U.S. Oil and Gas Mergers Surged 57% in 2023, Reaching $49.2 Billion

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🌎 World & Economics

Disney Withdraws Effort to Dismiss Allergy Death Lawsuit

Disney has decided to withdraw its claim that a wrongful death lawsuit against it should proceed to arbitration due to terms linked to a Disney+ free trial signed by the plaintiff, Jeffrey Piccolo, in 2019. The lawsuit stems from the death of Piccolo's wife, Dr. Kanokporn Tangsuan, who suffered a fatal allergic reaction after eating at a restaurant at Disney World, with allegations that the restaurant failed to properly address her severe allergies. Disney has faced backlash for its initial stance, prompting the company to allow the case to be heard in court, acknowledging the need for a sensitive approach to expedite resolution for the grieving family. Piccolo's claim seeks over $50,000 in damages, and Disney maintains it had no control over the restaurant's operations.

U.S. Oil and Gas Mergers Surge 57% in 2023, Reaching $49.2 Billion

Mergers and acquisitions in the U.S. oil and gas sector experienced a substantial increase of 57% last year, as highlighted in a report by Ernst & Young, with total deal value reaching $49.2 billion, up from $31.4 billion in the previous year. This surge was propelled by significant transactions involving major companies like Exxon, which acquired Pioneer Natural Resources for approximately $60 billion, and Chevron's stalled $53 billion acquisition of Hess Corp. The report indicates that robust dealmaking trends are expected to continue into 2024 and 2025, alongside an increase in exploration and production expenditures, which amounted to $93.1 billion in 2023, a 28% rise from 2022. Additionally, Enverus reported $30.2 billion in new deals announced in the second quarter of the current year, signaling ongoing momentum in the industry.

📈 Stocks / Finance

Gold Shows Stronger Correlation with S&P 500 Since Pandemic, Analysis Finds

Recent analysis reveals that gold has shown a more frequent positive correlation with the S&P 500 since the pandemic, currently at 0.25, while its four-year average stands at 0.16, indicating low to non-correlation. Over a 20-year period, the correlation between gold and the market remains at 0.00, suggesting that gold is not an ideal hedge during market downturns but is effective for portfolio diversification. Other precious metals like silver, platinum, and copper also display minimal correlations with equity markets, reinforcing their role in reducing risk. Among these metals, gold and silver have the highest correlation with each other, while copper maintains low correlations across the board.

Asia-Pacific Markets Rise on Wall Street Rally and Australian Rate Decisions

Asia-Pacific markets experienced an uptick on Tuesday, driven by a rally on Wall Street and influenced by the Reserve Bank of Australia's meeting minutes. Japan's Nikkei 225 rose by 1.8% to 38,062.92, primarily bolstered by gains in utilities and healthcare stocks, while the Topix also recorded an increase of 1.11%, closing at 2,670.54. In China, the one-year and five-year loan prime rates were maintained at 3.35% and 3.85%, respectively, aligning with economists' expectations. The Reserve Bank of Australia, while keeping its benchmark interest rate steady at 4.35%, acknowledged persistent inflation and indicated that any future changes in monetary policy could not be definitively predicted.

🪙Crypto

Ether Reaches $2.6K Amid Signs of Market Correction

Ether's recent 13% decline below the $3,000 threshold signals a potential end to its correction, supported by two key onchain metrics indicating a resurgence of buyer strength. The taker buy-sell ratio has turned positive, reflecting a growing number of long positions, with 50.37% recorded in the latest 12-hour period, despite a slight short-seller advantage over 24 hours. Additionally, the open interest (OI) in Ether has risen approximately 10% to $10.69 billion, suggesting renewed confidence among traders, particularly when OI previously peaked during significant price rallies. The impact of recent Ether exchange-traded funds, which have seen net outflows of $434 million, has contributed to the price decline, drawing parallels to Bitcoin’s initial ETF performance.