ENERGY: Norway’s Energy Ministry Begins Work on 26th NCS Licensing Round
Aug-08 15:11
Norway’s Energy Ministry has began work on announcing the 26th licensing round on the Norwegian continental shelf.
- “Norway shall be a long-term supplier of oil and gas to Europe, while the Norwegian continental shelf shall continue to create value and jobs for our country,” Energy Minister Terje Aasland said.
- New discoveries of oil and gas are crucial to limiting the future decline in production on the Norwegian continental shelf.
- “If we are to deliver on this commitment, we must find more, and to find we must explore,” Aasland added.
- The Norwegian Offshore Directorate previously published three scenarios which all show a decline in production on the continental shelf to 2050.
- Norway producers Equinor and Aker BP early last month approved a 13 billion Norwegian krone ($1.29 billion) investment to boost Johan Sverdrup oil field reserves. The decision followed an Equinor announcement to spend $2.1bn to access more oil from the Troll field.
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US OUTLOOK/OPINION: Atlanta Fed GDPNow For Q2 Steadies At 2.6%
Jul-09 15:11
The Atlanta Fed's GDPNow latest estimate for Q2 GDP is 2.58% Q/Q SAAR (-0.5% in Q1), basically steady vs 2.61% in the last full update on Jul 3.
- The latest update incorporates today's wholesale trade data, which had only a negligible negative impact on the forecasts (0.02pp bigger drag on growth from inventories).
- The high estimate for the quarter was 3.8% in early June, with 2.4% in early July marking the low). Analyst consensus is for 2.1%.
- The next update isn't until July 17, after retail sales + inventories, import and export price data.
GILTS: Flatter, Paring Most Of Yesterday's Curve Steepening
Jul-09 14:55
The bid in U.S. Tsys, weakness in crude and move away from highs in e-minis have provided support for gilts, with futures trading to fresh session highs of 91.92, but ultimately remaining within the confines of yesterday’s range.
- Bulls will want to break yesterday’s high (91.98) before attempting to close yesterday’s opening gap lower.
- Yields 0.5-4bp lower, curve flatter.
- BoE Governor Bailey’s reiteration re: recent curve steepening factoring into the Bank’s QT adjustment decision in September underpinned an early flattening curve bias, with major spreads paring most of yesterday’s bear steepening.
- Still, a lack of fiscal headroom, coupled with tepid economic growth and downside risks to productivity continue to promote heighted odds of tax increases as soon as the Autumn, while underscoring the fiscal fragility narrative.
- GBP STIR pricing slightly more dovish on the day given action further out the curve.
- SONIA futures 0.5-2.0 firmer.
- BoE-dated OIS showing ~52.5bp of cuts through year-end, ~1bp more dovish on the day.
OPTIONS: Expiries for Jul10 NY cut 1000ET (Source DTCC)
Jul-09 14:50
- EUR/USD: $1.1650(E2.5bln), $1.1685-00(E1.5bln), $1.1710-20(E616mln), $1.1735-50(E1.5bln), $1.1800(E1.3bln)
- USD/JPY: Y143.95-15($1.0bln), Y144.70-90($1.3bln), Y146.50-55($681mln), Y147.00($832mln)
- GBP/USD: $1.3490-10(Gbp529mln), $1.3570(Gbp540mln)
- EUR/GBP: Gbp0.8595-00(E815mln)
- AUD/USD: $0.6440-55(A$954mln), $0.6500(A$599mln), $0.6415-25(A$589mln), $0.6600(A$634mln)
- NZD/USD: $0.6000(N$517mln)
- USD/CAD: C$1.3625-35($1.0bln)
