Just a few short days ago we were the first to bring attention to the potential of an Iran nuclear deal being a catalyst for the next big leg lower in the energy complex and sure enough, not only is the market startuing to leg lower in a hurry as the deadline looms, but the mainstream media is catching on too. WTI hit fresh cycle lows this morning at $42.63 with the contango continuing to surge.
- Israelis vote as 'King Bibi's' reign hangs in the balance (Reuters), Factbox: Main candidates in Israel's election (Reuters)
- Iran Can Add Million Barrels a Day of Oil If Sanctions Halt (BBG)
- Kremlin rules out handing back Crimea to Ukraine (Reuters)
- Saudi Arabia Needs More Oil to Feed Local Refinery Expansion (BBG)
- How Lafarge’s CEO Went From Holcim Merger Architect to Obstacle (BBG)
- When Yellen Gets Less Predictable She’s Getting Back to Normal (BBG)
- Iran nuclear talks intensify as sides face tough issues (Reuters)
- Debunking $1.4 Trillion Europe Debt Myth in Post-Heta Age (BBG)
"Ladies and gentlemen. A few weeks ago, in Riyadh, I was at a small, private function along with the British central bank governor, Mark Carney. Mr Carney asked me two questions. First, why did the oil price drop? And the second, where is the price heading? I will tell you today what I said to him then."
- Ibrahim Al-Muhanna, Advisor to the Minister of Petroleum and Mineral Resources for Saudi Arabia
The American Empire has been long in the making. A green light was given in 1990 to finalize that goal. Dramatic events occurred that year that allowed the promoters of the American Empire to cheer. It also ushered in the current 25-year war to solidify the power necessary to manage a world empire. The day will come when we will be forced to give up our role as world policeman and resort to using a little common sense and come home. This will only occur when the American people realize that our presence around the world and the maintenance of our empire has nothing to do with defending our Constitution, preserving our liberties, or fulfilling some imaginary obligation on our part to use force to spread American exceptionalism. A thorough look at our economic conditions, our pending bankruptcy, our veterans hospitals, and how we’re viewed in the world by most other nations, will compel Americans to see things differently and insist that we bring our troops home – the sooner the better.
There is a possibility of a nuclear deal being agreed between the P5 + 1 nations and Iran next Friday, 20th March. This may be the precursor for energy stocks to recouple to downside and for spending cuts to spread from capex to dividends for majors.
- Again as first reported here: Record U.S. Oil Glut May Fill Storage, Cut Prices (BBG)
- IEA sees renewed pressure on oil prices as glut worsens (Reuters)
- No EU unanimity on renewing Russia economic sanctions (Reuters)
- Tsipras says Greece doing its part in euro zone deal (Reuters)
- ECB Set to Buy Fewer Bonds as Price Gains Ease Crunch (BBG)
- These Americans Are Getting Rich Trading Derivatives Banned in the U.S. (BBG)
- U.S. 2015 profits forecast to grow 1.7 percent; oil, dollar are concerns (Reuters) - in a month this will say "decline"
- Manhunt for shooting suspects grinds on in Ferguson, Missouri (Reuters)
When things are this obviously crazy, anything is possible.
China now has the opportunity to take a dominant role in London, without having to direct its order flows through the fixing banks. Therefore, it is no exaggeration to say that from 20th March, China will be able to control the global physical gold market, which will permit her to manage the price. She has the deepest pockets, backed by the largest single stockpile.
We hope this letter enriches your knowledge...
Venezuela's Maduro Mocks Obama, Grants Himself "Special Powers" To Defend Against "Imperialist Aggression"Submitted by Tyler Durden on 03/10/2015 08:00 -0400
Perhaps because the soap-opera factor of the puppet proxy civil war in east Ukraine is dying down, it is time for another geopolitical diversion, and it appears that the administration's attention this time has fallen on Venezuela. Yesterday Obama issued and signed the executive order which declared Venezuela a national security threat and ordered sanctions against seven officials. Maduro had a prompt response: "President Barack Obama, representing the US imperialist elite, has personally decided to take on the task of defeating my government and intervening in Venezuela to control it,”and "I have put together a special law that gives me special powers to preserve the peace, the integrity and the sovereignty of the country before any situation that presents itself due to this imperialist aggression.”
- Dollar at 12-year peak versus euro, emerging markets spooked (Reuters)
- CIA sought to hack Apple iPhones from earliest days (Reuters)
- Draghi Urged Greece to Allow Troika Back Before It’s Late (BBG)
- Brent crude dips below $58 on strong dollar and supply (Reuters)
- Credit Suisse replaces CEO Dougan with Prudential's Thiam (Reuters)
- More "distressed" energy M&A: Verisk buys Wood Mackenzie for £1.85bn (FT)
- Prepare for a surge in defaults: Investors Are Buying Stocks and Bonds From Energy Producers Amid Oil Price Drop (WSJ)
- Private equity executive ordered to pay £72m to ex-wife (FT)
- Democratic donors unfazed by Hillary Clinton's use of private email (Reuters)
- Expensive Hepatitis C Medications Drive Prescription-Drug Spending (WSJ)
- 'ISIS Hackers' Almost Certainly Not ISIS Hackers (NBC)
As noted earlier, starting early with the overnight session there was already some serious fireworks in Asia, when first the USDJPY soared then tumbled, pushing the Nikkei lower some 0.7% with it, driven entirely by the surge in Dollar which rose to a fresh 12 year high overnight after gaining as much as 0.59%, in an extension of Friday’s post-NFP gains. Additionally, the EUR/USD slipped below 1.0800 to touch its lowest level since Sept’03 while USD/JPY rose above 122.00 for the first time since Jul’07, after breaching long-term resistance at 121.85. However, in recent trade the pair has seen a straight line sell-off which in turn has sent US equity futures sliding, and the ES down about 14 points as of this moment. Meanwhile, the frontrunning of the ECB continues, with German 10 Year yields sliding -3bps to 0.281%, the lowest in series history. Also touching fresh record lows were Austrian, Belgian, Dutch, Finnish, Irish, Italian, Spanish 10 Year rates.
That a handful of extraordinarily rich and powerful oligarchs as well as mega-corporations have completely hijacked the American political process is hardy news; but of all the commentary written about Netanyahu’s embarrassing political stunt in front of the U.S. Congress last week, the most important angle was largely overlooked. That is, it sort of represented a coming out party for the American oligarch from behind the curtain.
Anti-Netanyahu Protest Fills Streets Of Tel Aviv As Ex-Mossad Chief Calls His Congress Speech "Bullshit"Submitted by Tyler Durden on 03/07/2015 23:20 -0400
Following Benjamin Netanyahu's speech to the US Congress last week, Israel's former intelligence chief voiced his displeasure. As The Hill reports, Meir Dagan, a former Mossad director, strongly disagreed with many of Netanyahu’s assertions, stating that "Iranian missiles will never be able to hit the United States," and that comments that Iran could producer nuclear weapons within a year were "bullshit." But, as Mike Krieger notes below, it's not just just Dagan that is disappointed, a large protest against him erupted in the nation’s section largest city, Tel Aviv. It appears “Bibi” is far more popular with crazy American neocons than he is with his own fellow citizens.