TARIFFS: India/US Could Soon Agree To Address Reciprocol Tariffs - Indian Off.
Nov-17 10:46
Reuters reporting comments from an Indian trade official stating India and the US “could soon agree to address reciprocal tariffs” in the first part of an emerging trade agreement, with the two countries, “likely to address broader trade issues in the second part of the agreement.” The official added that “officials engaged in virtual negotiations to address the concerns of each other.”
- The comments are likely to add to recent optimism that a trade deal is in reach, bolstered by the confirmation of Trump insider Sergio Gor as US Ambassador to India. An expert told CNBC that Gor’s appointment ″suggests a desire to reach a trade deal sooner rather than later."
- Last week, President Donald Trump suggested he could lower tariffs in response to India reducing Russian oil imports, despite reports that imports are largely unchanged. Trump said, “They have now substantially reduced Russian oil [imports], so we will be bringing the tariffs down.”
- The prospect of a trade deal is also likely to be boosted by Indian Prime Minister Narendra Modi’s ruling Bhartiya Janta Party's (BJP) strong victory in Bihar state elections, providing Modi leverage to offer agricultural concessions.
- A slate of recent trade deals also suggests the White House is accelerating trade negotiations to address concerns over prices. In the past week, the White House has announced new deals with Switzerland, Argentina, Guatemala, El Salvador, and Ecuador; formalised the terms of a trade framework with South Korea; and modified the terms of the EU trade deal to exclude certain agricultural products and other products that can't be produced in the US.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
LOOK AHEAD: US Week Ahead Headlined By Delayed CPI Report On Friday
Oct-17 20:51
- The September US CPI report will be released on Friday, delayed amidst the government shutdown but with the BLS making a special exception on social security payment considerations.
- Bloomberg consensus looks for headline CPI inflation at a rounded 0.4% M/M after 0.38% back in August and for Y/Y inflation to firm two tenths to 3.1% for what would be its highest since May 2024.
- Core inflation is seen at a rounded 0.3% M/M after 0.35% in August (exceeding the median unrounded estimate of 0.31%) and 0.32% in July. It’s expected to see core CPI inflation hold at 3.1% Y/Y having in August increased to its highest since February.
- Core details should see focus on both goods and services angles: underlying goods inflation has clearly firmed in recent months on tariff pressures although the median increase has currently seen a peak back in June, whilst services will be watched for any spillover after some strong recent non-housing readings.
- The report will come within the FOMC blackout period ahead of the Oct 28-29 decision, with a 25bp cut fully priced and likely needing a large surprise to alter this.
- As for broader inflation details, Fed Chair Powell this week confusingly suggested that we will have the September PPI report but the BLS had previously said “No other releases will be rescheduled or produced until the resumption of regular government services”.
US DATA: Latest Jobless Claims Estimates During The Shutdown
Oct-17 20:30
As noted earlier, MNI estimates initial jobless claims at a seasonally adjusted 218k in the week to Oct 11 and continuing claims at a seasonally adjusted 1929k in the week to Oct 4.
- To give a better idea of sensitivity around these estimates, which rely on estimates for some missing states, we note the below analyst estimates:
- Goldman Sachs have a central estimate of 217k for initial claims in a range of 211-225k, whilst they see continuing claims at 1917k in a range of 1885-1930k.
- JPMorgan meanwhile also see 217k for initial claims whilst they see continuing claims as having held constant at 1927k.
NATGAS: Venture Global in Talks with Ukraine for more LNG Deliveries, Reuters
Oct-17 20:28
Ukraine is seeking more cargoes from Venture’s Plaquemines facility as the embattled nation approaches the winter heating season, according to Reuters sources
- Venture is in talks with Ukraine’s DTEK to procure more LNG cargoes after a year of gas infrastructure attacks by the Russians.
- Venture Global CEO Michael Sabel met with President Volodymyr Zelenskiy on Thursday October 16.
- DTEK signed an agreement in 2024 for an undisclosed amount of LNG from the facility, as well as 2 mtpa from Calcasieu Pass Phase 2 currently under construction.
- Plaquemines currently has spare capacity to deliver more cargoes to Ukraine on the spot market, per Reuters.
- Plaquemines now sends out the second highest LNG volume in the US, with feedgas demand averaging 3.45 bcf/d according to MNI figures.
