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…
Japanese Government Bond has reached a decade high
The 10-year JGB yield reached a decade high in Asian trading due to rising U.S. Treasury rates, prompting the Bank of Japan to intervene. The 10-year JGB yield reached 0.845%, its highest since July 2013. The BOJ intervened to stabilize market expectations and halt yield hikes, providing financial institutions with five-year collateralized loans. The yield…
US fiscal deficit dropped due to interest payments
The US government’s fiscal 2023 budget deficit reached $1.695 trillion, up 23% from the previous year, due to declining revenues and increased federal debt interest payments. The Treasury Department reported the highest deficit since a $2.78 trillion COVID-19 imbalance in 2021. The deficit is exacerbated by President Joe Biden’s fiscal battles with Republicans, who have…
Canada criticized Indian government upon diplomatic relation
Canadian Prime Minister Justin Trudeau has criticized the Indian government’s crackdown on Canadian diplomats, claiming it is affecting millions of people in both countries. Trudeau warned that the removal of some Canadian ambassadors could hinder travel, trade, and Indian students in Canada. India denies violating the Vienna convention on diplomatic relations and has 21 ambassadors…
The Fed has told this year inflation is too high
Fed Chair Powell has emphasized that inflation is too high, and that doing too little could lead to entrenched inflation and require monetary policy to wring more persistent inflation from the economy at a high cost to employment. The central bank’s 2% inflation objective influences people’s expectations, which determines inflation. Consumers worry about inflation’s bite…