• Clifford Bennett, Chief Economist at ACY


• 28.04.2022 04:00 pm
#stocks , Clifford Bennett has over 36 years of market trading experience and was named the 'World's most accurate currency forecaster' by Bloomberg New York. He has advised some of the world's largest organisations, billionaire investors, and political leaders and spoken at the prestigious APEC summit on reserve currency issues. Clifford is the Chief Economist at ACY Securities.

A short quick alert.

Russia has cut gas supplies to Poland and Bulgaria.

While both countries will scramble to find alternative supplies, there will be significant hardship.

The further the isolation of Russia progresses, it was always likely to increase the probability of the weaponisation of energy supply. Russia also has only a limited window of opportunity in this regard. As Europe works hard to diversify its energy sources, this is a Russian 'playing card' that now has a use by date.

Unfortunately, for Europe, that use by date is still 6-12 months away at least. There is no easy energy substitution path. It is more a complex matrix of pieced together efforts.

What is further alarming with this move by Russia, is that it is likely designed to represent a firing of a shot across the bows of Germany, France and the rest of Europe. Russia is saying very clearly, it is prepared to take similar actions for broader Europe.

This is truly alarming, for it could mean a 'lights out' risk for Germany. The European economy is already headed toward recession.

A cutting off of energy, or even a reduction in flow of gas, will see the risk of a much deeper economic catastrophe for Germany and Europe as a whole.

The Euro is likely to continue to plummet. My forecast of the EURUSD falling through parity to 0.9700 remains in place.

European equities could well come under renewed pressure as well.

Clifford Bennett
ACY Securities Chief Economist.

The view expressed within this document are solely that of Clifford Bennett’s and do not represent the views of ACY Securities.

All commentary is on the record and may be quoted without further permission required from ACY Securities or Clifford Bennett.

This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.