Business

Perhaps upset at the weekend's development, Russia has decided to rattle the global crude complex cage. Amid hopes of a freeze, Russia's energy minister Alexander Novak has reversed course and stated that Russia could "in theory" increase oil output and "was never ready to cut production." It appears things are rapidly breaking down between Russia and The Kingdom - which perhaps explains Obama's rapidly arranged trip to kiss the ring in Riyadh.

China Gold Yuan Trading To Boost Power In Gold and FX Markets – End Manipulation?

China launched yuan denominated gold bullion trading today in a move that will further boost its power in the global gold and fx markets. Critics of the existing pricing mechanisms hope that it will lead to increased transparency and may end price manipulation.

• After big New York wins, Trump and Clinton cast themselves as inevitable (Reuters)
• Eastern States Take Turn in Presidential Primary Spotlight (WSJ)
• China's Stocks Tumble Most in Seven Weeks to Break Trading Calm (BBG)
• Oil falls on end to Kuwaiti strike, supply outlook (Reuters)
• Oil price's decline weighs on global stock markets (Reuters)
• Blankfein's Decade Ending With a Thud on a Humbled Wall Street (BBG)
• Toyota to Resume Production at Most Japan Plants Next Week (WSJ)

The biggest catalyst for overnight markets, first reported on this site, was the announcement by Kuwait that its oil workers had ended their strike which disrupted oil production in the 4th largest OPEC producer for 3 days cutting it by as much as 1.7 mmb/d, and had served to offset the negative news from the Doha debacle. Kuwait Petroleum also added that it would boost output to 3m b/d within 3 days, which in turn has pressured the price of oil overnight, and the May WTI contract was back to just over $40 at last check, sliding 2%.

When the going gets tough, the rich get going first... and the rest should pay attention. While the smorgasbord of well-heeled wealthy elites will continue to proclaim that all is well in the world at any and every opportunity - for fear of the revolt of the masses - two disturbing headlines from one of the world's centers of money should have the 99% nervous.

Demand for London homes under construction slumped by 33%, according to Bloomberg, with "very few higher-end expensive sold in the central areas this year."