The oil and gas industry desperately needs higher prices
Restructurings and potential defaults are getting more pronounced in the energy sector as the debt leverage and low prices have reached its breaking point. The industry desperately needs higher prices to become sustainable from an equity investor perspective.
Macro Dragon: Its about the BoE, not the ECB... Plus Trump vs. Macron Tues Could Spell Risk-Off
Macro Dragon = Daily Cross-Asset Global Views
We kick off WK # 4 with a Macro Dragon that looks at all the Major Central banks that will be meeting over the next two weeks including: BoJ, BoC, ECB, Fed & BoE - in addition to KVP's views we also link to the most recent statements. BoE is the most interesting given its recent tilt to the dovish-side & currently c. 70% prob of an insurance cut next Thu 30 Jan. This potentially creates some headwinds against sterling crosses & tailwinds for those tactically short sterling going into next wk. Biggest current market risk would be Trump / Macron (Tue?) fall-out on digital tax of US tech.