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Iranian taps set to be turned back on

Following Iran’s signature on a nuclear agreement, City traders have a new project to focus their attention on as Western companies prepare to ‘invade’ the hard-line Islamic State. 

Oil pipeway
Source: Bloomberg

Just over twenty-four hours ago and with the dust still settling on Greece, no-one is coming out of the weekend’s discussions looking good. Certainly not Syriza which went all in and then buckled at the last moment, nor Angela Merkel and Germany which is looking a little too vindictive.

Meanwhile, the rest of the eurozone nations appear to have merely confirmed their role at the beck and call of Berlin.

How much fight is left in the Greeks will be demonstrated by how easily these newer, harsher terms are approved by its parliament. As the queues grow at supermarkets struggling with supplies, and more empty shelves appear in both hospitals and pharmacies, it looks more likely that humanitarian aid will reach the streets long before the European Central Bank's ELA funds are allowed to flow back into the banks again.

Bank of England governor Mark Carney spoke today about how the time for interest rate rises were coming for the UK. Of course he would have been equally correct in stating that Christmas is coming too and we all know which we are more likely to see first.

We were never likely to see everyone welcoming the Iranians back with open arms but the progress made in the nuclear discussions in Vienna has been broadly seen as the pick-me-up that global markets were desperately needing. Traders possibly jaded by so many false dawns in the European political arena have instigated a sell off in oil, but have as yet to drive the price down to the early year lows, despite the very likely increase in supply to the market.

JPMorgan has started off the banks in the latest round of US reporting and beaten expectations, however with the bar having been set so low it would have been more of a surprise if it had not achieved this than anything else.

But, any doubts about whether the Federal Open Market Committee and Federal Reserve chair Janet Yellen were about to embark on a couple of days of stalling, as she testifies in front of the Senate, have now been removed — US retail sales shrank by 0.3% rather than growing by 0.2% highlighting how badly global issues had damaged US sentiment.

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