Arizona experiences sharp decline in May employment, with government and education sectors suffering the most

(1) Vietnam is vigorously promoting the use of LNG to meet the surging electricity demand, but related projects are seriously behind schedule, with only 1 out of 18 LNG power generation projects expected to be completed on time. (2) Vietnam’s Minister of Industry and Trade, Le Minh Hoan, stated at a government meeting last week that the total installed capacity of these proposed projects exceeds 20 gigawatts, but only the Xi Fu LNG project is proceeding as planned. Deputy Minister of Industry and Trade, Truong Quang Hoai, said at the same meeting that investors have been selected for 16 of the 18 projects, but only two projects have started construction. (3) Project delays threaten Vietnam’s plan to increase the proportion of LNG in its energy mix to 12% by 2030. The Ministry of Industry and Trade warned last month that, due to these delays, Vietnam may face a risk of power shortages next year.

Market news: An organization called "United Against Nuclear Iran" (UANI) claims that US sanctions on Iran have resulted in dozens of cargo-laden oil tankers being stranded off the country's coast, while others outside the Persian Gulf are anchored near Sri Lanka. The organization stated that at least 50 oil tankers carrying Iranian oil are stranded near the country, a number that has remained largely unchanged compared to two months ago.

(1) According to the United Against Nuclear Iran (UANI), the U.S. blockade of Iran has resulted in dozens of fully loaded oil tankers stranded along Iran's coast, while some other tankers are anchored outside the Persian Gulf near Sri Lanka. (2) In its routine shipping update released on October 5, UANI stated that at least 50 oil tankers carrying Iranian oil remain stranded near Iran, which is largely unchanged from two months ago. These ships are mainly loaded with crude oil, although some are transporting petroleum products and liquefied petroleum gas. (3) UANI also noted that, in other waters, some empty vessels are “anchored at various locations in the Indian Ocean and Pacific region due to the U.S. blockade, rather than returning to Iranian ports.” Currently, 20 Iran-flagged vessels are anchored near Sri Lanka, and 1 is located near Oman.

(1) The euro continues to weaken, becoming the latest warning sign as France's soaring borrowing costs spread to the broader eurozone market. On Monday, the euro fell below 1.12 against the US dollar, hitting a 17-month low, and also dropped significantly against the British pound, Swiss franc, and Japanese yen. (2) The French government is pushing a controversial 2027 budget plan aimed at reducing the fiscal deficit and controlling record debt. However, deep divisions in parliament and parties preparing for next year's presidential election make this goal difficult to achieve. Investors are selling French government bonds and shifting to German bunds for safety. The yield spread between French and German bonds has reached its widest level since the eurozone debt crisis of 2010–2012, raising market concerns about the risk spreading to other eurozone countries. (3) Analysts state that the factors that supported the euro this summer have disappeared. Previous market expectations that the energy shock would be brief and that the US intended to push the dollar lower have faded. According to Bank of America, every 10 basis point widening of the France-Germany spread could lower the euro/dollar by 0.4%; Goldman Sachs says this effect could intensify significantly during periods of severe market stress. (4) Andreas König, Global Head of FX at AXA Investment Managers, noted that the euro/dollar pair is usually more influenced by US news, but Europe is also having an impact this time; he does not expect a turnaround in the medium term and continues to overweight the US dollar. CFTC positions show traders are bearish on the euro, and the three-month euro risk reversal indicator fell last Friday to its most bearish level since 2024. (5) Analysts suggest the euro may test $1.10; Societe Generale's Juckes also highlights the euro's vulnerability to the yen and Swiss franc, noting that the euro has fallen nearly 4% against the yen in September.