REUTERS
"In China, home buyers occupy their 'rotting', unfinished properties"
By Eduardo Baptista and Xiaoyu Yin
September 26, 2022
GUILIN, China, Sept 26 (Reuters) - For six months, home for Ms. Xu has been a room in a high-rise apartment in the southern Chinese city of Guilin that she bought three years ago, attracted by brochures touting its riverfront views and the city's clean air.
Her living conditions, however, are far from those promised: unpainted walls, holes where electric sockets should be and no gas or running water.
Every day she climbs up and down several flights of stairs carrying heavy water bottles filled with a hose outside.
"All the family's savings were invested in this house," Xu, 55, told Reuters from the Xiulan County Mansion complex, her room bare except for a mosquito net-covered bed, a few necessities and empty bottles on the floor.
She declined to give her full name, citing the sensitivity of the matter.
Xu and about 20 other buyers living in Xiulan County Mansion share a makeshift outdoor toilet and gather during the day at a table and benches in the central courtyard area.
They are part of a movement of home buyers around China who have moved into what they call "rotting" apartments, either to pressure developers and authorities to complete them or out of financial necessity, as numerous cash-strapped builders halt construction amid the country's deep real estate slump.
Shanghai E-House Real Estate Research Institute estimated in July that stalled projects accounted for 3.85% of China's housing market in the first half of 2022, equivalent to an area of 231 million square metres.
While some local governments have taken steps to prop up the property market by setting up bailout funds, buyers like Xu, who paid deposits in advance and are on the hook for mortgages, remain in limbo.
MORTGAGE STRIKES
The proliferation of unfinished apartments has sparked unprecedented collective disobedience, fuelled by social media: in late June, thousands of home buyers in at least 100 cities threatened to halt mortgage payments to protest stalled construction.
The overall property market is highly sensitive to cases of unfinished apartments because 90% of new houses bought in China are purchased "off plans" while still under construction, said Yan Yuejin, research director at Shanghai E-House.
"If this issue is not resolved, it will affect property transactions, the government's credibility, and it could exacerbate the developers' debt problems," he said.
China's deep property slump, along with disruptions caused by strict anti-COVID measures, are dragging on the world's second largest economy just as the ruling Communist Party gears up for its once-in-five-years Congress next month.
'CRASHING FROM PARADISE'
Xu bought her two-bedroom, 70 square metre flat in early 2019, about a year after its developer, Jiadengbao Real Estate, started construction and began marketing apartments for around 6,000 yuan ($851) per square metre, which they said would come with facilities such as floor heating and a shared swimming pool.
Work progressed quickly at first, with blocks in the planned 34 tower complex going up one after another.
But in June 2020, Jiadengbao Real Estate hit the headlines after a court accused its parent company of illegal fund-raising and seized 340 million yuan worth of its properties, including a number of flats in Xiulan County Mansion.
Construction stopped in mid-2020, which Xu found out months later, describing her feelings at the time as "crashing from paradise".
Jiadengbao Real Estate did not respond to a request for comment from Reuters.
Since the debt crisis erupted in 2021, thousands more home buyers have been caught in similar predicaments as cash-strapped developers went into bankruptcy or abandoned struggling projects.
FENCING AND UNDERGROWTH
On a recent day, the main block of buildings at Xiulan County Mansion was surrounded by a tall blue fence while the clubhouse, touted in promotional materials, was covered in a dense undergrowth.
Cement mixers, iron poles, and piles of debris lay strewn around.
Xu, who is unemployed, said she bought the apartment for her only son, with the hope that he would be able to raise a family there.
She said her son and her husband, who live far away in the northern province of Hebei, blame her for their financial predicament, and no longer speak to her.
"We don't know how long we will have to live here because the government has not said anything officially," she said.
She hopes the Guilin government will step in to help.
The city government did not respond to a request for comment from Reuters.
Housing authorities in Baoding, the northern city where Xu is from and where Jiadengbao Real Estate's parent company is registered, said last November the city government and Communist Party committee had set up a group to resolve the issue.
"If the government really wants to protect people's livelihoods, and resume construction, we will go back home," Xu said.
Reporting by Eduardo Baptista and Xiaoyu Yin; Additional reporting by Beijing newsroom and Xihao Jiang; Editing by Lincoln Feast.
https://www.reuters.com/markets/asia/ch ... 022-09-26/
THE DAILY NEWS
Re: THE DAILY NEWS
THE WASHINGTON EXAMINER
"SEE IT: Pelosi booed in surprise onstage appearance at music festival"
Brady Knox
25 SEPTEMBER 2022
A video appears to show House Speaker Nancy Pelosi (D-CA) being booed onstage by the crowd in a surprise guest appearance at a music festival.
During the Global Citizen Festival at Central Park in New York City on Saturday, featuring such artists as the Jonas Brothers, Usher, and Metallica, actress Priyanka Chopra Jonas introduced Pelosi to talk about pollution and climate change, according to the New York Post.
The audience apparently didn't warm up to the surprise, with loud boos being heard in videos of the moment.
"As speaker of the House, I am here to thank you for your dazzling advocacy, entrepreneurial thinking, and determination as global citizens," she said.
“It’s thanks to your help that the United States recently enacted historic climate legislation, which will be a game changer."
"It will slash carbon pollution by 40% by 2030, it will give a historic — an historic $370 billion to fight the climate crisis.”
Pelosi concluded her remarks, shrugging off the hecklers, by giving shout-outs to her grandchildren Paul and Thomas in the audience, saying that she agreed to keep her comments at a minimum so as to allow the show to continue as quickly as possible.
Despite the chilly reception, the verified Twitter account for Global Citizen tweeted out its appreciation for Pelosi's appearance.
"Thank you @SpeakerPelosi, for recognizing Global Citizens all around the world who took action in support of the new, historic climate legislation in the US!" the account tweeted.
The heckling of Pelosi wasn't the only viral awkward encounter of the festival.
Another video shows the confused reaction of audience members when singer Mariah Carey brought up 9/11.
https://www.msn.com/en-us/music/news/se ... b9b7a40c7e
"SEE IT: Pelosi booed in surprise onstage appearance at music festival"
Brady Knox
25 SEPTEMBER 2022
A video appears to show House Speaker Nancy Pelosi (D-CA) being booed onstage by the crowd in a surprise guest appearance at a music festival.
During the Global Citizen Festival at Central Park in New York City on Saturday, featuring such artists as the Jonas Brothers, Usher, and Metallica, actress Priyanka Chopra Jonas introduced Pelosi to talk about pollution and climate change, according to the New York Post.
The audience apparently didn't warm up to the surprise, with loud boos being heard in videos of the moment.
"As speaker of the House, I am here to thank you for your dazzling advocacy, entrepreneurial thinking, and determination as global citizens," she said.
“It’s thanks to your help that the United States recently enacted historic climate legislation, which will be a game changer."
"It will slash carbon pollution by 40% by 2030, it will give a historic — an historic $370 billion to fight the climate crisis.”
Pelosi concluded her remarks, shrugging off the hecklers, by giving shout-outs to her grandchildren Paul and Thomas in the audience, saying that she agreed to keep her comments at a minimum so as to allow the show to continue as quickly as possible.
Despite the chilly reception, the verified Twitter account for Global Citizen tweeted out its appreciation for Pelosi's appearance.
"Thank you @SpeakerPelosi, for recognizing Global Citizens all around the world who took action in support of the new, historic climate legislation in the US!" the account tweeted.
The heckling of Pelosi wasn't the only viral awkward encounter of the festival.
Another video shows the confused reaction of audience members when singer Mariah Carey brought up 9/11.
https://www.msn.com/en-us/music/news/se ... b9b7a40c7e
Re: THE DAILY NEWS
THE WASHINGTON EXAMINERWHAT JOE BIDEN AND THE DEMOCRATS HAVE DELIVERED FOR THE AMERICAN PEOPLE TO DATE:
“TREASURIES-U.S. yields hit fresh highs as rate hike concerns grip markets”
By Davide Barbuscia
SEPTEMBER 26, 2022
NEW YORK, Sept 26 (Reuters) – U.S. Treasury yields hit fresh highs on Monday, rising in tandem with euro zone and British government debt yields amid concerns that central banks globally will keep tightening monetary policy to curb stubbornly high inflation.
Atlanta Fed President Raphael Bostic said on Monday events in the United Kingdom could raise economic stress in Europe and the United States.
Two-year Treasury yields, which tend to be more sensitive to interest rate changes, rose to a fresh 15-year high of 4.312%, and benchmark 10-year note yields rose nearly 20 basis points from their Friday close, climbing to an intra-day high of 3.9%, the highest since April 2010.
*********************************
Reuters
“Wall Street ends lower, Dow confirms bear market”
By Noel Randewich
September 26, 2022
Sept 26 (Reuters) – Wall Street slid deeper into a bear market on Monday, with the S&P 500 and Dow closing lower as investors fretted that the Federal Reserve’s aggressive campaign against inflation could throw the U.S. economy into a sharp downturn.
Confidence among stock traders was also shaken by dramatic moves in the global foreign exchange market as sterling hit an all-time low on worries that the new British government’s fiscal plan released Friday threatened to stretch the country’s finances.
The Dow is now down 20.5% from its record high close on Jan. 4.
According to a widely used definition, ending the session down 20% or more from its record high close confirms the Dow has been in a bear market since hitting its January peak.
*********************************
Barron’s
“Credit Card Interest Rates Hit a 26-Year Peak — and Are About to Go Higher”
By Elizabeth O’Brien
Sept. 21, 2022 2:11 pm ET
"White House adamant that Biden 'intends' to run in 2024 despite voter sentiment"
Christian Datoc
26 SEPTEMBER 2022
White House press secretary Karine Jean-Pierre danced around a negative poll Monday showing a majority of Democratic voters don't want President Joe Biden to run for reelection in 2024.
The poll, published by ABC Monday morning, showed 56% of Democrats preferring a nominee other than Biden in 2024.
That number ballooned to 75% among Democratic voters under 40.
"I'm very limited on how I can discuss any kind of elections."
"I will reiterate what we have said many times from here: What the president has said many times, even as recently as the 60 Minutes interview, is that he intends to run," Jean-Pierre said when pressed on the poll during Monday's press briefing.
"The president will say, as I'm saying right now, is his focus is not on himself."
"His focus is on continuing to deliver for the American people."
Jean-Pierre received follow-up questions about the poll, specifically noting that Biden "is deeply underwater when it comes to the economy," and if the White House plans to "do anything differently" in terms of its campaign strategy both this year and ahead of 2024.
"I can't talk about the midterms," Jean-Pierre responded in one exchange.
"What I can say is, and we talked about this, in our August memo — we are going to go out there, not just the president, the vice president, the Cabinet secretaries, you have congressional members in their district as well, and we're going to talk about how we have delivered for the American people."
Prior to the 60 Minutes interview, Jean-Pierre had confirmed Biden intended to run for reelection without caveats about the Hatch Act.
Though the president's approvals ticked up across the late summer, effectively all polls still give him a negative rating, and questions remained about whether his presence on the trail would help or hurt vulnerable Democratic candidates.
https://www.msn.com/en-us/news/politics ... 3b52adcb0e
Re: THE DAILY NEWS
THE HILL
"White House downplays CBO report on $400 billion cost of student loan forgiveness plan"
Alex Gangitano
26 SEPTEMBER 2022
The White House on Monday pushed back on a report by the Congressional Budget Office (CBO) released earlier that day, arguing that 90 percent of federal student loan borrowers are unlikely to take advantage of President Biden’s forgiveness plan.
The CBO reported that the plan to forgive $10,000 in federal student loan debt for borrowers earning under $125,000 and $20,000 for borrowers who received Pell Grants will cost about $400 billion.
It also projected that 90 percent of income-eligible borrowers will apply for debt cancellation.
“CBO called its own estimate ‘highly uncertain.’"
"We agree,” the White House said in a memo.
“CBO assumes that 90% of eligible borrowers take the necessary steps to claim relief."
"We would be thrilled if 90% of eligible middle- and low-income Americans applied for this program."
"But unfortunately, that’s unlikely based on the data from other programs.”
The White House in its memo argued that the 90 percent mark is not likely because previous debt relief programs to discharge borrowers whose schools closed, including ITT Technical institute and Corinthian College, had takeup rate of less than 50 percent.
Also, it called Social Security and Medicare outliers, and although they have 90 percent takeup rates, they are for older Americans and “extraordinarily broadly popular.”
The White House said that the cost is not $400 billion “this year, next year, or even over ten years.”
“While the CBO estimate is meant to reflect the full effects over the entire lifespan of the program, the annual cash flow effects — which is what matters for the federal debt and for economic impacts — are much smaller."
"All estimates of the Administration’s plan will face this same challenge,” the White House said in its memo.
The administration did note that its estimate aligns with the CBO estimate that in 2023, the impact of loan forgiveness will be about $21 billion.
The White House had estimated $24 billion in 2023.
Biden released the student loan forgiveness plan last month and has argued that it is economically responsible and will be paid for.
The president has been under fire since releasing the plan from Republicans who have criticized it for being too expensive and for costing taxpayers.
Additionally, moderate Democrats, especially those in swing districts, have raised concerns that it will add to the inflation rate that is already at a 40-year high.
https://www.msn.com/en-us/news/politics ... 3b52adcb0e
"White House downplays CBO report on $400 billion cost of student loan forgiveness plan"
Alex Gangitano
26 SEPTEMBER 2022
The White House on Monday pushed back on a report by the Congressional Budget Office (CBO) released earlier that day, arguing that 90 percent of federal student loan borrowers are unlikely to take advantage of President Biden’s forgiveness plan.
The CBO reported that the plan to forgive $10,000 in federal student loan debt for borrowers earning under $125,000 and $20,000 for borrowers who received Pell Grants will cost about $400 billion.
It also projected that 90 percent of income-eligible borrowers will apply for debt cancellation.
“CBO called its own estimate ‘highly uncertain.’"
"We agree,” the White House said in a memo.
“CBO assumes that 90% of eligible borrowers take the necessary steps to claim relief."
"We would be thrilled if 90% of eligible middle- and low-income Americans applied for this program."
"But unfortunately, that’s unlikely based on the data from other programs.”
The White House in its memo argued that the 90 percent mark is not likely because previous debt relief programs to discharge borrowers whose schools closed, including ITT Technical institute and Corinthian College, had takeup rate of less than 50 percent.
Also, it called Social Security and Medicare outliers, and although they have 90 percent takeup rates, they are for older Americans and “extraordinarily broadly popular.”
The White House said that the cost is not $400 billion “this year, next year, or even over ten years.”
“While the CBO estimate is meant to reflect the full effects over the entire lifespan of the program, the annual cash flow effects — which is what matters for the federal debt and for economic impacts — are much smaller."
"All estimates of the Administration’s plan will face this same challenge,” the White House said in its memo.
The administration did note that its estimate aligns with the CBO estimate that in 2023, the impact of loan forgiveness will be about $21 billion.
The White House had estimated $24 billion in 2023.
Biden released the student loan forgiveness plan last month and has argued that it is economically responsible and will be paid for.
The president has been under fire since releasing the plan from Republicans who have criticized it for being too expensive and for costing taxpayers.
Additionally, moderate Democrats, especially those in swing districts, have raised concerns that it will add to the inflation rate that is already at a 40-year high.
https://www.msn.com/en-us/news/politics ... 3b52adcb0e
Re: THE DAILY NEWS
THE WASHINGTON EXAMINER
"FBI official who shut down key Hunter Biden details called to testify by top Republicans"
Jerry Dunleavy
26 SEPTEMBER 2022
The FBI agent who recently left the bureau following whistleblower allegations that he shut down key details about the Hunter Biden investigation must testify, House Republicans have demanded.
Timothy Thibault, the former FBI assistant special agent in charge of the Washington Field Office, closed up a line of inquiry into now-President Joe Biden's son in October 2020 despite some of the evidence being known to be true at the time, according to whistleblower allegations.
Now, Republicans in the House and Senate are calling for Thibault to speak with them.
Rep. Jim Jordan (R-OH), the ranking member of the House Judiciary Committee, sent a letter to Thibault telling him to contact the committee to schedule a transcribed interview by Oct. 7.
“Whistleblowers have come to Congress alleging that you were part of a scheme to undermine and discredit allegations of criminal wrongdoing by members of the Biden family,” Jordan and his colleagues told Thibault.
“Accordingly, we believe that you possess information relating to our investigation and we request your assistance with our inquiry.”
The Republicans told the former FBI official that “this letter serves as a formal request to preserve all existing and future records and materials in your possession relating to the topics addressed in this letter” and that the preservation request relates to “all electronic messages sent using your official and personal accounts or devices.”
Thibault left the FBI last month.
His lawyers released a statement at the time, saying he “was not fired, not forced to retire, and not asked to retire.”
“There have also been allegations that Mr. Thibault took certain actions in investigations for partisan political reasons,” Thibault’s attorneys said.
“Mr. Thibault welcomes any investigation of these false allegations, regardless of his retirement."
"He firmly believes that any investigation will conclude his supervision, leadership, and decision-making were not impacted by political bias or partisanship of any kind.”
Thibault’s lawyer added, “To further set the record straight … Mr. Thibault did not supervise the investigation of Hunter Biden."
"... In particular, Mr. Thibault was not involved in any decisions related to any laptop that may be at issue in that investigation, and he did not seek to close the investigation.”
The push to get Thibault to testify comes as Republicans call on Attorney General Merrick Garland to grant special counsel protections and authorities to the U.S. attorney running the criminal investigation into Hunter Biden.
https://www.msn.com/en-us/news/politics ... 3b52adcb0e
"FBI official who shut down key Hunter Biden details called to testify by top Republicans"
Jerry Dunleavy
26 SEPTEMBER 2022
The FBI agent who recently left the bureau following whistleblower allegations that he shut down key details about the Hunter Biden investigation must testify, House Republicans have demanded.
Timothy Thibault, the former FBI assistant special agent in charge of the Washington Field Office, closed up a line of inquiry into now-President Joe Biden's son in October 2020 despite some of the evidence being known to be true at the time, according to whistleblower allegations.
Now, Republicans in the House and Senate are calling for Thibault to speak with them.
Rep. Jim Jordan (R-OH), the ranking member of the House Judiciary Committee, sent a letter to Thibault telling him to contact the committee to schedule a transcribed interview by Oct. 7.
“Whistleblowers have come to Congress alleging that you were part of a scheme to undermine and discredit allegations of criminal wrongdoing by members of the Biden family,” Jordan and his colleagues told Thibault.
“Accordingly, we believe that you possess information relating to our investigation and we request your assistance with our inquiry.”
The Republicans told the former FBI official that “this letter serves as a formal request to preserve all existing and future records and materials in your possession relating to the topics addressed in this letter” and that the preservation request relates to “all electronic messages sent using your official and personal accounts or devices.”
Thibault left the FBI last month.
His lawyers released a statement at the time, saying he “was not fired, not forced to retire, and not asked to retire.”
“There have also been allegations that Mr. Thibault took certain actions in investigations for partisan political reasons,” Thibault’s attorneys said.
“Mr. Thibault welcomes any investigation of these false allegations, regardless of his retirement."
"He firmly believes that any investigation will conclude his supervision, leadership, and decision-making were not impacted by political bias or partisanship of any kind.”
Thibault’s lawyer added, “To further set the record straight … Mr. Thibault did not supervise the investigation of Hunter Biden."
"... In particular, Mr. Thibault was not involved in any decisions related to any laptop that may be at issue in that investigation, and he did not seek to close the investigation.”
The push to get Thibault to testify comes as Republicans call on Attorney General Merrick Garland to grant special counsel protections and authorities to the U.S. attorney running the criminal investigation into Hunter Biden.
https://www.msn.com/en-us/news/politics ... 3b52adcb0e
Re: THE DAILY NEWS
THE WASHINGTON EXAMINER
"The Biden administration has launched its war on pro-lifers"
Opinion by Timothy P. Carney
26 SEPTEMBER 2022
The FBI on Friday morning arrested a pro-life activist at his home for a 2021 scuffle with a Planned Parenthood activist.
The family and friends of Mark Houck said the scuffle involved an abortion activist harassing and screaming at Houck’s 12-year-old son until Houck shoved the man to the ground.
In response, Houck’s family and friends have told reporters, the FBI this weekend sent a platoon of agents with weapons drawn to arrest Houck at his house.
Even if you take only the FBI’s version of the tale, the Biden administration assembled a grand jury, secured an indictment, and charged a man with a federal crime possibly carrying an 11-year sentence because he shoved another man who received “injuries … that required medical attention.”
Because there is an extraordinary federal law protecting abortionists from protesters, sidewalk counselors, and rosary prayers, Houck is now charged with a federal felony.
This only makes sense in a political context.
Specifically, the Biden White House and the Democratic Party on the state and federal levels have declared a legal war on pro-lifers, while vigilante abortion defenders wage a parallel war of arson, vandalism, and harassment.
“I met with many of you in my office at the White House,” Vice President Kamala Harris told Democratic state attorneys general at a conference on Thursday.
“And we discussed the innovative strategies that you have used to defend women's reproductive freedom.”
What are those “innovative strategies?”
They seem to include the persecution of abortionists' competition.
The very first example Harris gave was: “You are taking on, rightly, the crisis pregnancy centers.”
The vice president, who has said she approaches abortion policy like “a prosecutor,” is siccing state attorneys general on the nonprofit organizations that serve mothers in crisis pregnancies because those nonprofit organizations don’t abort the babies that come through their doors.
Sen. Elizabeth Warren (D-MA) has said she wants crisis pregnancy centers "shut down."
That was the same day a crisis pregnancy center outside of Detroit was attacked for the second time, with death threats spray-painted.
More than 70 such attacks have happened in the past few months, and the Biden administration has said and done nothing about it.
It’s as if they’re fine with the threats, arson, and vandalism.
But a sidewalk scuffle brings in the full force of the FBI on one of the two men involved?
It sure looks like part of the Biden administration’s defense of abortion is to outlaw pro-life activity.
https://www.msn.com/en-us/news/politics ... 3b52adcb0e
"The Biden administration has launched its war on pro-lifers"
Opinion by Timothy P. Carney
26 SEPTEMBER 2022
The FBI on Friday morning arrested a pro-life activist at his home for a 2021 scuffle with a Planned Parenthood activist.
The family and friends of Mark Houck said the scuffle involved an abortion activist harassing and screaming at Houck’s 12-year-old son until Houck shoved the man to the ground.
In response, Houck’s family and friends have told reporters, the FBI this weekend sent a platoon of agents with weapons drawn to arrest Houck at his house.
Even if you take only the FBI’s version of the tale, the Biden administration assembled a grand jury, secured an indictment, and charged a man with a federal crime possibly carrying an 11-year sentence because he shoved another man who received “injuries … that required medical attention.”
Because there is an extraordinary federal law protecting abortionists from protesters, sidewalk counselors, and rosary prayers, Houck is now charged with a federal felony.
This only makes sense in a political context.
Specifically, the Biden White House and the Democratic Party on the state and federal levels have declared a legal war on pro-lifers, while vigilante abortion defenders wage a parallel war of arson, vandalism, and harassment.
“I met with many of you in my office at the White House,” Vice President Kamala Harris told Democratic state attorneys general at a conference on Thursday.
“And we discussed the innovative strategies that you have used to defend women's reproductive freedom.”
What are those “innovative strategies?”
They seem to include the persecution of abortionists' competition.
The very first example Harris gave was: “You are taking on, rightly, the crisis pregnancy centers.”
The vice president, who has said she approaches abortion policy like “a prosecutor,” is siccing state attorneys general on the nonprofit organizations that serve mothers in crisis pregnancies because those nonprofit organizations don’t abort the babies that come through their doors.
Sen. Elizabeth Warren (D-MA) has said she wants crisis pregnancy centers "shut down."
That was the same day a crisis pregnancy center outside of Detroit was attacked for the second time, with death threats spray-painted.
More than 70 such attacks have happened in the past few months, and the Biden administration has said and done nothing about it.
It’s as if they’re fine with the threats, arson, and vandalism.
But a sidewalk scuffle brings in the full force of the FBI on one of the two men involved?
It sure looks like part of the Biden administration’s defense of abortion is to outlaw pro-life activity.
https://www.msn.com/en-us/news/politics ... 3b52adcb0e
Re: THE DAILY NEWS
RIGZONE
"Oil Rises on News of Russia Urging OPEC to Cut Production"
by Bloomberg | Ilena Peng and Julia Fanzeres
Tuesday, September 27, 2022
Oil rallied after a report that Russia will advocate for OPEC+ nations to cut production, heightening supply concerns as deadlines to implement Russian fuel bans approach.
West Texas Intermediate rose 2.3% to settle above $78 a barrel.
Futures earlier rose almost 4% after Reuters reported Russia is expected to push for production cuts at OPEC’s next meeting.
A strengthening dollar and a reminder from Federal Reserve members that more rates hikes are likely in order to slow inflation tamped down the rally.
Supporting crude’s gains were technical gauges indicating that WTI hit oversold territory yesterday when it fell below $77.
Additionally, the market is keeping an eye out for potential disruptions in the Gulf of Mexico as operators shut platforms ahead of Hurricane Ian.
These factors, however, are still of “secondary importance” to the dollar, said Robert Yawger, director of the energy futures division at Mizuho Securities USA.
“The market is still going to have a rough time trading strongly to the upside unless we get a break in the rally in the dollar.”
The US oil benchmark remains on track for its first quarterly loss in more than two years on concern that energy consumption will fall, as an aggressive round of central bank rate hikes menace global growth.
Some analysts have said the slump may spur the Organization of Petroleum Exporting Countries and allies to consider paring supply.
UBS and JPMorgan Chase & Co. are among those in the industry that have called on OPEC+ to make supply cuts, which would help stabilize oil markets.
Meanwhile. Goldman Sachs Group Inc. slashed its oil forecasts as markets price in a major hit to the global economy.
“A strong USD and falling demand expectations will remain powerful headwinds to prices into year-end,” Goldman analysts including Damien Courvalin wrote in a report.
“Yet, the structurally bullish set-up -- due to the lack of investment, low spare capacity and inventories -- has only grown stronger, inevitably requiring much higher prices."
Prices:
WTI for November delivery rose $1.79 to settle at $78.50 in New York.
Brent for November settlement climbed $2.21 to settle at $86.27 a barrel.
Top traders have also indicated wariness about the recent price pullback.
Trafigura Group’s chief economist said commodity markets are potentially moving from cycles to a world of price spikes instead amid sustained underinvestment and a lack of spare capacity.
However, a parade of Federal Reserve policy makers signaled on Monday that further rate increases are in store, with the need to tame inflation coming at the cost of a slowdown.
Among them, Fed Bank of Cleveland President Loretta Mester said that officials will need to keep restrictive policy in place for longer.
https://www.rigzone.com/news/wire/oil_r ... 0-article/
"Oil Rises on News of Russia Urging OPEC to Cut Production"
by Bloomberg | Ilena Peng and Julia Fanzeres
Tuesday, September 27, 2022
Oil rallied after a report that Russia will advocate for OPEC+ nations to cut production, heightening supply concerns as deadlines to implement Russian fuel bans approach.
West Texas Intermediate rose 2.3% to settle above $78 a barrel.
Futures earlier rose almost 4% after Reuters reported Russia is expected to push for production cuts at OPEC’s next meeting.
A strengthening dollar and a reminder from Federal Reserve members that more rates hikes are likely in order to slow inflation tamped down the rally.
Supporting crude’s gains were technical gauges indicating that WTI hit oversold territory yesterday when it fell below $77.
Additionally, the market is keeping an eye out for potential disruptions in the Gulf of Mexico as operators shut platforms ahead of Hurricane Ian.
These factors, however, are still of “secondary importance” to the dollar, said Robert Yawger, director of the energy futures division at Mizuho Securities USA.
“The market is still going to have a rough time trading strongly to the upside unless we get a break in the rally in the dollar.”
The US oil benchmark remains on track for its first quarterly loss in more than two years on concern that energy consumption will fall, as an aggressive round of central bank rate hikes menace global growth.
Some analysts have said the slump may spur the Organization of Petroleum Exporting Countries and allies to consider paring supply.
UBS and JPMorgan Chase & Co. are among those in the industry that have called on OPEC+ to make supply cuts, which would help stabilize oil markets.
Meanwhile. Goldman Sachs Group Inc. slashed its oil forecasts as markets price in a major hit to the global economy.
“A strong USD and falling demand expectations will remain powerful headwinds to prices into year-end,” Goldman analysts including Damien Courvalin wrote in a report.
“Yet, the structurally bullish set-up -- due to the lack of investment, low spare capacity and inventories -- has only grown stronger, inevitably requiring much higher prices."
Prices:
WTI for November delivery rose $1.79 to settle at $78.50 in New York.
Brent for November settlement climbed $2.21 to settle at $86.27 a barrel.
Top traders have also indicated wariness about the recent price pullback.
Trafigura Group’s chief economist said commodity markets are potentially moving from cycles to a world of price spikes instead amid sustained underinvestment and a lack of spare capacity.
However, a parade of Federal Reserve policy makers signaled on Monday that further rate increases are in store, with the need to tame inflation coming at the cost of a slowdown.
Among them, Fed Bank of Cleveland President Loretta Mester said that officials will need to keep restrictive policy in place for longer.
https://www.rigzone.com/news/wire/oil_r ... 0-article/
Re: THE DAILY NEWS
Investing.com
"Oil Inventories Rise by More Than Expected 4M Barrels Last Week: API"
By Yasin Ebrahim
Sep 27, 2022
Investing.com -- U.S. crude stockpiles increased by much more than expected last week, the API reported Tuesday, just as investors up their bets on supply disruptions as Hurricane Ian is expected to make landfall in Florida on Wednesday.
West Texas Intermediate, the U.S. benchmark, traded at $78.11 a barrel following the report after settling up 2.3% at $78.50 a barrel.
U.S. crude inventories rose by 4 million barrels for the week ended Sept. 23.
That compared with a build of 6.0 million barrels reported by the API in the previous week.
Economists were expecting an increase of about 333,000 barrels.
Crude prices recovered from a soft start to the week on bets of supply disruptions in the Gulf of Mexico as Hurricane Ian is expected to make landfall in Florida on Wednesday.
The U.S. offshore regulator said that 190,358 barrels per day of production was shut down in the Gulf of Mexico on hurricane disruptions.
The API data also showed that gasoline inventories decreased by 1.0 million barrels last week, and distillate stocks rose by 438,000 barrels.
The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies rose by 443,000 barrels last week.
https://www.investing.com/news/commodit ... pi-2900250
"Oil Inventories Rise by More Than Expected 4M Barrels Last Week: API"
By Yasin Ebrahim
Sep 27, 2022
Investing.com -- U.S. crude stockpiles increased by much more than expected last week, the API reported Tuesday, just as investors up their bets on supply disruptions as Hurricane Ian is expected to make landfall in Florida on Wednesday.
West Texas Intermediate, the U.S. benchmark, traded at $78.11 a barrel following the report after settling up 2.3% at $78.50 a barrel.
U.S. crude inventories rose by 4 million barrels for the week ended Sept. 23.
That compared with a build of 6.0 million barrels reported by the API in the previous week.
Economists were expecting an increase of about 333,000 barrels.
Crude prices recovered from a soft start to the week on bets of supply disruptions in the Gulf of Mexico as Hurricane Ian is expected to make landfall in Florida on Wednesday.
The U.S. offshore regulator said that 190,358 barrels per day of production was shut down in the Gulf of Mexico on hurricane disruptions.
The API data also showed that gasoline inventories decreased by 1.0 million barrels last week, and distillate stocks rose by 438,000 barrels.
The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies rose by 443,000 barrels last week.
https://www.investing.com/news/commodit ... pi-2900250
Re: THE DAILY NEWS
CNBC
"10-year yield rises, approaches key 4% level in swift intraday reversal"
Sophie Kiderlin @SKIDERLIN
PUBLISHED TUE, SEP 27 2022
The benchmark 10-year Treasury yield rose Tuesday, reversing an earlier decline, as traders fretted over the prospects of higher interest rates from the Federal Reserve.
The 10-year yield last traded 9 basis point higher at 3.97%, putting it within striking distance of reaching the key 4% level.
The 10-year rate last traded at 4% in 2008, according to FactSet.
The 2-year rate, which is more sensitive to policy changes, hovered around the flatline for the day, trading at about 4.3%.
Yields and prices move in opposite directions and one basis point is equivalent to 0.01%.
Markets digested a slew of Federal Reserve speaker commentary after Boston Fed president Susan Collins, Atlanta Fed president Raphael Bostic and Cleveland Fed president Loretta Mester all gave speeches on Monday.
Their comments signaled that the Federal Reserve would continue to prioritize pushing back against persistent inflation, with Mester arguing that “aggressive and pre-emptive action can prevent the worst-case outcomes from actually coming out.”
This stance is in line with the central bank’s recent policy decisions and its remarks after hiking interest rates by 75 basis points at its September meeting last week.
To be sure, Chicago Fed President Charles Evans said he was getting nervous that the central bank was tightening too, far too fast.
“Rising yields in part reflect the unwinding over the last month of expectations for an early pivot in central bank, and particularly Federal Reserve, policy."
"But we think the rise in longer-term yields may not accurately reflect the risks facing the economy,” wrote Mark Haefele of UBS.
“The Fed continues to stress that controlling inflation is its priority ... and the short end of the yield curve is fully priced for a frontloaded hiking cycle,” he said.
“But longer-term yields may have run too far."
"The steepness of the recent rise in yields has pushed up real yields, tightening financial conditions and increasing the risk that the US economy tips into recession.”
—CNBC’s Fred Imbert contributed to this report.
https://www.cnbc.com/2022/09/27/treasur ... -slip.html
"10-year yield rises, approaches key 4% level in swift intraday reversal"
Sophie Kiderlin @SKIDERLIN
PUBLISHED TUE, SEP 27 2022
The benchmark 10-year Treasury yield rose Tuesday, reversing an earlier decline, as traders fretted over the prospects of higher interest rates from the Federal Reserve.
The 10-year yield last traded 9 basis point higher at 3.97%, putting it within striking distance of reaching the key 4% level.
The 10-year rate last traded at 4% in 2008, according to FactSet.
The 2-year rate, which is more sensitive to policy changes, hovered around the flatline for the day, trading at about 4.3%.
Yields and prices move in opposite directions and one basis point is equivalent to 0.01%.
Markets digested a slew of Federal Reserve speaker commentary after Boston Fed president Susan Collins, Atlanta Fed president Raphael Bostic and Cleveland Fed president Loretta Mester all gave speeches on Monday.
Their comments signaled that the Federal Reserve would continue to prioritize pushing back against persistent inflation, with Mester arguing that “aggressive and pre-emptive action can prevent the worst-case outcomes from actually coming out.”
This stance is in line with the central bank’s recent policy decisions and its remarks after hiking interest rates by 75 basis points at its September meeting last week.
To be sure, Chicago Fed President Charles Evans said he was getting nervous that the central bank was tightening too, far too fast.
“Rising yields in part reflect the unwinding over the last month of expectations for an early pivot in central bank, and particularly Federal Reserve, policy."
"But we think the rise in longer-term yields may not accurately reflect the risks facing the economy,” wrote Mark Haefele of UBS.
“The Fed continues to stress that controlling inflation is its priority ... and the short end of the yield curve is fully priced for a frontloaded hiking cycle,” he said.
“But longer-term yields may have run too far."
"The steepness of the recent rise in yields has pushed up real yields, tightening financial conditions and increasing the risk that the US economy tips into recession.”
—CNBC’s Fred Imbert contributed to this report.
https://www.cnbc.com/2022/09/27/treasur ... -slip.html
Re: THE DAILY NEWS
REUTERS
"TREASURIES-U.S. 10-year yield jumps to 12-1/2 year high"
By Gertrude Chavez-Dreyfuss, Chuck Mikolajczak
SEPTEMBER 27, 2022
NEW YORK, Sept 27 (Reuters) - Benchmark U.S. 10-year Treasury yields rose to their highest level in about 12-1/2 years on Tuesday as investors girded for higher interest rates that could possibly remain for longer than anticipated as Federal Reserve officials held firm in their hawkish stance.
U.S. 10-year yield hit 3.992%, the highest since April 5, 2010.
It was last up 8.3 basis points to 3.964%.
Since August 2, the 10-year yield has surged by 145 bps.
U.S. 30-year yields also touched a milestone on Tuesday, advancing to 3.847%, the strongest level since January 2014.
The yield was last up 13.2 basis points to 3.829%.
Fed officials have been resolute in their comments that the central bank will take strong steps in raising interest rates to combat rising prices until they see extended evidence that inflation is on the wane.
“That is going to be the name of the game for the next four to six months, inflation is not headed lower on a string, it is going to be a bumpy road to get down below 3%,” said John Luke Tyner, fixed income analyst at Aptus Capital Advisors In Fairhope, Alabama.
“We are in for a world of pain until the problem gets cleared by.”
Chicago Fed President Charles Evans, St. Louis Fed President James Bullard and Minneapolis Federal Reserve Bank President Neel Kashkari on Tuesday all reiterated the central bank’s stance and pushed yields higher.
Evans said the Fed will need to raise interest rates to a range between 4.50% and 4.75%, a more aggressive stance than he had previously embraced.
Evans will be a voter at next year’s Federal Open Market Committee (FOMC).
Bullard, a current voter at this year’s policy meeting, said he sees the likely peak for policy rate at 4.5%, and noted that the Fed will have to stay at the higher rate for some time.
Kashkari, an alternate voting member, said U.S. central bankers are united in their determination to do what is needed to bring inflation down.
A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, remained inverted at -35.1 basis points.
This curve has been inverted since July 5.
An inversion of this specific yield curve is widely seen as a reliable indicator of an impending recession.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 0.2 basis points at 4.312%.
On Monday, it surged to 15-year high of 4.36%.
U.S. data on Tuesday indicated the economy may be able to sustain growth even in the face of higher interest rates, as new orders for U.S.-manufactured capital goods increased more than expected in August.
In addition, an index on consumer confidence rose for September rose to 108 from the prior month and topped expectations of 104.5
Sales of new U.S. single-family homes also showed a surprise increase in August.
New home sales surged 28.8% to a seasonally adjusted annual rate of 685,000 units, data showed.
July’s sales pace was revised higher to 532,000 units from the previously reported 511,000 units.
(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)
https://www.reuters.com/article/usa-bon ... SL1N30Y257
"TREASURIES-U.S. 10-year yield jumps to 12-1/2 year high"
By Gertrude Chavez-Dreyfuss, Chuck Mikolajczak
SEPTEMBER 27, 2022
NEW YORK, Sept 27 (Reuters) - Benchmark U.S. 10-year Treasury yields rose to their highest level in about 12-1/2 years on Tuesday as investors girded for higher interest rates that could possibly remain for longer than anticipated as Federal Reserve officials held firm in their hawkish stance.
U.S. 10-year yield hit 3.992%, the highest since April 5, 2010.
It was last up 8.3 basis points to 3.964%.
Since August 2, the 10-year yield has surged by 145 bps.
U.S. 30-year yields also touched a milestone on Tuesday, advancing to 3.847%, the strongest level since January 2014.
The yield was last up 13.2 basis points to 3.829%.
Fed officials have been resolute in their comments that the central bank will take strong steps in raising interest rates to combat rising prices until they see extended evidence that inflation is on the wane.
“That is going to be the name of the game for the next four to six months, inflation is not headed lower on a string, it is going to be a bumpy road to get down below 3%,” said John Luke Tyner, fixed income analyst at Aptus Capital Advisors In Fairhope, Alabama.
“We are in for a world of pain until the problem gets cleared by.”
Chicago Fed President Charles Evans, St. Louis Fed President James Bullard and Minneapolis Federal Reserve Bank President Neel Kashkari on Tuesday all reiterated the central bank’s stance and pushed yields higher.
Evans said the Fed will need to raise interest rates to a range between 4.50% and 4.75%, a more aggressive stance than he had previously embraced.
Evans will be a voter at next year’s Federal Open Market Committee (FOMC).
Bullard, a current voter at this year’s policy meeting, said he sees the likely peak for policy rate at 4.5%, and noted that the Fed will have to stay at the higher rate for some time.
Kashkari, an alternate voting member, said U.S. central bankers are united in their determination to do what is needed to bring inflation down.
A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, remained inverted at -35.1 basis points.
This curve has been inverted since July 5.
An inversion of this specific yield curve is widely seen as a reliable indicator of an impending recession.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 0.2 basis points at 4.312%.
On Monday, it surged to 15-year high of 4.36%.
U.S. data on Tuesday indicated the economy may be able to sustain growth even in the face of higher interest rates, as new orders for U.S.-manufactured capital goods increased more than expected in August.
In addition, an index on consumer confidence rose for September rose to 108 from the prior month and topped expectations of 104.5
Sales of new U.S. single-family homes also showed a surprise increase in August.
New home sales surged 28.8% to a seasonally adjusted annual rate of 685,000 units, data showed.
July’s sales pace was revised higher to 532,000 units from the previously reported 511,000 units.
(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)
https://www.reuters.com/article/usa-bon ... SL1N30Y257