Comment of the Day
Video commentary for March 8th 2022
A link to today's video commentary is posted in the Subscriber's Area.
Some of the topics discussed include:LME shuts nickel market until Friday, gold surges, stocks failed to hold bounce, bonds pull back, Dollar steady, petrorenminbi system a real possibility.
Bretton Woods III
Thanks to a subscriber for this report from Zoltan Pozsar for Credit Suisse.
My view - A link to the full report is posted in the Subscriber's Area.
The FRA/OIS spread is widening in a dynamic manner. That’s a symptom of emerging stress in the funding markets. It’s another piece of the global financial plumbing that is flashing yellow.
Biden Says U.S. Will Ban Russian Fuels to Pressure Putin on War
This article from Bloomberg may be of interest to subscribers. Here is a section:
President Joe Biden said the U.S. will ban imports of Russian fossil fuels including oil, a major escalation of Western efforts to hobble Russia’s economy that will further strain global crude markets.
“We’re banning all imports of Russian oil and gas and energy,” Biden said Tuesday at the White House. “We will not be part of subsidizing Putin’s war.”
The U.S. move will be matched in part by the U.K., which will announce a ban on Russian oil imports on Tuesday, though it will continue to allow natural gas and coal from the country. Other European nations that rely more heavily on Russian fuels will not participate. The scope of Biden’s action was not immediately clear, including exceptions and the impact on shipments already in transit.
Biden’s move is a significant step in his sanctions campaign against Russia after its invasion of Ukraine. While so-called self-sanctioning by the oil industry has limited some purchases of Russian barrels, an outright U.S. ban would further weigh on the market and increase volatility.
My view - If sanctions are to work, they need to hit the target where it hurts. If Russia is to be chastened, more of the world needs to stop buying its products. That’s going to come with massive dislocations to the global economy. It’s a necessary sacrifice because appeasement does not work.
Satellite outage knocks out thousands of Enercon's wind turbines
This article from Reuters may be of interest to subscribers. Here is a section:
Germany's Enercon on Monday said a "massive disruption" of satellite connections in Europe was affecting the operations of 5,800 wind turbines in central Europe.
It said the satellite connections stopped working on Thursday, knocking out remote monitoring and control of the wind turbines, which have a total capacity of 11 gigawatt (GW).
"The exact cause of the disruption is not yet known. The communication services failed almost simultaneously with the start of the Russian invasion of Ukraine," Enercon said in a statement.
The company said it had no further information on who or what may have caused the disruption.
Enercon has informed Germany's cybersecurity watchdog BSI and is working with the relevant providers of the satellite communication networks to resolve the disruption, which it said affected around 30,000 satellite terminals used by companies and organisations from various sectors across Europe.
My view - Priorities change. When prices are low consumers value choice and comfort. When prices are high, they value efficiency. When supply is threatened, they will value resiliency.
The Chart Seminar June 6th & 7th in London
My view - Now in its 53rd year, the first venue for The Chart Seminar in the post pandemic era will be in London on June 6th and 7th at the Army & Navy Club.
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Fuller Treacy Money Subscriber rate: £850
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Eoin's personal portfolio: equity index long closed at a small loss March 1st
One of the questions subscribers as most often is how to find details of my open trades. To make it easier I will simply repost the latest summary daily until there is a change.