05July2022 Market Close & Major Financial Headlines: Wall Street Gaps Down 2% At the Opening Bell And Rallies Back To Mixed, WTI Crude Hit Hard Plunging Below $100 As The U.S. Dollar Strengthens And Recession Worries Continue

Colombia’s Shale Oil Industry Is Increasingly Unappealing For Investors

A lack of major oil discoveries and meager proven reserves of 2 billion barrels saw Colombia look to hydraulic fracturing as a means of securing the future of its economically crucial hydrocarbon sector. While it is believed that the Andean country possesses considerable unconventional oil potential fracking is attracting considerable opposition from a wide cross-section of Colombian society. That opposition along with considerable uncertainty as to whether the national government can effectively regulate the controversial technique saw Colombia’s

Read more at: https://oilprice.com/Energy/Crude-Oil/Colombias-Shale-Oil-Industry-Is-Increasingly-Unappealing-For-Investors.html

Frances Nuclear Woes Will Worsen Europes Power Crisis

Drought and hot weather this summer are adding to Frances’s nuclear power generation problems at the worst possible moment. As Europe grapples with low Russian gas supply and the threat of no Russian supply at all, non-Russian energy sources are more important than ever. French power giant Electricite de France (EDF) warned on Tuesday that it may have to reduce nuclear power generation as the water levels of rivers are low and water temperatures high. France has been experiencing outages at its nuclear reactors in recent months,

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Frances-Nuclear-Woes-Will-Worsen-Europes-Power-Crisis.html

How International Aid Could Counter Or Cause A Crisis In Central Asia

Environmental degradation and climate change are deepening human security dilemmas in Central Asia. In developing more effective responses, foreign governments and international donors need to abandon a one-size-fits-all approach, a new report argues, and adopt more targeted policies that establish clear benchmarks while accounting for the region’s legacy of authoritarianism and graft. The report, The Nexus of Environmental Issues, Poverty, and Political Authoritarianism in Central Asia outlines a wide array of environmental

Read more at: https://oilprice.com/Energy/Energy-General/How-International-Aid-Could-Counter-Or-Cause-A-Crisis-In-Central-Asia.html

Sweden And Finland Move One Step Closer To Joining NATO

The 30 NATO allies have signed off on the accession protocols for Sweden and Finland, sending the membership bids of the two countries to the alliance capitals for legislative approval, in a historic step brought on by Russia’s unprovoked war in Ukraine. “This is a good day for Finland and Sweden and a good day for NATO,” alliance chief Jens Stoltenberg told reporters in a joint press statement with the Swedish and Finnish foreign ministers on July 5. “With 32 nations around the table, we will be even stronger and our people will be even safer

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Sweden-And-Finland-Move-One-Step-Closer-To-Joining-NATO.html

Oil Billionaire: There’s Only One Fix For Inflation

New York billionaire and refiner John Catsimatidis, who owns hundreds of gas stations, blasted President Joe Bidens pinning the blame on high prices at the pump on gas station owners, arguing there’s only one solution for inflation – boosting the production of crude. Catsimatidis made the remarks in an interview on Fox News on June 24, after being asked to comment on Biden’s call to gas station owners to bring down the price you are charging at the pump to reflect the cost you are paying for the product. Do it

Read more at: https://oilprice.com/Energy/Crude-Oil/Oil-Billionaire-Theres-Only-One-Fix-For-Inflation.html

UK Motorways Crippled By Fuel Price Protests

British authorities warned drivers of “serious disruption” on Monday as protestors seeking relief from high fuel costs used “go-slow” convoys to cause traffic jams on major UK motorways over a wide swath of territory. Organized via social media under the banner of “Fuel Price Stand Against Tax,” rolling, slow-moving roadblocks of cars, trucks, and tractors started their protests around 7 am. According to The Guardian: Motorways in the Bristol area, Devon, Cornwall, South Wales, Essex, Yorkshire, and Lincolnshire were among those affected.

Read more at: https://oilprice.com/Latest-Energy-News/World-News/UK-Motorways-Crippled-By-Fuel-Price-Protests.html

Minions vs. Toy Story: Here’s why the silly yellow blobs beat Buzz at the box office

Minions and Toy Story are among the most popular and profitable franchises for their respective studios — so why did “Minions” soar and “Lightyear” flop?

Read more at: https://www.cnbc.com/2022/07/05/why-minions-beat-lightyear-at-the-box-office.html

Ford reports slight uptick in quarterly sales that miss analysts’ expectations

Ford on Tuesday reported a 1.8% uptick in second-quarter sales compared with a year earlier, including a 31.5% increase in June.

Read more at: https://www.cnbc.com/2022/07/05/ford-f-q2-2022-us-sales.html

Yum Brands says it is close to selling its Russian KFC business

After selling its Russian Pizza Hut franchises in May, Yum Brands is close to selling its KFC restaurants.

Read more at: https://www.cnbc.com/2022/07/05/yum-brands-says-it-is-close-to-selling-its-russian-kfc-business.html

‘Minions: The Rise of Gru’ tops $108 million as parents flock back to cinemas, kids in tow

“Minions: The Rise of Gru” generated more than $108 million in ticket sales during its domestic opening weekend.

Read more at: https://www.cnbc.com/2022/07/03/minions-rise-of-gru-domestic-box-office-opening-tops-108-million.html

More than 12,000 flights delayed, hundreds canceled during busy July Fourth weekend

Airlines have delayed and canceled flights at a higher rate this year than before the pandemic.

Read more at: https://www.cnbc.com/2022/07/01/airline-travel-of-july-weekend-puts-airlines-and-travelers-to-the-test-after-difficult-spring.html

Trump media company subpoenaed in federal criminal probe of SPAC deal

Donald Trump’s media company was subpoenaed by a federal grand jury in connection with a criminal probe, according to Digital World Acquisition Corp.

Read more at: https://www.cnbc.com/2022/07/01/trump-media-company-subpoenaed-in-federal-criminal-probe-of-spac-deal.html

American Airlines’ scheduling glitch allows pilots to drop thousands of July flights

American said it was aware of a scheduling glitch that allowed pilots to drop thousands of July flights.

Read more at: https://www.cnbc.com/2022/07/02/american-airlines-scheduling-glitch-allows-pilots-to-drop-thousands-of-july-trips.html

Stocks making the biggest moves midday: Oil stocks, Ford, Crocs, and more

These are the stocks posting the largest moves in midday trading.

Read more at: https://www.cnbc.com/2022/07/05/stocks-making-the-biggest-moves-midday-oil-stocks-ford-tesla-crocs-and-more.html

Luxury car buyers shell out more than ever with ‘car payments that look more like mortgage payments’

The share of new car buyers with a monthly payment of more than $1,000 jumped to a record high, according to Edmunds.

Read more at: https://www.cnbc.com/2022/07/05/luxury-car-buyers-pay-more-than-ever-as-prices-and-loan-costs-rise.html

Supreme Court limited EPA’s ability to regulate greenhouse gas emissions. Here’s how investors can buy a carbon-conscious fund

The high court limited the EPA’s authority to regulate planet-warming emissions. Investors who want to take a climate stand can try a carbon-conscious fund.

Read more at: https://www.cnbc.com/2022/07/05/how-to-buy-a-carbon-conscious-fund-in-wake-of-supreme-court-epa-ruling.html

Italy has declared a state of emergency because of drought: ‘There is no doubt that climate change is having an effect,’ the prime minister said

Italy declared a state of emergency on Monday and is sending $37.5 million in relief funds to five regions being hardest hit.

Read more at: https://www.cnbc.com/2022/07/05/italy-declared-a-state-of-emergency-because-of-drought-in-the-po-river.html

Bank of England’s Bailey warns global economic outlook has ‘deteriorated materially’

The governor of the Bank of England said Tuesday that the global economic outlook has “deteriorated materially” and warned of possible further shocks to come.

Read more at: https://www.cnbc.com/2022/07/05/bank-of-england-global-economic-outlook-has-deteriorated-materially.html

Crude Crashes, Yield Curve Inverts, Bonds & The Dollar Surge

Crude Crashes, Yield Curve Inverts, Bonds & The Dollar SurgeWith July 4th hangovers, America came back to work focused on growth scares, Fed reaction functions, and shrugging off inflation anxiety. The dollar roared higher on euro weakness (because ECB is scared to hike as aggressively as The Fed as the European economy looks like it’s collapsing). Oil and bond yields plunged on recession fears – and the yield curve inverted. Breakevens were battered as inflation fears faded (sparking a dovish shift in a rate-hike trajectory which helped send growth stocks soaring in anticipation of Fed rate cuts and QE), and gold was clobbered on the soaring dollar.

about time https://t.co/L6Wjq5jxDM

— zerohedge (@zerohedge) July 5, 2022

The market is now pricing in less than 7 more rate hikes (having peaked at over 12 more) and almost 4 subsequent rate cuts in 2023…

Read more at: https://www.zerohedge.com/markets/crude-crashes-yield-curve-inverts-bonds-dollar-surge

Is Saudi Arabia Exaggerating Its Oil Production Potential?

Authored by Simon Watkins via OilPrice.com,

For years, Saudi Arabia has made some pretty hefty claims about its oil potential.

It is becoming increasingly clear, however, that the Kingdom may be stretching the truth a little too far.

Analysts are now beginning to doubt that Saudi Arabia even has the reserves it says it has.

For many years now, Saudi Arabia has been wildly exaggerating every metric connected to its oil business, from how much crude it can produce to its level of reserves and everything in between, as analyzed in depth in my first book on the oil sector in 2015 and the latest one in 2021. Why does it lie so much and so often about these figures? Because without the power it has in the world directly associated with its crude oil production, spare capacity, and reserves it has no real power at all, so enormously exaggerating each of these figures is geared towards puffing itself up in terms of its geopolitical importance. The problem Saudi Arabia has right now, however, is that the U.S. and all other developed market countries whose economies are suffering under the weight of ongoing high oil prices are pressuring Riyadh to deliver on these claims, in order to bring these oil prices down. If Saudi Arabia had not been lying all these years …

Read more at: https://www.zerohedge.com/energy/saudi-arabia-exaggerating-its-oil-production-potential

What Does A Catastrophic First Half Mean For The Rest Of The Year (Spoiler: Nothing Good)

Contrary to some erroneous and superficial assessments that a catastrophic first half of the year has historically been good for future returns, the reality is that an ugly H1 – and this year was certainly ugly, in fact, the worst first half since 1970 –  suggests a volatile and lackluster second half, at best.

According to the latest analysts from BofA chief technician Stephen Suttmeier (full note available to pro subs), when the SPX Index has a negative first half of the year, the second half of the year tends to recover but is much less robust. The 2H average return after a down 1H is 1.33% (2.09% median), which is considerably lower when compared to the average return after a positive 1H of 5.67% (6.45% median). Additionally, after a down 1H, 2H tends to have a lower percentage of time up, as well as more volatile returns given that the range of returns tends to be double that of 2H returns after a positive 1H.

Read more at: https://www.zerohedge.com/markets/what-does-catastrophic-first-half-mean-rest-year-spoiler-alert-nothing-good

DeSantis’ Team Responds To Newsom Ad Saying Florida Residents Should Move To California

Authored by Jack Phillips via The Epoch Times (emphasis ours),

Florida Gov. Ron DeSantis’s office has responded to California Gov. Gavin Newsom’s advertisements encouraging residents of the Sunshine State to move to the Golden State.

Governor Gavin Newsom speaks to reporters at AltaMed Urgent Care in Santa Ana, Calif., on March 25, 2021. (John Fredricks/The Epoch Times)“The people of Florida pay no mind to the pathetic smear campaigns from the Democrats and their allies in the corporate media,” DeSantis spokesman Dave Abrams told The Daily Wire. “We’re too busy enjoying the freedom Gov. Ron DeSantis has created in the Sunshine State.”

Read more at: https://www.zerohedge.com/political/desantiss-team-responds-newsom-ad-saying-florida-residents-should-move-california

British Airways cancels 1,500 more flights

The airline cancels more flights in July, affecting tens of thousands of passengers.

Read more at: https://www.bbc.co.uk/news/business-62038929?at_medium=RSS&at_campaign=KARANGA

Lurpak says butter price up to give farmers fair deal

The brand explains price rises after photos of security-tagged butter were spread across Twitter.

Read more at: https://www.bbc.co.uk/news/business-62051481?at_medium=RSS&at_campaign=KARANGA

UK economic outlook has deteriorated, Bank of England warns

But banks are well-placed to weather even a severe economic downturn, the Bank of England says.

Read more at: https://www.bbc.co.uk/news/business-62049990?at_medium=RSS&at_campaign=KARANGA

Wondering what this earnings season has in store? Check out brokers’ sector-wise preview

Margins remained pressured as companies deal with elevated attrition resulting in high retention costs and an increase in travel and discretionary expenses. Infosys and TCS may perform well but many others face risk of growth downgrades, Kotak said.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/wondering-what-this-earnings-season-has-in-store-check-out-brokers-sector-wise-preview/articleshow/92678186.cms

Tech View: Nifty50 sees selling at high; consolidation may continue

Mazhar Mohammad of Chartviewindia.in said that the day’s chart depicted a shooting star-like candle with a long upper shadow. Tuesday’s selling, according to him, has come from a massive supply zone present in 15,900-16,172 range.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty50-sees-selling-at-high-consolidation-may-continue/articleshow/92680315.cms

Reliance, ONGC’s credit quality can bear windfall tax, says Moody’s

“While profits generated from oil exports will fall because of windfall taxes, they will likely remain higher than the levels over April 2020 to March 2022 if refining margins are sustained at the highs seen in April to June this year,” wrote Moody’s analyst Hui Ting Sim in a note. “High crude oil prices will support the earnings of oil producers.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/reliance-ongcs-credit-quality-can-bear-windfall-tax-says-moodys/articleshow/92674063.cms

Bond Report: 2-, 10-year Treasury yields post biggest four-session drops in two years as curve inverts on U.S. growth fears

The two- and 10-year Treasury yields fell for a fourth straight trading day on Tuesday, posting their biggest declines over such a time frame since March 2020.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7F43-58614C449756%7D&siteid=rss&rss=1

The Fast Foodist: No more extra pickles? Subway’s new menu doesn’t allow for customization on these 12 sandwiches

The chain says its Subway Series sandwiches are ‘expertly crafted.’ But will customers be OK with the fact they can’t decide what goes into them?

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7F49-C1A707413BB5%7D&siteid=rss&rss=1

Futures Movers: U.S. oil prices drop below $100 to end at lowest since April on a strong dollar, fears of a recession

Oil fell sharply on Tuesday, with U.S. prices ending at below $100 a barrel — at their lowest since late April — as concerns over the global economic outlook spurred uncertainty about the demand outlook for crude, and the dollar surged.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7F42-F973040822C1%7D&siteid=rss&rss=1