UKRAINE: US' Witkoff To Join Zelenskyy In Looking To Restart Talks w/Russia
Nov-18 08:26
Earlier this morning, President Volodymyr Zelenskyy confirmed that he would travel to Turkey on Wednesday, 19 November, to hold talks with officials and seek to "reinvigorate negotiations" with Russia. This has been followed by a headline on Reuters claiming that, according to a Turkish source, US Middle East envoy Steve Witkoff will travel to Turkey to join the talks with Zelenskyy.
- Posting on X, Zelesnkyy said, "We are preparing to reinvigorate negotiations, and we have developed solutions that we will propose to our partners. Doing everything possible to bring the end of the war closer is Ukraine’s top priority. We are also working to restore POW exchanges and bring our prisoners of war home."
- The visit comes two days after a Russian drone was suspected of striking a Turkish-flagged LNG carrier in Ukraine's Odesa region on the Black Sea, setting the vessel ablaze and leading to evacuations in nearby Romania. This came a day after Zelenskyy signed a deal in Athens to import US LNG via the northern port of Alexandroupolis from Jan 2026.
- The presence of Witkoff may not be viewed by Ukraine and its allies of indicative of a harder US push for Russian concessions. As Politico noted on 17 Nov, "EU officials have been aghast at Witkoff’s lack of understanding of the complexities of the Russia-Ukraine war. One senior European official who requested anonymity to speak candidly about diplomatic matters said they have zero confidence that Witkoff can even relay messages between Moscow and Washington reliably and accurately."
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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.
