25.05.31 WSJ

1. Macroeconomics

Title: American Consumers Are Still Gloomy on the Economy
Source: The Wall Street Journal
Date: May 30, 2025
Key Takeaways:

• The University of Michigan's consumer sentiment index remained at 52.2 in May, one of the lowest readings since 1952, indicating persistent pessimism among American consumers.
• Despite a mid-month U.S.-China trade deal, overall confidence stayed weak due to ongoing tariff concerns and high interest rates.
• Inflation expectations for the next year rose to 6.6%, the highest since 1981, while the five-year outlook eased slightly.
• Economic challenges like stagnant incomes and recent events — including planned Walmart price hikes, a U.S. credit downgrade, and threats of new EU tariffs — heightened consumer anxiety.
  Link: Read the article

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2. M&A Transactions or Private Equity

Title: EOG Resources to Acquire Encino Acquisition Partners for $5.6 Billion
Source: The Wall Street Journal
Date: May 30, 2025
Key Takeaways:

• EOG Resources has agreed to purchase Encino Acquisition Partners for $5.6 billion, aiming to expand its presence in Ohio's Utica Shale.
• The acquisition is part of EOG's strategy to enhance its portfolio with high-quality assets that offer strong returns.
• The deal reflects ongoing consolidation in the energy sector as companies seek to optimize operations amid fluctuating commodity prices.
• EOG anticipates that the acquisition will be accretive to earnings and cash flow, strengthening its position in the U.S. shale industry.
  Link: Read the article

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3. Opinion (Columnist)

Title: JPMorgan's Jamie Dimon Predicts 'Crack in the Bond Market,' Citing U.S. Fiscal Mess
Author: Justin Baer
Source: The Wall Street Journal – Opinion
Date: May 31, 2025
Key Takeaways:

• JPMorgan Chase CEO Jamie Dimon warns of a potential crisis in the U.S. bond market due to the nation's escalating debt, now exceeding $36 trillion.
• Dimon criticizes post-2008 regulations that limit banks' ability to stabilize credit markets, suggesting that looser capital requirements could help.
• He emphasizes that without substantial changes, the U.S. risks losing its status as the global reserve currency.
• Dimon calls for urgent internal reforms to address economic decline and geopolitical vulnerability.
  Link: Read the article