U.N. Approves “No-Fly Zone” Over Libya
The United Nations Security Council approved a resolution authorizing international military intervention (any measures short of a ground invasion) in Libya.
Archive for March 17th, 2011
March Philadelphia FED General Business Conditions Index At 43.4
Philadelphia FED General Business Conditions Index rose to 43.4. Consensus was at 32.0, prior reading was at 35.9.
This is a positive outlier, it is highly unlikely that index can remain at these levels. Manufacturing surveys overestimate implied industrial growth in recent months.
Video Of The Day – Bloomberg TV – Pimco’s El-Erian Interview on Japan Earthquake
Mohamed El-Erian, chief executive officer of Pacific Investment Management Co., discusses the potenial impact of last week’s 9-magnitude earthquake and tsunami in Japan on the U.S. and global economies. El-Erian speaks from Newport Beach, California, with Margaret Brennan on Bloomberg Television’s “InBusiness.” (Source: Bloomberg)
U.S. Industrial Production Fell 0.1% In February
U.S. industrial production fell 0.1% in February. The consensus was at 0.6%, January revised (up 0.4%) reading was at 0.3%. On year level industrial production is up 5.5%.
Daily Reading – Thursday, March 17, 2011
*** FT Alphaville: The situation in Tokyo, a view from the ground ***
*** FT Alphaville: China: pass the salt ***
*** FT Alphaville: On top of everything, Mizuho bank is having ATM problems ***
*** The Reformed Broker: Here’s Something You Didn’t Know – Pimco Shares Trading on SecondMarket ***
*** Zero Hedge: Tokyo Passengers Set Off O’Hare Radiation Detectors ***
*** Early Warning: Saudi oil production increased in February ***
U.S. Consumer Price Index Rose 0.5% In February
U.S. consumer price index rose 0.5% in February vs. 0.4% consensus and January reading of 0.4%. On year level CPI inflation is running at 2.2%.
U.S. Initial Jobless Claims At 385.000; Down 16.000
Initial jobless claims in the U.S. were reported at 385.000 vs. 388.000 consensus and last week revised (up 4.000) reading of 401.000.
Four weeks moving ticked lower.
U.S. Petroleum Weekly – March 17, 2011
Libya is out of the markets, but judging from the recent events the rebels are on the brink of defeat and since world needs oil purchases of Libyan crude could resume in following months.
Focus in the last few days has shifted to Bahrain, there also the ruling regime is succeeding to restore order using extremely violent measures.
The biggest question is the demand impact of Japanese earthquake, tsunami and nuclear disaster. I believe that short term demand shock is widely underestimated, but for the time being and despite the fundamental facts mentioned above I believe crude oil is bound to rise on all of this uncertainty.