Soviet Save - When you think of Russian President Vladimir Putin, you probably think of him more as a problem causer than a problem solver. Well, let me change that real quick. In case you haven't heard, the world is going through a bit of an energy crisis at the moment, and nowhere are the effects felt worse in, than Europe. Now, with gas prices hitting new highs this week, the Russian premier has offered to increase gas exports to Europe to relieve the crisis. Analysts seem to think this is good, and bad, and really bad, all at the same time. Allow me to explain:
The good: Europe gets more natural gas, meaning prices will ease and people will be able to keep the heat on as the Northern Hemisphere heads into winter.
The bad: It's mildly embarrassing for Europe to rely on a country who largely holds drastically different, and at times antagonistic, political and governmental systems for their energy needs.
The really bad: Europe's energy market has effectively become fragile and reliant on another country. Regardless of what country it is, we've learned throughout the pandemic that geographic supply chain reliance is a dangerous road to walk on. To make matters worse, the country Europe is now reliant on subscribes to "drastically different, and at times antagonistic, political and governmental systems", as one (clearly brilliant, eloquent, and probably super-handsome) journalist said.
The U.S. has been warning European powers of this looming vice grip for years. I guess even a broken clock is right twice a day.
Economic Superbowl - Expect volatility today. We don't make predictions here at The Daily Peel, but with the biggest jobs report, maybe since the pandemic began, coming out at 8:30AM, it's a safe bet that markets may have something to say. The Fed has made it clear that asset tapering will begin on an unclear timeline, using phrases like "substantial further progress" when referring to when tapering will begin. The Street consensus has been for the slowdown to begin in mid-November. At the last Fed meeting on Sept 22nd, JPow indicated the jobs report would have a sizable impact on the asset purchase tapering timeline. The median estimate for September job growth is an addition of 500,000 jobs, according to Reuters, and would show a ramp up in hiring and a stabilizing labor market. 8:30AM. The BLS website. I'll see you there.