December Rate Hike – then what?
The December rate hike is now clearly going to happen. The Fed has been spelling this out in its messages to the market. Expectations are for a 0.25 to 0.5 hike. In all likelihood it will be 0.25. The big…
South Africa – A sign of things to come?
The monetary policy committee in South Africa raised rates by 0.25% last week amid fears of the coming US Fed rate rise in December. This has happened even though growth is expected to be about 1.5% next year and with…
Russian Geopolitics in Mediterranean
Russian geopolitics in the Mediterranean are wider than Syria. In our previous article, Syrian End Game, we discussed the reasons behind the recent Russian intervention in Syria. Essentially, the Russians need to protect their only naval base in the Mediterranean…
Anti-Austerity Forces in Portugal and Spain
Anti-austerity forces in Portugal and Spain represent a threat to Germany and European unity. Yesterday, the leftist alliance defeated legislation in parliament that resulted in the end of Prime Minister Coelho after years increased taxes and spending cuts. On the…
Oil Oversupply – How long will it last?
News of Oil stored on ships (floating storage) puts more downward pressure on oil prices in the short-term. In addition, onshore oil storage are at all times highs, Chinese demand has fallen plus the Saudi decision to keep pumping oil…
Copper Outlook
The slowdown in China combined with a stronger dollar have reduced the price of copper to its lowest rate in 6 years. Prices for the metal have declined over 20% for the year. Miners have been paring back investments to…
Greece and Europe: Disagreement on Foreclosure Protection
The latest in the Greek saga has delayed the latest 2 Billion Euro aid tranche and has put a hold on the 10 Billion Euros earmarked for recapitalizing the banks. The disagreement is on what level of foreclosure protection to…
Oil Outlook
The bad news for oil keeps piling on. Oil has fallen for three out of the last four weeks and the number of oil rigs in the US according to Baker Hughes keep falling – 10th straight week. Is there…
December FED Hike – what now?
Mixed signals keep on coming from the FED regarding a rate hike. More economists and market participants are now convinced of a December rate hike. Chances of a hike did go up thanks to the recent strong jobs report. However,…
Turkish Election: In-Depth Analysis
The AK Party (AKP) won parliamentary majority in the elections yesterday. With 316 seats out of 550 seats, it means that they do not need to form a coalition government and will be able to carry on as before. The…
