Mexico

Keystone XL Needs Much Higher Oil Prices To Be Viable

The Keystone XL Pipeline (KXL) is a bet on much higher oil prices several years from now. It will take at least $85 oil prices to develop the new oil sand projects needed to fill the pipeline. It is also a bet that U.S. tight oil output will continue to grow and will need heavy oil to blend for refining. Both bets are risky.

Frontrunning: February 6

  • The Patriots’ Insane Comeback: One for the History Books (WSJ)
  • Euro fades in face of French election risks (Reuters)
  • Legal battles to test Trump and his travel ban (Reuters)
  • Standoff Looms Over Travel Ban; Trump Rips Judge (WSJ)
  • Trump Set to Attend NATO Summit in May (WSJ)

Renewable Lies And The Deception Of Dutch Commuters

The Netherlands’ electrified railways continue to be powered dominantly by fossil fuel electricity. The 'Harried Dutch commuters' who are 'travelling on one of the most environmentally friendly rail networks in the whole of Europe, if not the world' are being sold a bill of goods.

The Honeymoon Is Over: Goldman Slams Trump's Economic Plan, No Longer Expects A Border Tax

"One month into the year, the balance of risks is somewhat less positive for three reasons. First, the difficulty congressional Republicans have had in moving forward on Obamacare; Second, while bipartisan cooperation looked possible following the election, the political environment appears to be as polarized as ever; Third, some of the recent actions by the Trump Administration could be disruptive for financial markets and the real economy." - Goldman Sachs

Frontrunning: February 3

  • Trump Plans to Undo Dodd-Frank, Fiduciary Rule (WSJ)
  •  CEOs to meet with Trump amid tensions (Reuters)
  • Trump’s CEO Brain Trust Meets Amid Widening Rifts (BBG)
  • Business coalition supports border tax (Reuters)
  • Nordstrom winds down relationship with Ivanka Trump brand (Reuters)

US Futures Rise Ahead Of Payrolls Following A Surprise-Filled Asian Session

European stocks and S&P futures rose modestly ahead of January US payrolls data, along with the dollar, while Asian shares dropped after China returned from a week-long holiday. Bonds slid, oil rose while the JGB intervened in the bond market to prevent a bond rout, in one of two major surprises during the Asian session.

Two Wars Are About To Break Out Over Border Adjustment Tax

Two wars are set to break out over the Border Adjustment Tax: one is domestic and involves exporter vs importer alliances, and will soon shift into the Senate. The second war is one which would break out after the BAT is passed, and it would hammer America's biggest trading partners