Joaquim Hierro Lopes

What is happening with Copper? 😅 On Monday this week, Copper prices on the London Metal Exchange (LME) increased to all-time high levels above $11,000/t, before retracing to $10,8xx/t. 🤔 A lot of people think that the recent increases in prices are being driven primarily by expected future supply and demand dynamics. On the demand side: positive economic sentiment from China, increasing conventional demand, increasing clean energy technology demand (renewables, transmission lines, associated infrastructure). Whereas, on the supply side: expected mid-long term supply shortages as a result of expectations of low incremental supply, issues at current copper mine sites and processing facilities, etc. These are all fundamental drivers expected to increase prices. But, what is actually happening is a 'short-squeeze'. Many experts from various bulge bracket banks expect that prices should normalize or come back down. Read more on the below link from Bloomberg to understand more about the short squeeze! #copper #shortsqueeze #bloomberg

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Corbenic Capital lowering estimate of US Real Government Consumption Expenditures and Gross Investment growth through Q2 2025 from 2.2% to 2.0%, still well above the 1.4% long term trend growth. #usa #election2024 #fed #growth #governmentexpenditures #realgdp #recessionrisk #softlanding

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🌍🚀 EU to reduce EUA auction volume by around 267 million allowances between September 2024 and August 2025, which will be placed in the Market Stability Reserve (MSR). The TNAC indicator plays a pivotal role in the functioning of the MSR of the EU Emissions Trading System (EU-ETS). It determines whether allowances are withdrawn or released from the MSR, impacting the overall carbon market dynamics. 🔄 This marks the first Communication on the TNAC since significant amendments under the ‘Fit for 55’ legislative package and the REPowerEU Regulation in February 2023, as part of the EU’s response to the energy crisis. 📉 Under the MSR Decision, if allowances exceed 1.096 billion, 24% are placed in reserve, reducing the volume of allowances Member States auction. Based on the published TNAC indicator, 266,816,768 allowances will be placed in the MSR from 1 September 2024 to 31 August 2025. ❗ From 2023 onwards, any allowances in the MSR above 400 million are invalid. As per the REPowerEU Regulation, 27 million allowances were allocated to the Innovation Fund. Consequently, 381,744,844 allowances became invalid on 1 January 2024. #ClimateAction #CarbonMarket #EUETS #Sustainability #Fitfor55 #REPowerEU https://lnkd.in/euACFra8

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