The BDI losing steam; geopolitics a must to watch!

Markets, Shipping Indices — By on July 11, 2016 at 11:55 PM
John Faraclas

John Faraclas

With the BDI at 704 – just a point plus and crucial geopolitical issues taking place,  John Faraclas daily recap warns for caution!

The Capers lost another 11 points as well as the 1, 000 points base and now at 991 the BCI 2014 is once again in tatters!

The Panamaxes continued the upwards trend with seven points plus at 799, but still far beyond the levels anticipating optimism.

The Supras’ BSI at 651 – plus four and the Handis’ BHSI at 356 – plus two, complete a dry market losing its steam!

The Wets continued to drop; the last published BDTI (Dirties) and BCTI (Cleans) were a bit …nasty – 666 for the Dirties, down three and the Cleans remained at the same level since last Friday the 8th of July at 437.

The price of WTI dropping below the US$ 45 – now at US$ 44.54! CAUTION!

The Containerships will enter a period of uncertainty as the World Economic Crunch begins to bite!

The Shipfinance front remains interesting and it remains to be seen who will give in and who will become aggressive in acquiring major portfolios for peanuts!

In the Geopolitical front major developments  take place putting pressure on all nations, not just the powerful ones but to all on planet Ocean!

Theresa May,  following Andrea Leadsom quitting from the Conservative leadership contest, will become on Wednesday the new Conservative leader and the United Kingdom’s second ever woman prime minister.  We had the feeling of Mrs. Leadsom leaving the race following our last Friday’s written report!

So it will be a new beginning for the benefit of all people in the United Kingdom with a BREXIT announced by Mrs. May “Brexit means Brexit and we’re going to make a success of it.” We sincerely hope so and we are sure she will obtain, as a skilled negotiator, the best exit deal! We also hope that she will build another privileged relationship with Europe, which after all the United Kingdom geographically and physically belongs!

Europe is in a mess under the current leadership and German domination, something that America, I mean the USA, must curb for its own vested interests. Russia, as always agressive, is closely watching all developments and as we have stressed – in writting , Mr. Putin has his own agenda! NATO’s approach with balancing strong defences in the Baltic States and Poland is upsetting Russia; we shall see what happens next…

Italy,  is another country to watch within the Europe Union and Eurozone for a financial AND economic disaster awaiting to happen; it is not just Greece with a very close to GREXIT scenario and an uncertain struggle for power, as the current coalition regime, basically the SYRIZA clan are steadily heading for a total confrontation with all their opponents – within and outside Greece! Watch it Mr. Tsipras; give Greece a chance, the chance the new generation deserves and the elderly need to survive – we have urged you for this long ago in writing!

Turkey too must stay put as after reconciliation moves with Russia and Israel, continues to create a mess in the Aegean Sea. Greece cannot remain passive for ever! Mr. Erdogan, please rise to the circumstances and don’t push your luck too far, irrespective if you still enjoy the support from others. There is a beginning and an end to everything in life!

Let’s go down to Africa,  as in South Sudan the situation might get completely off hand and let’s hope there is a ceasefire in place before any further destabilisation of the entire region. Caution!

The row in the South China Sea continues and it remains to be seen how the USA will prohibit another clash in the region. Vietnam, The Philippines, Malaysia, Indonesia, Singapore, Japan might get involved. The Chinese tactics lead to a clash – sooner or later! The Spratlys, The Paracels and the Scarborough Shoal are the focal points and areas to watch. Will the tribunal find an acceptable solution for the pressing Chinese looking for oil, gas and other interests to “defend”; so do the other nations involved.

Moreover a bit more North East, North Korea tests the USA, Japan’s and indeed South Koreas’ nerves. Somebody “looks” …in a need to be wiped off!

The entire Middle East is on fire and all the unsolved issues – Syria, Afghanistan, Palestine with Israel and the entire periphery from Morocco to Afghanistan and from Armenia and Azerbaijan down to the Horn of Africa in need for peace and long lasting solution… Enough with ISIS too; finish them off please!

Touch times for Venezuelans who look at Colombia for help and food… So what’s behind these food shortages? Time please Mr. Maduro!

What the Conservatives tight win means for Australia and the world at large?

Finally in the USA after a week of violence things must calm down, particularly in the eve of the coming presidential election.

More news and geopolitics tomorrow…

Have a nice evening; we live in interesting times!

 

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