Data-Driven Commodity Research, The Commodity Report

The Commodity Report

Data-Driven Commodity Research

A unique newsletter about commodities and macro analysis in a weekly format.

Commodities

<ul>
<li>Besides global growth concerns as Central Banks step up their battle against inflation, and China's zero-covid restrictions may stretch into 2023, it is quite clear what the main story was this week</li>
<li>Russia cut up to 60% of its gas flows to Germany. It will become very hard for Europe to get over the next winter if gas flows remain that low</li>
<li>Rate hiking cycles end when the Fed Funds target rate catches up to where the 2-year T-Note yield has already gone</li>
</ul>


Besides global growth concerns as Central Banks step up their battle against inflation, and China's zero-covid restrictions may stretch into 2023, it is quite clear what the main story was this week
Russia cut up to 60% of its gas flows to Germany. It will become very hard for Europe to get over the next winter if gas flows remain that low
Rate hiking cycles end when the Fed Funds target rate catches up to where the 2-year T-Note yield has already gone


The Commodity Report: CRB Commodity Index Ended the Week 5.1% Lower

Macroeconomic and Investing, The Macro Compass

Alfonso Peccatiello (Alf)

Macroeconomic and Investing

The Macro Compass

Actionable investment ideas and unique global macro insights. From the desk of a former Head of $20 bn Investment Portfolio straight to your inbox.

Actionable Investment Ideas

Macroeconomics

<ul>
<li>In the ‘80s, independent economist Yardeni coined the term ‘‘bond vigilantes’’ to refer to fixed income investors disciplining authorities for running inflationary fiscal and monetary policies and ultimately restoring order through the bond market.</li>
<li>In 2022, we are witnessing the first preliminary signs of the return of the global macro vigilantes</li>
<li>Amongst others, George Soros is an eminent member of this selected group of macro investors who challenge policymakers across countries and relentlessly chase regime-change narratives once they see a good opportunity</li>
</ul>


In the ‘80s, independent economist Yardeni coined the term ‘‘bond vigilantes’’ to refer to fixed income investors disciplining authorities for running inflationary fiscal and monetary policies and ultimately restoring order through the bond market.
In 2022, we are witnessing the first preliminary signs of the return of the global macro vigilantes
Amongst others, George Soros is an eminent member of this selected group of macro investors who challenge policymakers across countries and relentlessly chase regime-change narratives once they see a good opportunity


<ul><li>“We’re going to take some of that tariff money and give it to our farmers,” Trump said at the White House.</li><li>Agriculture Secretary Brooke Rollins has said the administration is weighing an aid program, opens new tab modeled after the approach taken by the previous Trump administration, when farmers were given billions to offset losses from a trade war with China.</li><li>Farmers are “for a little while going to be hurt, until it kicks in, the tariffs kick in to their benefit,” Trump said. “Ultimately, the farmers are going to be making a fortune,” he added.</li></ul>

“We’re going to take some of that tariff money and give it to our farmers,” Trump said at the White House.Agriculture Secretary Brooke Rollins has said the administration is weighing an aid program, opens new tab modeled after the approach taken by the previous Trump administration, when farmers were given billions to offset losses from a trade war with China.Farmers are “for a little while going to be hurt, until it kicks in, the tariffs kick in to their benefit,” Trump said. “Ultimately, the farmers are going to be making a fortune,” he added.

Has Copper found its Bottom? // Trump: Farmers will get Tariff-Money as Cashback?

<ul><li>During the week, Anglo American bought the Canadian copper miner Teck Resources - creating a $50 billion copper giant. The company will be rebranded to Anglo Teck.</li><li>With the deal, the company expects to give shareholders close to 70% copper exposure.</li><li>Anglo Teck will hold a portfolio of producing operations, including “six world-class copper assets, alongside high-quality premium iron ore and zinc businesses.” </li></ul>

During the week, Anglo American bought the Canadian copper miner Teck Resources - creating a $50 billion copper giant. The company will be rebranded to Anglo Teck.With the deal, the company expects to give shareholders close to 70% copper exposure.Anglo Teck will hold a portfolio of producing operations, including “six world-class copper assets, alongside high-quality premium iron ore and zinc businesses.” 

<ul><li>The story of the week was probably the 20% decline in COMEX copper futures during the week.</li><li>A short recap: The gloating voices would perhaps claim that the Trump administration has realized that the high tariffs on copper would significantly harm its own country in the current situation.</li><li>Copper prices collapsed by roughly 20% on Wednesday after President Trump announced that refined metals including copper cathodes will be exempt from the 50% tariff plans.</li></ul>

The story of the week was probably the 20% decline in COMEX copper futures during the week.A short recap: The gloating voices would perhaps claim that the Trump administration has realized that the high tariffs on copper would significantly harm its own country in the current situation.Copper prices collapsed by roughly 20% on Wednesday after President Trump announced that refined metals including copper cathodes will be exempt from the 50% tariff plans.

Copper Prices Collapse - But Hazelnut Prices Explode

United States

Copper is a chemical element with symbol Cu (from Latin: cuprum) and atomic number 29. It is a soft, malleable and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a reddish-orange color. It is used as a conductor of heat and electricity, as a building material and as a constituent of various metal alloys, such as Sterling silver used in jewelry, cupronickel used to make marine hardware and coins and constantan used in strain gauges and thermocouples for temperature measurement.

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Copper (COPPER COMDTY)

The Commodity Report: CRB Commodity Index Ended the Week 5.1% Lower

Besides global growth concerns as Central Banks step up their battle against inflation, and China's zero-covid restrictions may stretch into 2023,...

The Commodity Report

The Macro Vigilantes Are Waking Up

‘‘We're in a brave new world of excesses in fiscal and monetary policy, and that's where the bond vigilantes thrive’’ Ed Yardeni In the ‘80s,...

Alfonso Peccatiello (Alf)

Has Copper found its Bottom? // Trump: Farmers will get Tariff-Money as Cashback?

Farmers are “for a little while going to be hurt, until it kicks in, the tariffs kick in to their benefit,” Trump said. “Ultimately, the farmers...

The Commodity Report

Major Merger in the Copper Industry

During the week, Anglo American bought the Canadian copper miner Teck Resources - creating a $50 billion copper giant. The company will be...

The Commodity Report

Copper Prices Collapse - But Hazelnut Prices Explode

Copper prices collapsed by roughly 20% on Wednesday after President Trump announced that refined metals including copper cathodes will be exempt...

The Commodity Report

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