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Oil jumps after Saudi Arabia’s production-cut plans, big US banks may face tighter requirements and finance professionals fight back on remo [View in browser]( [Bloomberg]( Oil jumps after Saudi Arabia’s production-cut plans, big US banks may face tighter requirements and finance professionals fight back on remote working. Oil cut Crude prices soared and energy stocks led gains in Europe after [Saudi Arabia said it will make an extra 1 million barrel-a-day supply cut in July](, taking its production to the lowest level for several years. Saudi Energy Minister Prince Abdulaziz bin Salman said he “will do whatever is necessary to bring stability to this market” following a [tense]( OPEC+ meeting over the weekend. The rest of the 23-nation bloc offered no additional action, leaving Saudi Arabia potentially sacrificing further market share to stabilize the market. Big banks [Large lenders in the US may face a 20% increase in capital requirements]( — a revision that could be proposed as early as June, according to the Wall Street Journal. Banks with at least $100 billion in assets may have to adhere to the new requirement, lower than the existing $250 billion threshold, for which regulators have reserved their most stringent rules, according to the report, which cited people it didn’t identify. Michael Barr, the Federal Reserve’s vice chair for supervision, has previously said US officials are reviewing bank capital requirements. Office revolt [Don't ask me to come in to the office more often, or I’ll quit]( — that’s the view of more than half of 1,585 professional and retail investors surveyed by Bloomberg. They prefer a hybrid arrangement, while only about 20% favor working from the office. That sets finance workers up for a battle over remote working with Wall Street chiefs, who have been pushing for a return to the office five days a week. JPMorgan ended remote arrangements for its managing directors in April after CEO Jamie Dimon earlier this year that working from home “doesn’t work” for younger staff or bosses. Mixed markets S&P 500 futures were little changed while Nasdaq 100 contracts were down 0.3% as of 5:42 a.m. in New York. The Bloomberg Dollar Spot Index traded near the day’s highs, pressuring all Group-of-10 currencies. Treasury yields climbed across the curve, mirroring moves in Europe and the UK. Brent and WTI were both up at least 1.7% after Saudi Arabia’s planned production cut, while gold and Bitcoin fell. Coming up… At 10 a.m., we’ll get the latest reading on ISM’s US services gauge as well as factory orders for April. The US will sell $65 billion of 13-week bills and $58 billion of 26-week notes at 11:30 a.m. Federal Reserve of Cleveland President Loretta Mester will deliver welcome remarks at an event at 1:30 p.m. What we’ve been reading Here’s what caught our eye over the weekend: - A US F-16 chasing a Cessna [rattles Washington with a sonic boom]( - [Morgan Stanley sees a 16% drop in US profits]( to slam brakes on the rally - [How climate change is transforming]( US army tactics in the High North - Oil’s rally on Saudi production cuts [turns the FTSE 100 into a big winner]( - A backstop for homebuyers worth trillions is[propping up banks instead]( - [Handshakes between US, China]( fail to stem conflict worries in Asia - [Things are looking up]( for Senate Republicans And finally, here’s what Joe’s interested in this morning… The NASDAQ-100 continued its extraordinary surge last week, and is now up over 33% just since the start of the year. It's not just the price that's gone up. Speculative fervor is coming back as well. In a note to clients at the end of last week, Deutsche Bank pointed out that the volume of call-option buying in tech and Mega Cap Growth is nearing its highest levels of the pandemic era. Of course, this is all despite the Fed having taken interest rates above 5%, with more hikes expected. On the latest episode of the podcast, [we speak with the legendary Jim Grant of Grant's Interest Rate Observer](. His view is that the market is still in thrall to the ZIRP era. That the muscle memory will take a long time to go away. That people still assume that the current increase in rates is just a temporary deviation from normal. Normal being the environment from the last 10-15 years. What people are discounting then, is the possibility that rates rise for a long time. Possibly as long as a generation. He doesn't have a specific forecast for this, except that in his view, the history of rates suggests that the trendlines are long, including the 40-year trend of lower highs, and lower lows that we just came out of. In the meantime, he sees signs of excess all over the place, from the huge multiple placed on Nvidia to the explosion of private credit, all of which he sees evidence that people are operating under the assumption that the current tightening will end soon and that it's only a matter of time before we go back to lower rates. Check out the episode on the [Apple](, [Spotify](, or elsewhere. Follow Bloomberg's Joe Weisenthal on Twitter [@TheStalwart](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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