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Livesquawk - Closing Wrap - Tuesday 02.03
Closing Wrap - Tuesday 02.03
Headlines
  • OPEC Demand Outlook Sees Oil Stocks Falling In 2021
  • Saudi Aramco, Chevron Chiefs See Global Oil Demand Recovery
  • WH Using Defence Production Act To Equip Merck Plants For J&J Vaccine
  • EU Likely To Continue Suspension Of Bloc’s Debt Rules In 2022
  • EU Regulator To Decide On J&J Vaccine March 11
  • UK To Import Vaccine Doses From India Amid Global Jabs Race
  • French Bankers Seek EU Law To Move Euro Clearing From London
  • Intel Told To Pay $2.18 Bln After Losing Texas Patent Trial
  • Goldman’s Chief Lawyer Departs As Senior Executive Exits Grow
Commentary
UK Chancellor Set To Continue Support But Sound A Hawkish Tone

Wednesday’s Spring Budget from UK Finance Minister Rishi Sunak is expected to extend and replace a number of Covid-19 related support measures due to expire in the coming months. All this whilst signalling the need to prepare for targeted tax hikes in the months and years ahead.

 

The country’s Chancellor of the Exchequer has been in his post for just over a year now and has been praised for skilfully marshalling finances during one of the most challenging periods in the nation’s history. The coronavirus pandemic has inflicted the worst economic conditions on the country in more than 300 years. Unprecedented amounts of money have been spent to protect the lives and livelihoods of the population.

 

“The result has been a mind-boggling deficit projection of 19% of GDP for the fiscal year just ending,” said SocGen’s Brian Hilliard. “Obviously, at some stage, Sunak will need to take major steps to rein in the deficit and, ultimately, reduce the level of debt.

 

“However, he has to perform a delicate balancing act between, on the one hand, continuing support until it is clear that the economy can stand on its own two feet and, on the other, starting to reduce expenditure and raise taxes to repair the public finances.” (LiveSquawk – Continue Reading)

EU Likely To Continue Suspension Of Bloc’s Debt Rules In 2022

The European Union’s executive arm is likely to suspend the bloc’s debt rules through next year as persistent lockdowns and sluggish vaccine rollouts dampen the region’s economic recovery.

 

The European Commission will outline new parameters on Wednesday for deciding whether to seize or prolong a suspension of the EU’s spending limits in May, according to two officials familiar with the plan. The decision comes a year after the commission first scrapped the rules as governments sought to cushion the blow of the pandemic with extraordinary levels of support.

 

A resolution to hold off on restoring the rules is yet another sign that EU economies are likely to take a gradual approach in phasing out such support, even as public finances have deteriorated across the board. (Bloomberg – Continue Reading)

OPEC Demand Outlook Sees Oil Stocks Falling In 2021

OPEC expects oil inventories to drop by about 400 million barrels in 2021 in the latest supply and demand outlook being reviewed by a technical meeting on Tuesday, two OPEC+ sources said.

 

The figure, similar to the implied 2021 stock draw of 406 million barrels seen a month ago by OPEC, is part of what one of the OPEC sources called a “healthy” supply and demand balance for 2021. (Reuters – Continue Reading)

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