Mint – Blain’s Morning Porridge - March 6 2014
While troops who look like Russians but aren’t Russians traipse across the Ukraine, and diplomats diplome in Paris, markets are moving on. The new issue market is on fire – fuelled by a wall of new money that has absolutely nowhere else to go. Short-term tactical sentiment remains focused on the immediate news headlines and risk-on/off snap. Medium term, it's not so much mindless contagion, but real world implications. For instance, if Ukraine “heats up” then what will be the effect on wheat prices? – it’s a large producer – and what are the knock-on effects for countries dependent on food imports.