Home Markets The BDI@645 fuels further uncertainty

The BDI@645 fuels further uncertainty

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John Faraclas

John Faraclas

The BDI (Baltic Dry Index) closed down just five points earlier today at 645 and there is, from a great number of analysts, an air of optimism that things might change to the better; we believe the extreme opposite. Things will go worse as there are very few owners with good balance sheets – listed or unlisted, as well as there is lack of finance available from the money …providers…  Above all Geopolitics is in a total mess… John Faraclas’ Daily Market and Geopolitics report:

  • The Capers’ BCI 2014 remained the same at 757 and that’s according to analysts a good sign… Well, yes, figure-wise because the harsh reality -with further bankruptcies looming in the background, is totally different…
  • The Panamaxes, our favourite size and its respective BPI lost 15 points, now reading 658 – tough!
  • The Supras’ BSI lost just four points and now stands at 663!
  • Even the BHSI lost one point after climbing slowly but steadily up to 401 points– now at flat 400 ponders for further ups and downs…

The issue with the availability of  dry cargoes – the way same is “served” in various reports, if you analyse same proves that the markets have lost steam and it will be difficult to see again credit lines open, thanks to the bankrupt banking system and ultra-Mafioso-style financial scandals!

  • The Wets were also on a downfall; the last published BDTI and BCTI stood at 532 (minus nine) and 462 (minus three) respectively.
  • Caution as the WTI as these lines are being written went below the US$ 40 mark at US$ 39,59 – sign of questioning what OPEC and Non- OPEC attitude will be…

Taking all the above into account as well as the current Geopolitics, which follow here below, indeed it is a good market, the best  ever buyers’ market as we have ever seen before and over a year now we stress:  to buy ships and contract new ones, but there are some clever dicks which continue to play an unethical game and it is about time one questions the motives, alliances and accomplishes of few owners around; if not, the banks and their financiers should not complain, nor those who buy papers, junk in my humble view… These shipping business hooligans will try to call a fast one on us yet again– their greediness knows no frontiers, no limits…

The Geopolitics as said above is turning nasty:

For a start given the Migrants situation, the number one issue, Turkey is now, per major media writings, blackmailing Europe and the World at large. Basta, enough. Curb Turkey before it is too late. There are many other lemon trees producing fine lemons AND limes… Turkey will lead the world to the Fourth World War, not just to WWIII that we strongly believe is already on. We will continue our constructive criticism, as the real West is completely blindfolded following threats of strange contents by Turkish leaders – Erdogan is NOT on his own, remember this. The real West must remember its mistakes of the 1900-1925 period in the region! The Eastern Problem is re-surfacing. Greeks this time will behave in an uprecendented way if their freedom is in danger. Forget the Greek politicians; this is a very serious issue and seeing the way consecutive Greek Governments have tackled since 1925 these issues, enough is enough. Dignity has no price.

As in previous reporting we urge responsible politicians who haven’t as yet lost their dignity, to see what happens from Gibraltar right across to Afghanistan and from Eastern Ukraine down to the Horn of Africa; a zone which can produce even 8 to 9 of the Richter War scale geopolitical tectonic shake-ups! Religion cover up with Islam will turn the world to a graveyard. We care as ships sail around these particular regions where the world’s most important dire straits are and the seafarers are not chips to bargain with.

See how Syria has become, who can stare / face Allepo completely flatten?  Why on earth we have to pay diplomats when everything is being shorted out on the warring platoo…?  Shame!

Today in France the funeral of the assassinated in the worst cold blood case priest took place. We hope never ever to witness such an action from those who still believe in Islam; that was too much!

Today we notice that the Western world is alarmed from further possible attacks by Islamist terrorists.  Berlin, Brussels, London, Madrid, Paris to name but a few major Western European capitals are under threat and in high alert!  Airports, Ports and Terminals, shopping centres, entire cities live with this fear; no fear please, just be vigilant!  President Erdogan of Turkey feels that the German society and system is biased for not allowing his speech to be transmitted/ aired in the way he wanted. He also believes that there is a biased case against his son and his armed bodyguards in Italy, but thanks to prime minister Matteo Renzi who served him with the appropriate reply.

BREXIT begins to make waves, and all things being equal, the United Kingdom is on a good course. The United Kingdom opted to minimise its losses from the German run Brussels bureaucrats. It seems to me that other European Union members will follow the British Example. Just remember: the Commonwealth stands for 1,6 billion people! On another note, we warn of a possible major problem with the property market in the entire United Kingdom. House prices exceed any logic whatsoever and many believe, that despite a dive in house prices, same should be 50 centum of what is announced today. That will cause bankrupty, but…

GREXIT must be the focal point for the Greeks who have been strangulated like no other nation in modern times from Germany and the Brussels bureaucrats. Above all, let Mrs. Merkel clear her Augean Stables; she should also understand that time is now running out for her and the Greeks – not their political masters,  will soon decide to turn the scales… She must go back to the drawing board and read again the Labors of Hercules… The Muppet Show of Athens soon will come to an end!

South Sudan faces a major crisis –  a catastrophe so to speak, with shifting of the population creating yet another Migrants issue! Caution.

Too many scandals all over the African continent!

On the other side of the Atlantic the American People are watching new ethics and are learning a lot from Mr. Trump’s political manners. We are going to witness a very strange and unpredictable race with an unclear winner as things stand now, unless the American people realise between the two evils which ones is less evil and that’s only Mrs. Hillary Clinton.- Again we would like to ask her here and now to tell us with her experience, as former head of the State Department, what will happen in the entire Middle East and its periphery. What is her policy? No more Iraq, Iran, Libya and Syria style of War, as this will backfire against all of us from the Wrath of Islamist terrorists, whilst there is a way to halt them, we should do it while we can – remember this Mrs. Clinton! Obama’s statement about Trump being unfit to become a president is very shocking as we wait to see Trump’s reaction… Expect everything from Mr. Trump!

Abenomiscs to the fore in Japan and let’s see how the economy counters there as China might enter in recession and South Korea too. With North Korea on an aggressive mood – thanks to its Chinese backers – who lately,  behave as third class trimmers… China must also respect the International Law and its ruling about the South China Sea!

Besides the Religious issues, the Energy ones will continued to make the world more than dangerous and unstable. The latest EIRA Newsletter might give you some replies… Imagine if we opt for the alternative sources of energy and big money change hands… Have you ever imagine what is going to happen?

Did I hear you say HIV and AIDS?  The problem still remains and silencing same proved bad. Now it resurfaces giving a further shock around. And what about ZIKA?  Caution there too!

That’s all for now, take care and be on guard!

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