With the BDI@631 brace for the inevitable or…

Comment, Markets, Shipping Indices, Statistics, Stock Markets — By on May 6, 2016 at 3:12 PM
John Faraclas

John Faraclas

Another week of substantial market blues… John Faraclas’ weekly recapitulation of the Markets and Geopolitics:

The BDI was down 11 points at 631, down 72 from last week’s 703 points, alerting all stakeholders!

The Capers lost 23 points since yesterday and the respective BCI 2014 stood at 982 points breaking the threshold of the 900 points too. Overall the BCI lost 225 points since last Friday’s 1, 117 points…

The Panamaxes were down too – 16 points, with the BPI standing at 591; 56 points down since last week’s 667 points. Even the most promising of all sizes went down…

The Supras and Handies were down too; The BSI lost four points, now standing at 578 and the BHSI lost six, now standing at 359. Overall the loss was four and eight points respectively from last week’s 582 and 367 points.

So all the dry market heads down, but hope for a correction although it will be immaterial given the bankruptcies looming in the background  – both in private and listed companies. Very messy situation….

The Wets were heading down with the last published BDTI and BCTI standing at 713 (minus three) and 519 (minus one) points respectively. Overall since last Friday the 29th of Aril, the losses were minus 27 for the Dirties and 33 for the Cleans.

The price of oil look falling a bit but later on tonight we shall see were the WTI stands – above the US$ 43 or below…

Technology might save the wolrd’s ailing shipbuilding industry; something to look forward to!

Despite all these happenings, we still maintain the view that this is the best buyers’ market ever experienced; both for newbuildings and sehond hand tonnage!

The Geopolitical front  gets worse:

The Migrants issue continues with rising numbers, particularly in Greece when all developments were pointing to a reduced figure, same now is very close to 55, 000;  s h a m e! No excuses at all! The current Greek Government has failed on all counts on this issue.

The approaching summer, as we have already mentioned, increases the number of attempts, successful or not for thousands of migrants to cross over to the Greek Islands (Europe) and to Italy as well as Malta and to a lesser extent to Spain (all three being also European countries). It will take at least five years – optimistically thinking to end this despicable situation, even if tomorrow morning all is peaceful settled in Syria and elsewhere. If the Greek Government  has failed as mentioned above, the European Union has failed s p e c t a c u l a r l y  on this issue and continues to be subjected to Turkish blackmail tactics. Turkey must reason as if not, it will cause a wider trouble, not just in the East Med and in particular in the Aegean Sea, but beyond…  See the Turkish behaviour over Northern Iraq – otherwise called Kurdistan…  Writing about Turkey, as we mentioned in our past reportings, we eagerly wait to see the consequences for Turkey and Europe on the Davutoglou issue… Turkey’s behaviour is not fitting the European Idea…

Greece is once again back to square one; the current Greek coalition government will make the country slide to more than anarchy, if its members and ideology do not behave and correlate according to the real circumstances and the real world we live in. The opposition too must stop its rhetoric. Greece needs an Aristos Government so to speak, to get out of this mess that all parties post 1974 have contributed to the Greek peoples destruction on all fronts; figures, developments and results speak for themselves. The coming weekend, days and weeks ahead will be very crucial. Be on guard and we advise caution! Did I hear you say GREXIT – either way it will be an interesting period until Christmas to see despicable developments taking place!

The BREXIT factor still is on the cards. One has to be just on what is in favour of the United Kingdom and what is not. As have in previous articles mention, Brussels must get its act together!  The latest elections in the United Kingdom were very decisive. Let’s see what the new London Mayor can do to alter the situation to the benefit of all. No excuses from the Conservatives although this is not a national election issue – and it doesn’t influence same either!

The rest of Europe is unease with what is going on both in the South as well as in the East were president Putin of Russia continues to pursue his own agenda! Caution there too. Japan’s Abe visit in the Black Sea was an issue for the West…

In the USA, Donald Trump makes waves but, repeat but, things are changing every single second. A breath-taking campaign. Hillary Clinton has to work hard to beat Trump in the final race… An election very important for humanity!

In neighbouring Canada the forest fires continue…

In the Far East, North Korea nuclear capability will be used only as the final means to defend itself… A messy country…

Next door in China they go bananas…

Australian public should use SHEX and FHEX on the sex toys designs… What …an issue to mar education too…

Dilma Rousseff will fight back; can she win though! Brazil faces a total collapse and its people must do their best given the coming Olympic Games; otherwise…

Be on guard as things might get sour sooner than expected.

Once again, despite all these happenings, this is the best market to enter the industry or if you have cash available to improve your position, despite many going under every day! Having said that, we expect major investigations to take place given the bankruptcies and wrong doings within banks for the wrong risk assessments!

Have a nice weekend.

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