After the stock market closed on Friday, credit rating agency Moody’s...
After the stock market closed on Friday, credit rating agency Moody’s got in a mood, downgrading America’s creditworthiness from a perfect AAA grade to the next-best Aa1 on account of running up massive deficits and paying an eye-watering amount of interest to service its debt.
There are three major credit agencies, and Moody’s was the last to knock the US from the most pristine credit rating. The others, S&P and Fitch, downgraded US’ credit in 2011 and 2023, respectively. Moody’s hadn’t lowered the US’ stellar score since it issued it in 1919.
Bloomberg Opinion noted that the US government paid over $1.1 trillion in interest on its debt last year, more than the Pentagon’s entire budget.
Moody’s is concerned that the US won’t generate enough tax revenue to cover interest on its debt, meaning it would have to borrow money just to pay interest on…the money it already borrowed.
Treasury Secretary Scott Bessent acknowledged that tariffs may...
Treasury Secretary Scott Bessent acknowledged that tariffs may raise Walmart prices. Bessent said he spoke to Walmart CEO Doug McMillon over the weekend and concluded that the world’s largest retailer would “eat some of the tariffs, just as they did in ’18, ’19 and ’20,” referring to the retailer’s actions after past trade deals. While on CNN on Sunday morning, Bessent said that some of the tariff increases “may get passed on to consumers” shopping at Walmart. In a different interview, Bessent noted that Walmart’s earnings call last week sounded bleak because federal regulations require the company to give investors “the worst-case scenario so that they’re not sued.” Walmart did not comment on the conversation between its CEO and Bessent.
New Jersey Transit reached a tentative deal with the Brotherhood of Locomotive Engineers and Trainmen union. The rail strike is expected to end at midnight on Tuesday.
A car bomb detonated outside a fertility clinic in Palm Springs, CA, on Saturday, killing one person and injuring four others. The FBI linked the attack to anti-natalist ideology.
A Lufthansa flight from Frankfurt to Seville in February 2024 had no pilot for 10 minutes due to a fainting incident, German media reported this weekend.
The Federal Reserve will cut staffing by 10% over the next several years, Chair Jerome Powell said in a memo, which feels a little weird for the agency charged with “maintaining maximum employment” to be announcing.
Austria won Eurovision 2025 thanks to JJ, a counter-tenor with the Vienna State Opera, and his rendition of “Wasted Love.”
Stock futures fall after Moody’s strips U.S. of its top credit rating
Just when the stock market had clawed back all the losses...
Just when the stock market had clawed back all the losses sparked by the panic over President Donald Trump’s tariff plans, investors face another round of debt-related angst as markets slid Sunday after Moody’s Ratings stripped the U.S. government of its last triple-A credit rating.
Strategists warned the move, announced after the market closed on Friday, could spark some near-term selling in stocks and Treasury's.
Oil posts weekly gain but remains under supply hike pressure
(Reuters) - Oil settled higher on Friday, notching a second straight...
(Reuters) - Oil settled higher on Friday, notching a second straight week of gains on easing U.S.-China trade tensions, although prices were held back by expectations of higher supply from Iran and OPEC+.
Brent crude futures settled up 88 cents, or 1.4%, at $65.41 per barrel, while U.S. West Texas Intermediate crude futures closed up 87 cents, or 1.4%, higher at $62.49. The benchmarks posted a weekly rise of 1% and 2.4% respectively.
The contracts fell by more than 2% in the previous session on the prospect of an Iranian nuclear deal, which could result in an easing of sanctions that could see Iranian crude return to the global market.
"Expected increases in OPEC+ oil production along with a more probable Iranian nuclear agreement has re-surfaced the bear trade," said Dennis Kissler, senior vice president of trading at BOK Financial.
"Near term, with geopolitical temperatures cooling, a strong seasonal travel demand will be needed in the coming months to counter the expected rises in supplies," Kissler added.
U.S. President Donald Trump said on Thursday the U.S. was nearing a nuclear deal with Iran, with Tehran "sort of" agreeing to its terms. However, a source familiar with the talks said there were still issues to resolve.
US Drillers Cut Oil, Gas Rigs for Third Week in a Row | Oklahoma Flat @ 55
Energy services firm Baker Hughes said in its...
Energy services firm Baker Hughes said in its closely followed report on May 16 that U.S. energy producers this week cut the number of oil and natural gas rigs operating for the third week in a row for the first time since mid-April.
The combined oil and gas rig count, an early indicator of future output, fell by two to 576 in the week to May 16, the lowest since January. Baker Hughes said this week's decline put the total rig count down by 28 rigs, or 5% below this time last year.
Baker Hughes said oil rigs fell by 1 to 473 this week, their lowest since January, while gas rigs fell by 1 to 100 in their first decrease since early April.
In the Permian Basin in West Texas and eastern New Mexico, the nation's biggest oil-producing shale formation, drillers cut three rigs, bringing the total down to 282, the lowest since November 2021.
In New Mexico, drillers cut two rigs, bringing the total down to 94, the lowest since February 2022. Oklahomaremained flat with 55 rigs running.
