Notayesmanspodcast395

This is the latest in my series of podcasts explaining how economics works in the credit crunch and now virus pandemic era. This week I give my thoughts on:- 1) Did Scot Bessent create a target for the market on the US 10-year when he stated his red line was at 5% yield? 2) Do you believe like myself that every 10bp rise in the long end UK yields pushes Rosebank /Jackdaw fields to be approved closer, especially we have a major Gas problem as the cold winter is fast approaching. At 78% on Oil field could re-coup 6-7 billion potential extra tax receipts for the UK treasury with no costs to the UK. Because Rosebank and Jackdaw are funded entirely by private corporate capital (Equinor, Ithaca, Shell), the government takes on zero debt risk, yet gets to tax the resulting profits at a massive 78% aggregate rate. The oil fields effectively act as an organic revenue engine to help pay down the very debt that rising gilt yields are making more expensive. Thanks Shaun. It just seems to be station keeping with the margin over the US treasury yields. Been consistent for some time now - is there a simple reason for that? (ie are our bond prices just reflecting large movements in US treasuries?) With the chances of the Republicans losing both Houses in the mid terms rising, what effect night that have on the world economy, as it would leave Trump effectively a lame duck President for the remainder of his term