"Stock God" Buffett shot the bottom!
Buffett's Berkshire Hathaway bought 9.55 million shares of Occidental Oil between June 17 and 22, bringing its direct holdings to 152.7 million shares. Since June, Western Oil shares have fallen sharply, from $69.31 to $55.77.
On June 22, local time in the United States, affected by the speeches of US President Biden and Federal Reserve Chairman Powell, the price of international crude oil futures and the US stock oil-related sector fell sharply. On the day, Western oil fell 3.63%.
Comprehensive Xinhua News Agency, CCTV news reports, Ukrainian President Zelenskiy said on the 22nd that he called with the prime ministers of many European governments on the same day, focusing on the issue of Ukraine's EU candidate status. Russian Deputy Foreign Minister Ryabkov said on the 22nd that the absolute priority of Russian diplomacy is to prevent direct conflicts between nuclear powers.
Buffett bought more and more the more he fell
The latest regulatory filings show that Berkshire Hathaway bought 9.55 million shares of Occidental Oil shares between June 17 and 22 at a price of $54.96-56.42 per share. At average prices, the increase in holdings during this period cost a total of about US$530 million (about 3.57 billion yuan).
Buffett bought Western oil on a massive scale between March and May of this year, making it Berkshire Hathaway's sixth-largest heavy stock.
However, since June, Western oil shares have fallen sharply, with a cumulative decline of 19.5%. Some institutions estimate that if Buffett has not held his shares since March, he may face book losses.
In addition, Buffett also holds another leading stock in the crude oil industry, Chevron, which is currently ranked as The Fourth Largest Heavy Stock in Berkshire Hathaway. Since June, Chevron has also fallen sharply, with a cumulative decline of 15.3%.
Just on June 22, EST, international crude oil futures prices and U.S. oil-related sectors fell sharply, with Western Oil and Chevron falling 3.63% and 4.35% respectively.
Source: CSI Taurus APP
Biden has called for a moratorium on the gas tax
On June 22, local time, US President Joe Biden announced his support for the suspension of federal and state gasoline taxes in response to soaring energy prices. In his speech that day, Biden said he proposed a "gas tax holiday" at the federal and state levels aimed at providing relief to consumers. This so-called "gas tax holiday" would include the elimination of an 18-cent federal tax levied on consumers on gasoline per gallon. Still, with Republicans and some Democrats sceptical, Biden's efforts to tackle energy prices will face numerous hurdles in Congress.
The Biden administration is looking for ways to lower oil prices. The Biden administration has released large amounts of oil from U.S. strategic reserves and expanded its use of ethanol-blended gasoline. In addition, the Biden administration sent a letter to energy companies last week urging it to increase its refining capacity, but these efforts have not yet significantly reduced prices.
U.S. stocks closed lower slightly International oil prices fell sharply
On June 22, the three major US stock indexes closed slightly lower. As of the close, the Dow Jones was down 0.15% at 30,483.13, the S&P 500 was down 0.13% at 3,759.89, and the NASDAQ was down 0.15% at 11,053.08.
Source: Wind
Technology stocks, bank stocks, energy stocks fell sharply, among individual stocks, Apple fell 0.38%, Amazon rose 0.25%; JPMorgan Chase fell 0.57%, Goldman Sachs fell 0.25%, Citi fell 1.67%; In the petroleum energy industry, in addition to Western Oil and Chevron, ExxonMobil fell 3.98%, Andoy Confyerate fell 6.29%.
Popular Chinese stocks have mixed ups and downs. As of the close, Blue Hats rose 21.21%, Kim Hyun Pin Travel rose 16.78%, Zhongyang Financial rose 12.02%, and Zai Ding Pharmaceutical rose 12.01%; SOS fell 26.07%, brain regeneration fell 19.89%; Chinese-listed new energy vehicle stocks rose and fell, with WEILAI Auto down 1.06%, Xiaopeng Auto up 1.73%, and Ideal Auto up 2.94%.
European stocks closed down across the board. As of the close, the German DAX index fell 1.11% to 13144.28 points, the French CAC40 index fell 0.81% to 5916.63 points, and the British FTSE 100 index fell 0.88% to 7089.22 points.
Source: Wind
In terms of commodities, international precious metals futures closed mixed. As of the close, COMEX gold futures rose 0.05% at $1839.7 an ounce, and COMEX silver futures fell 1.69% at $21.4 an ounce. Analysts say that while high inflation has provided support for gold, the Fed's very aggressive interest rate hike policy is limiting the rise in gold prices.
International oil prices closed sharply lower on the 22nd, and as of the close, the price of light crude oil futures for August delivery on the New York Mercantile Exchange fell by $3.33 to close at $106.19 per barrel, a decline of 3.04%; Brent crude futures for August delivery in London fell $2.91, or 2.54%, to close at $111.74 a barrel.
On the macro front, Fed Chairman Jerome Powell said at a hearing in the U.S. Congress that the Fed is firmly committed to reducing inflation and has the ability to do so. Powell acknowledged that current U.S. inflation is overheated and believes that tightening monetary policy will be an effective tool to combat inflation, and the Fed will continue to raise interest rates to curb inflation. He also acknowledged the potential for the U.S. economy to slip into recession and called achieving a soft landing very challenging.
Analysts say inflation remains the biggest risk to financial assets, and Powell has made his position very clear: The Fed will continue to raise interest rates until inflation begins to weaken. Until then, it's hard to imagine a sustained rise in risky assets.
U.S. Federal Reserve Bank President Evans of Chicago said a 75 basis point hike in July would be in line with ongoing concerns that inflation did not slow; A 100 basis point hike is considered unnecessary; Maybe the data will show that the July meeting can raise interest rates by 50 basis points; There was no need to push interest rates up to 6 per cent, as was the case in 1995, when inflation was much higher.
Citigroup economists say the world economy is close to 50 percent likely to fall into recession as central banks tighten monetary policy and demand for commodities weakens. The world economy is expected to grow by 3 percent this year and 2.8 percent in 2023.
Chinese stock Golden Sun Education landed on the US stock market
The opening surge exceeded 390% and triggered a circuit breaker twice
On June 22, local time in the United States, Chinese stock Golden Sun Education was listed on the US stock market, up more than 307%, and twice triggered a circuit breaker. It is understood that Golden Sun Education was established in 1997 as a well-established high-end private education service institution in China, and is also a leading Spanish tutoring service provider in China.
Golden Sun Education currently has three child and adult counseling centers, an education company that cooperates with high schools to provide language courses for its students, and a logistics company that provides logistics services for the company's schools and counseling centers. Golden Sun Education's college entrance examination re-reading training business has aroused widespread concern in the market.
The President of Ukraine spoke with the prime ministers of many European countries
Ukrainian President Zelenskiy said in a social media post on the 22nd that on the same day, he spoke with Greek Prime Minister Mitsotakis, Swedish Prime Minister Anderson, Estonian Prime Minister Karas, Czech Prime Minister Fiara, Latvian Prime Minister Karins, and Bulgarian Prime Minister Petkov, focusing on the issue of Ukraine's EU candidate status.
Russia has expressed its efforts to prevent direct conflict between the nuclear Powers
Russian Deputy Foreign Minister Ryabkov said on the 22nd that in view of the risk of further escalation of the crisis in Ukraine and the unpredictability of the development of the international situation, the unconditional priority of Russian diplomacy is to maintain dialogue to prevent direct conflicts between nuclear powers. There is an urgent need to work on ensuring strategic stability and maintaining mechanisms for the non-proliferation of weapons of mass destruction.
Ukrainian side: Street fighting in the north Donetsk area continues
Sergei Gedet, military chief of the Luhansk region of Ukraine, said on social media on the 22nd that in the Luhansk region, the Russian army is approaching the city of Lisichansk, carrying out a large-scale attack on the city, and trying to block the highway from Lisichansk to Bakhmut. Street fighting in the northern city of Donetsk continues.
Russia: There has never been and will not be prevented from exporting grain from Ukraine
Russian Foreign Ministry spokesperson Zakharova said at a regular press conference on the 22nd that the unilateral sanctions imposed by the United States on Russia have worsened the situation in the food field to the limit. The Russian side is ready to continue to fulfill its obligations with regard to the export of food, fertilizers, energy and other important products. By the end of 2022, Russia will supply about 25 million tons of grain and at least 22 million tons of fertilizer to the international market, and will also provide food aid to countries in need through the World Food Programme. She stressed that the Russian side has never and will not stop the export of grain from Ukraine.
Russian Foreign Ministry: The United States does not allow Russian special planes to pick up employees stationed abroad and their families
Countermeasures will be taken against the United States
The Russian Foreign Ministry said on June 22 local time that the United States does not allow special planes sent by Russian aviation authorities to bring the staff of Russian agencies abroad and their families back to Russia. The flight was originally tasked with carrying back Russian personnel ordered by the U.S. State Department to leave U.S. territory by the end of June.
The Russian Foreign Ministry stressed that since the Russian plane was refused entry by the US side, the Russian side will inevitably take countermeasures, including unequal measures, and will notify the US side through diplomatic channels at an appropriate time.
The uk's CPI increase in May hit another 40-year high
According to the data released by the British National Bureau of Statistics on the 22nd, the Uk's Consumer Price Index (CPI) rose by 9.1% year-on-year in May, hitting a new 40-year high after April.
Grant Fitzner, chief economist at the Office for National Statistics, said food prices continued to rise sharply, gasoline prices broke records and inflation remained high after hitting record highs.
The Producer Price Index released during the same period showed that the UK Industrial Producer Price Index rose 15.7% year-on-year in May, the highest in 45 years, driven by a sharp rise in food and raw material prices.
U.S. Chief UK Economist Paul Dales said UK inflation had not yet peaked. The UK government will raise the upper limit on energy prices in October, and the Bank of England expects the CPI to rise by more than 11% year-on-year.
Europe is mired in an energy crisis
Many countries restart coal power generation
Since the outbreak of the Russian-Ukrainian conflict, the European Union has imposed six rounds of sanctions on Russia. But because Russia is the LARGEst supplier of natural gas to the European Union, the backlash caused by sanctions against Russia has put EU countries in a difficult situation. In the face of the "gas outage" crisis, many European countries have taken the "way back" and turned their attention to coal power generation, which was once planned to be phased out. Germany, Italy, Austria and the Netherlands have successively indicated that they will increase coal-fired power production.
European countries such as the Netherlands, Germany, Italy and Austria are looking for alternative energy sources and increasing coal supplies.
The German government issued a statement on the 19th that due to power supply pressure, Germany will let the sealed coal power capacity re-enter the grid. Meanwhile, Italy's coal-fired power plants have been hoarding coal for the past few months.
In fact, in order to reduce carbon dioxide emissions, many European countries have committed to the early phase-out of coal energy. The EU has committed to reducing carbon dioxide emissions by at least 55% by 2030. According to information provided by the European Union, Italy has pledged to phase out coal by 2025, the Netherlands has pledged to phase out coal energy by 2030 and Germany by 2038. This return to coal is clearly contrary to previous commitments.
The European Parliament adopted a blockbuster climate draft
On Wednesday (June 22), local time, the European Parliament passed three key draft EU laws on the first reading.
The three draft laws, namely the reform of the Emissions Trading System (ETS), the amendment of the rules governing the Carbon Boundary Adjustment Mechanism (CBAM), and the creation of the Social Climate Fund, part of a package called Fit for 55, according to a European Parliament press release.
The EU's Fit for 55 plan aims to reduce pollution by at least 55 percent from 1990 levels by 2030, and every industry will be forced to accelerate away from fossil fuel use, putting the EU on the path to eliminating greenhouse gas emissions by mid-century.
Editor: Li Ruoyu Wang Yin