In today’s briefing:
- Dominant US Crude Production Has Transformed the Importance and Size of Strategic Petroleum Reserve
- Emerging Markets: Legs to the Korea case or time to cash in?
- China to Limit Steel Output as Prices Slide and Demand Falls
- Scandi Watch: More NOK Liquidity Coming, but with Positive FX Spot Effects?
- US Politics: Sticking With Joe (For Now?)
- CX Daily: Frugality bites for China’s cash-strapped local governments
Dominant US Crude Production Has Transformed the Importance and Size of Strategic Petroleum Reserve
- USA’s Strategic Petroleum Reserves (SPR) is currently at its lowest in 40 years. Should this be a source of concern? Perhaps not.
- USA is the world’s largest producer of crude oil. From being vulnerable to imported oil, US has become self-reliant.
- SPR expressed differently now, stands at 188 days of net imports compared to less than 100 days as was seen in the 1980s, 1990s, and early 2000s.
Emerging Markets: Legs to the Korea case or time to cash in?
- We see growth trending higher in the cyclical parts of the economy through April on our models and nowcasts, and Korean industries are well-positioned to capitalize on global cyclical tailwinds.
- Especially as Chinese economic activity picks up pace.
- The Caixin PMI suggests expansion, and given trade ties and scarcity of semis this should, all else equal, continue to boost Korean exports.
China to Limit Steel Output as Prices Slide and Demand Falls
- Chinese authorities are to limit steel production while pushing forward industrywide structural adjustments as steel mills suffer from growing losses amid sluggish demand.
- Several ministries led by the National Development and Reform Commission (NDRC) Wednesday said regulators will continue efforts to control crude steel production this year, focusing on energy conservation and carbon reduction.
- The authorities will foster industry strengths and weed out weak players to promote the structural adjustment and optimization of the steel industry.
Scandi Watch: More NOK Liquidity Coming, but with Positive FX Spot Effects?
- Norway is currently considering a set of financial proposals that could significantly impact its currency and overall money market landscape.
- These proposals revolve around the handling of dividends and interest from Norges Bank, Norway’s central bank, which could lead to notable changes in the liquidity within the Norwegian economy.
- The primary focus is on the current practice of sterilizing dividends and interest, a method that could soon see a shift, including how to handle the growing volatility and nominal size of the Treasury account.
US Politics: Sticking With Joe (For Now?)
- The US presidential election’s direction has become clearer in the recent three months.
- Despite the recent commentary leaning towards a Trump victory, it appears to be premature and not backed by facts.
- The author remains in support of Joe for the time being.
CX Daily: Frugality bites for China’s cash-strapped local governments
- Local / In Depth: Frugality bites for China’s cash-strapped local governments
- China-U.S. /: Xi and Biden talk by phone on bilateral cooperation and differences
- Trade /: Moscow closes auto export loophole that had been a boon to Chinese traders
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
