Mon, 26th June 2017

Anirudh Sethi Report


Archives of “May 16, 2017” Day

European Indices end the session mixed. UK FTSE closes above 7500 for 1st time ever.

German Dax/ France Cac not so bullish today…

The UK FTSE is leading the way in the European stock markets. It rose 0.90%, closed at a record high and traded above the 7500 level for the 1st time ever.
In Germany and France the markets did not fair as well.
  • The German Dax is ending the day flat,
  • France’s Cac index is ending down -0.2%
In other markets:
  • Spain’ Ibex is ending up 0.2%
  • EUs Stoxx indes is ending the day flat.
  • Italy’s FTSE MIB is up 0.38%
  • Portugal’s PS120 is down -0.92%
In the European debt market, 10 year yields are mixed.
  • UK 1.126, -1.1 bp
  • Germany 0.428%, unchanged
  • France 0.89%, +1.0 bp
  • Italy 2.234%, -4.4 bp
  • Portugal 3.302%, -7.7 bp
  • Spain 1.624%, -1.0 bp
  • Greece 5.717%, +4.3 bp

Jihad In Denmark

  • Danish Minister of Justice Søren Pape hopes to solve the issue by prosecuting the imam. However, Danish politicians appear to miss the critical fact that there is clearly a thirsty audience for sermons like this.
  • This sermon is a call to violence against Jews.
  • As the Quran cannot be changed, it is crucial to make more broadly known what is in it, so at least people can see the facts confronting them, to help them determine what choices they might care to make for their own future and that of their children.

In 2015, Omar El-Hussein listened to the imam Hajj Saeed, at the Hizb-ut-Tahrir- linked Al-Faruq-mosque in Copenhagen, decry interfaith dialogue as a “malignant” idea and explain that the right way, according to Mohammed, is to wage war on the Jews. The next day, El-Hussein went out and murdered Dan Uzan, the volunteer Jewish guard of the Jewish community, as he was standing in front of the Copenhagen synagogue. El-Hussein had also just murdered Finn Nørgaard, a film director, outside a meeting about freedom of speech.

Two years later, nothing has changed. A visiting imam from Lebanon at the Al-Faruq mosque, Mundhir Abdallah, is preaching to murder Jews:

 “[Soon there will be] a Caliphate, which will instate the shari’a of Allah and revive the Sunna of His Prophet, which will wage Jihad for the sake of Allah, which will unite the Islamic nation after it disintegrated, and which will liberate the Al-Aqsa Mosque from the filth of the Zionists, so that the words of the Prophet Muhammad will be fulfilled: ‘Judgement Day will not come until the Muslims fight the Jews and kill them. The Jews will hide behind the rocks and the trees, but the rocks and the trees will say: ‘Oh Muslim, oh servant of Allah, there is a Jew behind me, come and kill him.’ …”

Hedge Funds Pile Into Just 6 Tech Stocks

Last week we showed a fascinating statistic demonstrating just how poor market breadth has been in the latest push higher by the S&P: according to Goldman, as of May 10, just 10 companies have been responsible for half, or 46% to be exact, of the entire S&P’s rally YTD. 

And with the 13-F reporting period now over, we now know the reason why just six tech stocks were reponsible for the majority of the S&P’s upward surprise YTD – virtually every prominent hedge fund piled into them. The breakdown presented below, courtesy of Bloomberg, reveals just how urgent the scramble for “growth” was in the first quarter.

As Bloomberg adds, with an average gain of 26% , “it’s hard to overstate the influence of just six stocks on the U.S. stock market in the first quarter: Facebook Inc., Apple Inc., Amazon.com Inc., Microsoft Corp., Alphabet Inc. and Netflix Inc.”

Here’s where some of the best-known hedge funds stood on the companies according to filings covering positions on March 31.

Facebook (FB)

IEA maintains global oil demand growth forecast for 2017 at 1.3mln bpd

International Energy Agency out with their latest market report 16 May

  • brings demand to 97.9m bpd
  • global oil supply fell 140k bpd in April to 96.17mn bpd,
  • output 90k bpd
  • raises f/cast for non-OPEC supply growth by 100k bpd to 600k bpd for 2017
  • raises US crude output f/cast by 100k to 510k bpd. largest source of supply growth
  • Oil market is rebalancing and “essentially here”, accelerating in the short term

Let’s see what the 25 May meeting brings re output cut deal extension. 9 months now the favoured period by Saudis and Russia

Full report here

Iran wants India to pay more than triple the gas price for awarding block to ONGC Videsh

In fresh conditions, Iran wants India to pay more than triple the gas price for award of the coveted Farzad-B natural gas block to ONGC Videsh (OVL).

Iran wants India to buy all of the natural gas to be produced from the Persian Gulf block at a price equivalent to the rate Qatar charges for selling liquefied natural gas (LNG) to India under a long-term deal.

Qatar, as per a revised formula agreed upon in December 2015, sells 7.5 million tonnes a year of LNG to Petronet LNG Ltd — India’s biggest gas importer — at a price of $7-plus per million British thermal unit.

The rate being sought by Iran is triple of $2.3 per mmBtu rate OVL is willing to pay for the gas during low global oil prices. If global rates rise, OVL is willing to pay $4.3 per mmBtu, sources privy to the development said.

When oil prices move up, rates of LNG from Qatar would also rise.

Sources said that since the lifting of western sanctions, Iran is playing hardball over award of the field which was discovered by OVL — the overseas arm of state-owned Oil and Natural Gas Corp (ONGC).


Strong performance by petroleum, engineering and textiles sectors pushed up India’s exports growth by 19.77 per cent to $ 24.63 billion in April but trade deficit witnessed about three-fold increase to $13.24 billion mainly on account of sharp jump in gold and crude oil imports during the month.

“In continuation with the double digit growth exhibited by exports during March, exports during April have shown growth of 19.77 per cent,” the commerce ministry said in a statement.

The country’s imports too jumped 49.07 per cent to $37.88 billion last month from $25.4 billion in April 2016.

Gold imports rose three-fold to $3.85 billion in April compared to $1.23 billion in the same month last year.

In April, petroleum, textiles, engineering goods and gems and jewellery shipments recorded a growth of 48.77 per cent, 31.72 per cent, 28.21 per cent and 15 per cent respectively.

The other sectors that helped boost exports include chemicals, iron ore, marine products, cashew, oil meals, iron ore and plastic. Further, oil imports grew by 30.12 per cent to $7.35 billion. Non-oil imports too rose by 54.50 per cent to $30.52 billion.