Is it Possible for the U.K. Parliament to Veto Brexit?

The stunning outcome of last week’s U.K. referendum has unleashed waves of doubt about what happens next. Here are two questions doing the rounds:

Can the result somehow be overturned?

This comes up again and again. In short, it’s possible, but unlikely. The referendum is non-binding, so the next prime minister could just choose to ignore it. If there’s a snap election, a political party could promise to call a new referendum. Scotland could also make things difficult.

Still, it would be extremely difficult to ignore the views of the 17.4 million people who voted to leave.

Could the U.K. parliament veto the referendum?

In theory, yes. Human rights lawyer Geoffrey Robertson argues that parliamentary assent is needed to repeal the 1972 legislation that took the U.K. into the EU. So lawmakers could override the public will by refusing to remove that law from the statute books.

Others aren’t so sure. Raoul Ruparel of the Open Europe think tank says that the legislative body can certainly apply political pressure on the government. But once Article 50 of the Lisbon Treaty is triggered, Britain would have to leave the EU after two years, regardless of what parliament does.

And the question remains as to whether lawmakers would risk angering voters by blocking the referendum. Especially as it was backed by supporters of both major political parties.

Source: Bloomberg

What a Prime Minister Boris Johnson should do next

What a Prime Minister Boris Johnson should do next

He might forget the whole thing or, alternatively, call another referendum, merely to make sure the people remained as determined. The desire of the Leave side not to trigger Article 50 and the determination of EU leaders not to negotiate until it does could then give the time needed to change minds.

Child Labor in Mining Industry

In the field of human trafficking, child forced labor is often inadvertently ignored leading to serious consequence for the world's children. Child forced labor occurs more often in lesser developed countries with weak child labor laws and this blog will focus on the two continents where the mining industry exploits child labor the most: Africa and Asia. Forced child labor in the mining industry is a rampant problem. Due to their small size, children are often recruited to work deep in the underground mines where they are forced to work in unclean, hazardous conditions.

Mining for precious metals and rocks such as gold and diamonds top the list of the industries most likely to employ child labor in Africa. A recent PBS report stated that there are almost one million children currently working in the gold mines in Africa. For less than $2 a day, children as young as five spend 12-15 hours a day in mining gold in Burkina Faso, Mali and the Democratic Republic of Congo. Many times the children are orphaned from various wars and conflicts that persist in much of the African continent and are drawn to the mines for survival. Children are also exploited as forced labor in the diamond mines of Angola, Sierra Leone and Zimbabwe. All three countries have barely recovered from brutal, violent, civil wars and children are often forced to mine for what is commonly known as "blood diamonds" or "conflict diamonds," where the military or rebel group still controls the diamond mines with machine guns, beatings and death.

Much like in Africa, the mining industry in Asia largely relies on children working in slave-like conditions in the coal and stone quarries but the difference is many children have families to go home to every night but all family members must work in order to survive. In the remote northeast area of India, children as young as eight flock to the coal mines looking for the lucrative $4 a day jobs to help support their impoverished families. In Nepal children belonging to the underprivileged castes work in the stone quarries, carrying backbreaking rocks next to their families, with some children beginning to work as young as ten years-old.

There are an estimated 215 million children working in exploitative conditions around the world and according to the International Labor Organization 115 million of these children are working in hazardous conditions. Mining is a type of work that is hazardous to children in every way. Forced to spend 10 or more hours a day in dark, cramped and dank mines filled with poisonous chemicals, children "constantly risk fatal accidents due to falling rock, explosions, collapse of mines walls and the use of equipment designed for adults." Children working in the gold mines face mercury poisoning; in coal mines, children inadvertently consume toxic coal dust and children in diamond mines and stone quarries are subject to Silicois, a painful lung disease caused by ingesting tiny pieces of sand and stone that make it difficult to breath. Over 32,000 children involved in forced labor die every year from hazardous working conditions. Most children that do survive into adulthood remain uneducated and impoverished and must continue working in the mines until death or injury renders them unable, continuing the vicious cycle of exploitation.

Source: ungift

10 Hints for Better Writing By David Ogilvy

The better you write, the higher you will go in Ogilvy & Mather. People who think well, write well. 

Good writing is not a natural gift. You have to learn to write well. Here are 10 hints:

1. Read the Roman-Raphaelson book on writing. [Writing That Works, Harper & Row, 1981] Read it three times.

2. Write the way you talk. Naturally.

3. Use short words, short sentences and short paragraphs.

4. Never use jargon words like reconceptualize, demassification, attitudinally, judgmentally. They are hallmarks of a pretentious ass.

5. Never write more than two pages on any subject.

6. Check your quotations.

7. Never send a letter or a memo on the day you write it. Read it aloud the next morning--and then edit it.

8. If it is something important, get a colleague to improve it.

9. Before you send your letter or memo, make sure it is crystal clear what you want the recipient to do.

10. If you want ACTION, don't write. Go and tell the guy what you want.

All rights reserved by Ogilvy & Mather.

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The Black Swan Has Arrived - Markets In Collapse

The Black Swan Has Arrived - Markets In Collapse

On Thursday, citizens of the United Kingdom took to the polls and did the unthinkable by voting to leave the European Union. Not surprisingly, asset prices across the financial-markets universe reacted violently.

China nickel ore lifeline at risk as Philippines talks tough

China nickel ore lifeline at risk as Philippines talks tough

Concerns that the new government will limit ore exports helped push nickel higher on the London Metal Exchange on Wednesday, analysts from Australia & New Zealand Banking Group Ltd. said in a note

China aims to cut steel capacity by 45 million tonnes in 2016: state planner

China aims to cut steel capacity by 45 million tonnes in 2016: state planner

The capacity cuts will involve relocating 700,000 workers in the coal sector, and 180,000 workers in the steel industry, Xu Shaoshi, chairman of the National Development and Reform Commission, said at the World Economic Forum in the northern city of Tianjin. Xu said he was very confident that China will achieve the 2016 targets.

China's Baosteel, Wuhan Steel announce plan to restructure

China's Baosteel, Wuhan Steel announce plan to restructure

China's Baosteel Group and Wuhan Iron and Steel Group, two of the country's largest steelmakers, are together planning to restructure, their listed units said in separate stock exchange filings on Sunday.

Japanese Aluminum Buyers Said to Settle on 23% Lower Premium

Japanese Aluminum Buyers Said to Settle on 23% Lower Premium

The premium for the three months starting July 1 will drop to $90 a metric ton from $115-$117 a ton in the current quarter, according to two Japanese buyers, who asked not to be named because the talks are confidential.

Brexit: From Unthinkable to Irreversible

How quickly the unthinkable became the irreversible. A year ago few people imagined that the legions of Britons who love to whinge about the European Union—silly regulations, bloated budgets and pompous bureaucrats—would actually vote to leave the club of countries that buy nearly half of Britain’s exports. Yet, by the early hours of June 24th, it was clear that voters had ignored the warnings of economists, allies and their own government and, after more than four decades in the EU, were about to step boldly into the unknown.

The tumbling of the pound to 30-year lows offered a taste of what is to come. As confidence plunges, Britain may well dip into recession. A permanently less vibrant economy means fewer jobs, lower tax receipts and, eventually, extra austerity. The result will also shake a fragile world economy. Scots, most of whom voted to Remain, may now be keener to break free of the United Kingdom, as they nearly did in 2014. Across the Channel, Eurosceptics such as the French National Front will see Britain’s flounce-out as encouragement. The EU, an institution that has helped keep the peace in Europe for half a century, has suffered a grievous blow.

Managing the aftermath, which saw the country split by age, class and geography, will need political dexterity in the short run; in the long run it may require a redrawing of traditional political battle-lines and even subnational boundaries. There will be a long period of harmful uncertainty. Nobody knows when Britain will leave the EU or on what terms. But amid Brexiteers’ jubilation and Remain’s recriminations, two questions stand out: what does the vote mean for Britain and Europe? And what comes next?

Read More at: The Economist

Middle East’s Cold War

A cold war is taking place in a very hot place. A key component of the sectarian competition between Shia and Sunni Islam in the Middle East is geopolitical, with Iran facing off against Saudi Arabia and its Gulf allies in a struggle for regional dominance.

As with the original Cold War between the Soviet Union and the United States, the conflict does not involve direct military confrontation between the main rivals, at least not yet. It is being fought diplomatically, ideologically, and economically – especially in the oil markets – and through proxy wars, such as the conflicts in Syria and Yemen. There are few problems in the wider Middle East that cannot be traced back to the power rivalry between Saudi Arabia and Iran.

For the moment, the Iranians seem to be riding high. Following Supreme Leader Ayatollah Ali Khamenei’s decision to agree to an international deal limiting Iran’s nuclear capability to peaceful purposes, Western sanctions have been all but removed. Now that it is once again acceptable to do business with Iran, its ailing economy is set for a rebound. Meanwhile, Iran’s creeping de factoannexation of parts of Iraq – astonishingly, with American acceptance – continues because no one except the so-called “Islamic State” has the stomach to stand up to it.

Iran also has an overwhelming manpower advantage, with a population of an estimated 77 million, compared to Saudi Arabia’s 28 million. And while its army is far less well equipped than its rival’s, it is much larger. Moreover, Iran’s main Arab ally, Syrian President Bashar al-Assad, has been given a reprieve as the conflict in his country drags on without conclusion.

This has left the Saudis feeling abandoned and vulnerable. They believe that their great traditional ally, the US, betrayed them by concluding the nuclear deal with Iran. Meanwhile, they fear that the chaos in neighboring Iraq has exposed them to chronic strategic risks.

The Saudis are also recoiling under a barrage of criticism of their Wahhabi brand of Islam, which is widely blamed for incubating extremism and inspiring terrorism. Meanwhile, Saudi Arabia’s human rights record – including the denial of elementary rights for women – is under constant scrutiny.

Against this background, the Kingdom is taking the fight to its enemies. King Salman bin Abdulaziz Al Saud is the country’s above-the-fray ruler, but his son, Prince Mohammad bin Salman Al Saud, currently wields much of the power.

As Minister of Defense, Mohammad has continued the Saudi policy of backing anti-Assad rebels in Syria, in concert with Turkey, while unleashing a war on pro-Iranian tribesmen in Yemen (at an enormous humanitarian cost). He has also backed, if not instigated, an increase in domestic repression, and has launched an economic offensive against Iran – the consequences of which have been seen, until recently, in plunging global oil prices.

In early May, Saudi Arabia’s longstanding oil minister, Ali al-Naimi, was replaced by Khalid al-Falih, an ally of Mohammad’s. The reshuffle is an indication of Mohammad’s determination to use oil prices as a weapon against Iran and its ally, Russia. As the world’s swing producer, with boundless reserves of cheaply extractable oil, Saudi Arabia can flood or throttle the market at will.

And for now, the Saudis are flooding the market. They are seeking to rein in Iran and Russia, both of which need higher oil prices to sustain economic growth. And they are hoping to bankrupt the US shale-oil producers that have reduced America’s dependence on Middle Eastern oil. As Mohammad recently declared, the Kingdom doesn’t care about oil prices; “$30 or $70 – they are all the same to us.” Iran and Russia, by contrast, need a barrel of oil to be worth at least $70.

Read the full article at: Project Syndicate

Commodities and Brexit — 5 things to watch

Commodities and Brexit — 5 things to watch

A Leave vote would weigh on commodities prices through the US dollar and the impact on risk appetite

Rio’s Revamp Hints at Potential $9 Billion BHP-Style Spinoff

Rio’s Revamp Hints at Potential $9 Billion BHP-Style Spinoff

“This seems like a portfolio of unwanted assets that could be ready for a spinoff,” Paul Gait, a London-based analyst at Bernstein, said in a note. “This division looks a lot like the South32 assets previously in BHP’s portfolio.” A spokesman for Rio declined to comment.

Inside Trump’s Most Valuable Tower: Felons, Dictators and Girl Scouts

Inside Trump’s Most Valuable Tower: Felons, Dictators and Girl Scouts

A cheap way to get a 40 Wall St. address is to grab space on the 28th floor, which is broken up into small offices. The firms listed in the lobby directory for that floor include Your Trading Room, a foreign-exchange operation

India is losing its celebrity central bank governor. Here's what to make of it.

India is losing its celebrity central bank governor. Here's what to make of it.

Finding a replacement of equal stature won’t be easy. Investors may also be troubled by the sense that Rajan’s exit was due to his willingness to take a tough line on inflation and corruption in business.

BHP warns mining glut may take a decade to clear

BHP warns mining glut may take a decade to clear

BHP Billiton has warned the glut in commodity markets may take a decade to work off as it works to squeeze costs while ramping up output so it can maximise its cash returns

Where are the big bucks to be made in the future?

Where are the big bucks to be made in the future?

In 1998, Kodak had 170,000 employees and sold 85% of all photo paper worldwide. Within just a few years, their business model disappeared and they got bankrupt....

Precious metals surf higher on perfect storm

Precious metals surf higher on perfect storm

Interest in gold and silver has rarely been stronger, whether it be via the futures market or exchange-traded funds.

Economic Overview–Global Macroeconomic View

Economic Overview–Global Macroeconomic View

In the long term, global GDP growth is forecast to ease to 3.5% by 2025 and 3.3% by 2030.

This compares to 3.8% average annual growth over both the medium term and over the past 15 years.
This is on the assumption that output gaps in the advanced economies will have closed. In addition, demographic factors will be less favourable, with ageing populations in advanced economies slowing growth in the labour force. While remaining much higher, growth in emerging markets is also expected to gradually ease, driven by the maturing of China’s economy as it moves towards domestic consumption away from investment and exports. Slower growth rates in China will also limit growth potential in other emerging markets.

Eastern European mills struggle to stay afloat

Eastern European mills struggle to stay afloat

In comparison to the sluggish recovery seen in Western Europe over the past couple years, long products demand has been relatively strong in Central and Eastern European markets.  However, Europe is an integrated market and producers in the east have not been immune to the prevailing business conditions in the region: weak demand growth in Europe as a whole, increased import competition, and narrowing export opportunities led to collapsing prices in 2015 and have left the European market in a situation of chronic ......

China drives raw materials rebound yet underlying hurdles remain

China drives raw materials rebound yet underlying hurdles remain

The main reason for the return to a more commodity-intensive growth cycle in China has been the expansive policy stance. Social finance, the most accessible measure of overall liquidity, surged in the first quarter of this year, and the increased liquidity has been channelled into the real economy through the property and infrastructure sectors.....

China to reopen investigation of anti-dumping case into stainless steel tubes from EU and Japan

China's Commerce Ministry said on Monday it would reinvestigate its anti-dumping case into imports of high performance, seamless stainless steel tubes from Japan and the European Union.

China lost an appeal ruling in October at the World Trade Organization in a dispute in which Japan and the European Union had complained about Chinese use of anti-dumping duties on the steel products.

Read more on Reuters

Will Brexit Happen?

Countries band together to promote trade, defend human rights, protect the environment and repel threats. They sign treaties and join international groups, and each time they do, they agree to give up a bit of independence. That happened in a big way with the creation of the European Union, a common market and global political force forged from the fractious states of Europe. 

The question always was, could this extraordinary experiment hold together? Concern about a split is rising as the U.K. heads toward a vote on leaving the bloc it joined in 1973. The way many Brits see it, the trade-offs no longer serve their interests; they prefer the idea of living outside the EU, as Norway and Switzerland do. The country is engulfed in what’s known as the Brexit debate.

The referendum is likely to come down to whether the “remain” camp can better exploit fears of the economic uncertainty of an exit, or the “leave” side can capitalize on worries about excessive migration to the U.K. Champions of EU membership point out that the bloc is the country’s largest export market, and that global companies locate in the U.K. because they can sell into other EU nations without tariffs.

They say the U.K. has global clout without the EU — it has a permanent seat on the UN Security Council — and could negotiate better trade treaties without being held back by EU protectionists.

Read the full article on Bloomberg

Iran’s Esfahan Steel Seeks Buyers Amid Plan to Boost Production

Esfahan Steel Co., Iran’s third-largest maker of the metal, is seeking buyers amid plans to boost production as the nation rebuilds after years of international sanctions that hurt its economy.

Read More at Bloomberg

Will This Commodity Rebound Continue?

Will This Commodity Rebound Continue?

Since touching multi-year lows at the start of the year, many commodities are now on a rebound. The strong rally in a few commodities such as oil, zinc, gold and soybeans gives the impression that the worst might be over and a new rally may have begun.

Aluminium Industry Feature–The Bauxite Imperative

Aluminium Industry Feature–The Bauxite Imperative

With around 20% of 2016 Chinese production in near-stage new smelters, and an overhang of idled late-stage technology, aluminium smelting dominance is decisively in China. With any increase in the aluminium price, this capacity will raise China’s needs for secure bauxite supply. The long-term balance in the raw material supply chain will be between smaller, often underground Chinese hard-rock bauxite mines and large-scale, free-dig mega-deposits from overseas taking advantage of low sea freight costs to fuel demand......

‘Make in India’ infrastructure push to drive steel demand

‘Make in India’ infrastructure push to drive steel demand: Platts

Prime Minister Narendra Modi's 'Make in India' programme, which has earmarked $87 billion worth of investment in new infrastructure and manufacturing projects over the next five years, will benefit the country's steel and mining companies, a research report says....

China’s Investors Shifting to Global Commodities, Marex Says

China’s Investors Shifting to Global Commodities

China’s cash-rich investors are increasingly looking to trade on offshore commodities markets after a regulatory crackdown and amid fears over the depreciation of the yuan, according to Marex Spectron Group.

Getting Social Media in Commodity markets

MiFID II: Supervising Social

London, June 2016

In general, communications data has flown under the compliance radar for the commodities sector, but the arrival of MiFID II is about to change the status quo.

In accordance with the regulations, firms must establish policies and procedures to ensure that managers, employees, agents, and outsourced companies comply with directive. Organisations must demonstrate effective supervision and control over policies and procedures relating to the firm’s communications. The focus is no longer only on email, but social media and other collaborations tools too.

For some firms this may seem like a daunting task, especially when considering the myriad of communications tools already in use from social media to instant messaging and email to enterprise communications tools such as Microsoft Skype for Business (formerly Lync).

With new communications channels constantly emerging how is it possible for organisations to meet the mandates of new regulations in a way that protects the business from being out of compliance and deliver value?

As with many compliance issues a pragmatic approach is often the simplest. Identify the need, consider the policies and procedures already covered, and mitigate the remaining risk by implementing new procedures and/or technology.

Clarify Channels
In order to establish policies it is important to conduct an audit to discover who wants to use social media and other collaboration tools, and why. From this information it is possible to define the channels that can be used and by who.

It is very common that employees within a firm are regulated differently depending on their job function and activity within the business. This also affects how policies are applied, so it is important to bring in key stakeholders such as business, sales, marketing, investor relations, compliance, risk, HR, data, security, privacy, and IT. Working together will ensure that no part of the business will be overlooked.

There is another reason for clarifying channels early on. MiFID II clearly states that “all reasonable steps must be made” to capture phone and electronic records - not just email. But whether it is VoIP, Skype, LinkedIn or other collaboration tools, each have their own idiosyncrasies when it comes to archiving. Deciding now which channels are approved based on the need in the workplace and challenges in preservation, will save time wasted in reactive measures at a later date.

Define the Need
What motivates the need to use certain communication tools? Understanding the business reasons and defining the need now will help build the right compliance and risk infrastructure.

Discover the intent behind the need to use the various communications tools. Is it traders using instant messaging for faster communications or deepening relationships, or marketing creating social media campaigns to build brand awareness and drive revenues through lead generation?

Understanding the business goals and how communications tools enable employees to achieve them will help to establish the risks and guide the compliance infrastructure required. Think of compliance as a stakeholder in the mix, not the driving force behind implementation.

Reuse Resources
Armed with the information about what people want to achieve, it is then possible define the infrastructure needed to supervise social media activities, making it easier to identify the resources that can be reused. Consider what processes, policies, and supervisory systems are already in place that can be reapplied for MiFID II.

Can marketing review and supervision systems that are in place today be leveraged to use with social media communications too? Or should an outside vendor be brought in to create something new? By examining existing processes and policies and comparing them to technology already in use, it is easier to work out where the potential gaps are in meeting MiFID II compliance.

Increase Intelligence
While firms must demonstrate effective oversight and control over policies and procedures relating to communications, reinforcing supervisory and surveillance capabilities is not only about compliance, it can also expose erroneous employees faster.

With the emergence of new enterprise communications and collaboration technologies, companies are faced with an increased risk of confidential information leakage, sensitive information theft, and a higher liability from inappropriate content. Even if the intent is not malicious, it can still be devastating for an organisation.

Supervisory and surveillance capability has emerged as one of the critical needs for businesses to reduce this risk, as well as address regulatory requirements for those in specific financial markets. Using technology that delivers sophisticated supervisory and surveillance workflows can help to pre-emptively recognise and stop any erroneous activity before it becomes an issue for the organisation.

Understand Conversations in Context
Being able to reconstruct past events accurately is crucial to attorneys, litigation support staff, and auditors, but the complex way in which employees and customers communicate can make this difficult.

A typical conversation today might use any number of communications channels. A customer complaint on Twitter might continue over email. Defining the terms of a trade can be faster on chat than using the original email initialising the deal. Just to add to the complexity, they might not be discussing one trade, but potentially several.

There are all kinds of legitimate reasons for switching to the most appropriate channel during a conversation. And a few dubious ones too. In order to supervise effectively, firms need to be able to follow them easily.

Knowing who joined a conversation when and over what channel can be a nightmare to reconstruct six days after the fact, let alone six months. An archive that is going to save the business time and money in litigation, as well as highlight any rogue trades, needs to deliver conversations in context as they switch between different channels and users.

Archive in Real-Time
MiFID II demands that electronic communications such as email, instant messaging, collaboration tools, social media relating to the reception, transmission, and execution of client orders are accurately captured. It might be tempting to simplify the issue by archiving data once or twice a day, as many businesses have been handling email for years.

The problem is a single snapshot of communications data does not reveal the whole story. Like a picture taken with a 1970s Polaroid camera, it shows that everyone is happy at that particular moment. It does not tell the true story that two minutes before the kids were arguing as to who was responsible for Barbie sporting a brand new moustache. All that is wiped away by the toothy smiles in the captured image.

The same can be true of archives not built for real-time. They do not reveal that the trader bending the rules slightly makes sure all his electronic communications relating to it are deleted before the system runs the archive. Or, that someone out to make mischief edits their Facebook post after an employee has just replied “Great idea!” to make it look as if they are giving bad or misleading advice.

And then there is the danger that someone else does remember what was said in a conversation and has the real-time archive to prove it.

Education
Once social media programs are defined and ready to be deployed, arm employees with an understanding of what is considered good practice. Training regulated end users is essential to help them avoid being out of compliance by enabling them to make good decisions.

Make sure to include not only the firm’s social media policy but also guidance on the separation between business and personal use. Educating users to the potential dangers and liabilities that their actions may cause can significantly increase protection against non-compliance.

Be Prepared
It doesn’t have to be a major scandal to send a firm out of compliance, someone having a bad day at work can do it just as easily. Creating a plan in case of a crisis is good practice. Think through the variety of scenarios and create a plan that will ensure a fast reaction.

Do you respond through the firm’s PR arm or use the social media programs that are on those channels? Who is the first responder? Who then evaluates the right approach or the right response? Is no response the right response?

Remember it is not just non-compliance that is at risk, but also the damage to individual, company, and industry reputation that can occur when organisations and individuals do not properly manage enterprise communications.

Stay Ahead of the Curve
Ultimately, proper record keeping is critical to maintaining communications compliance, avoiding fines and sanctions, as well as protecting a firm from litigation or worse. A modern context-aware archive that makes it easy to retrieve business communications, whether for compliance audits or eDiscovery purposes, will save time and money, in addition to highlighting irregularities early–on.

While there will always be new communications channels gaining traction in the enterprise, a regulated firm should always ensure that they have done everything in their power to manage compliance.

By following best practices, businesses can enable new modes of communication in a way that meets potential regulatory requirements in the future, not just MiFID II, and improve collaboration and engagement with partners and customers.  •

Ends --

Brian Perfect is VP EMEA with Actiance, a leader in communications compliance, archiving, and analytics.

www.actiance.com

China Plans to Boost Metals Reserves Amid Commodities Glut

China Plans to Boost Metals Reserves Amid Commodities Glut

China, the world’s top consumer of base metals, will boost stockpiles, accelerate the closure of excess capacity and provide tax breaks for producers as the country grapples with a raw-materials glut amid the slowest growth in decades.

Oil Crisis in Asia

After relishing a cocktail of cheap crude mixed with profits from fuel sales, Asia’s oil processors are facing their reckoning over a lack of restraint.

Profits from turning crude into fuel in Asia since the beginning of April have averaged almost a third lower than levels over the previous six months, and are down 40 percent from the same period a year earlier.

Amid the biggest drop in crude prices in a generation and surging demand for gasoline refiners across Asia boosted operations as they sought to cash in on strong profit margins, according to industry consultant FGE. But as oil rebounded this year and growth in fuel consumption lagged behind the increase in output, the surplus has flooded the market and lifted stockpiles in the regional trading hub of Singapore to record levels.

Read the full story on Bloomberg

GLOBAL NICKEL MARKET DEFICIT WIDENS TO 10,100 T IN APRIL: INSG

GLOBAL NICKEL MARKET DEFICIT WIDENS TO 10,100 T IN APRIL: INSG

A global refined nickel market deficit widened to 10,100 tonnes in April from a month earlier, the International Nickel Study Group (INSG) said on Monday.

Copper: The Big Loser

According to LME, Copper is the second worst performing metal this year with a tremendous USD price decrease down more than 12% since end April. Following its previous pattern, this week copper's price went in the opposite direction of other commodities which took advantage of a weaker dollar.

Given its range of uses and appliances, copper is frequently used as a barometer of economic health. The weakness in the copper can be the result of economic crisis in China and globally, or the result of short-term trading strategies in Asia. The future will tell.

The graph below comes as a justification of why copper is considered to be the big loser in commodities market.

Source: LME, mining.com, SteelIndex, COMEX, NYMEX

The Greek Hero at the Gym

The Greek Hero at the Gym

Yet when Polykleitos, the ancient sculptor who created the Doryphoros, went looking for live models in the gymnasion (from which our word gymnasium descends), he would have found men sprinting, lifting heavy .....

Be afraid: Permabear Marc Faber is sounding downright bullish

Be afraid: Permabear Marc Faber is sounding downright bullish

The Swiss investor, who publishes the Gloom, Boom & Doom Report, told MarketWatch that equities, which lately have been plodding toward fresh records, may remain buoyant if central banks continue to unfurl economic stimulus measures around the globe.

What You Should Know Today

Buy Anything Even if emerging-market stocks are dipping most risk assets, including commodities, developed-market stocks, and emerging-market currencies are making multi-month highs, while haven assets such as gold and government bonds are doing the same. The blame for this apparent market disconnect from the weak global outlook (we're not even a week past that disappointing U.S. jobs report) is being placed firmly at the door of global central banks who are expected to stay more accommodative for longer. The current focus is on the European Central Bank's corporate bond purchase program which this morning was said to be buying securities issued by troubled carmaker Volkswagen AG.

Initial jobless claims

At 8:30 a.m. ET the Department of Labor will release weekly jobless claims data, a number that investors will be watching closely following last week's disappointing payrolls number. Citigroup Inc. strategists led by Steven Englander say that a spike in jobless claims would confirm that the May payrolls figure released last week indicates a wider slowdown in the U.S. economy. Economists surveyed by Bloomberg expect today's number to come in at 270,000, in line with recent weeks.

Sovereign bond yields

This morning the yield on the U.K.'s 10-year government bonds fell to 1.220 percent, the lowest since Bloomberg started tracking the data in 1989. German bund yields are hovering close to the all-time record low reached yesterday. U.S. Treasury yields were at 1.678 percent at 6:05 a.m. ET, below the 1.7 percent that has proven to be a “key psychological level” over the past few months. With macro risks from Brexit, elections in Europe, and next week's Fed meeting on the horizon, the trend may not be over yet.

Markets lower

The MSCI Asia Pacific Index dropped 0.5 percent overnight with almost every market in Asia closing lower. The biggest losses were in Japan where the Topix index lost 1 percent as yen strengthening continued. In Europe the Stoxx 600 index was 1 percent lower at 6:13 a.m. ET in a broad-based selloff that saw 520 index members falling. Futures on the S&P 500 Index, which closed within points of an all-time high yesterday, were 0.4 percent lower.

Democrats to turn up heat on Trump

Massachusetts Senator Elizabeth Warren is due to take her involvement in the presidential race to a new level when she joins Vice-President Joe Biden on stage later today. Warren is expected to voice harsh criticism of Republican nominee Donald Trump at the event and upcoming television ads point to a negative campaign from both sides in what promises to be a fraught run-up to the vote in November. Find the full article on: Bloomberg