Good morning. US stock futures dipped in Wednesday morning trading as investors resumed activity on a holiday-shortened week.

"Madness is rare in the individual - but with groups, parties, peoples, and ages it is the rule"

Frederich Nietzsche

Top News

Saudi Arabia, Russia agree to cut oil output

WHAT: The OPEC+ tag team of Saudi Arabia and Russia are once again joining forces in an effort to boost oil prices. In a series of announcements, Saudi Arabia said it was extending its 1 million barrel-a-day reduction into August while Russia declared its own cut to oil exports and output.

WHY: Saudi Arabia announced its initial 1 million barrel-a-day reduction for July in early June. Oil prices have failed to rise materially since then.

China strikes back with export restrictions

WHAT: Looks like China is playing the high tech “I Got The Power” game with Washington! They’ve slapped export curbs on gallium and germanium, two precious metals used for computer chip and solar cell development. According to China’s Commerce Ministry, the moves were made to “safeguard national security”

WHY: China is the biggest global source of gallium and germanium which are produced in small amounts but are needed to make computer chips for mobile phones, cars and other products, as well as solar panels and military technology.

EU “Gatekeeper” status falls squarely on Big Tech

WHAT: Seven big tech companies including Apple, Alphabet, Amazon and Meta Platforms have stepped up and acknowledged their status as industry “gatekeepers” according to European Union industry chief Thierry Breton, which means they must meet tougher rules in the EU.

WHY: Under the European Union’s Digital Markets Act (DMA) which came into force last November, companies with more than 45 million monthly active users and a 75 billion euro ($82 billion) market capitalization are considered gatekeepers providing a core platform service.

In Other News

Meta takes on Twitter with Threads

 WHAT: Social media powerhouse Meta Platforms is gearing up to unveil its latest app, and guess who it’s targeting? None other than Elon Musk-owned Twitter! The new app, called Threads, is linked to Instagram and is billed as a “text-based conversation app” and is set to make its grand appearance on Apple’s app store soon.

WHY: Threads could be the latest headache for Musk who acquired Twitter last year for $44 billion and has been making changes to the platform that have unnerved advertisers and turned off users.

The $3 trillion club!

WHAT: Apple has hit the $3 trillion market value milestone! The company’s stock price surged to record highs in the first half of 2023 buoyed by hopes over its expansion into new markets such as the mixed reality space.

WHY: Apple’s most recent quarterly report in May showing its revenue and profits beating analysts expectations, and its track record of stock buybacks, reinforced its reputation as a safe investment during global economic uncertainty.

Biden Admin blocked from social media contact

WHAT: A federal judge in Louisiana just gave the Biden administration a social media timeout! Key officials and agencies were ordered not to contact social media platforms to suppress viewpoints they disagree with in a development that could hinder efforts to combat misinformation.

WHY: US courts are more and more being asked to be the arbiters in conflicts over social media content which has become increasingly divisive.

Key Economic Events

•  Wednesday - Fed’s Williams Speaks At Central Bank Research Association Meeting, FOMC Meeting Minutes

• Thursday - Fed’s Logan Speaks On Policy Challenges For Central Bank

• Friday - Unemployment Rate (June)

Notable Briefs

• How risk tolerant are you?

• What’s the ideal amount of money to keep in your checking account?

• Beware of ‘gaslighters’ and the phrases they use!

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