13July2022 Market Close & Major Financial Headlines: Wall Street Turned Down After CPI Inflation Hits 9.1% YoY.

The EU Has Frozen $13 Billion In Russian Assets

European Union member states have so far frozen Russian assets worth $13.8 billion since Russia began its invasion of Ukraine, EU Justice Commissioner Didier Reynders has said. “For the moment, we have frozen — coming from oligarchs and other entities — 13.8 billion euros [$13.8 billion], so it’s quite huge,” Reynders told reporters in Prague on July 12 ahead of an informal meeting of EU justice ministers. “But I must say that a very large part of it, more than 12 billion…is coming from five member states,” he added. He did not specify the

Read more at: https://oilprice.com/Geopolitics/International/The-EU-Has-Frozen-13-Billion-In-Russian-Assets.html

Biden: Inflation Data Does Not Reflect Impact Of Gasoline Price Decline

U.S. President Joe Biden said on Wednesday that the June inflation data showing the highest inflation in the United States in more than 40 years is out-of-date because gasoline prices have been falling over the past 30 days and are $0.40 a gallon off the record in mid-June. Today, the U.S. Bureau of Labor Statistics announced consumer prices for June 2022, saying that over the last 12 months, the all items index jumped by 9.1 percent – the fastest consumer price increase since November 1981. The energy index rose 7.5 percent over

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Biden-Inflation-Data-Does-Not-Reflect-Impact-Of-Gasoline-Price-Decline.html

Why Is Oil Priced The Way That It Is?

People who should know better are still deflecting the blame for high oil prices onto the oil companies. There is still a widespread misunderstanding of how oil and gas are priced. Further, I find that a lot of people think the fact that gasoline prices are at record highs along with oil company profits means oil companies are definitely gouging consumers. Explain this!, they will say while showing me some link about Chevron’s profits (as if this revelation will finally make me see the light). So I thought of a story to help

Read more at: https://oilprice.com/Energy/Energy-General/Why-Is-Oil-Priced-The-Way-That-It-Is.html

Iraq’s 150,000 Bpd Oil Export Boost Delayed

Iraq is experiencing delays in upgrading its oil export facilities at Basra, which also delays the planned increase in the oil export capacity of OPEC’s second-largest producer, an oil source in Iraq told Reuters on Wednesday. Iraq plans to increase crude oil export capacity at its Gulf ports to 3.45 million barrels per day (bpd) from 3.3 million bpd. However, Iraq has seen in recent weeks delays in finalizing the tenders for the upgrade of pumping stations at the export terminals and in obtaining the approvals needed for the work, a representative

Read more at: https://oilprice.com/Latest-Energy-News/World-News/Iraqs-150000-Bpd-Oil-Export-Boost-Delayed.html

ESG Funds Reel As Investors Pile Into Energy And Defense Stocks

Environmental, social, and governance (ESG) funds in the UK have slumped below their industry peers this year as oil & gas, mining, and defense stocks surge in the wake of the war in Ukraine, new research has revealed. UK large-cap equity funds with the highest ESG ratings have performed far worse than funds with the lowest ESG ratings, down 13 percent in the past year compared to just four percent for funds with the lowest rating, new research from Bowmore Asset Management revealed today. ESG funds are typically overweight on life insurance and

Read more at: https://oilprice.com/Energy/Energy-General/ESG-Funds-Reel-As-Investors-Pile-Into-Energy-And-Defense-Stocks.html

China Considers Proposed Price Cap On Russian Oil

The United States pitched to China the idea of capping the price of Russian oil during a virtual meeting last week, U.S. Treasury Secretary Janet Yellen told The Wall Street Journal in an interview published on Wednesday. Secretary Yellen is on a tour of Asia with stops in Japan, South Korea, and Indonesia this week to seek support for the U.S. idea of capping Russian export crude oil prices. Yellen first discussed the idea of a price cap on Russian oil with China during an online meeting with Chinese Vice Premier Liu He last week,

Read more at: https://oilprice.com/Latest-Energy-News/World-News/China-Considers-Proposed-Price-Cap-On-Russian-Oil.html

Netflix partners with Microsoft on the ad-supported subscription plan

The streamer announced in April that it was planning on rolling out an ad-supported tier after years of resisting the move.

Read more at: https://www.cnbc.com/2022/07/13/netflix-partners-with-microsoft-on-ad-supported-subscription-plan.html

Spirit Airlines delays vote on Frontier deal again amid concerns about lack of shareholder support

Spirit Airlines has delayed a vote on its planned tie-up with Frontier Airlines for the fourth time.

Read more at: https://www.cnbc.com/2022/07/13/spirit-airlines-delays-frontier-deal-vote-again-amid-jetblue-bidding-war.html

Peloton competitor Tonal cuts 35% of the workforce as it prepares for possible recession, IPO

Tonal CEO Aly Orady said the company is trying to become profitable so that it can successfully go public.

Read more at: https://www.cnbc.com/2022/07/13/peloton-rival-tonal-cuts-jobs-ahead-of-possible-recession-ipo.html

Polestar says it’s still on track to deliver 50,000 vehicles this year despite Covid-19 disruptions

Polestar’s first-half deliveries were hurt by China’s Covid-19 lockdowns, but the electric vehicle maker still expects to meet its full-year guidance.

Read more at: https://www.cnbc.com/2022/07/13/polestar-confirms-its-on-track-to-meet-2022-deliveries-guidance-.html

Delta posts profit despite jump in costs, vows to improve reliability after airline ‘pushed too hard’

Delta said both leisure and business travel demand improved sharply in the second quarter.

Read more at: https://www.cnbc.com/2022/07/13/delta-air-lines-dal-earnings-q2-2022.html

Here are the nominees for the major Emmy categories — ‘Succession’ and ‘Ted Lasso’ lead the field

“Succession” tops the 2022 Emmy Award nominations followed by “Ted Lasso” and “The White Lotus.”

Read more at: https://www.cnbc.com/2022/07/12/emmys-2022-nominations-led-by-succession-ted-lasso.html

Nike is making a strategic shift in how it manufactures NCAA fan apparel in deal with Fanatics

Fanatics is entering into a long-term partnership with Nike to manufacture college sports fan apparel.

Read more at: https://www.cnbc.com/2022/07/13/fanatics-is-partnering-with-nike-to-manufacture-college-fan-apparel.html

Four cases lawyers for Twitter and Elon Musk will be examining as they head to court

A look at past specific performance cases may help assess Twitter’s chances of forcing Elon Musk into buying the company.

Read more at: https://www.cnbc.com/2022/07/12/here-are-four-past-cases-twitter-and-elon-musks-lawyers-will-be-examining-as-they-head-to-court.html

Black Rifle Coffee names former Wendy’s CEO executive chair as it looks to open more stores

Black Rifle Coffee Company has tapped former Office Depot and Wendy’s CEO Roland Smith as its executive chair, effective immediately.

Read more at: https://www.cnbc.com/2022/07/12/black-rifle-coffee-names-former-wendys-ceo-as-executive-chair.html

PepsiCo raises revenue forecast as it deploys price hikes, smaller sizes to fight rising costs

PepsiCo raised its revenue outlook for the year as consumers snacked on more Doritos chips and drank more Gatorade, even as prices increased.

Read more at: https://www.cnbc.com/2022/07/12/pepsico-pep-q2-2022-earnings.html

Peloton to outsource all manufacturing as part of its turnaround efforts

Instead, Peloton said it will expand its current relationship with Taiwanese manufacturer Rexon Industrial, in a bid to turn the money-losing business around.

Read more at: https://www.cnbc.com/2022/07/12/peloton-to-outsource-all-manufacturing-as-part-of-its-turnaround-efforts.html

Shares of EV maker Canoo surge after Walmart agrees to buy 4,500 electric delivery vans

Walmart will buy at least 4,500, and up to 10,000, of Canoo’s electric delivery vans.

Read more at: https://www.cnbc.com/2022/07/12/canoo-walmart-deal-for-4500-vans-sends-ev-stock-jumping.html

Stocks making the biggest moves premarket: Delta Air Lines, Twitter, Snap and more

These are the stocks posting the largest moves before the bell.

Read more at: https://www.cnbc.com/2022/07/13/stocks-making-the-biggest-moves-premarket-delta-air-lines-twitter-snap-and-more.html

LeBron James ‘Clarifies’ Anti-American Comments

National Anthem-hating, China-loving, Mennonite beard-sporting NBA star LeBron James has backtracked on anti-American comments he made about the Brittney Griner case.

While discussing the WNBA star who’s imprisoned in Russia after bringing marijuana into the country, James said on “The Shop” – in response to the Biden administration’s failure to secure her release (despite ‘reaching out’ to her family), “Now, how can she feel like America has her back? I would be feeling like, ‘Do I even want to go back to America?'”

Griner notably hates America as well – …

Read more at: https://www.zerohedge.com/political/lebron-james-clarifies-anti-american-comments

Euro Parity: Barriers And Psychology

By Elwin de Groot, Rabobank head of macro strategy

The big theme in markets yesterday of course was the Eurodollar and the question whether it did or did not fall to/below parity, a level considered by many as a ‘psychological barrier’. According to my terminal, the currency pair did touch the 1 level against the dollar during yesterday’s trading session, but traders have been telling us that it actually never really touched it (looking at the fifth(!) decimal place), before bouncing off and stabilizing at around 1.004 early this morning.

If one would consider the parity level to be a real psychological barrier, the traders’ view makes sense. One explanation is that potential buyers would not be very eager to buy at exactly that level because once the pair falls to 1 there are no buyers until it has sunk considerably below it. Similarly, potential sellers may be reluctant to sell at the psychological barrier for fears that any sharp dip below it would immediately trigger large demand orders which could, in tu …

Read more at: https://www.zerohedge.com/markets/eure-parity-barriers-and-psychology

The Layoffs Continue: Rivian To Cut About 5% Of Its Workforce

Electric vehicle maker Rivian continues to feel the sting of both competition in the EV market and the overall broader deleveraging taking place as the economy tumbles into recession and hikes continue to inch higher.

It was reported this week that the company is planning on laying off about 700 of its employees in upcoming months, with the numbers reportedly unclear as to which locations and positions the layoffs would hit the hardest, per the Detroit Free Press.

It was reported Monday that the company would be trimming positions “in areas where it has grown too quickly” – which, judging by the stock performance of almost all EV manufacturers over the last year, has been everywhere.

The cuts could be announced in the coming weeks officially, the report says. As of today, Rivian has about 14,000 employees, meaning the layoffs would represent a roughly 5% reduction in the company’s workforce.

The Free Press  …

Read more at: https://www.zerohedge.com/markets/layoffs-continue-rivian-cut-about-5-its-workforce

California Governor Signs Bill Allowing Victims to Sue Gun-Makers

Authored by Caden Pearson via The Epoch Times,

California Gov. Gavin Newsom on Monday signed legislation to allow Californian victims of shootings to sue gun makers and sellers for the harm caused by criminals using guns.

The governor, a Democrat, said in a video statement that most industries are “held to account” when their products cause harm except for the gun industry.

“Today, California is going to change that,” Newsom said.

“They can no longer hide from the mass destruction that they have caused.”

Gun makers and sellers have been shielded from civil lawsuits when crimes are committed using the guns they produce by the 2005 Protection of Lawful Commerce in Arms Act.

The new state l …

Read more at: https://www.zerohedge.com/political/california-governor-signs-bill-allowing-victims-sue-gun-makers

Rail strike: New walkout to take place on 27 July

Rail workers will walk out as part of an ongoing dispute over pay, jobs, and conditions, the RMT union says.

Read more at: https://www.bbc.co.uk/news/uk-62154070?at_medium=RSS&at_campaign=KARANGA

Euro falls below dollar for first time in 20 years

Fears of recession in Europe are weighing heavily on the single currency.

Read more at: https://www.bbc.co.uk/news/business-62153251?at_medium=RSS&at_campaign=KARANGA

Fukushima bosses were ordered to pay $97bn in damages

Four ex-bosses were sued by shareholders after a disaster at the Fukushima nuclear plant in 2011.

Read more at: https://www.bbc.co.uk/news/business-62147050?at_medium=RSS&at_campaign=KARANGA

Raamdeo Agrawal on who’s protecting Nifty from falling down drastically

“Domestics are not letting the markets go down drastically. FIIs are not letting it go up phenomenally. It’s a Tug of war between FIIs and Domestics. The earnings growth will actually decide the direction of the market. I am optimistic about earnings growth,” Agrawal tweeted.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/raamdeo-agrawal-on-whos-protecting-nifty-from-falling-down-drastically/articleshow/92856610.cms

Tech View: Nifty50 slips below 16K, signals weakness ahead

The long negative candle on the daily chart overlapped the previous day’s negative candle, said Nagaraj Shetti, Technical Research Analyst at HDFC Securities, who believes the market action signals continuation of downside momentum and a lack of strength to sustain highs.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty50-slips-below-16k-signals-weakness-ahead/articleshow/92854797.cms

Analysts slash HCL Tech’s earnings estimate but eye up to 50% upside post Q1 earnings

On Wednesday, shares of HCL Technologies dropped more than 2.4 percent to Rs 905.20, before making a marginal recovery to Rs 912.20 at 9.40 am. The scrip had settled at Rs 928.05 on Tuesday. Morgan Stanley, which has a target price of Rs 1,300, is equal weight on the IT bluechip as it believes that earnings risk is likely to keep a check on the re-rating prospects of the company.

Read more at: https://economictimes.indiatimes.com/markets/stocks/news/analysts-slash-hcl-techs-earnings-estimate-but-eye-up-to-50-upside-post-q1-earnings/articleshow/92843659.cms

‘Scary times’: Builders are slashing home prices and slowing construction as buyers pull back, survey shows

A proprietary survey by John Burns Real Estate Consulting reveals a broad slowdown in business for home builders.

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7F7F-7C5B42629D4B%7D&siteid=rss&rss=1

The Moneyist: ‘She is at risk of outliving her savings’: My mother, 100, was tricked into deeding her home to my brother. How can I persuade him to give her financial support?

‘What course of action can she take to make sure her final days are spent peacefully in a dignified home, with the caregiving help she has been used to?’

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7F4C-7B8ED9C9DEB8%7D&siteid=rss&rss=1

The Moneyist: My friend got us free theater tickets. When I got home, she texted me, ‘Can you get our next meal or activity?’ Am I obliged to treat her?

‘I am not a tit-for-tat person, especially with friends. I often treat friends to a drink.’

Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7F7C-12095DFB0DB2%7D&siteid=rss&rss=1