Business

Today's Baker Hughes report confirmed that the US shale miracle continues, as another 6 oil rigs were added bringing the total to 747, the highest since mid-2015, with domestic producers seemingly oblivious - or perfectly well hedged - to the ongoing decline in crude prices which is once again set to crippled the Saudi budget.

And as has been the case for the past year, virtually all of the increase in rigs came from the Pemian basin...

... and if Goldman is right, this is just the beginning of a shale cypercycle that will triple shale production over the next decade.

Authored by Lance Roberts via RealInvestmentAdvice.com,

No! I am not talking about President Trump but rather the crash in both Technology stocks, and Oil prices, which are obstructing the continuation of the “bull market.” 

As I discussed this past Tuesday, the mini “flash crash” in Technology certainly woke investors up.

Seemed appropriate...

While hopeful about the future for France following Macron's election victory and "optimistic" about the longer-term future, luxury tycoon Bernard Arnault warned that business is in a "very strange period" due to low and negative interest rates and "companies like LVMH are paid to borrow money, which is dangerous."

A financial crisis could be just around the corner, according to the chief executive of LVMH, who has described the global economic outlook as "scary".

Unlike Apple, Amazon does not have a quarter trillion in (mostly offshore held) cash. Which means, it will issue debt to fund the Whole Foods purchase. Which means its leverage will rise above 1x. Which means S&P just warned of a downgrade of Amazon's AA- rating.

From S&P:

Amazon.com Inc. Ratings Placed On CreditWatch Negative On Debt-Financed Acquisition Of Whole Foods