Key Takeaways
- The UK and EU have significantly lowered the crude oil price cap from $60 to $47.60 per barrel, a move aimed at further reducing Russia's oil revenues.
- JPMorgan (JPM) has commenced research coverage on private companies, starting with OpenAI, projecting its Total Addressable Market (TAM) could exceed $700 billion by 2030.
- US Deputy Treasury Secretary Michael Faulkender has publicly questioned the sustained high interest rates and indicated the Treasury's preference for President Trump to consider a broad range of candidates for the next Federal Reserve Chair.
- Faulkender also asserted that new cryptocurrency regulations are designed to further solidify the U.S. Dollar's position as the global standard.
The United Kingdom and the European Union have announced a substantial reduction in the crude oil price cap, lowering it from $60 to $47.60 per barrel. This measure, part of the EU's 18th sanctions package against Russia, aims to further curtail Moscow's ability to fund its war efforts by reducing its oil revenues by an estimated 23% compared to pre-sanction levels. The dynamic cap will be adjusted twice annually to remain 15% below the average market price of Russian crude.
In a significant development for the technology and financial sectors, JPMorgan (JPM) has initiated research coverage on private companies, beginning with artificial intelligence leader OpenAI. The banking giant forecasts that OpenAI could tap into a Total Addressable Market (TAM) exceeding $700 billion by 2030, driven by its consumer-first model and broadening monetization efforts. This move by JPMorgan signals a growing interest from traditional financial institutions in the burgeoning private tech market.
US Deputy Treasury Secretary Michael Faulkender has voiced concerns regarding the current economic landscape, questioning why interest rates remain so high. Faulkender also revealed that the Treasury is encouraging President Trump to consider a diverse pool of candidates for the upcoming Federal Reserve Chair selection, indicating potential shifts in future monetary policy leadership.
Furthermore, Deputy Treasury Secretary Faulkender highlighted the strategic importance of new cryptocurrency regulations, stating they will reinforce the U.S. Dollar as the global standard. This comes as the U.S. House of Representatives recently passed landmark bills to establish a federal regulatory framework for stablecoins, aiming to ensure they are backed by liquid assets like U.S. dollars and Treasury bills.
On the geopolitical front, China's Foreign Ministry officials have summoned the Philippine Ambassador to China. This diplomatic action follows China's imposition of a travel ban on a former Philippine senator due to his stance on South China Sea issues, escalating tensions between the two nations.
Meanwhile, a top Republican on the House China Committee has raised objections to the potential resumption of Nvidia (NVDA) H20 chip shipments to China. This objection underscores ongoing concerns in Washington regarding the transfer of advanced technology that could bolster China's technological capabilities, particularly in the semiconductor sector.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.