Thursday, November 03, 2016

Today's Headlines

  • China May Be Set for a Shock Fall in Foreign-Exchange Reserves. Brace yourself. Beijing was embroiled in a spate of frenzied dollar-selling last month as capital outflows and a depreciating yuan saw foreign-exchange reserves tumble by $80 billion, resuming 2015's sharp declines in the country's monetary war chest after a period of relative stability between February and September this year. 
  • European Shares Close Unchanged After Worst Losing Run Since ’14. (video) European stocks suffered a late selloff but still manged to halt their longest losing streak in two years amid some better-than-expected earnings from the region’s banks, and as a U.K. ruling sparked optimism the nation’s split from the European Union won’t be as harsh as feared. The Stoxx Europe 600 Index closed virtually unchanged. The equity gauge earlier rose as much as 0.8 percent after judges decided the U.K. has to hold a vote in Parliament before starting the two-year countdown to Brexit, a decision that the government said it will appeal. Shares pared gains after data showed orders for U.S. business equipment fell in September by the most in seven months, and service industries expanded less than projected.
  • Prepare for the North Sea Oil Flood. Oil producers in the North Sea, home to one of the world’s key crude-price benchmarks, are poised to ship the most crude in more than four years. The surge takes place just as OPEC tries to contain a global surplus with coordinated output cuts. Shipments of North Sea grades will increase 10 percent month-on-month to about 2.16 million barrels a day in December, according to data compiled by Bloomberg. If all the cargoes load as planned it would mark the most crude oil shipments from the region since May 2012. The increase just from September, when there was field maintenance, would be almost 360,000 barrels a day. The surge poses yet another challenge to the Organization of Petroleum Exporting Countries as it seeks to curb production to steady markets in a world with plenty of oil
  • Kurds Reveal Oil Data as Iraq Output Row Threatens OPEC Deal. Iraq’s Kurds say their oil production in September was 290,000 barrels a day lower than the federal government’s figures for the semi-autonomous region, as OPEC’s second-biggest member tries to resolve accounting differences with the producer group over its output. Iraq’s central government says its crude oil output is several hundred thousand barrels a day higher than market analysts and the Organization of Petroleum Exporting Countries acknowledge. It published a rare breakdown of its September production data this week to support its figures. The disagreement over the figures, which would determine the size of any cuts by OPEC members, threatens to derail talks to limit the group’s output.
  • Trump Gives Betting Markets That Brexit Feeling.
Wall Street Journal:
Zero Hedge:
China Business News:
  • China GDP Growth May Slow to 6.6% in 4Q, Researcher Says. GDP growth may slow due to property controls, citing Zhu Baoliang, researcher at State Information Center backed by NDRC.

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