Espresso for April 13th
QUOTE OF THE DAY
“The eternal return is an invitation to accept the parlous circumstances of life. Not only accepting them but loving them, after all, joys will be repeated. If the will to create increases the horizon of infinite returns, it is the reason and the love of cosmic unit that lead us to say to death, with a big smile: ” Was this life? for the sake of Zarathustra, let it happen again.” Mario Campa
WHAT MARKETS ARE TALKING ABOUT
OPEC SEES 2016 OIL DEMAND INDEED LOWER
The Organization of Petroleum Exporting Countries (OPEC) cut its 2016 demand growth estimate by 50,000 barrels a day. OPEC stated that cuts could be deepen as a result of slowdown in EM, mainly LatAm and China, warmer weather and removal of fuel subsidies. Funny that despite lower forecasted oil demand, OPEC still increased output in March. Speculation has mounted over potential freeze in oil supply expected on Sunday at OPEC´s Doha meeting. Eleven of OPEC members are confirmed for the gathering with Libya not attending and Iran still to decide. WTI Crude oil´s futures are down 1.38% after yesterday´s rally.
DILMA IS GETTING LONELIER
Former coalition now supports Rousseff´s impeachment. The Progressive Party (PP), Rousseff´s former coalition partner, has abandoned Dilma after the majority of its 47 MPs would vote for the impeachment. This in addition to the announcement that the Brazilian Republican Party (BRP) would also support the ouster; and don´t forget to add the National Labor Party (PTN), as the majority of its members would vote for the impeachment despite being offered the Ministry of Sports or Tourism. Impeachment vote in the lower house is on Sunday with 2/3 or 342 of MPs needed to send the case to the Senate. Stay tune.
JUST A MATTER OF CALCULATION
Brazilian states are seeking to apply simple interest and remove compound interest for payments on federal debt. Just a technicality right? well, up to $89 bn in lost revenue is at risk for the government. Compound interest was set last year after a presidential decree, state lawyers argue the change was unconstitutional. A favorable ruling for the Santa Catarina state on the matter would encourage other states to follow.
JPM´s 1Q16 earnings fell 6.7% from lower trading and IB revenue. Results beat revenue but missed profits estimates. The company aims to improve return in capital. Shares are up 2.75% in pre-market-
PEABODY the largest coal company filled for bankruptcy on coal slump.