was that the oil and gas industry wanted what almost every other industry in America already had: The right to sell their products to the highest bidders no matter where they lived on the globe.

Read more at: https://oilprice.com/Energy/Energy-General/US-Oil-And-Gas-Exports-Are-Fueling-Higher-Domestic-Prices.html

Can The U.S. Overtake China In The Battery Metal Race?

Over the past few decades, the US-China relationship has evolved into more of a rivalry than anything else. This has left the United States eager to decouple from China on several critical issues. One such issue is the supply of rare earths. After all, China refines almost 90% of the world’s rare earths. Moreover, the country is responsible for more than 50% of RE mining, as per figures given by International Energy Agency. A New Initiative to Shore up RE Supply Chains With Rare Earths The US currently relies on two nations for its rare earth

Read more at: https://oilprice.com/Metals/Commodities/Can-The-US-Overtake-China-In-The-Battery-Metal-Race.html

Will The European Union Grant Ukraine Candidate Status?

A draft of the final declaration for this week’s European Union summit proposes candidate status for Ukraine and Moldova, a copy of the document seen by RFE/RL shows. “The European Council has decided to grant the status of candidate country to Ukraine and to the Republic of Moldova,” the document, dated June 21, says, adding Georgia will be granted the same status once Tbilisi meets a number of conditions. “The future of these countries and their citizens lies within the European Union,” it adds. All 27 bloc members must approve such a move, which

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Will-The-European-Union-Grant-Ukraine-Candidate-Status.html

Kazakhstan Speaks Out Against Russia Over Ukraine War

Behind-the-scenes tensions between Kazakhstan and Russia over the war in Ukraine spilled into awkward exchanges at the St Petersburg International Economic Forum, where discussions strayed beyond the economy into geopolitics. Vladimir Putin used the platform to advance the sweeping claim that the entire former Soviet Union was historical Russia. Against the backdrop of Russia’s invasion of one of its neighbors, the Russian president’s June 17 remarks could hardly fail to arouse alarm in other former Soviet states

Read more at: https://oilprice.com/Geopolitics/International/Kazakhstan-Speaks-Out-Against-Russia-Over-Ukraine-War.html

Official: EU Should Back Ukraine Despite Economic Fallout

The European Union should continue supporting Ukraine despite the lowered Russian gas deliveries to major EU customers and the economic toll from it, Elina Bardram, acting director for International Affairs and Climate Finance at the European Commission, told Reuters on Wednesday. Since last week, Russia has significantly lowered gas supply to several customers in Europe, including the biggest, Germany and Italy. The upcoming annual maintenance at Nord Stream will completely halt deliveries through the pipeline for two weeks in July

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Official-EU-Should-Back-Ukraine-Despite-Economic-Fallout.html

Russias War Is Elevating Cybersecurity Concerns For Emerging Markets

Russias invasion of Ukraine has caused disruptions across the global economy, from food to energy, but it has also prompted an increase in the number and sophistication of cyberattacks, exacerbating similar impacts from the Covid-19 pandemic. According to a recent poll of 800 chief audit executives conducted by the UK-based Chartered Institute of Internal Auditors, 77% of respondents thought the war had elevated cybersecurity and data security risks. Indeed, senior cybersecurity analysts have said that the invasion has been accompanied by

Read more at: https://oilprice.com/Geopolitics/International/Russias-War-Is-Elevating-Cybersecurity-Concerns-For-Emerging-Markets.html

Franchise Group considers lowering Kohl’s bid closer to $50 a share from about $60, source says

Retail holding company Franchise Group is weighing lowering its bid for Kohl’s, according to a person familiar with the deal talks.

Read more at: https://www.cnbc.com/2022/06/22/franchise-group-considers-lowering-kohls-bid-closer-to-50-a-share-from-60.html

Raw material costs for electric vehicles have doubled during the pandemic

Raw material costs for electric vehicles more than doubled during the coronavirus pandemic, according to a new report Wednesday by AlixPartners.

Read more at: https://www.cnbc.com/2022/06/22/electric-vehicle-raw-material-costs-doubled-during-pandemic.html

Demand for adjustable-rate mortgages surges, as interest rates make biggest jump in 13 years

Mortgage rates surged to the highest level since 2008, but more buyers applied for loans, perhaps concerned rates would move even higher.

Read more at: https://www.cnbc.com/2022/06/22/demand-for-adjustable-rate-mortgages-surges-as-interest-rates-jump.html

Online lottery ticket company Jackpot gets funding from top sports executives

Jackpot, which aims to modernize the lottery business, has raised money from a number of top sports executives and NBA stars James Harden and Joel Embiid.

Read more at: https://www.cnbc.com/2022/06/22/online-lottery-ticket-firm-jackpot-gets-funding-from-top-sports-execs.html

Fanatics CEO Michael Rubin selling ownership stake in Philadelphia 76ers, New Jersey Devils

Fanatics CEO Michael Rubin is selling his ownership stake of the Philadelphia 76ers.

Read more at: https://www.cnbc.com/2022/06/22/fanatics-ceo-michael-rubin-selling-ownership-stake-in-76ers-nj-devils-.html

Forest Service says it failed to account for climate change when it accidentally caused historic New Mexico fire

The Calf Canyon/Hermits Creek blaze has burned more than 341,000 acres and destroyed hundreds of homes in New Mexico.

Read more at: https://www.cnbc.com/2022/06/22/forest-service-failed-to-account-for-climate-change-in-new-mexico-fire.html

Ford CEO’s bold move to close a money-losing plant bodes well for long-term stock holders

We believe this change will be meaningful to long-term earnings, and it shows how Ford CEO Jim Farley is taking no prisoners on his drive to profitability.

Read more at: https://www.cnbc.com/2022/06/22/investing-club-ford-ceos-bold-move-to-close-a-money-losing-plant-bodes-well-for-long-term-stock-holders.html

Watch: President Biden calls for federal gas tax holiday

President Joe Biden called for a federal gas tax holiday as people across the U.S. deal with spiking prices.

Read more at: https://www.cnbc.com/2022/06/22/watch-president-biden-calls-for-federal-gas-tax-holiday.html

Obama boasted about opposing federal gas tax holiday before 2008 election — Biden now wants one

President Joe Biden is calling for a federal gas tax holiday as Americans deal with higher prices at the pump and as the midterm elections loom.

Read more at: https://www.cnbc.com/2022/06/22/obama-opposed-us-gas-tax-holiday-but-biden-now-wants-one.html

Mars says CEO Grant Reid is retiring and will be replaced by head of pet care unit

Mars CEO Grant Reid will step down from his role at the end of September after seeing unprecedented growth, the company announced Wednesday.

Read more at: https://www.cnbc.com/2022/06/22/mars-says-its-ceo-is-retiring-and-will-be-replaced-by-head-of-pet-care-unit.html

SpaceX ramps up FCC battle over broadband usage the company says poses an existential threat to Starlink

At the heart of the dispute is the use of the 12-gigahertz band and the frequency’s ability to support both ground-based and space-based services.

Read more at: https://www.cnbc.com/2022/06/21/spacex-fcc-battle-with-dish-michael-dell-affiliate-over-broadband-usage.html

World’s largest truck maker says it’s facing enormous supply chain pressure

The head of Daimler Trucks has warned that shortages of parts are slowing the production of thousands of its vehicles.

Read more at: https://www.cnbc.com/2022/06/22/daimler-trucks-says-its-facing-enormous-supply-chain-pressure.html

National incident declared after UK health officials detect poliovirus in London sewage samples

U.K. health authorities have said they are urgently investigating a rare poliovirus outbreak in sewage samples in London.

Read more at: https://www.cnbc.com/2022/06/22/ukhsa-detects-polio-virus-in-london-sewage-declares-national-incident.html

Stocks Snore, Bonds Soar As Fed Fears Ease; There’s Just One Thing…

Fed Chair Powell actually sounded ‘hawkish-er’ during today’s Humphrey-Hawkins testimony, but the bid in bonds that started overnight drove rate-hike expectations lower and subsequent rate-cut expectations higher…

Source: Bloomberg

Treasury yields ripped lower – erasing all of yesterday’s selling – with the short-end outperforming (3Y -17bps, 30Y -10bps)…

Source: Bloomberg

Read more at: https://www.zerohedge.com/markets/stocks-dumpnpumpndump-bonds-soar-theres-just-one-thing

What Is Your Plan To Make It Through The Worst Global Food Crisis In Any Of Our Lifetimes?

Authored by Michael Snyder via The Economic Collapse blog,

We are being warned well ahead of time that it is coming.  Joe Biden has publicly admitted that the coming food shortages are “going to be real”, and the head of the UN World Food Program is now telling us that we could soon see “hell on Earth” because the lack of food will be so severe.  Food prices are already escalating dramatically all over the globe, and food riots have already erupted in Sri Lanka and elsewhere.  But most people in the western world are treating this crisis as if it is no big deal.  Many seem to assume that our leaders have everything under control and that things will work out just fine somehow.

…

Read more at: https://www.zerohedge.com/personal-finance/what-your-plan-make-it-through-worst-global-food-crisis-any-our-lifetimes

Does Terrible Monetary Policy Ever Become Criminal Negligence?

Submitted by QTR’s Fringe Finance

The genesis of this article started last week when I found myself writing about Janet Yellen’s decade-plus of continued incompetence when it comes to both monetary and fiscal policy.

The piece evolved over the last couple of days when I found a video on Twitter of Yellen, President Biden, press secretary Jen Psaki and numerous other highly qualified economic experts talking about inflation being transitory with a certainty that can only be described as “fully assured”.

In my opinion, it’s criminal pic.twitter.com/3A9Adq2bh8

— Quoth the Raven (@QTRResearch) June 11, 2022

My visceral reaction to the video was to make the comment I posted in my tweet: how could it not be criminal to be this wrong, when so much hangs in the balance?

I went for an 8-mile run this past weekend and spent the hour, as I often do, replaying in my head all of the downright incorrect statements that people in positions of economic power have made over the last decade.

The most recent smattering of these downright demonstrably false claims has included:

“There’s nothing to suggest …

Read more at: https://www.zerohedge.com/markets/does-terrible-monetary-policy-ever-become-criminal-negligence

Oil Giants Warn Of Much Higher Prices For The Next 3-5 Years Amid Lack Of Supply

Oil Giants Warn Of Much Higher Prices For The Next 3-5 Years Amid Lack Of SupplyIt wasn’t just the epic confusion unleashed by the Biden admin in the past few days over how to lower record gas prices (suggesting that Biden really has no idea what the 79-year-old president is doing), that sparked today’s jump in crude oil and surge in energy names.

Monday: gas-tax holiday under consideration
Tuesday: Russian oil price-caps https://t.co/uoaN73gSkJ

— zerohedge (@zerohedge) June 21, 2022

Providing some bullish support for the oil cash, in his latest weekly note, Bank of America’s energy analyst Fernando Blanch writes that even if the world goes into recession, Brent oil could average more than $75/bbl next year. Here is some more from his summary:

As Europe targets Russian oil export reductions, the energy supply side needs more than just a price fix. Investors are looking to curb exposure to the energy sector too on ESG concerns. Also, US shale supply has become much less sensitive to price. What does this mean for balances and prices?

If Russian oil supply does not drop below 10mn b/d, global oil demand could grow by 1.7mn b/d in 2023.

Having averaged …

Read more at: https://www.zerohedge.com/commodities/oil-giants-warns-much-higher-prices-next-3-5-years-amid-lack-supply

UK inflation rises at fastest rate for 40 years as food costs jump

Food, energy and fuel price rises help drive inflation up in May at its fastest pace since 1982.

Read more at: https://www.bbc.co.uk/news/business-61891649?at_medium=RSS&at_campaign=KARANGA

Rail strike: Thursday walkout to go ahead as talks collapse

Transport Secretary Grant Shapps says the RMT union’s claim that he wrecked talks is “a total lie”.

Read more at: https://www.bbc.co.uk/news/uk-61890526?at_medium=RSS&at_campaign=KARANGA

Asda says some shoppers asking cashiers to stop at £30

Rising food prices are sparking a “massive change in behaviour”, the supermarket’s chairman tells the BBC.

Read more at: https://www.bbc.co.uk/news/business-61879194?at_medium=RSS&at_campaign=KARANGA

PVR-Inox merger proposal gets Sebi, stock exchange nods. What’s ahead?

The next step for the two multiplex owners is to get clearance from the NCLT, which as per Nirmal Bang Institutional Equities, could take another six months. The CCI has not raised any objections over the merger in the last three months, something the Street had feared.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/pvr-inox-merger-proposal-gets-sebi-stock-exchange-nods-whats-ahead/articleshow/92386442.cms

Tech View: Nifty shows no follow-up buying, reflects lack of strength

Analysts said a fall below 15,400 could trigger further weakness in the index while they see a decisive break above 15,700 a must for further upside.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty-shows-no-follow-up-buying-reflects-lack-of-strength/articleshow/92389467.cms

Can Kansai Nerolac’s latest strategy help stock regain valuations of good old days?

Kansai Nerolac is a subsidiary of Kansai Paint Company of Japan, which has 74.99% of the Indian company as of March 2022. According to CRISIL (May 2022), the company is a leading player in the domestic industrial paints segment. Kansai Nerolac, which has a large portfolio, has healthy relationships with established automotive manufacturers of two-wheelers, passenger cars, commercial vehicles and tractors.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/can-kansai-nerolacs-latest-strategy-help-stock-regain-valuations-of-good-old-day/articleshow/92379593.cms

The Margin: Starbucks, Tesla, Amazon among companies that will cover abortion travel costs for employees

1 in 3 voters says that an abortion ban makes a state a ‘less desirable’ place to live

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7CBE-43D0FFFA833B%7D&siteid=rss&rss=1

The Tell: The S&P 500 could slide another 33% in a ’70s-style inflation environment: Société Générale

Analysts from Société Générale say the S&P 500 could drop by another 33% to 2,525 in a 1970s-style inflation scenario.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7EDA-98F76EBA2DD7%7D&siteid=rss&rss=1

Supply-chain problems persist heading toward the back-to-school season, and the solutions give rise to a new set of risks

Retailers and other consumer companies are still managing supply chain challenges, and some of the measures to alleviate the pressure could cause other problems.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7E9C-4C0957971E2F%7D&siteid=rss&rss=1