Five Things You Need to Know to Start Your Day explores the oil surge after OPEC+ announced a surprise oil production cut of more than 1 million barrels a day and the speculation over job losses in wake of the UBS-Credit Suisse deal. High-end travelers are also cutting back on vacation spending. Meanwhile, S&P Global’s manufacturing data and ISM’s manufacturing data are set to be out later this morning.
The OPEC+ cut comes as US President Joe Biden is expected to launch his re-election campaign, giving him a limited range of options with which to respond to the surprise move. Analysts have warned that the move could accelerate Brent crude’s return to $100, a level last seen in June.
UBS’s takeover of Credit Suisse comes with the potential of a loss of 30% jobs, as many as 11,000 employees in Switzerland, and another 25,000 worldwide. Meanwhile, Switzerland’s Office of the Attorney General said on Sunday it was working to identify possible crimes linked to the takeover, without specifying further what it was looking for.
The MLIV Pulse survey revealed that even high-end travelers are pulling back on their vacation spending, wanting to spend no more than $500 per night on a hotel. Additionally, more than half of professional investors said negative economic factors, such as a recession, will undermine airline stocks in the next 12 months.
In the markets, S&P 500 futures dropped 0.1%, while Nasdaq 100 contracts slid 0.6%. The Bloomberg Dollar Index retreated, while Treasury yields climbed across the board as the surprise cut from OPEC+ stoked inflation concerns. Gold fell and Bitcoin climbed nearly 1%. At 9:45 a.m., we’ll get data on S&P Global’s manufacturing gauge, while figures for a similar measure by ISM are due at 10 a.m. Federal Reserve Governor Lisa Cook will discuss the US economic outlook and monetary policy at an event at 4:15 p.m.
UBS is a Swiss multinational investments bank and financial services company based in Zurich. Founded in 1862, UBS is the world’s largest wealth manager, with a presence in 50 countries and more than half a trillion Swiss francs in managed assets.
Kristine Aquino is a veteran journalist and news editor in the Swiss financial sector. She covers a wide range of topics from stock markets, banking and finance, to technology, entrepreneurs, investing and more. With a focus on providing useful, accurate and timely information to her audience, Kristine Aquino has become a reliable source of knowledge on the banking world in Switzerland.