TotalEnergies admits quietly natural gas is needed – Putin and Xi ink deals – New Yorkers get sticker shock on energy bills due to renewable energy
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Highlights of the Podcast
00:00 – Intro
03:55 – Putin To Xi: “We Support Chinese Yuan Use With Asia, Africa, Latin America”
06:34 – Putin And Xi Jinping Sign String Of Strategic Agreements
11:05 – Sticker shock Awaits New Yorkers Utility Bills to fund Renewables
13:59 – New Jersey’s $8,000 per resident wind energy scheme won’t reduce climate change
18:48 – Total energy bet on gas means no big emissions cut by 2030
22:55 – The bank turmoil could undermine the effect of Biden’s clean energy bill
26:13 – Market Updates
29:14 – Outro
Follow Stuart On LinkedIn and Twitter
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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Michael Tanner: [00:00:14] What’s going on? Everybody, welcome to another edition of the Daily Energy News Beat Stand up here on this gorgeous Thursday, March 23rd, 2023. As always, I’m your humble correspondent, Michael Tanner, coming to you from an undisclosed location here in Dallas, Texas, joined by the executive producer of the show the preveyer of the Show, and the director, publisher of the world’s greatest website, EnergyNewsBeat.com , Stuart Turley, my man, how we doing today? [00:00:37][22.7]
Stuart Turley: [00:00:37] It’s a beautiful day in a neighborhood and I’m wiped out. It’s been a fabulous day in the news and great talking to customers. [00:00:43][5.7]
Michael Tanner: [00:00:44] Yeah, absolutely. You’ve been a busy day on the phones. It’s been a busy day in the news. Jerome Powell confirming a 25 basis points rate increase. Market did not react too kindly to that. But I think we’ll we’ll break down some of his comments and really what that means for energy in my segment. [00:01:02][18.4]
Michael Tanner: [00:01:03] But before we get to that, Stu’s got a great, great article line up we’re going to start really by the summit that’s happening right now in Russia, Moscow, Putin to Xi: We support Chinese wan use with Asia, Africa and Latin America. Dun dun dun. That’s the title of the first article that we’ll cover. [00:01:20][17.3]
Michael Tanner: [00:01:20] The next one we have is Putin and Xi Jinping signed a string of strategic agreements. Both of these articles kind of go into one and you know, I still will kind of put a bow on really what this three day trip to Russia really means for you overall on the energy markets. [00:01:36][15.6]
Michael Tanner: [00:01:37] We’ve got a good joke maybe coming up. We’ll see if Stu can pipe in next one. We have a Sticker shock awaits New York utility bill to fund renewables. As you can imagine, there are probably some cost overruns going on right now so to break down what this means for New Yorkers pocketbooks when it comes to this new solar farm. [00:01:54][17.4]
Michael Tanner: [00:01:54] Next, Total energy’s back on gas means no big emissions cut by 2030. Big announcement today from a French major. Total is they’re going big on natural gas. But this unfortunately means they probably won’t meet their emissions goal by 2036 dual break down What that means. [00:02:10][15.6]
Michael Tanner: [00:02:10] Next Bank turmoil could undermine the effect of Biden’s clean energy bill. This kind of goes along with with what we’ll discuss in finance specifically about what these rate cuts mean today and going forward, both for the energy markets and abroad. And still we’ll take a crack at what it means for Biden’s clean energy bill, which was riddled throughout his 2023 budget. [00:02:28][17.6]
Michael Tanner: [00:02:29] And then finally, this is hot off the presses. New Jersey’s $8,000 per resident wind energy scheme won’t reduce climate change. This is more of a commentary piece on that still will cover, but it really covers this offshore wind program that’s going on in New Jersey, which is absolutely absurd. [00:02:44][15.5]
Michael Tanner: [00:02:45] So Stu will make sure to cover that. He’ll kick it over to me again. We’ll cover Jerome Powell, his comments and specifically the fallout from that as it relates to oil and gas prices. And then we’ll let you get out of here and get on your way, guys. [00:02:56][11.5]
Michael Tanner: [00:02:56] But first, check us out online www.energynewsbeat.com All of the articles we’re about to cover come via their website we our team does a great job of keeping that updated and making sure it’s looking spick and span so please check it out dashboard.energynewsbeat.com It’s our combo data and energy combo. We are hard at work at V2, so check it out again. EnergyNewsBeat,com I’m out of breath. Those two. Where do you want to begin? [00:03:21][24.5]
Stuart Turley: [00:03:22] Oh, while you’re sitting there and you’re out of breath, maybe I can get a word in edgewise here on this one. Just kidding. Hey. Hey. Last night I said that you were in having your TV tests, but I guess you were just watching the baseball game. [00:03:37][15.2]
Michael Tanner: [00:03:37] I was. The U.S. unfortunately lost. So it was. I’m positive for TV and the USA didn’t win. So it’s okay. [00:03:45][7.7]
Stuart Turley: [00:03:46] The worst of both worlds. Okay. Okay. The first article, Michael Putin and Z sign a string of strategic agreements and as you said, Putin to XI. We support Chinese one use with Asia, Africa and Latin America. I’m going to start on this article first, but they go hand in hand, Michael, in the ceremony at the Kremlin on the second day of the Chinese leader XI ‘s visit. [00:04:13][27.7]
Stuart Turley: [00:04:14] Putin and XI. Kicked off formal talks which will focus on the Ukraine crisis. This is critical, Mike. I’ll go into that in here in just a sec. They shook hands and stood side by side and in the picture you can see them all standing there. And I think they’re talking about three guys walk into a church no that’s a different story sorry, Michael, you’ve heard of those interviews as Three Guys Walk into a Bar. Okay. [00:04:41][26.5]
Stuart Turley: [00:04:41] But Z traveled, invited Putin to travel to China but now that he’s met there, here’s the key point out of both of these. Not only are they doing a brotherhood of the bond, they are now talking peace. They are China is negotiating peace between Saudi Arabia, Iran, Iraq this is now going on and they’re now talking about doing more trade using the Yuan as the global currency this is critical. [00:05:17][36.1]
Stuart Turley: [00:05:18] And then we had our spokesperson for the United States stand up yesterday and they said, if I’m alive, this is not a direct quote, but it’s an almost quote. He said, if it is if China negotiates a cease fire between Ukraine and Russia, we will not approve it. [00:05:41][22.3]
Michael Tanner: [00:05:41] Absolutely. Even when Zelensky said he would agree to it, that’s the craziest point. [00:05:45][4.6]
Stuart Turley: [00:05:46] Who in they had done? The U.S.? The bad guys. This drives me. [00:05:51][4.8]
Michael Tanner: [00:05:52] Flash, you’ve always been the bad guy. Well, it’s my classic meme where it’s like the guy who’s looking at the world and he’s like, What’s gone wrong? And it’s the same guy behind him shooting at him is it’s always been me. [00:06:02][10.7]
Stuart Turley: [00:06:03] It’s always been me. Well, you know, these articles and I encourage our listeners and our readers to go check out these two articles. They’ll be in the show notes. And it is critical in so many ways geopolitically energy. I mean, they’re signing deals, They’re signing currency. This is huge. [00:06:25][21.9]
Michael Tanner: [00:06:26] Well, along that point, I mean, they specifically one of the quotes out of the articles is we signed a strategic this is from President Xi over in China. We signed a strategic are a statement on deepening the strategic partnerships and bilateral ties which we are entering in this new era. [00:06:41][14.6]
Michael Tanner: [00:06:42] One of the specific things that Putin specifically mentioned was the fact that Russia is there to meet the energy needs of China, and specifically they’ve agreed upon additional natural gas deliveries at which they will start to work on building some joint LNG facilities. [00:06:57][15.0]
Michael Tanner: [00:06:57] So from an actual energy standpoint, not only will they’re going to be exchanging currencies and maybe swapping some of that for, you know, I mean, it looks like they’re already doing payments in rubles, but looks like the is going to get mixed mixing in with that. Right. They’re going to start trading. I mean, so it’s going to become a it’s going to become a self-sustaining ecosystem without the United States in the global energy picture very quickly. [00:07:20][22.1]
Stuart Turley: [00:07:21] And it gets even worse than that from a standpoint that now OPIC is also worried OPEC and OPEC plus. Now, remember, Russia is part of OPEC+. You’re going to have okay, Michael, here, let me let me explain this a little bit. They already have a pipeline going in the works russia is going to pipeline to China, but that does not get China all the natural gas they need and so what that’s going to mean is that they are going to. Are you all right? [00:07:50][29.8]
Michael Tanner: [00:07:51] Yeah. [00:07:51][0.0]
Stuart Turley: [00:07:52] Oh, sorry. It looked like you were passed out I was afraid this was good. Okay. That was one. [00:07:56][4.4]
Michael Tanner: [00:07:56] Of those notes. [00:07:56][0.3]
Stuart Turley: [00:07:57] Okay. One of those COVID guy dies on the set. You know, we don’t want that. So when when we sit back and and you take a look, Putin’s going to be doing LNG with China. He’s already got the LNG facility in the Arctic, and then that’s going to go to China. And then China is now going to be shipping weapons and munitions to Russia and that drove the Biden administration even further nuts. [00:08:30][32.6]
Michael Tanner: [00:08:32] Yeah, I mean, it’s. [00:08:32][0.8]
Stuart Turley: [00:08:33] So Russia has the energy China has the manufacturing. They don’t need us. [00:08:38][5.3]
Michael Tanner: [00:08:38] It’s a self-fulfilling prophecy and we’re not part of it. So fun times, guys. International. What do you got next? [00:08:43][4.9]
Stuart Turley: [00:08:44] Let’s go. I’m going to go, like, slip my toes just because this is like, man, okay. Sticker shock Awaits New Yorkers Utility Bills to fund renewables. This goes along with that other story that we’re going to talk about in a second and it’s New Jersey’s 8000 per resident wind energy scheme will reduce climate change. Okay. This is like almost Greta, did you hear greta two days ago, got her honorary doctorate degree in theology, a university ag. Here’s a high school kid. [00:09:21][36.5]
Michael Tanner: [00:09:22] Isn’t she a scientologist? [00:09:22][0.7]
Stuart Turley: [00:09:24] Yeah, whatever. But she’s just got it. [00:09:26][1.7]
Michael Tanner: [00:09:26] 99% sure. Greta Van Susteren is a Scientologist. Continue. I’m going to look this up. [00:09:31][4.9]
Stuart Turley: [00:09:32] Okay. But she got an honorary degree as a. Oh. [00:09:36][3.8]
Michael Tanner: [00:09:36] We don’t have Greta Thunberg. [00:09:37][0.6]
Stuart Turley: [00:09:37] Yes. [00:09:37][0.0]
Michael Tanner: [00:09:38] Oh, okay. I thought I was thinking of somebody different. I’m sorry. [00:09:41][2.3]
Stuart Turley: [00:09:41] Oh, okay. No, an honorary degree, a Ph.D. in theology, climate theology, because that article even says that now climate change is a religion. So she gets the bigger carry in climate religion. I thought that was pretty funny. [00:10:03][21.6]
Michael Tanner: [00:10:03] I imagine. Imagine actually. So I’m reading the article right now. It’s from University of Helsinki. Imagine having a degree from that university. Imagine having sweated for years to achieve a degree from a prestigious university only for them to give an honorary doctorate degree quote, which is the university’s highest recognition to Greta Thunberg. [00:10:28][24.8]
Stuart Turley: [00:10:29] I got I got some really funny ones because I was trolling people on social media and I said off of that article to some folks, and I said, Hey, I would love to have Gretta on my podcast and talk to her about this. And they said, Oh, you would have a great time with grant money. [00:10:49][20.7]
Michael Tanner: [00:10:51] It’s almost as bad as having an Oklahoma State degree. [00:10:53][2.3]
Stuart Turley: [00:10:54] Oh, hey. But I covered it up with an MBA from Oklahoma City University with a 4.0. [00:10:59][5.4]
Michael Tanner: [00:11:00] Okay. [00:11:00][0.0]
Stuart Turley: [00:11:01] I worked for that bad dog and I got an uUcer. Sticker shock Awaits New Yorkers Utility Bills to fund Renewables. Michael, this is got some quotes in it. Financing them through rates, particularly on residential, is the least progressive mechanism for financing anything. We make no judgment whether you have the money to pay or you don’t have the money, said John Howard, a commissioner on the Public Service Commission at last month’s meeting. Michael, this is taxation without representation when it goes through. [00:11:37][36.1]
Michael Tanner: [00:11:38] This is specifically the what the Tea Party in 1775 fought against was literally their rolling out these state funded. And when they when they say I love when they say state funded. That’s literally like you find debt when you hear the state funded think oh, I’m funding this, oh, this is coming out of my pocket because this is taxpayer money. [00:11:59][20.5]
Michael Tanner: [00:11:59] The harder money that you work hard today, the first 3 hours of your day job. I saw that stat the other day. Your first 3 hours of work generally cover your tax burden. So think about that. Your first 3 hours of the day are going to basically rolling out projects that will eventually raise your electric bill. [00:12:18][18.6]
Stuart Turley: [00:12:19] Here’s here’s here’s some quotes in this article. I mean, it’s not us saying this. I don’t care what kind of power we use. I don’t want to make all of this always. I don’t care. Let’s deliver the lowest cost kilowatt per hour to the disproportionately impacted communities and everybody and I happen to be one so we’ll just leave that alone on that. [00:12:38][19.3]
Stuart Turley: [00:12:38] But when we sit back and go, it’s clear that the near term impact of the state’s policies is upward pressure on utility bills as consumers are already grappling with soaring energy prices. It’s not that I’m personally against the need to decarbonize our system rapidly and efficiently, it’s just that we’re having to pay for it. [00:13:01][22.9]
Michael Tanner: [00:13:04] It’s just that we’re happy to pay for it. So. Oh, it’s just that. Okay. Oh, yeah. Okay. Okay. [00:13:09][5.4]
Stuart Turley: [00:13:11] So anyway, okay. [00:13:11][0.7]
Michael Tanner: [00:13:12] This is going to be this is going to happen across markets as we do this, especially in regulated electrical markets where you don’t really have a choice. [00:13:20][8.5]
Stuart Turley: [00:13:21] Oh, yeah. In my. [00:13:22][0.8]
Michael Tanner: [00:13:23] Opted in by living there. [00:13:24][1.3]
Stuart Turley: [00:13:25] My my interview with Adrian from she’s the head of the grid security for the American Power Association. Holy smokes she’s smart. That one’s coming out first of next week. And it’s about the grid, stupid. Holy smokes. I mean, we got some security issues going on. [00:13:45][20.1]
Stuart Turley: [00:13:45] Okay, let’s go to the wind farm one here this goes along with that article. So we have four articles that are related to each other, and they’re not from Arkansas. Never mind. That was a bad joke as well, too. So,. [00:13:58][12.6]
Stuart Turley: [00:13:59] New Jersey, 8000 per resident. I’m on a rare form today. 8000 per resident. Wind energy won’t reduce climate change, but it will kill hundreds in Wales. And now, speaking of Wales, Greta started going and protesting wind farms because they were harmful to reindeer. Do you remember that conversation but two weeks ago. [00:14:23][24.3]
Stuart Turley: [00:14:24] So now she’s got her Ph.D. in theology so she can worship the reindeer. What do you think? No. Okay. That was a reach. All right. Stark contrast to the vision of harvesting energy from wind. Michael, there are some stats in here, One of the project. It’s the first win boondoggles. This is the author. This is not me. Is Ocean Wind one a 1100 megawatt project in the early stages of southern New Jersey, developed by Danish company Orsted. On a windy day, Ocean Wind. One project would power some 500,000 homes. [00:15:02][38.1]
Stuart Turley: [00:15:03] Let me go through some other numbers here. It’s the only the start of this they want to install 11 and megawatts of offshore wind. I did their calculations on this, according to Don Diers, the other grid expert. [00:15:20][16.5]
Stuart Turley: [00:15:20] They’ve underestimated the number of wind turbines that they need by 30%. Michael. O. O. And I’m not an engineer. I’ve got a crayon and I guarantee you I’m going to be right on this. Now, let’s go to the next one here and they they come in here and it is going to raise the price. They get a price tag of 774.25 billion that’s $8,000 per resident in New Jersey. [00:15:51][30.7]
Michael Tanner: [00:15:51] Yeah. You have to realize how he got to that number, that what he said is phase two of this ocean wind problem. [00:15:56][5.1]
Stuart Turley: [00:15:57] It is nine miles offshore. [00:15:59][1.5]
Michael Tanner: [00:16:00] Okay. Time out. Time out. But you jump into this. Oracle’s jumping a little bit far into the future, so I’m a is back in a little bit. Well, this is saying and I mean, you know, I don’t disagree with these numbers. I disagree with the way he’s interpreted this, but we’ll leave it at that. What he’s saying is that this next phase, too, is 11,000 megawatts. [00:16:18][18.3]
Michael Tanner: [00:16:19] And if you go look at the EIA, who we can believe or not, but we’ll go ahead and believe it estimates that the up front construction for offshore wind in New Jersey is about 6.75 million per megawatt. The math, 11,000 times 6.75 million you get a little over $74 billion, which equates to in today’s dollars 8000 for New York, which is actually not horrible when you consider the fact that it’s not like this is 11,000 megawatts is to be built between now and 2024. [00:16:53][34.0]
Michael Tanner: [00:16:55] So as much I mean, I wouldn’t I’m staying with you. I don’t want to see a wind farm off the coast of New Jersey. Like you said, the environmental issues that go with that far outweigh any sort of benefit we’re going to get from cheaper electricity. But I’ll couch it. This is a little bit of a shock point, as we like to say. [00:17:13][18.6]
Stuart Turley: [00:17:14] Right. But on the other hand, on the other side of this, Michael, those numbers that he even used, crayon math are wrong from the standpoint from the standpoint that that number is low. I guarantee you it’s going to be a lot more than that because it doesn’t take into consideration any of the upgrades that are needed by the grid in order to do that. The New Jersey grid is in bad shape. [00:17:44][30.4]
Michael Tanner: [00:17:45] Yeah, I mean, there’s absolutely no way they’re going to only roll out wind and I mean, the 6.7 million megawatts probably wrong. It’s probably more like 10 million. Exactly. I mean, I’m with you, but we just have to let’s let’s this guy is throwing out oh, my goodness, it’s going to be $8,000 this year for his like, No, no, no, no, no, no, no. That’s the today’s annualized cost. But you have to spread that out over how many years you be paying taxes. [00:18:10][25.1]
Stuart Turley: [00:18:11] Right. But on the other thing, let’s go to the other article that we just read here in just a second. You know, I’m sitting here with my crippled hands. You know, they don’t get a hold. You know, I kind of like. [00:18:20][9.7]
Stuart Turley: [00:18:24] So the other article, though, Michael, is saying that the New York people are paying incredibly higher energy prices because of the solar. Same thing. New Jersey’s now going, hey, we want to catch up to New Jersey with high energy prices or to New York. [00:18:42][18.2]
Stuart Turley: [00:18:42] So anyway. All right. Let’s go to Total coming around the corner. Total energy bet on gas means no big emissions cut by 2030. Michael, two or three weeks ago, we talked about the difference between the big oil companies in the U.S. versus the big oil companies. BP and BP and Total went totally green they went green. [00:19:10][27.2]
Stuart Turley: [00:19:10] BP went to Beyond Petroleum and, you know, to the skies or to the skies and beyond or whatever that kid is, that toy anyway. So now BP last week we talked about is having to re redo it. Now, Total is now saying, look at this end user emissions referred to as scope three. They are now worried that all of these things are coming through. [00:19:38][27.9]
Stuart Turley: [00:19:38] We have Scope one, which is for the MP operators, the carbon emissions that are due off of your rig, how you get it to transport scope two emissions are actually from the refineries. Stage two is scope three is actually your product on the consumer. [00:19:55][16.8]
Stuart Turley: [00:19:56] Europe is ahead of us in charging energy companies for scope three emissions. You lose capability of tracking or in improving that once it leaves your thing. I think it’s stupid. [00:20:11][15.0]
Michael Tanner: [00:20:12] Yeah, there’s some absolutely banger quotes in here. Okay, look, Charlie, total energy. This is one of the one of the oil and gas companies that has gone over really deep into the ESG. We’re going to become a, you know, a solar and wind farm company. Listen to this, Stu. This is absolutely hilarious. [00:20:28][16.8]
Michael Tanner: [00:20:29] Okay. So the first it first talks about overall, they mentioned overall greenhouse gases will not see a big reduction by 2030 given they, quote, want to grow, our gas business executive said. Okay. So that’s the first quote. Next, when you’ve got here’s CEO Patrick Boone Yang our our bull yang whatever French these French people can’t pronounce their names. [00:20:49][20.5]
Michael Tanner: [00:20:50] Basically, the CEO said the company should not be held accountable for its customers combustion of fossil fuels, adding that when total, total energy sells gas to replace more polluting coal, this was a net positive for the climate. [00:21:02][11.4]
Michael Tanner: [00:21:02] So they’re already taking natural gas and blending it as ESG it gets even better. Here’s an actual quote from the CEO regarding the volume of scope three, We put 400 million, quote unquote, but we do not we did not lower that target because we don’t consider that we have an impact on some of it. [00:21:19][16.8]
Michael Tanner: [00:21:19] Okay. Listen to this one. This is from their Chief Strategy and sustainability officer, Helen Christofferson. Well, the net takeaway is that even when our gas related scope three emissions go up, the world is better off. That’s almost a mic drop. [00:21:34][15.2]
Stuart Turley: [00:21:35] Yep. And what happened last year to the EPA saying that we reduced our emissions again by increasing our internal natural gas and reducing coal. That happened in the U.S.. Let’s use more natural gas and get rid of coal. You’re not hearing any grumbling from anybody here. [00:21:55][20.3]
Michael Tanner: [00:21:56] As long as we’re producing and selling that sweet, sweet American natural gas, I’m all about it. [00:22:01][4.7]
Stuart Turley: [00:22:01] Oh, you bet. Okay. Shell, this is the funny part. Shell says, Hey, they’ve ruled out setting any absolute scope three emissions reduction targets. Everybody realizes once you leaves your refinery, it leaves your empty area. You lose control of it. You cannot do anything about it. All right. [00:22:26][24.8]
Michael Tanner: [00:22:26] All right. So so for all our listeners, we’re considering rolling out a little bit of a merch shop. See what you guys get your hands on so some of our merch, I think this would be I think one of the mugs we should have to do is scope for emissions. Can we have a mug that uses scope for emissions positive? [00:22:42][15.1]
Stuart Turley: [00:22:43] Yes. We’re going to have things like what’s a few billion between friends, you know, we’re going to have. [00:22:48][4.9]
Michael Tanner: [00:22:48] We’ll get the top ones. [00:22:49][0.7]
Stuart Turley: [00:22:50] Get the top ones, because we we’ve had a lot of folks commenting on all those. Okay. Last one. The bank turmoil could undermine the effect of Biden’s clean energy bill, huh? Last night, Michael, when you were watching the baseball game, this article talks about how many start ups with Silicon National Valley’s Silicon Valley bank were startups in the renewable space. Great. [00:23:17][27.4]
Stuart Turley: [00:23:18] My rant yesterday was on the fact that let’s not talk penalize the bank or say that it was the bank’s fault or those renewable startup companies. Banks have the obligation to actually do good business. [00:23:35][17.3]
Stuart Turley: [00:23:36] These guys were just customers. Don’t blame a bank failing because they’re renewable energy companies. That has nothing to do with a failed bank using failed business policies. There are renewable comp companies out there that are well-run companies. [00:23:54][17.9]
Stuart Turley: [00:23:55] They’re using incentives from the government. They’re using their products. They’re good businesses. You can’t blame a failed bank because they’re funneling money to a renewable company. There are good renewable companies. They had failed business practices. They had somebody that was not even looking at their financials. That’s that was my whole purpose on this earth. [00:24:20][24.5]
Michael Tanner: [00:24:20] Yeah. And I think it’s clear that any time the government is subsidizing a given industry, when that subsidy goes away or the ability to attract capital goes away from that sector, you’re going to see a fall and you’re going to see it in writing. [00:24:35][15.0]
Michael Tanner: [00:24:35] So, yes, as you mentioned, should we be cheering that climate tech took a hit? Yeah. We shouldn’t be dancing on the grave of those people who are now basically never going to be able to fundraise again, because, sure, they’ve got their money back. [00:24:48][12.3]
Michael Tanner: [00:24:48] But they’re they’re going to it’s going to be tough for them to go to another bank that is going to give them the right and it’s going to give them the type of stuff and the access that Silicon Valley Bank did. And specifically, I think, on the budget that that Biden is rolling out it, he’s going to have to get extremely creative on how this is financed and when I mean creative, I mean, the state will pay for it. [00:25:10][22.0]
Stuart Turley: [00:25:10] I saw. [00:25:10][0.2]
Michael Tanner: [00:25:11] A you. [00:25:12][1.0]
Stuart Turley: [00:25:14] Right the consumers. [00:25:14][0.5]
Michael Tanner: [00:25:16] Yes Stu. [00:25:16][0.1]
Stuart Turley: [00:25:17] You. I think it was 77d trillion or 7 trillion. I don’t know what’s a few trillion between friends now but the the U.S. government needs to put. So let’s just say it’s 7 trillion give them the benefit of the doubt in order to hold securities for bank deposits for others that potentially could fail whatever the number is. Is he you? This is a bad precedent? [00:25:41][24.7]
Michael Tanner: [00:25:42] Yes. No, it’s it’s definitely a bad precedent. But, you know, this this whole bank crisis is absolutely insane because what do you do you expect now you now you know, you expect me to start doing due diligence on banks that I put my money in? Like I shouldn’t have to do that. [00:25:59][17.1]
Stuart Turley: [00:26:00] Nope., no, I. I couldn’t agree more. Michael. [00:26:03][3.3]
Michael Tanner: [00:26:05] What’s next? [00:26:05][0.3]
Stuart Turley: [00:26:06] You’ve you’re dude. [00:26:07][1.5]
Michael Tanner: [00:26:08] You’re from a finance section. Guys, there’s there’s not much other than the S&P 500 was down 1.56 percentage points. NASDAQ drops 1.3 percentage points. Crude oil rises $70.02 is record this about 625, mainly due to the fact that the dollar was weakened off interest rate interest rates cut. [00:26:29][21.1]
Michael Tanner: [00:26:30] We did see Fed Chair Jerome Powell come out and confirm a 25 basis points increase of the Fed target federal funds rate, which set it again a 25 basis points increase. That was around expectations. [00:26:41][11.5]
Michael Tanner: [00:26:42] The market was, I say, expecting 25 basis points. I think the sentiment since they asked the Silicon Valley bank collapsed was that he wasn’t going to raise rates and that they were going to come to the conclusion that let’s pause, let’s wait, let’s react, let’s figure out what we’re going to do with the FDIC they’re floating around we’re going to insure all deposits are floating around. We’re not going to insure all deposits. [00:27:02][20.2]
Michael Tanner: [00:27:03] I Treasury Secretary Janet Yellen had some comments on that we will get to but the Fed Reserve Board goes as and decides to raise interest rates, which again, you can see at around noon. Markets fell off a cliff and pretty much took a nosedive that’s going to send specifically oil because it’s tied inversely correlated to the dollar it’s going to send that rising as we saw today. [00:27:21][18.4]
Michael Tanner: [00:27:22] Natural gas currently trading $2.22. What can I tell you? It’s warm, people. It’s warm. I think it’s important to cover what what some of the tension was really in in these comments that Fed Chair Jerome Powell said he tempered expectations of more rate increases, that saying we’re getting towards the end of the cycle. [00:27:40][18.7]
Michael Tanner: [00:27:41] He didn’t necessarily say we’re going to have more. Janet Yellen also came out to say treasury secretary had said we are we’re considering but aren’t sold on insuring all deposits. Bill Ackman is losing his mind on Twitter right now, saying that’s a mistake. [00:27:55][14.4]
Michael Tanner: [00:27:56] So believe what you want on some of the political is the point is the market is expecting worse and that’s what we saw today. I don’t think what these comments did anything lukewarm feels even if we are not expecting rate increases down the line. [00:28:12][15.8]
Michael Tanner: [00:28:12] So very interesting from Jerome Powell today. I think the fallout will continue to see commercial real estate is getting crushed right now so why if you’re in that business. I am. I’m sorry. Oil and gas is booming, kind of. But. [00:28:25][13.0]
Stuart Turley: [00:28:26] 10 31 exchange. [00:28:26][0.5]
Michael Tanner: [00:28:29] There you go. [00:28:29][0.5]
Stuart Turley: [00:28:30] Trade your. [00:28:31][0.4]
Michael Tanner: [00:28:32] I did not know. I mean, this is talk about learn and stuff. You know that was this year I you probably to do I did not know you can 1031 exchange from real estate into oil and gas. [00:28:42][9.7]
Stuart Turley: [00:28:42] Where will help a lot of people. [00:28:44][1.2]
Michael Tanner: [00:28:44] You’re helping a lot of people do so what else you got today? I’m done. We’re we spent too much on stories. I’m out of breath. [00:28:50][5.4]
Stuart Turley: [00:28:50] Oh, yeah, they any time. Wing wiped out. Michael is a great day. Well, hey, tomorrow is going to be a fabulous day. Buckle up. [00:28:57][6.6]
Michael Tanner: [00:28:57] Yeah, no, it’ll be good. So we appreciate you guys checking us out. We’ll let you get out of here, get back to work again. Thank you for making it this far for Stuart Turley and Michael Tanner. We’ll see you tomorrow, folks. [00:28:57][0.0]
