European gas prices - TTF risk UP / Brent $105 / Saudi risk!, Houthis take strategic city of Mokha / U.S CPI next 4.95% 10's
NatGas : Europe needs to buy incremental LNG and pipeline gas at the same time as it competes with Asian buyers. Storage is roughly 67% full, versus a seasonal norm near 83%, so purchasers have less time and less flexibility to wait for cheaper cargoes >>> chart here EU Natural Gas - Price - Chart - Historical Data - News >>> Higher prices are in fact the market mechanism needed to attract LNG cargoes to Europe rather than Asia. Equinor has said Germany should be able to secure adequate gas, but at high prices; TTF front-month prices have already reached their highest level since January 2023... higher prices, risk premium in European gas—particularly TTF winter contracts—until storage targets look secure or global LNG availability improves, Europeans are paying about 12x what Americans pay for NatGas... read that again...
Iran and Gulf states to meet in push for Hormuz deal | Regional states hope temporary shipping agreement between Iran and Oman can offer a pathway to ease hostilities and reopen the strait, after...Iran-aligned Houthis seized control of Yemen's port city of Mocha and advanced down the Red Sea coast to strategic islands, military sources said, hours after President Trump said he expected the Iran war to end after the U.S. midterm elections. (Reuters) => Brent Oil Trades Near $107 as Houthi-Saudi Fighting Escalates, Saudi Arabia finds itself in an exceptionally serious (weak) position
Markets : 10's to 4.95% this week in anticipation of U.S CPI today, FED Sep hike now 70% priced in (and 2 more thereafter - seems enough ?), USD not really higher on higher rates #debasement risk , Microsoft Corp. plans to more than triple its data center capacity, equity markets slightly softer on mainly higher oil, to be honest fixed income following Crude which has rallied hard these last 2 weeks, the Houthis taking complete control of Mokha IS a BIG issue for the U.S and the world, global bond sell-off continues overall this week, not just a U.S thing.., ECB hiked as expected, more to come, next up BoJ to hike and stay hawkish (important for JPY), SPX500 tested 50dma yesterday, back above this morning ahead of CPI, strong UK GDP #GBPCHF grinds higher still...
AI may become the third superpower. The threat to mankind is real, and Trump and Xi need to develop a shared strategy to confront it, writes Paul Tudor Jones, FWIW, I'm with PTJ on this one !
Bessent says ‘a large bank’ will be sanctioned on Monday as part of Iran strategy
The yen’s sharp rally could reverse toward the upper 150s per dollar if expectations for faster Bank of Japan rate hikes and a shift by pension funds toward domestic assets fail to materialize, according to Barclays
Trump said 'NO'..
Strategic in the Red Sea..
Saudi Arabia finds itself in an exceptionally serious position.
Following the latest strike on the Abqaiq–Yanbu pipeline—which had reportedly become the last remaining route for oil exports after the blockade of the Strait of Hormuz—Saudi oil exports have effectively come to a halt.
The situation is further aggravated by reports that Riyadh has applied for a substantial World Bank loan amid mounting economic pressures.
The Houthis’ control of the Bab al-Mandab Strait would represent another major setback for Saudi Arabia, particularly as around half of its vessels were already reportedly facing attacks or blockages.
It is difficult to see how the Saudis will extricate themselves from the crisis into which they have placed themselves.
Amongst all the doom and gloom that is in the UK.....GBPCHF quietly pops its head above 1.10...
The US dollar is approaching one of its most consequential technical tests in years.
The solution is not more government, monetization, intervention, or more taxes on productive capital. The answer is credible spending cuts, lower structural deficits, stronger incentives for private investment, and reforms that eliminate regulatory burdens and lift productivity as well as economic growth. If nothing changes, U.S. debt will continue to tighten global financial conditions, but the euro area may still be the place where the next sovereign crisis erupts.
Michael Pettis on X: "1/2 Caixin: "China defended its large current-account surplus, saying the funds generated by its export strength are recycled into overseas investments that support industries and financial markets abroad." https://t.co/kwMVJozteJ" / X
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