Archives of “Regulation” tag

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Vale (iron ore producers) say they expect supply to increase, demand lower

  
  Analysis
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Iron ore is a huge Australian export to China. Vale with their outlook for iron ore

  • Going forward on the year, on the supply side, volumes shall increase compared to 2H20 
  • while iron ore demand might be impacted by production cuts due to environmental restrictions in China

Germany bans travel entry from UK, Brazil, South Africa, Portugal, Ireland over coronavirus variants

  
Analysis, COVID-19
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The travel ban will stay in effect until 17 February at least

Germany
ICYMI, the restriction has gone into effect yesterday and covers land, air, and sea travel into the country, according to local media citing the German interior ministry.
The exceptions to the restriction is only for Germans living in those countries, those who have residency in Germany, and passengers in transit or the movement of goods.
Even the UK government travel advisory has been updated as such:

“The German government has restricted air and sea travel to Germany at its external Schengen borders. Travellers from the UK are currently only permitted to enter Germany if they are returning to their place of residence, if they serve in an important role or if they have an urgent need, such as urgent medical treatment.”

Generally speaking, if more countries in the EU adopt similar restrictions, it isn’t quite a good look on how virus developments are playing out in Q1. And that also adds another negative point to the list for risk sentiment.

UK 2-year bond yields briefly fall below that of Japan’s for the first time ever

  
  Analysis
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The Japanification of the gilt market continues

UK Japan

Japan is pretty much the benchmark for low-to-no yields in the global bond market and when another country reaches that point, it sort of rings an alarm bell to investors that there isn’t much attractiveness/value in said yields anymore.
UK long-term yields fell below their Japanese counterparts at the end of last month but now we’re seeing the front-end of the curve follow suit as well.
The rally in gilts could either be suggestive that investors are fine with being more risk averse or that those buying are pretty much stuck due to regulatory constraints.
But whatever the case is, don’t expect value investors to be searching for scrumptious returns in the UK any time soon. In turn, that may be another reason to add to the list of headwinds for the pound and the UK economy in general.
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