"In doing so China is effectively lobbing the first shot across the bow of the Petrodollar system, and more importantly, the key support of the USD in the international arena... setting the scene for the petroyuan."
Despite a very explicit warning by Goldman's co-head of equity trading that the "regime has changed" and that instead of "buying the dip", investors should be "selling-the-rip", so far this morning a global BTFD relief rally has been unleashed from Asia to Europe and the US as traders welcomed a rare respite from soaring volatility.
The "huge story", as Graticule's Adam Levinson called it, will, it appears, be a "wake up call" for the West that seems to happily be ignoring this potential bombshell that is China's looming launch of domestic oil futures trading.
Uber is no longer the world's most valuable startup and according to the WSJ's unicorn tracker, at a valuation of roughly $48 billion, Uber's is now below its Chinese ride-hailing competitor, Didi Chuxing.
" The era of the petro-yuan is at hand... Crucially, this is not about reducing currency risk... This is about the implementation of a huge, new alternative reserve currency zone, bypassing the US dollar..."