David Fuller and Eoin Treacy's Comment of the Day
Category - General

    Taiwan suspects Chinese ships cut islands' internet cables

    This article from AP may be of interest to subscribers. Here is a section: 

    The cables had been cut a total of 27 times in the past five years, but it was unclear which country the vessels hailed from, based on data from Chunghwa Telecom.

    Taiwan’s coast guard gave chase to the fishing vessel that cut the first cable on Feb. 2, but it went back to Chinese waters, according to an official who was briefed on the incident and was not authorized to discuss the matter publicly. Authorities found two Chinese ships in the area where the cables were cut, based on automated identification system data, similar to GPS, which shows a vessel’s location.

    “We can’t rule out that China destroyed these on purpose,” said Su Tzu-yun, a defense expert at the government think tank, Institute for National Defense and Security Research, citing research that only China and Russia had the technical capabilities to do this. “Taiwan needs to invest more resources in repairing and protecting the cables.”

    Read entire article

    US probes Tesla Autopilot, steering wheels that can come off

    This article from AP may be of interest. Here is a section: 

    U.S. safety regulators are turning up the heat on Tesla, announcing investigations into steering wheels coming off some SUVs and a fatal crash involving a Tesla suspected of using an automated driving system when it ran into a parked firetruck in California.

    The National Highway Traffic Safety Administration said Wednesday it is launching a special crash-investigation team to probe the Feb. 18 crash involving a Tesla Model S and a ladder truck from the Contra Costa County fire department.

    The firetruck probe is part of a larger investigation by the agency into multiple instances of Teslas using the automaker’s Autopilot system crashing into parked emergency vehicles that are tending to other crashes. NHTSA has become more aggressive in pursuing safety problems with Teslas in the past year, announcing multiple recalls and investigations.

    Read entire article

    Email of the day on long-term electricity prices

    Hope the family is fine and that by now you are fully accustomed to your new home in Texas, away from wokist California! My son is contemplating a renewable energy venture and is wondering about MWh price for selling forward electricity production (production facility based in Luxembourg) up to 15 years. There are so many exchanges (EEX, ICE, ASX, CME, NASDAQ, etc.) type of contracts (country, peak and base) that I am somewhat lost, this not being my area of expertise. From what I read they are rather short dated (I saw an EEX 2026 for German electricity and I am unsure about spreads and liquidity). What would advise based on the above?

    Read entire article

    Brazil May Speed Up Rate Cut as Credit Worsens: Ex-BCB Director

    This article from Bloomberg may be of interest. Here it is in full: 

    Brazil’s worsening credit outlook amid troubles facing local retailer Americanas SA raises the risk of a recession that could lead its central bank to change its balance of risks at the upcoming interest rate decision on March 21 and 22, Tony Volpon, a former director at the bank, said in an interview.

    “At the very least, the central bank committee should change the balance of risks at the next meeting, which would be a signal to start cutting its rate in May”

    NOTE: BCB said in the statement of Feb. 1 meeting, which maintained the Selic rate at 13.75%, that the risks to its inflationary scenarios remain in both directions, upside and downside

    According to Volpon, high interest rates and worsening of credit in the midst of the Americanas case may reduce investment and increase the risk of a drop in economic growth

    “If the BCB does nothing, it is almost certain that there will be a recession”

    Volpon had written earlier on Twitter that “almost every recession needs a ‘snap’ and the Americanas case and the collapse of the credit market already set up an exogenous shock that, left unanswered, should lead to a recession”

    Basic scenario is interest rate cuts starting in May, but BCB could cut it later this month if credit data show a more serious deterioration, says the former director

    According to him, part of the market could react badly to an eventual Selic cut, which would lead to a greater rate curve steepening, but this would not prevent the positive effect of monetary relief on the economy

    Possible negative investor reaction to an early interest rate cut could also be mitigated with announcement of the new fiscal framework, says Volpon

    Read entire article

    Wheat Swings as Traders Weigh Ukraine Talks and Supply Outlook

    This article may be of interest. Here is a section: 

    Wheat futures in Chicago fluctuated just below $7 a bushel as traders assess progress in negotiations to renew the Ukrainian grain export deal through the Black Sea, along with global supply prospects. 

    The food staple traded at $6.9675 a bushel, about half the level a year ago when the price hit a record on a supply crunch after the Russian invasion of Ukraine. UN Secretary-General Antonio Guterres is set to meet with Ukrainian President Volodymyr Zelenskiy on Wednesday in Kyiv to discuss the continuation of the Black Sea agreement.

     A wave of Russian wheat cargoes has pushed down global prices in recent weeks to around the lowest level since September 2021. Still, the US winter wheat crop has been suffering from dry weather and shipments from Australia, currently the world’s second-biggest exporter, may tumble 20% in the next financial year as the climate turns drier after three wet years.

    Read entire article

    Powell Opens Door to Bigger Rate Hike, Says Peak Likely Higher

    This article from Bloomberg may be of interest. Here is a section: 

    “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Powell told the Senate Banking Committee. “If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.” 

    Read entire article

    Perth Mint sold diluted gold to China, got caught, and tried to cover it up

    This article for ABC News May be of interest to subscribers. Here is a section: 

    The historic Perth Mint is facing a potential $9 billion recall of gold bars after selling diluted or "doped" bullion to China and then covering it up, according to a leaked internal report.

    Four Corners has uncovered documents charting the WA government-owned mint's decision to begin "doping" its gold in 2018, and then how it withheld evidence from its largest client in an effort to protect its reputation.

    While the gold remained above broader industry standards, the report estimated up to 100 tonnes of gold sent to Shanghai Gold Exchange (SGE) potentially did not comply with Shanghai's strict purity standards for silver content.

    One Perth Mint insider, who asked not to be named as they could face five years' jail if their identity is revealed, says it is a "scandal of the highest level".

    "I don't know if I've ever seen one this big," they say.

    The mint is the largest processor of newly mined gold in the world, one of Perth's top tourist attractions and well known for producing commemorative coins to mark everything from royal weddings to a new James Bond film.

    Last year alone it sold $20.3 billion in gold. It is the only mint in the world that has a government guarantee.

    Read entire article

    Email of the day on carbon emission trading

    you are showing charts and talking a lot about carbon emission certificates in the EU. (MO2 generic future on Bloomberg). is there any tradeable or investable instrument out there? tkx a lot!

    Read entire article