Shell About to Close Major North Sea Asset Sale

Shell and Chrysaor are in the late stages of negotiating an asset sale deal worth US$3 billion, according to unnamed sources quoted by Reuters. The sale concerns part of the oil giant’s North Sea operations and is likely to be announced at the release of Shell’s 2016 financial results on February 2. It’s part of efforts to bring down its debt load after the US$54-billion acquisition of BG Group. The target value of the divestment program is US$30 billion until 2018. The deal has been in the making for a few months now, with earlier…

What Theresa May Told Republicans Before Her Meeting With Trump Tomorrow

Ahead of her meeting with Trump tomorrow, British Prime Minister Theresa May joked that “opposites attract” and called on the US President to renew the “special relationship” between Britain and the United States and lead in a new, changed world. In the United States for what will be Trump’s first meeting with a foreign leader since he took office last week, May signaled a shift in foreign policy, bringing her position more in line with that of Trump.

Following a disparaging statement from the French Finance Minister earlier in the day, in which Michel Sapin said that “Madame May can go see whoever she wants. I understand she goes to see the new U.S. president given the history between the U.S. and the U.K” and added that “she is not going there to negotiate,” because allegedly “neither she nor Mister Trump are in a position to negotiate“, May decided to prove him wrong, and urged the US and UK and their leaders to stand united and confront new challenges, including the rise of economies in Asia that people fear could “eclipse the West,” the threat of Islamic extremism and a resurgent Russia.

“So we – our two countries together – have a responsibility to lead. Because when others step up as we step back, it is bad for America, for Britain and the world,” May told members of Republican Party at their retreat in a speech often punctuated by applause from an enthusiastic crowd.

“This cannot mean a return to the failed policies of the past. The days of Britain and America intervening in sovereign countries in an attempt to remake the world in our own image are over. But nor can we afford to stand idly by.”

Following her speech, UKIP’s Nigel Farage tweeted that “I can hardly believe Mrs May’s words about our place in the world and with America. I’ve wanted all of these things for years”  and added that the PM said “things that I could only ever have dreamt that a British Prime Minister would say.”

I can hardly believe Mrs May’s words about our place in the world and with America. I’ve wanted all of these things for years.

— Nigel Farage (@Nigel_Farage) January 26, 2017

Some of the key points touched upon by May in her speech as summarized by Axios:

  • The U.S. and U.K. are at the start of crafting a great trade agreement, but that the new deal must serve both national interests. (This can’t happen until after Britain official leaves the EU.)
  • U.S. and U.K. should stop intervening in other countries to try to “remake the world in our image.”
  • On working with Trump, she said, “Haven’t you ever noticed, sometimes opposites attract?” She added she would challenge Trump on issues like torture.
  • When it comes to Putin, May’s advice was “to engage, but beware.”
  • She said “there is nothing inevitable about conflict between Russia and the west,” and that the countries should work to make “cooperation more likely than conflict.”
  • She is pushing for major reform of multinational organizations to better serve the nations that formed them. She added, “The most important institution is and should always be the nationstate.”
  • NATO should be “as equipped to fight cyber warfare” as it is to fight conventional warfare.
  • U.S. and U.K. should work together to fight the “evil ideology” of “extremist Islamism

Of note, as Reuters points out, is her break with the interventionism that launched wars in Iraq and Afghanistan underscores a change in global politics. It also fits with Trump’s move to put “America first” and scores well with voters in Britain whose feeling of being left behind by globalization helped fuel Britain’s vote to leave the EU last year that propelled May to power. Aware that Brexit will shape her legacy, May welcomed her early visit to the United States, a boost to her attempts to show that Britain can prosper outside the European Union despite criticism at home for cozying up to Trump.

On her U.S.-bound flight, May concentrated on similarities with the U.S. leader, who some reporters suggested had a style in stark contrast to her more cautious, restrained approach. “Haven’t you ever noticed … sometimes opposites attract?” she answered with a laugh

The biggest open issue, however, is trade, and the desire of both nations to eventually sign mutually beneficial bilateral contracts.

Eager to win favor – and a trade deal – with the new U.S. president to bolster her hand in the divorce talks with the European Union, May said both countries shared many values and that, contrary to his statements that NATO was “obsolete,” Trump had told her he was committed to the U.S.-led military alliance. May said she supported Trump’s “reform agenda” to make NATO and the United Nations “more relevant and purposeful than they are today,” and “many of the priorities your government has laid out for America’s engagement with the world.”

But there may be sticking points in Friday’s talks – May said she condemned the use of torture and would stick to UK policy, suggesting Britain may not accept intelligence that could have come from such methods that Trump could reintroduce. “We condemn torture and my view on that won’t change – whether I’m talking to you or talking to the president,” she said when asked what impact it would have if Trump brought back a CIA program for holding terrorism suspects in secret prisons.

May will have navigate the middle ground carefully, wary of being criticized as too pro-Trump or alternatively as too negative toward a future trading partner.

But the take home message is that any gain for the UK and US, is a loss for Europe, which would prefer to see the UK in a position of weakness, and May knows this well. She has threatened to walk away from the EU if she fails to get a good deal, and some critics say that could give other countries, like the United States, the upper hand in any talks.

And the EU might not take kindly to any overly friendly overtures to a president some of the bloc’s main leaders have voiced concern about. Some kind of trade agreement, though, is high on her list of priorities, despite Britain and the United States being at odds over genetically modified organisms, meat production and public procurement and May unable to sign deals until after Brexit.

May says she will launch the divorce talks by the end of March by triggering Article 50 of the EU’s Lisbon Treaty, which gives up to two years to negotiate an exit deal. Only then can she agree with third countries. Both leaders should use the time to find areas where they could remove trade barriers, May said.

What tomorrow will boil down to? “We’re both very clear that we want a trade deal.”

For those who missed it, May’s full Philly speech is below

The post What Theresa May Told Republicans Before Her Meeting With Trump Tomorrow appeared first on crude-oil.top.

Libya Returns Oil Output To 700,000 Bpd After Crude Substation Fire

Libya has restored oil production to around 700,000 barrels per day after losing 60,000 barrels per day to a technical malfunction at the Sarir oilfield over the weekend. “We have made some repairs, our workers made some modifications, so now we are back to production,” NOC Chairman Mustafa Sanalla was quoted as saying. Libyan oil production prior to the incident at the substation was around 700,000 barrels per day at the start of January. Libya is seeking to raise production to 900,000 barrels per day in next few months, and 1 million barrels…

Americas Roundup:dollar Recovers from 7-Week Low, Gains limited by U.s. Policy Doubts,gold Extends Losses to Two-Week Low,oil

Market Roundup

•    US jobless claims rise 259k v forecast 247k, 237k previous, cont’d claims 2.1m v 2.059m previous.

•    US Dec Adv goods trade balance unchanged at -65b, wholesale inventories steady at 1%.

•    Atlanta Fed’s GDPNow: raises US fourth-quarter GDP estimate to 2.9% from 2.8% on Jan 18.

•    ECB’s Villeroy: Fears about resurgence of EZ inflation exaggerated, pushes back against calls for QE exit.

•    German consumer morale brightens, highest reading for five months.

•    EU’s Dijsselbloem: No clarifications needed on Italy’s banking rescue.

•    Mexico president cancels Trump summit as wall taunt deepens spat, USD/MXN rallies.

•    Markit Svcs PMI flash 55.1 v 54.4 forecast, 53.9 previous., Comp PMI 55.4 v 54.1 previous.

•    US new home sales -10.4% v -1% forecast, +4.7% previous.

•    EZ yields hit 1-yr high on expectations of US growth policies, France’s 10-yr yield at 1%, 1st time since Dec ’15.

Looking Ahead – Economic Data (GMT)

•    23:30 Japan CPI, Core Nationwide YY Dec forecast -0.3%, -0.4%-previous

•    23:30 Japan CPI, Overall Nationwide* Dec 0.5%- previous

•    23:30 Japan CPI Core Tokyo YY* Jan forecas-0.4%, -0.6%- previous

•    23:30 Japan CPI, Overall Tokyo* Jan 0%- previous

•    23:30 Japan CPI Index* Dec 100.4- previous

•    00:30 Australia PPI QQ* Q4 0.3%- previous

•    00:30 Australia PPI YY* Q4 0.5%- previous

•    00:30 Australia Export Prices* Q4 forecas11%, 3.5%- previous

•    00:30 Australia Import Prices* Q4 forecas-0.5%, -1%- previous

Looking Ahead – Events, Other Releases (GMT)

•    No Significant Events

Currency Summaries

EUR/USD is likely to find support at 1.0623 levels and currently trading at 1.0666 levels. The pair has made session high at 1.0704 and hit lows at 1.0656 levels. Euro declined against the dollar on Thursday as dollar rebounded from a seven-week low as investor demand for greenback improved with higher global bond yields and stable stock markets. Equities and Treasury yields have continued to rise in the past week, fueled by U.S. President Donald Trump’s signals of new public spending, the effect on the dollar over the last two weeks has been mixed. Investors were concerned about other parts of Trump’s policy mix such as his leanings toward a protectionist trade policy. Still, investors believed the dollar could make up some lost ground the next few weeks, with the Federal Reserve holding its first policy meeting this year on Feb. 1. On the data front, New U.S. single-family home sales fell to a 10-month low in December after three straight months of solid gains, but the housing market recovery remains intact as a tightening labor market boosts wage growth. The euro fell 0.4 percent versus the greenback to $1.0681.

GBP/USD is supported in the range of 1.2553 levels and currently trading at 1.2580 levels. It reached session high at 1.2614 and dropped to session low at 1.2558 levels. Sterling dipped slightly against the dollar on Thursday as dollar rebounded after its worst run since August as investors refocused on the chances of higher U.S. inflation and growth. On the data front, Gross domestic product rose at a quarterly pace of 0.6 percent between October and December, keeping up the same above-average pace seen in the initial three months after the referendum decision to leave the European Union. Gross domestic product rose at a quarterly pace of 0.6 percent between October and December, keeping up the same above-average pace seen in the initial three months after the referendum decision to leave the European Union. Among G10 currencies, sterling has been the biggest gainer the past two weeks, up almost 6 percent from lows hit on Jan. 16. On Thursday though, sterling was down 0.3 percent at $1.2580, despite a solid reading of Britain’s fourth-quarter growth.

USD/CAD is supported at 1.3049 levels and is trading at 1.3117 levels. It has made session high at 1.3126 and lows at 1.3078 levels. The Canadian dollar declined against its U.S. counterpart on Thursday as the greenback recovered some lost ground against the basket of major currencies. The loonie had rallied this week as investor fears of a more unfavorable trade outlook for Canada abated and after U.S. President Donald Trump signed orders on Tuesday smoothing the path for the Keystone XL oil pipeline. If constructed, Keystone would provide oil producers in Canada with a quicker route to send crude to U.S. Gulf Coast refiners. Losses for the Canadian dollar came even as prices of oil, one of Canada’s major exports, rose. U.S. crude prices were up 1.25 percent at $53.41 a barrel. The Canadian dollar was trading at C$1.3102 to the greenback, or 76.32 U.S. cents, weaker than Wednesday’s close of C$1.3067, or 76.53 U.S.

USD/JPY is supported around 113.55 levels and currently trading at 114.61 levels. It peaked to hit session high at 114.93 and made session lows at 114.10 levels. The U.S. dollar strengthened against the yen on Thursday as investors refocused on the chances of higher U.S. inflation and growth. On Tuesday and Wednesday, investors reduced their holdings of greenback in the wake of Trump’s actions on domestic business investments, which they view as promoting heftier company profits, and his rhetoric on trade and immigration, which they calculate may push up inflation. Investors will receive fresh clues on the economy and whether it shows enough strength for the Fed to consider further rate increases. Fed policy-makers, who will meet next Tuesday and Wednesday, are expected to leave rates unchanged after raising them in December. Investors will focus on the government’s first reading on gross domestic product in the final quarter of 2016. Economists polled forecast GDP likely slowed to 2.2 percent growth pace in the fourth quarter from 3.5 percent in third quarter. The dollar gained 0.9 percent against the yen to 114.35 yen, while the euro fell 0.4 percent versus the greenback to $1.0700.

Equities Recap

European shares held around one-year highs on Thursday, supported by mergers and acquisitions-related optimism, with Johnson & Johnson’s  $30 billion deal to buy Actelion ATLN.S lifting shares in the Swiss biotech firm.

UK’s benchmark FTSE 100 closed down by 0.15 percent, the pan-European FTSEurofirst 300 ended the day up by 1.37 percent, Germany’s Dax ended up by 0.3 percent, France’s CAC finished the day up by 1.17 percent.

U.S. stocks were little changed on Thursday in the wake of a two-day rally that pushed the Dow Jones Industrial Average above the 20,000 mark, as investors grappled with the latest round of earnings.

Dow Jones closed up by 0. 6 percent, S&P 500 ended down 0.08 percent, Nasdaq finished the day up by 1.58 percent.

Treasuries Recap 

U.S. Treasury yields fell on Thursday with benchmark yields retreating from a four-week high, after strong investor demand at a $28 billion auction of seven-year notes, part of this week’s $88 billion coupon-bearing government debt supply.

The yield on benchmark 10-year Treasury notes was down over 1 basis point at 2.508 percent after hitting 2.555 percent earlier, which was its highest since Dec. 28

Commodities Recap

Gold fell to a two-week low on Thursday as the dollar firmed and equity markets rallied, but expectations that the greenback’s climb may be coming to an end helped limit losses.

Spot gold prices were down 1 percent at $1,187.93 an ounce by 3:02 p.m. EST (2002 GMT), after tapping $1,184.03, its lowest since Jan. 11. U.S. gold futures settled down 0.7 percent at $1,189.80.

Oil prices jumped 2 percent on Thursday, boosted by the ongoing rally in the U.S. stock market, although gains in crude futures were capped by heavy inventories in spite of efforts by producers to cut output.

U.S. light crude futures were up $1.03 to $53.78 a barrel, a gain of 2 percent, while Brent crude settled up $1.16, or 2.1 percent, to $56.24.

The material has been provided by InstaForex Company – www.instaforex.com

The post Americas Roundup:dollar Recovers from 7-Week Low, Gains limited by U.s. Policy Doubts,gold Extends Losses to Two-Week Low,oil appeared first on forexnewstoday.net.

Americas Roundup:dollar Recovers from 7-Week Low, Gains limited by U.s. Policy Doubts,gold Extends Losses to Two-Week Low,oil

Market Roundup

•    US jobless claims rise 259k v forecast 247k, 237k previous, cont’d claims 2.1m v 2.059m previous.

•    US Dec Adv goods trade balance unchanged at -65b, wholesale inventories steady at 1%.

•    Atlanta Fed’s GDPNow: raises US fourth-quarter GDP estimate to 2.9% from 2.8% on Jan 18.

•    ECB’s Villeroy: Fears about resurgence of EZ inflation exaggerated, pushes back against calls for QE exit.

•    German consumer morale brightens, highest reading for five months.

•    EU’s Dijsselbloem: No clarifications needed on Italy’s banking rescue.

•    Mexico president cancels Trump summit as wall taunt deepens spat, USD/MXN rallies.

•    Markit Svcs PMI flash 55.1 v 54.4 forecast, 53.9 previous., Comp PMI 55.4 v 54.1 previous.

•    US new home sales -10.4% v -1% forecast, +4.7% previous.

•    EZ yields hit 1-yr high on expectations of US growth policies, France’s 10-yr yield at 1%, 1st time since Dec ’15.

Looking Ahead – Economic Data (GMT)

•    23:30 Japan CPI, Core Nationwide YY Dec forecast -0.3%, -0.4%-previous

•    23:30 Japan CPI, Overall Nationwide* Dec 0.5%- previous

•    23:30 Japan CPI Core Tokyo YY* Jan forecas-0.4%, -0.6%- previous

•    23:30 Japan CPI, Overall Tokyo* Jan 0%- previous

•    23:30 Japan CPI Index* Dec 100.4- previous

•    00:30 Australia PPI QQ* Q4 0.3%- previous

•    00:30 Australia PPI YY* Q4 0.5%- previous

•    00:30 Australia Export Prices* Q4 forecas11%, 3.5%- previous

•    00:30 Australia Import Prices* Q4 forecas-0.5%, -1%- previous

Looking Ahead – Events, Other Releases (GMT)

•    No Significant Events

Currency Summaries

EUR/USD is likely to find support at 1.0623 levels and currently trading at 1.0666 levels. The pair has made session high at 1.0704 and hit lows at 1.0656 levels. Euro declined against the dollar on Thursday as dollar rebounded from a seven-week low as investor demand for greenback improved with higher global bond yields and stable stock markets. Equities and Treasury yields have continued to rise in the past week, fueled by U.S. President Donald Trump’s signals of new public spending, the effect on the dollar over the last two weeks has been mixed. Investors were concerned about other parts of Trump’s policy mix such as his leanings toward a protectionist trade policy. Still, investors believed the dollar could make up some lost ground the next few weeks, with the Federal Reserve holding its first policy meeting this year on Feb. 1. On the data front, New U.S. single-family home sales fell to a 10-month low in December after three straight months of solid gains, but the housing market recovery remains intact as a tightening labor market boosts wage growth. The euro fell 0.4 percent versus the greenback to $1.0681.

GBP/USD is supported in the range of 1.2553 levels and currently trading at 1.2580 levels. It reached session high at 1.2614 and dropped to session low at 1.2558 levels. Sterling dipped slightly against the dollar on Thursday as dollar rebounded after its worst run since August as investors refocused on the chances of higher U.S. inflation and growth. On the data front, Gross domestic product rose at a quarterly pace of 0.6 percent between October and December, keeping up the same above-average pace seen in the initial three months after the referendum decision to leave the European Union. Gross domestic product rose at a quarterly pace of 0.6 percent between October and December, keeping up the same above-average pace seen in the initial three months after the referendum decision to leave the European Union. Among G10 currencies, sterling has been the biggest gainer the past two weeks, up almost 6 percent from lows hit on Jan. 16. On Thursday though, sterling was down 0.3 percent at $1.2580, despite a solid reading of Britain’s fourth-quarter growth.

USD/CAD is supported at 1.3049 levels and is trading at 1.3117 levels. It has made session high at 1.3126 and lows at 1.3078 levels. The Canadian dollar declined against its U.S. counterpart on Thursday as the greenback recovered some lost ground against the basket of major currencies. The loonie had rallied this week as investor fears of a more unfavorable trade outlook for Canada abated and after U.S. President Donald Trump signed orders on Tuesday smoothing the path for the Keystone XL oil pipeline. If constructed, Keystone would provide oil producers in Canada with a quicker route to send crude to U.S. Gulf Coast refiners. Losses for the Canadian dollar came even as prices of oil, one of Canada’s major exports, rose. U.S. crude prices were up 1.25 percent at $53.41 a barrel. The Canadian dollar was trading at C$1.3102 to the greenback, or 76.32 U.S. cents, weaker than Wednesday’s close of C$1.3067, or 76.53 U.S.

USD/JPY is supported around 113.55 levels and currently trading at 114.61 levels. It peaked to hit session high at 114.93 and made session lows at 114.10 levels. The U.S. dollar strengthened against the yen on Thursday as investors refocused on the chances of higher U.S. inflation and growth. On Tuesday and Wednesday, investors reduced their holdings of greenback in the wake of Trump’s actions on domestic business investments, which they view as promoting heftier company profits, and his rhetoric on trade and immigration, which they calculate may push up inflation. Investors will receive fresh clues on the economy and whether it shows enough strength for the Fed to consider further rate increases. Fed policy-makers, who will meet next Tuesday and Wednesday, are expected to leave rates unchanged after raising them in December. Investors will focus on the government’s first reading on gross domestic product in the final quarter of 2016. Economists polled forecast GDP likely slowed to 2.2 percent growth pace in the fourth quarter from 3.5 percent in third quarter. The dollar gained 0.9 percent against the yen to 114.35 yen, while the euro fell 0.4 percent versus the greenback to $1.0700.

Equities Recap

European shares held around one-year highs on Thursday, supported by mergers and acquisitions-related optimism, with Johnson & Johnson’s  $30 billion deal to buy Actelion ATLN.S lifting shares in the Swiss biotech firm.

UK’s benchmark FTSE 100 closed down by 0.15 percent, the pan-European FTSEurofirst 300 ended the day up by 1.37 percent, Germany’s Dax ended up by 0.3 percent, France’s CAC finished the day up by 1.17 percent.

U.S. stocks were little changed on Thursday in the wake of a two-day rally that pushed the Dow Jones Industrial Average above the 20,000 mark, as investors grappled with the latest round of earnings.

Dow Jones closed up by 0. 6 percent, S&P 500 ended down 0.08 percent, Nasdaq finished the day up by 1.58 percent.

Treasuries Recap 

U.S. Treasury yields fell on Thursday with benchmark yields retreating from a four-week high, after strong investor demand at a $28 billion auction of seven-year notes, part of this week’s $88 billion coupon-bearing government debt supply.

The yield on benchmark 10-year Treasury notes was down over 1 basis point at 2.508 percent after hitting 2.555 percent earlier, which was its highest since Dec. 28

Commodities Recap

Gold fell to a two-week low on Thursday as the dollar firmed and equity markets rallied, but expectations that the greenback’s climb may be coming to an end helped limit losses.

Spot gold prices were down 1 percent at $1,187.93 an ounce by 3:02 p.m. EST (2002 GMT), after tapping $1,184.03, its lowest since Jan. 11. U.S. gold futures settled down 0.7 percent at $1,189.80.

Oil prices jumped 2 percent on Thursday, boosted by the ongoing rally in the U.S. stock market, although gains in crude futures were capped by heavy inventories in spite of efforts by producers to cut output.

U.S. light crude futures were up $1.03 to $53.78 a barrel, a gain of 2 percent, while Brent crude settled up $1.16, or 2.1 percent, to $56.24.

The material has been provided by InstaForex Company – www.instaforex.com

The post Americas Roundup:dollar Recovers from 7-Week Low, Gains limited by U.s. Policy Doubts,gold Extends Losses to Two-Week Low,oil appeared first on forexnewstoday.net.