John Faraclas
The BDI (Baltic Dry Index) moves …upwards, but world politics and economy, due to the BREXIT effects, turns sour for all; John Faraclas’ daily market and geopolitics recap:
With seven points plus the BDI closed up at 616 points and on …reflection* the Capers’ BCI at 919 points – up six since last Friday’s closing.
The Panamaxes on a double figure plus – 16 points plus and the BPI stood at 601; a bit of a boost following the opening of the improved size-wise locks in Panama Canal yesterday!
The Supras’ BSI gained four points – now standing at 587 and the Handies’ BHSI stood at 331 points – up two.
So all in all a slightly better dry market (in comparison with the one few months ago – steady too), but will this continue and make it a sustainable market focusing in going over and above the 2, 000 points so the business of shipping makes sense and there are small but real returns?
The Wets too on a plus modus; the last published BDTI and BCTI gained one and eleven points respectively now reading 714 and 453 points.
The price of WTI oil losing a couple of dollars – now reading just below the US$ 47 mark… Caution!
Once again we stand-by our business and market beliefs: This is the best market to acquire tonnage, particularly contract newbuildings! Our view becomes stronger irrespective of BREXIT’s effects. remind you what we have kept saying over the last two years now: need to see the BDI above the 2, 000 points!!!!
Geopolitics coupled with the explosive BREXIT effect creates havoc e v e r y w h e r e. Was there a hidden agenda? A miscalculation? A real interest to save the United Kingdom? And what about the Scottish objection? The Scotts declared their open objection to follow England and Wales in leaving the European Union! The Londoners Objection? Over three millions signatures for a Referendum for Londoners etc etc….Ah! And the Northern Ireland one …”interwoven” with those of the Irish Republic as we heard statements from respective politicians? Was it a fast one from within to destroy the United Kingdom assisted by “outsiders” and “by-standers”? How did pre-election BREXITERs’ damn lies affect the result and what will the consequences be? What went “wrong” in Europe triggering this referendum by a prime minister fully supporting The United Kingdom’s membership in the European Union? Why not implement here and now Article 50? To what extend its delaying boils down the urgent issues involved? And how about the disarray in the second largest party, the Labour Party to the brink of even being destroyed… You might think that we exaggerate, we don’t! And what about the credit agencies degrading the United Kingdom? I guess this is a set up. This is a high level degrade; something is…wrong!!! Add the abuse on some ethnic minorities and see what you make on all this events triggered by an unnecessary Referendum. Moreover the other side of the Atlantic confirmed the special relationship sighting four main and valid issues. The Stock Markets on a down fall modus except Tokyo, but tomorrow might be another day there too… We shall see. What a complicated situation. Indeed we live in interesting times! One needs statesmanship and high quality negotiating skills to go successfully through, give and take. The Europeans need the truth of what is happening. Caution for the Pound too hitting a record low after 31 years!!!! What’s your eaction when all expcted a GREXIT and a BREXIT “got” …”there” first???
“We will rock you” becomes music to the ears of all… CAUTION as the situation if not contained, can be more than explosive to all intents and purposes!
Shipping looks for the time being unaffected and pragmatically speaking should remain unaffected!
Elsewhere the Syrian, Iraqi, Libyan saga continues with the Migrants issue and the ISIS mess still on, unfortunately. Amid all this, a re-approachment between Israel and Turkey!
The ill-fated EgyptAir case continues and it won’t be long the world finds out what really happened!
In China the BREXIT effect is beginning to affect the world’s most populous nation! Chinese are wondering what will happen!
Have a nice evening and be on guard for whatever this shocking Referendum’s result still holds!
*6I6 / 9I9 or
616
919 unique coincidental reflections…by some of Batic’s Indices…
