OPEC+ considering options for releasing more oil to the mkt at next wk’s meeting

According to four OPEC+ sources

According to 4 OPEC+ sources:
  • OPEC+ is considering options for releasing more oil to the market at next week’s meeting
The price of crude oil has come off on the news and currently trades at $75.04. The high price reached $76.04.
The current deal is to increase production by 400K BPD one meeting next week. The sources did not give details on a volume door which month they would to increase production.  However, one source suggested an increase of 800,000 BPD was a possible scenario for one month with zero the next month.
The nearest month the increase could take place is in November as the last agreement set the October volumes.

Manchin gave Biden his terms to back President’s plan – Politico

Memo covers tax, energy and spending and tops at $1.5 trillion

Memo covers tax, energy and spending and tops at $1.5 trillion
It looks like we’re down to the negotiating. Both sides are going to have to give but Biden has been a politician for 49 years. You can argue he’s spent his whole life preparing for this moment.
“Senator Manchin does not guarantee that he will vote for the final reconciliation legislation if it exceeds the conditions outlined in this agreement,” the paper obtained by Politico reads in bold text.
Manchin proposes raising the corporate tax rate to 25%, the top tax rate on income to 39.6%, raising the capital gains tax rate to 28% and says that any revenue from the bill “exceeding” $1.5T will go to deficit reduction. Also asks Fed to stop quantitative easing program Additionally, Manchin is calling for means testing on as many new programs as possible, “targeted spending caps on existing programs” and “no additional handouts or transfer programs.” Manchin also asks his committee have sole jurisdiction over any clean energy standard
I mean, if his red line is stopping QE; that’s just stupid and this is going nowhere. But it makes me think that none of this is a real red line.
The document is also dated July 28, though they say he’s been redistributing it lately.
The other holdout is Sinema though and the press secretary at the White House yesterday said “it has the sense that Sen. Sinema does want to see a reconciliation bill”. Politico also had this on her:
Biden and the White House have been engaging in breakneck negotiations with Sen. Kyrsten Sinema (D-Ariz.), the other prominent holdout in the Senate. She’s generally aligned with Manchin on the spending number, but has expressed more concerns with Democrats’ tax plans than Manchin has.
Some quick notes:
  • Capital gains is currently 23.8%, he would go to 28% “all in” (I’m not sure what the last part means).
  • Highest rate would go to 39.6% from 37%
  • Corporate rate to 25% from 21%

Major European indices are closing the day in the red. Down for the month.

German Dax down -0.4%.

The major European indices are closing the day (and the month) in the red.

A snapshot of the provisional closes shows:
  • German DAX, -0.4%
  • France’s CAC, -0.3%
  • UK’s FTSE 100, -0.4%
  • Spain’s ibex -0.6%
  • Italy’s FTSE MIB unchanged
For the month, the major indices are also closing lower:
  • German DAX, -3.3%
  • France’s CAC -2.1%
  • UK’s FTSE 100, -0.35%
  • Spain’s ibex, -0.23%
  • Italy’s FTSE MIB -1.0%
A look at other markets as the London/European traders look to exit for the day and say goodbye to the month of September shows:
  • Spot gold up $35.75 or 2.07% at $1760.70. The move to the upside has been supported by a lower dollar today
  • Spot silver is also up strongly by $0.58 or 2.76% at $22.10
  • WTI crude oil futures are up $0.36 or 0.45% $75.20
  • Bitcoin is up $79 and $43,254

Evergrande has made 10% repayment for its wealth management products due this month

A statement by Evergrande

The funds are said to have been transferred to investors’ accounts. For some context, this isn’t a ‘missed payment’ per se as previous documents a couple of weeks back detailed that Evergrande is to pay 10% of the sum for its wealth management products after maturity and then 10% every three months after.
So, essentially they have fulfilled the first part of the supposed payment plan. The full statement by the company can be found here.

SEC Chairman Gary Gensler reiterates his support for a bitcoin futures ETF

Gary Gensler is the head of the US Securities and Exchange Commission.

This piece (link) cites his renewed support for bitcoin futures Wednesday US time.
  • noted a number of open-end mutual funds invested in bitcoin futures traded on the Chicago Mercantile Exchange
  • said laws provides “significant investor protection” for mutual funds and ETFs.
SEC is reviewing more than a dozen ETF filings for bitcoin and bitcoin futures products, among others, but none have been approved yet.
BTC has held its earlier gains:
btc chart 30 September 2021

China official PMIs for September: Manufacturing 49.6 (expected 50.1)

China’s National Bureau of Statistics official PMIs

Manufacturing 49.6 … Reuters posting an early release

  • expected 50.1, prior 50.1
  • into contraction for the first tie since February 2020 … wow …. this is not good.

Non-manufacturing 53.2

  • expected 52.7, prior 47.5

Composite 51.7

  • prior 48.9

more to come

Still to come:

0145 GMT China Caixin/Markit Manufacturing PMI for September

  • expected 49.5, prior 49.2
ps. I posted earlier it was a holiday in China today … too soon! The holiday is Friday (& through to October 7).

Thursday is the deadline for avoiding a US government shut down. Schumer says it’ll pass.

The US Senate will vote Thursday morning (local time) on a stopgap bill to keep the government funded through to December 3.

There are a series of votes beginning at 10.30am Washington time.
The stopgap funding bill will require 60 votes to pass. The numbers in the senate are evenly split, 50/50, between Dems and Reps. Senate Leader Schumer has said he has an agreement to get the bill passed though.
If it does pass the bill goes for voting in the US House where it should pass. If so it heads then to the White House for Biden to sign.
Midnight Thursday is the deadline.
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