Daily Oil Fundamentals

Trump 2.0 is Off to a Flying Start

11 Nov 2024

Trump 2.0 is Off to a Flying Start

Two of the many pivotal campaign pledges of the Republican camp that sent Donald Trump emphatically back to the White House were tax cuts, both individuals and corporate, and deregulations. As discussed below the promised lowering of taxes is likely to trigger inflationary pressure in the medium-term or at least will be a contributor but it appears that for now the planned decrease of corporate tax rates to 15% and lenient scrutiny of corporate America triggered a euphoric buying spree in US equities.

Daily Oil Fundamentals

US Stock Markets Are Not Done With the Trump Trade

08 Nov 2024

US Stock Markets Are Not Done With the Trump Trade

Such is the furore around the US election that what is normally a 'Tier 1' event, an FOMC rate decision, has all but been lost. Frankly, there were no great surprises as the FED kept in line with expectation to cut by 25-basis points, and with it an easy path of another such reduction in December being paved. Yet the intrigue comes from how the FED might view the new administration, because of possible deportations and tariffs which are inflation builders, and set out any adjustment to future policy.

Daily Oil Fundamentals

Everybody Knows

07 Nov 2024

Everybody Knows

Regular readers of this report are probably aware of our worldview. We believe that the ultimate world order, borrowing the words of Francis Fukuyama, the end of history, is liberal democracy combined with effectively functioning markets. This tenet rests on a simple approach, which goes something like this: the fundamental duty of every government is to enhance the wealth and well-being of its citizens.