Oil prices stable due to dismal economic data
Oil prices remained flat on Tuesday due to dismal economic data from Germany, the euro zone, and Britain. Eurozone economic activity fell unexpectedly, predicting a recession. German figures indicated a recession, while Britain’s firms reported another drop in activity. The International Energy Agency predicted a peak in fossil fuel use by 2030. Negotiations to resolve…
China new finance minister focus on boosting fiscal stimulus
China has nominated Lan Foan as finance minister, a technocrat with limited central government experience, to boost fiscal stimulus and resuscitate the economy. Lan, who previously led Shanxi’s party, joined the finance ministry in 2016 and became party chief in December 2022. China’s upper parliament approved a fourth-quarter issue of 1 trillion yuan ($137 billion)…
Microsoft invested $10 billion in OpenAI
Wall Street will scrutinize Microsoft’s Q2 earnings to gauge the impact of its AI investments on its Azure cloud computing sector. Analysts predict revenue to reach $54.5 billion, a 9% increase from Q4 2023. Microsoft invested $10 billion in OpenAI and released Copilot apps for Outlook, Windows 11, and Microsoft 365. Analysts predict $18.3 billion…
Long-term Treasuries remain attractive to bond investors
Vanguard is optimistic about longer-dated Treasuries, anticipating the Federal Reserve will end raising rates and the economy will decelerate next year. The world’s second-largest asset manager believes long-term bonds remain attractive despite a “cruel summer” for bond investors. The Fed’s decision to decrease borrowing costs could lower the price of shorter-term Treasuries, which are more…
Chevron and Hess merger to get higher shareholder returns
The merger between Chevron and Hess for $53 billion in shares demonstrates the US energy companies’ pursuit of lower-risk fossil sources and higher shareholder returns. The deal increases competition between Chevron and Exxon, and makes them partners in Guyana’s burgeoning oilfields, estimated to produce 1.2 million barrels per day by 2027. The deal follows Exxon’s…
China and the Philippines boats clashed and causing a collision
Chinese vessels blocked Philippine boats in the South China Sea, causing a collision. The incident occurred around the Spratly Islands’ Second Thomas Shoal. China’s coastguard often blocks resupply operations to troops. Manila denounced China’s dangerous blocking manoeuvres and claimed it violated Philippine sovereignty. The US supports the Philippines and denounces China’s disruption of a legal…
China’s increased national security for spying and corruption
China’s top spy agency, CCTV, has charged a defense institute employee with espionage for the US. The case highlights Beijing’s increased national security, anti-spying, and anti-corruption efforts. The employee, Hou, was sent to a US institution in 2013 and pressured to divulge Chinese state secrets. The US intelligence officer used the company as a cover,…
US banks prepare for further economic instability
Financial institutions are cutting employees, managers, loans, investments, and business lines to stabilize profitability in one of the harshest operating circumstances since the 2008 financial crisis. The downsizing was prompted by the failures of Silicon Valley Bank, Signature Bank, and First Republic. Banks sold investments and loans to preserve capital and set aside larger buffers…