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Markets and geopolitics: Upside down

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John Faraclas

John Faraclas

At 764 points the BDI’s (Baltic Dry Index) gained just eight points since yesterday thanks to the as ever volatile Capers making the world go round. Geopolitics and the energy jargon are the key issues, which if coupled with historical facts – as they should, greatly affect the markets; John Faraclas daily recap:

The Capers were up 43 points since the fall-out of yesterday (-163 points) and BCI 2014 now stands at 1,487 points; let’s see what happens next…

The Panamaxes continued their fall with minus four points and the BPI stood earlier on at 645…

The Supras too were down four and the BSI now reads 661 points.

Stagnation for yet another day for the Handies with the BHSI remaining at 415 points…

The Wets on the same modus: the BDTI (Dirties) up just a point at 549 and the BCTI (Cleans) at 389 – down seven with caution to be observed!

The price of WTI at 14:30 BST stands at US$ 43.73 – what’s up here, eh!

The shipfinance front, with the exemption of certain loan reconstructions, raises fears that same will apply only to the best performers and not to all; too much money available and binding covenants in the past spoiled the broth… err the markets. The “New Kids in the Block” syndrome will create soon havoc for both guys and   …dolls. It is a matter of days when we will hear some spectacular shipping companies’ groundings! I guess there should be an investigation on the bad loans, otherwise the good guys will continue to have problems. It is for these new kids in the block, the very up and ….coming “glitterati” that appeared during the last thirty years or so, that Planet Ocean is in a mess. There are exemptions, but these are extremely rare… This crisis will remain for as long as we allow some clever dicks to remain afloat – they always find the way to remain afloat, but the time has come…to go.

The World has plentiful of opportunities for all, given the 7,5 billion inhabitants on Planet Ocean, the nine plus billion tons of cargoes needs, the new technological strides in the newbuilding front for more double eco ships of all kinds, but there should be controls. We openly blame the Ship Finance sector and in particular the bankers who unwisely gave here and there money WITHOUT any proper risk assessment, the Shipbrokers and the Shipyards for the scam… though as we are sure and events will soon confirm, it will be sort lived (we mean their presence, as they will all vanish). Some gurus too have to be questioned for manipulating the markets and on purpose influenced the three categories mentioned above. In the coming weeks and months a lot will be revealed and we are awaiting too to see the messy companies end the damage they inflicted to the industry. Tough!

Our update now at 23:26 BST:

The Geopolitical front, marred with the despicable MIGRANTS issue, the Wars in the Middle East and basically in the unstable Gibraltar to Afghanistan – eastern Ukraine down to the Horn of Africa zone, the BREXIT… continues to influence the shipping markets; we will be as brief as possible:

The MIGRANTS continue with troubles in Bautzen in Germany and in the Greek islands of Lesvos and Chios in the eastern Aegean Sea. I guess the politicians cannot see the importance of solving the issue before it becomes a real war and the local social upturns can then… make “the difference”. Wonder who is going to pay the final damage. Too much blah blah from all;  s h a m e !!! In the meantime the influx of Migrants continue to Italy and to a lesser extend – for the time being, to the Greek islands in the eastern Aegean Sea…

In Syria, in zones excluded from the ceasefire, relentless air bombardment continued… Syria will go beyond Iraq, Libya and Afghanistan… with the Turkish factor annoying all in the region, particularly the Kurds, expect a very big mess.

The BREXIT saga continues and we all wait to see the next steps and when article 50 will be used. Lets see the first test in Bratislava…On another tone, Europe and the world have to respect the vote, the BREXIT vote and let’s see for whom the bells tool! If Europe doesn’t get its act together it will collapse! A great pity as next March is the 60th Anniversary of the Treaty of Rome…

In the meantime there are some great news following the go ahead of the British Government for the Hinkley Nuclear Power station – a UK, French and Chinese project under full British control. This deal in our view safeguards adequately the United Kingdom for many years to come!  A great energy savings project with many positive things to come.

GREXIT is what Greece needs as well as a full catharsis from the 42 years old scandals the so call transparent Greek Democratic Regimes created! Let somebody open the cupboards of Greece so all can see the skeletons lying there; the real issue is that others, non-Greeks  will end up behind the bars… Bribing and corruption was the name of the game to destroy Greece. Let’s expose all these guys and dolls! Can the Greek Justice as well as the European Justice system act impartially and swiftly, far from the madding crowd, and clear the situation? The Greek and European public shouldn’t pay the damage! We reiterate our position for the entire Greek parliament to step down and an Aristos Government, A SPECIALIST TEAM, to streamlines the country for ten years. If this doesn’t happen here and now, expect C H A O S  all over Europe, not to say all over Planet Ocean.

The Paralympics also bring into the light more scams… The Russians did not stay put and do their “best” in exposing others too following their athletes ban from the Games…

Hillary Clinton and Donald Trump continue their fight and the result is still a big guessing.

Germany and France must get their act together particularly on the issues for Europe’s shake they will raise prior to the general elections there.

People in the Far East, particularly in China must take care and be on guard with the Meranti Typhoon.

North Korea must ease down the tension in the region as there are too many who will strike, even on an pre-emptive modus…

That’s all for tonight; take care and be on guard for every eventuality. Have a nice evening


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