Disney is laying off several hundred employees globally as part of a cost-reduction strategy, focusing on areas such as marketing, TV publicity, and corporate financial operations. This move is part of a broader effort to adapt to the changing media landscape, where consumers are increasingly moving away from traditional cable packages towards streaming services. The company has already eliminated over 8,000 roles since 2023, aiming to cut $7.5 billion in annual costs.
The layoffs come despite Disney's recent strong financial performance, with a reported 13% year-over-year drop in linear network revenue, while direct-to-consumer revenue increased by 8%. This shift underscores Disney's pivot towards digital distribution and streaming, which is now a central focus for the company. The stock remained stable following the announcement, indicating that investors are cautiously optimistic about Disney's long-term growth strategy.

Job Cuts

Oil prices increased nearly 3% as OPEC+ decided to maintain its output plans, with Brent crude futures settling at $64.63 per barrel. The rise was primarily driven by supply concerns stemming from wildfires in Alberta, Canada, which have disrupted about 7% of the country's crude oil output. The decision by OPEC+ to raise production by 411,000 barrels per day in July was anticipated, but traders had expected a larger increase, leading to a market reaction that favored higher prices.
The geopolitical landscape also contributed to the price surge, with increased risks following Ukrainian drone strikes against Russia. Additionally, a weaker U.S. dollar made oil cheaper for foreign buyers, further supporting price gains. Analysts from Goldman Sachs and Morgan Stanley predict continued production increases, suggesting that the market fundamentals remain tight despite the anticipated demand slowdown.

Oil Surge

Azeri state energy company SOCAR is set to sign new agreements for oil and gas exploration in Azerbaijan, including partnerships with Exxon Mobil and BP. This development follows a memorandum of understanding signed between BP and SOCAR, indicating BP's commitment to explore and develop two oil blocks in the Caspian Sea. Azerbaijan boasts significant oil reserves of 7 billion barrels and natural gas reserves of 1.7 trillion cubic meters, positioning it as a key player in the energy sector.
Azerbaijan aims to increase its natural gas exports by 8 billion cubic meters by 2030, leveraging existing and new fields. This strategic move aligns with the country's goal to enhance its role in the global energy market, particularly in supplying Europe with natural gas. The agreements with major players like Exxon Mobil and BP could bolster SOCAR's operational capabilities and financial performance, potentially impacting the competitive landscape in the region.

Energy Expansion

President Trump announced plans to double tariffs on imported steel and aluminum from 25% to 50%, a move intended to bolster the U.S. steel industry and protect American jobs. This announcement was made during a rally in Pennsylvania, coinciding with a significant agreement between Nippon Steel and U.S. Steel, valued at $14.9 billion. The tariff increase is set to take effect shortly, intensifying the ongoing trade war and impacting global steel producers.
Following the announcement, shares of Cleveland-Cliffs Inc surged by 26%, indicating investor optimism regarding the potential for increased profits due to the new tariffs. However, the tariff hike has drawn criticism from international trade partners, including Canada and Australia, who argue that it undermines economic security and could lead to higher prices for consumers and businesses reliant on steel and aluminum imports.

Tariff Spike

OPEC+ is set to discuss a potential increase in oil output for July that may exceed the previously agreed 411,000 barrels per day (bpd). This meeting comes as eight member countries have been raising output more rapidly than planned, which has led to downward pressure on oil prices. The discussions are influenced by Kazakhstan's recent announcement to maintain its production levels, which could prompt a larger output increase to balance the market dynamics among OPEC+ members.
The ongoing strategy by OPEC+ leaders, particularly Saudi Arabia and Russia, aims to regain market share and address overproduction by certain allies. The potential output increase is part of a broader effort to unwind previous voluntary cuts of 2.2 million bpd. The outcome of this meeting could significantly impact global oil prices, which have recently fluctuated due to increased supply and geopolitical factors.

Production Talks

US Bitcoin ETFs have seen an influx of over $9 billion in inflows over the past five weeks, significantly outpacing gold-backed funds, which have experienced outflows exceeding $2.8 billion. This trend indicates a growing preference among investors for Bitcoin as a digital asset, particularly in light of its recent price surge, which has seen Bitcoin reach new all-time highs. BlackRock's iShares Bitcoin Trust ETF has been a major contributor to this growth, leading the inflows and reflecting a broader shift in investment strategies.
The movement of capital from gold to Bitcoin ETFs suggests a significant change in investor sentiment, with Bitcoin being viewed as a more attractive store of value. This shift could have long-term implications for both the cryptocurrency and precious metals markets, as investors increasingly favor digital assets over traditional commodities. The ongoing performance of Bitcoin ETFs may also influence regulatory discussions and the future landscape of cryptocurrency investments.

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