Russian crude oil price cap and price mechanism
WEDNESDAY MARKET UPDATE
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Good Morning Everyone!
Remember, if Sam Bankman-Fried can steal $10 billion dollars and not get arrested, you can invest in the stock market every month.
Volumes this week are close to yearly lows
Expect more of the same for today
Thursday U.S. Thanksgiving
U.S. stock exchange closed
Fixed income markets closed
U.S. stock exchange closed at 1 p.m.
Fixed income markets closed at 2 p.m.
2 p.m. Fed minutes from November 2nd meeting
Next Fed meeting December 14
Volumes and Volatility are Low
VIX at its lowest level since August
Lower despite API reporting a crude draw
Europe diplomats meet today
with the goal of approving Russian crude oil price cap and price mechanism
EU discussing capping /Russian oil at $65-70 per bbl, close to the $78 it is trading today
Dual goal of:
Keep Russian oil flowing as much as possible
Limit Russian revenues
will probably not be met.
Russians can say “we’re selling at market prices” (to China, India, etc) thus keeping Russian production at current levels
Russian will probably not say “we’re selling at the cap”, so Russian revenues will not be limited.
Ultimately, the market price will determine what Russia does
If oil prices fall below the cap, will Russia reiterate that it won’t supply countries that participate in the cap?
AAPL 0.00 Apple
Apple workers at its main China plant clashed with security staff
after being locked up for almost a month under Covid restriction
BBY 0.00 Best Buy said high-end iPhones will be in short supply during the holiday season
VMW 0.00 VMware
ADSK 0.00 Autodesk
HPQ 0.00 HP will cut 10% of its workforce
JWN 0.00 Nordstrom
DE 0.00 Deere +3%, beat and guide raised,
CS 0.00 Credit Suisse $88 billion in outflows, expects Q4 pre-tax loss of $1.6B
Digital Currency Group
Says no imminent thread
Owes Genesis (which it owns) $575 million
Due May 2023
Also owes Genesis $1.1 billion on promissory note due June 2032
“Collectively we will come out of it stronger”
Genesis hired investment bank Moelis & Company to explore options including bankruptcy
Cathie Wood: still very bullish
Sticking to $1 million price target by 2030
Bitcoin will come out of crisis smelling like a “rose”
SBF apology letter to FTX staff
“I didn’t mean for any of this to happen, and I would give anything to be able to go back and do things over again”
“I did not realize the full extent of the margin position, nor did I realize the magnitude of the risk posed by a hyper-correlated crash”
MEME OF THE DAY
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