While the first meeting of the leaders of the Group of Seven nations in two years went off with little of the bluster of the Trump era, it was clear that differences remain on key issues. The communique at the end of the meeting promised more vaccine doses for poorer countries, took a swipe at China over human rights and asked Russia to do more about hackers. Arguments among European leaders about Brexit escalated at the summit. President Joe Biden is in Brussels this morning for a NATO meeting before heading for a face-to-face with Russian President Vladimir Putin on Wednesday in Geneva
Crude hit the highest level in 32 months, with a barrel of West Texas Intermediate for July delivery trading above $71.50 this morning. Oil has been surging as people in Europe and the U.S. get back on the road, and in the air. While talks with Iran continue, and seem to be making progress ahead of elections in that country this week, there is less fear that the return of its production will prove destabilizing for the market.
Federal Reserve officials are meeting tomorrow and Wednesday, with their latest monetary policy decision set to include updated forecasts. Economists expect the so-called dot plot to point to an interest-rate increase in 2023, while the bank is unlikely to signal a scaling back of bond purchases until later this year. The bond market remains very calm about Fed policy, with Chair Jerome Powell’s messaging on inflation’s transitory nature clearly being heeded.
Investors are betting that a green-energy focus will push up oil prices. The wagers come as money managers line up trillions of dollars for wind, solar and other renewable programs while expenditures on oil projects fall. The drop in fossil-fuel spending is becoming so severe that energy companies could struggle to quench the world’s thirst for oil.
Israel's new government unseats Netanyahu. Commando-turned-tech entrepreneur Naftali Bennett ended Benjamin Netanyahu’s 12-year run in power after his wide-ranging coalition was backed by 60 lawmakers in the 120-member Knesset. Bennett now faces the difficult tasks of reviving an economy battered by the pandemic and preserving a fragile cease-fire with Palestinian militant group Hamas.
Iran’s foreign ministry said there was “very little time left” for world powers to resolve outstanding differences in their efforts to revive the 2015 nuclear deal, but that agreement was in place to remove sanctions on the country’s energy sector.