Daily Brief - 13 June 2024

Matador buys Permian Basin assets for $1.9 billion

Matador Resources has agreed to purchase oil and gas assets in the Permian Basin from EnCap Investments' Ameredev II for $1.9 billion.

The deal includes producing properties, undeveloped land in New Mexico and West Texas, and a 19% stake in Piñon Midstream's pipeline assets.

This acquisition, set to close late in the third quarter, is part of a growing trend of mergers in the shale industry as companies seek valuable drilling locations

EU to impose up to 48% tariffs on Chinese electric cars

Starting next month, the European Union will impose tariffs of up to 48% on electric cars imported from China, affecting brands like BYD, Geely, and MG.

This decision follows an investigation into Chinese subsidies and aims to protect the EU's car industry. China's government criticised the move, threatening retaliation against European exports.

The new tariffs are expected to raise the prices of Chinese electric vehicles in Europe and reduce imports, as the EU strives to balance fair trade and environmental goals.

Traders eye September rate cut after weak Inflation data

Traders are increasingly betting on a Federal Reserve interest-rate cut as early as September after weaker-than-expected inflation data for May.

Two-year Treasury yields saw their largest drop since December, and the bond market now prices a 70% chance of a rate cut in the third quarter. This shift comes just before the Fed’s June meeting, where they will update their interest rate forecasts.

The Consumer Price Index data showed flat monthly prices, cooling annual inflation to 3.3%. The outlook for Fed rate cuts has become more optimistic despite some doubts from policymakers.