With supply set to increase meaningfully over the next few years, JPMorgan sees a buyer's market until 2020 with limited new long term contracts being signed and renewal of existing contracts post expiry likely to have more price diversification (i.e. more Henry hub component) and offtake/diversion flexibility. A recent trip to Asia identified 10 key themes reinforcing their bearish outlook on the LNG market for the rest of the decade.
The reaction function of officials takes on added importance in the week ahead.
The poor jobs report weighed on the dollar, but the greenback recovered as the session progressed. It is not clear the jobs report was a game changer. Stay tuned.
"Australia has benefited from China’s growth over the past decades, but has become a less diversified and commodity dependent economy in the process. It is now exposed to China’s slowdown, and may be unable to re-engineer itself quickly enough to avoid the end of the commodity super-cycle. The worst is yet to come, in our view."
Former Republican presidential nominee Mitt Romney smiled and repeatedly said, "Nice to see you," when asked if he had any concerns about the Saudi Arabian-led bombing campaign in Yemen.
Having recently pointed out the surging premiums for physical gold and silver relative to the 'paper' prices spewed forth by the mainstream media, it will likely come as no surprise that, as Reuters reports, "silver [coin] demand is absolutely through the roof," according to the Perth Mint. Confirming the demand side is the U.S. Mint sold 14.26 million ounces of American Eagle silver coins in the third quarter, the highest on records going back to 1986. Dealers and mints trace the supply squeeze to a burst of buying by mom-and-pop investors in the United States, who scrambled to scoop up coins they considered to be at bargain levels after spot silver prices in early July sank to six-year lows.
- After Rough Quarter, Investors Buckle Up (WSJ)
- From heroes to bystanders? Central banks' growth challenge (Reuters)
- Russian Airstrike in Syria Targeted CIA-Backed Rebels, U.S. Officials Say (WSJ)
- Kremlin says Syria air strikes target list of groups, not just Islamic State (Reuters)
- That’s information warfare? Russia accused of killing civilians in Syria (RT)
- Euro zone factory growth eases in August despite modest price rises (Reuters)
- How Glencore's Crazy Month Makes Greek Banks Look Tame (BBG)
News That Matters
In the latest sign easy-money market froth may be peaking, moments ago German media conglomerate Axel Springer announced it has agreed to buy 88% of web-only Business Insider, adding to the 9% it already owns, for $343 million, which according to the Springer press release values 100% of the content aggregator at $442 million "on the basis of a cash and debt free valuation of USD 390 million." The remaining 3% of the company will be retained by Bezos Expeditions, the personal investment company of Jeff Bezos, who purchased a $5 million stake in 2013.
Asian Equities Tumble On Commodity Fears; US Futures Rebound After India "Unexpectedly" Eases More Than ExpectedSubmitted by Tyler Durden on 09/29/2015 05:52 -0500
It was a tale of two markets overnight: Asia first - where all commodity hell broke loose - and then Europe (and the US), where central banks did everything they could to stabilize the already terrible sentiment.
Neoliberal economics is blind to reality and serves to justify the destruction of the economic prospects of the Western World. It remains to be seen if Russia and China can develop a different economics or whether these rising superpowers will fall victim to the “junk economics” that has destroyed the West. With so many Chinese and Russian economists educated in the US tradition, the prospects of Russia and China might not be any better than ours. The entire world could go down the tubes together.
Did Australia's Prime Minister Tony Abbott just lose his job because of fears that a probe and audit of the "data" and "statistics" behind global warming could threaten to destroy Goldman Sachs' best laid cap-and-trade, emissions trading scheme and carbon tax plans?
The caste of climate alarmists reminds us strongly of assorted doomsayers throughout history. They have almost become a kind of priestly caste, accusing us of committing the alleged “sin” of capitalism, even while they reserve for themselves the right to partake of its fruits to an extent few others are able to (as Greenpeace founder Patrick Moore notes, “environmentalism has become a religion”). Mind, we don’t believe genuine environmental concerns should be ignored, but AGW looks more and more like a contrived non-issue. The hysteria that has been on display of late is probably an indication though that its proponents are actually losing the debate.
US Futures Surge Nearly 30 Points To Overnight Highs After Tumbling On Worst Chinese Data In 6 YearsSubmitted by Tyler Durden on 09/23/2015 05:55 -0500
In many ways, the overnight market has so far been a reversal of yesterday, when a stable Asia session (with China stocks rising) gave way to a European tumble which in turn dragged the US lower.
Volkswagen's CEO Is Out, To Be Replaced By Porsche CEO Mueller: What's Next For The Troubled CarmakerSubmitted by Tyler Durden on 09/22/2015 07:01 -0500
A series of dramatic moves at the helm of Germany's iconic carmaker leaves many wondering what's next. Here are some thoughts.