EU-US Agreement on LNG, Apple Sale of Chelsea: 5 Keys on Wall Street

The United States and the EU reach an agreement to increase the supply of liquefied natural gas, helping Europe wean itself from Russian energy dependency. German and Italian business confidence plummets as the war takes its toll on the regional economy.

Apple (NASDAQ:AAPL) is considering introducing subscription plans for its hardware, while the owners of the Los Angeles Dodgers and Philadelphia 76ers are in a battle to buy European soccer champion Chelsea from a sanctioned Russian oligarch.

Here are the top five things to watch out for this Friday, March 25, in the financial markets.

1. The United States and Europe reach a gas supply agreement
The United States has agreed to increase supplies of liquefied natural gas to Europe, in an effort to help the EU wean itself off Russian gas imports.

A White House report speaks of “a minimum of 15,000 million cubic meters in 2022, and more increases thereafter”. By 2030, the two parties will aim to increase LNG shipments by 50,000 million cubic meters per year compared to at current levels.

The news was announced at a two-day EU summit attended by US President Joe Biden. The bloc’s response to Kremlin demands that European buyers pay for gas from Gazprom (MCX:GAZP) in rubles from now on remains unclear so far.

2. European business confidence plummets due to war; VW (DE:VOWG_p) postpones the launch of a new electric vehicle
The effects of the war in Ukraine are starting to show in European economic data.

German business confidence has tumbled in March, with the Ifo business confidence index hitting a 14-month low at 90.8, while February’s reading has also been revised lower. Italy’s business confidence and consumer confidence indices have also fallen sharply.

In the UK, meanwhile, core retail sales unexpectedly fell an alarming 0.7% in February, against expectations for a 0.5% rise. Sterling fell 0.1% to $1.3171 in response, but the euro rose to $1.1006 by 11:15 AM ET, buoyed by news of the gas deal with the United States. .

3. Stocks Point to a Mixed Open, University of Michigan Consumer Confidence, Williams Speech.
US stock markets are set to open mixed this Friday, although they are on track to close the week at their highest level since early February, having fully reversed losses incurred due to the Ukraine invasion and fears of faster gains. of interest rates.

At 11:15 AM ET, {{8873|Dow Jones futures}} are up 14 points, or less than 0.1%, while S&P 500 futures are up similarly, but futures of the NASDAQ 100 fell.

The University of Michigan Consumer Confidence Index, to be released at 3:00 PM ET, will provide a very instructive comparison of the relative impact of the war on the European and US economies.

Stocks likely to command attention this Friday include those of big tech platforms, after the EU unveiled new draft legislation aimed at curbing their market power. Apple, in particular, will be in the spotlight following a report by Bloomberg that it is considering launching subscription plans for its hardware, including the iPhone.

4. Dodgers and 76ers owners fight over Chelsea
The race to buy London soccer club Chelsea has come down to a showdown between the owners of the Los Angeles Dodgers and the Philadelphia 76ers, according to multiple reports.

The two favorite deals, according to the Financial Times, are from a group of investors led by Dodgers owner Todd Boehly and another led by Josh Harris of Apollo and David Blitzer of Blackstone Group (NYSE:BX). , whose portfolio of sports teams already includes the NHL’s New Jersey Devils and minority stakes in soccer clubs in Germany and the Benelux.

Chelsea has been owned by Russian oligarch Roman Abramovich since 2003, whose relentless spending has transformed a previously second-tier team into reigning European and world club champions, without ever being sustainably profitable.

5. Oil falls after the gas deal and on China’s fears about the Covid
Oil prices fall at a time when the gas agreement between the EU and the United States encourages optimism in

Reviewer overview

The United States and Europe reach a gas supply agreement - /10

Summary

The United States and the EU reach an agreement to increase the supply of liquefied natural gas, helping Europe wean itself from Russian energy dependency. German and Italian business confidence plummets as the war takes its toll on the regional economy.

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