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U.S CPI 3y highs, FI weaker, JGB 10y yields highest since '97 / Air Force filled with top CEOs meeting Xi tomorrow

  • sc0172
  • 12 minutes ago
  • 4 min read

  • Iran update : ALL aboard....including Jensen!...Trump on Iran: We're not going to rush anything. "We don't have to rush anything. We have a blockade which allows them no money. It's a very simple thing: we cannot let them have a nuclear weapon — because they'd use it." >>> CHINA will push for Trump to take a deal with Iran (China could guaranty nuclear material removal, 10y pause etc, lifting sanctions, and Iran open the Strait (with charges?)... And Trump wants rare earth, techs etc and many other things with all his CEO's present (see list below, mindboggling..BUT no China political experts..) >>> On the eve of the Xi-Trump summit, the People’s Daily published a commentary titled: “China-US Relations Cannot Return to the Past, but They Can Embrace a Better Future.”...

  • Markets : We are two weeks from oil shortages and demand rationing according to BBG, US House Lawmakers are introducing a bill to ban Chinese vehicles in the US. (just ahead of meeting Xi tomorrow, great idea..), UK political storm, US Treasury Secretary Bessent: The strength of the Japanese economy (NIKKEI..?..)will be reflected in the FX rate, 10y JGB yields 2.58% highest for 25+ years (pushing other yields in Asia EMG higher, and their currencies weaker... >>> soonest Jensen was confirmed going to China, QQQ bounced off lows pretty easily yesterday!, there are reports that China is now selling high-performance solar panels (which use silver) at higher prices, up around 30%!, U.S CPI highest in 3 years (10's UST 4.46% again.. ALL FI softer-yields higher..)...and Crude is still over $100

  • Indian government warns country only has 60 days of crude oil reserves left

  • China completes installation of world’s largest single-rotor floating wind turbine, now this is fabulous, you can literally float it where you need it along the sea.., no land use etc etc sounds great and friendly on the environment

  • Steve Rosenberg : “Something rather unusual is happening right now inside Russia.”

  • Chicago Board of Trade wheat and K.C. wheat futures climbed by their daily trading limits on Tuesday after the U.S. Department of Agriculture projected the nation's harvest will drop to the lowest level since 1972 >>> #inflation




On the eve of the Trump-Xi summit, some interesting activity in the Strait of Hormuz, with a Chinese-linked oil tanker making the crossing (via the Iranian new lanes). If the Yuan Hua Hu VLCC completes the crossing (she has gone dark now), it would be the 3rd Chinese oil tanker to make it through since the war started. The tanker carries 2m barrels of Iraqi oil.


This is absolutely insane. President Trump is currently flying to China with all of the following people to request "deals" with China's President Xi:

1. Elon Musk, Tesla and SpaceX CEO

2. Jensen Huang, Nvidia CEO

3. Tim Cook, Apple CEO

4. Larry Fink, BlackRock CEO

5. Stephen Schwarzman, Blackstone CEO

6. Kelly Ortberg, Boeing CEO

7. Brian Sikes, Cargill CEO

8. Jane Fraser, Citigroup CEO

9. Larry Culp, General Electric CEO

10. David Solomon, Goldman Sachs CEO

11. Sanjay Mehrotra, Micron CEO

12. Cristiano Amon, Qualcomm CEO President >>>>>

Trump also says there are "many other" CEOs joining him on the trip who have not yet been disclosed. Never in history has such a trip even remotely near this scale and caliber occurred. This Trump-Xi meeting is far bigger than most realize.






STRAIT CLOSURE SHOCK LIMITED: GOLDMAN SEES ONLY MODERATE GLOBAL DAMAGE Goldman Sachs says the 10-week Strait of Hormuz closure has caused only moderate global economic disruption so far. Chief economist Jan Hatzius cites three key reasons: oil prices didn’t spike as feared due to high inventories and policy expectations; fuel shortages were eased by demand shifts like renewables and reduced travel; and strong fiscal support, the AI boom, and easy financial conditions helped cushion the impact. Goldman expects oil to stay stable near term, with Brent potentially easing toward $90 by year-end under a gradual reopening scenario. The bank slightly lowered U.S. recession risk to 25%, but warns risks remain elevated due to weakening consumer support, higher energy costs, slower wage growth, and low savings levels.


JP Morgan on oil prices/Strait of Hormuz: "A core assumption of our framework is that the accelerating pace of oil inventory depletion will ultimately force the reopening of the Strait of Hormuz, one way or another. Our base case envisions the Strait reopens in June—anchored on June 1 for simplicity—following a clear and credible announcement ratified and confirmed by both sides, such as a statement from the UN Security Council."









 
 
 

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