In this briefing:
- US LNG Price Economic Drivers in the Context of Low LNG and Tariffs
- Global Ex-U.S. Equity Strategy: Cautiously Optimistic Outlook Intact
- To China With Love From Russia
- EM Cross-Border Capital Inflows Collapse: Investor Turn ‘Risk-Off’
In the current environment of very low Asian LNG and European gas prices it is worth looking at whether US LNG economics still justify production or if there is the chance of shut-ins. We have analysed the various factors that influence the US LNG delivered price both on a full cycle cost basis and a variable cost basis.
Despite negative recent developments, we have remained steadfast in our belief that weakness in May has presented an attractive time to add exposure. In our June International Strategy, we highlight various themes which lead to this belief, along with areas of the market where we see actionable opportunities within our favorite Groups, spanning the Consumer Staples, Technology, Consumer Discretionary, Services, Health Care, and Financial Sectors.
Last week President Xi Jinping met President Vladimir Putin for the 29th time since 2013 and the second time in two months in St Petersburg. The growing relationship between China and Russia is a hugely important one. It has the potential to redefine global trade patterns and shift the global balance of economic and geopolitical power. Driven by need and by economics, this is relationship that is only set to grow and for that a big thanks goes to Mr Trump.
- Cross-border capital flows to Emerging Markets (ex China) plunge by US$75 billion in May 2019
- Flows into China buck this trend rising by US$10 billion
- Cross-border flows are sensitive to Chinese economic tempo and US dollar
- EM investors turn decisively ‘risk-off’ in positioning, but this is a future opportunity