Weekly Market Update - 28 November 2022

Weakening Signals

The global oil market keeps sending signals that demand is weakening — the latest being a closely-watched gauge of Asian crude consumption, which tumbled to a seven-month low. Prompt spreads for both Brent crude and leading US grade West Texas Intermediate have also dipped into contango, a bearish pricing pattern that indicates ample near-term supply. That comes as expectations for a recovery in Chinese oil demand fade just as traders await more details on a Group of Seven plan to cap Russian oil alongside European Union sanctions that start on Dec. 5.

Source: Bloomberg

Credit Suisse Exodus

Credit Suisse clients pulled as much as 84 billion Swiss francs ($88.3 billion) from the bank during the first few weeks of the quarter. The lender also warned that it will face a loss of as much as 1.5 billion Swiss francs for the final three months of the year, partly as a result of the decline in wealth and asset management client funds from the start of October to Nov. 11 — potentially the worst exodus since the financial crisis. “Credit Suisse needs to restore trust as fast as possible - but that is easier said than done,” said Andreas Venditti, banking analyst at Bank Vontobel AG in Zurich.

Source: Bloomberg

Adani Enterprises

Adani Enterprises, the flagship firm of Asia’s richest person, is considering issuing at least $1.8 billion in new shares, sources say. Billionaire Gautam Adani’s conglomerate is working with advisers on the follow-on issue and could sell them as soon as next year. Shares in Adani Enterprises have risen about 136% in the year to date, giving it a market value of around $56.3 billion. Last week Adani predicted India would become a $30 trillion economy by 2050 — a nearly 10-fold jump from its current size.

Source: Bloomberg