🇨🇳 Elon’s China trip

…and US oil joins the Brent big leagues   Flattered and feasted (Xinhua/Ding Ting/Getty Images)   Yesterday’s Market Moves   Dow Jones 32,908 (-0.41%) S&P 500 4,180 (-0.61%) Nasdaq 12,935 (-0.63%) Bitcoin $27,102 (-2.16%) Dow Jones 32,908 (-0.41%) S&P 500 4,180 (-0.61%) Nasdaq 12,935 (-0.63%) Bitcoin $27,102 (-2.16%) Hey Snackers, E.T. phone home becomes SETI phone home: the Search for Extraterrestrial Intelligence Institute sent a simulated alien message from Mars to Earth, [broadcasting]( from a spacecraft orbiting the red planet. Maybe they should try using Reese's Pieces? While the Nasdaq gained 6% in May, stocks ticked down on the last day of the month after sluggish economic data from China and stubbornly strong US labor-market stats. Last night, the US House overwhelmingly [passed]( a bill to suspend the debt ceiling. Now the legislation moves to the Senate. PJ America’s top CEOs flock to China after a three-year break, despite geopolitical tensions Back in Beijing… Elon Musk got a hero’s welcome this week when he [returned]( to China for the first time in three years. During a high-stakes visit to the country that houses [Tesla]( biggest production hub, the chief exec was greeted with flattery and a 16-course feast. Musk met with China’s foreign minister on Tuesday, and Tesla stock spiked following reports that he’s willing to expand business in China. - #Twinning? China’s foreign ministry quoted Musk as saying that the US and China are “conjoined twins” and that he’s against a decoupling of the world’s largest economies. Fire up the private jets… Elon isn’t the only biz leader on the move. US-China relations are at their worst point in decades, but CEOs of American companies are returning to China now that it’s reopened its borders. This week [JPMorgan Chase]( Jamie Dimon and [Starbucks]( Laxman Narasimhan also flew over. In March, [Apple]( Tim Cook paid a visit to the country where most Apple products are manufactured. - Expand: According to Chinese outlets, Narasimhan said he hopes China will become Starbucks’ largest market, and plans to significantly grow locations there. - Engage: Dimon called for “real engagement” between the US and China and warned against trying to cut ties between the two economic powers. THE TAKEAWAY If you can’t detach, attach… From spying to tech wars, US-China relations have soured. But big corporations can’t detach themselves from the manufacturing power and massive consumer base of the world’s second-largest economy. And China, whose post-lockdown economic rebound has been [underwhelming]( needs and welcomes US investment. Slick US oil earns a spot in the famous Brent benchmark, securing its superpower status Crude news… Starting this week, global oil prices will [start]( taking cues from the US. The price of Brent crude oil, which is primarily sourced in the North Sea between Scotland and Norway, has long been used as a benchmark for calculating global oil and natural-gas prices. By some estimates, Brent is used to set the price of two-thirds of all crude oil sold globally. But as Brent oil fields dry up, exchanges are looking stateside to set the new pricing standard. - Full tank: West Texas Intermediate crude oil is used as a benchmark for American oil. But starting today, WTI crude will become the first non-European oil to be used in the Brent pricing benchmark. - Full steam: In March, the US shipped a record # of barrels of WTI crude to China and Europe, which has been more reliant on American oil since Russia’s war. Don’t mess with Texas… America’s rise up the energy ladder marks a major turning point from the early 2000s when it imported up to 60% of all its oil. Today, that number is down to about 40%. As shale production boomed in Texas' Permian Basin over the past decade, US dependence on foreign oil dipped. Meanwhile, supply began to pile up with top producers Saudi Arabia and Russia, who’ve recently curbed production to keep prices higher. THE TAKEAWAY The energy is shifting… With US oil holding greater weight in global energy prices, the market could become less vulnerable to demand shifts or manipulation. Some analysts say factoring cheaper American barrels into Brent could help lower oil prices overseas and boost biz for US exporters. Still, the US shale boom is expected to slow this decade as lucrative wells get tapped out. Unpacked Snacks Unpacked: What the debt deal means for student loans Student-loan payments will resume… for up to 45M borrowers if the bipartisan debt-ceiling deal is passed into law (which President Biden expects to happen). A provision in the deal would [end]( the pandemic pause on payments after eight extensions, three years, and two presidents; prohibit future pause extensions without an OK from Congress; and restart repayments (and interest accrual) at the end of August. What it means… - For borrowers: Millions will find themselves with a different loan servicer after federal contracts changed during the pandemic. FYI: several servicers have cut customer-service hours, which could cause headaches. - For student-debt cancellation: Biden’s debt cancellation isn’t affected by the proposed deal. That remains in the hands of the Supreme Court, which is expected to issue a ruling in the coming weeks. - For the White House: The deal is in line with the Biden admin’s timeline to end the pause. But it would block the executive branch’s ability to extend the pause if SCOTUS strikes down the debt-cancellation plan. By the numbers: - $37K: the average paused student-loan balance - $200-$300: the typical monthly loan payment prepandemic - 38%: share of borrowers with at least one loan in deferment prepandemic - $5B: the monthly cost of the pause to the US gov’t What else we're Snackin' - [Fly]( [American Airlines]( upped its forecast based on lower fuel prices and booming flight demand. Checks out: Memorial Day weekend topped prepandemic levels, with 9.8M people passing through TSA. - [TikTook]( TikTok creators’ personal info (like: SSNs) is being stored in China, where employees can access it, Forbes reported. TikTok denies that, but the news could give US lawmakers more fuel for a ban. - [Mismatch]( Amtrak won’t put its new $2B Acela fleet into service until at least 2024 after struggling to test the trains on 100-year-old tracks. Amtrak’s under pressure to put Biden’s $22B infrastructure fund to use. - [Logout]( [Amazon]( workers walked out of its HQ in Seattle yesterday to protest the company’s return-to-office policy, climate impact, and layoffs. Broader tech employee morale is said to be plunging. - [Unyeez]( After ending its relationship with Kanye West over antisemitic remarks, Adidas has resumed Yeezy sales to offload its inventory, which contributed to a $540M loss last quarter. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day HBO said that 2.9M people watched the "Succession" finale on Sunday [Read more]( Thursday - Earnings expected from Dollar General, Macy’s, Lululemon, Broadcom, and Hormel Authors of this Snacks own shares of: Amazon, Apple, Exxon, Starbucks, and Tesla Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... [See more]( [Sherwood Terms and Conditions]( • [Our Editorial Principles]( • [Contact Us](mailto:hellosnacks@sherwoodmedia.com) • [Privacy Policy]( • [Advertise with us](mailto:advertising@sherwoodmedia.com) [Unsubscribe](