Platinum Soars As China Considers Relaxing Car Restrictions

This is about a lizard brain trade that is opening up… i’ll explain in the tape!

Precious metals traded in the green on Thursday with platinum soaring nearly 3% after China said it is considering relaxing restrictions on auto purchases.

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The country’s State Council outlined 20 measures in order to boost consumption as the protracted trade war with the United States takes its toll on China’s economy. Gold gained 0.08% to $1,541.09 per ounce at 10:09 am ET, while silver jumped 1.13% to for $18.57 for one troy ounce. At the same time, platinum, mostly used in the automotive industry, surged 3.11% to $929.48, while sister metal palladium climbed 0.88% to $1.487.26 per ounce.

China To Impose 5% Tariff On U.S. Crude From Sept. 1: State Council

As you can see South Korea is the largest importer of US crude oil. Then Canada. China just started importing US crude again… And even with the 5% duty US oil is still the cheapest they can import!

Singapore — China’s plans to levy 5% tariff on U.S. crude imports from September 1 caused a drop in benchmark crude prices Friday, jeopardized seaborne U.S. crude shipments heading to China and limiting buying interest in U.S. crude from Chinese refiners. BULLSHIT!

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Here is where they make an asshole out of you. Before the announcement, Crude NY was trading at $55.50 a barrel. It fell to a low of $53.25 a barrel on Friday after the announcement. A drop of $2.25 (we issued a buy on the low in Brent) closing at 53.97 down $1.42 for the day. So if we take U.S. crude at $53.97 NY closing price and add the 5% tariff, you get $56.66 a barrel duty paid. Well within the range oil has been trading at lately. Now let’s suppose the Chinese buy Saudi oil to replace U.S. crude. So let’s say you’re sucked in by the bullshit because they made you stupid and you believe, OH my GOD the US oil market is doomed. Well the fucked up logic goes like this. The Chinese, the largest importers of oil in the world won’t buy U.S. oil because of the $2.69 cent duty. The only supplier in volume is the Saudis. And Saudi oil is trading at $60.13 a barrel. So that means U.S. crude is still cheaper duty paid by… $3.69 barrel. WTF, don’t let them make a fool out of you. Oh, another thing they forgot to tell you. U.S. oil exports are minuscule and the Chinese at best bought only 10% of their oil from U.S. suppliers… DAH!!!!!

Trump Out Of Control: Orders U.S. Firms Out Of China After Beijing Sets New Tariffs

WASHINGTON/BEIJING (Reuters) – U.S. President Donald Trump on Friday said he has ordered American companies to exit China after Beijing unveiled retaliatory tariffs on $75 billion in U.S. goods.

Trump said on Twitter he will issue a response to China’s latest tariff plan on Friday afternoon. The President was meeting with his trade team at midday, a senior White House official told Reuters.

“We don’t need China and frankly, would be far better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP.” Trump tweeted.

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Fed Chairman sees ‘complex, turbulent picture’ since July meeting

Reuters Fed Chairman Jerome Powell and New York Fed President John Williams walk together, ahead of the Kansas City Federal Reserve Bank’s annual conference on monetary policy, in Jackson Hole, Wyo.

Federal Reserve Chairman Jerome Powell on Friday said the central bank was “carefully watching developments” in the economy and would “act as appropriate,” but stopped short of promising any specific interest-rate easing steps. In a closely-watched speech in Jackson Hole, Powell said he and his colleagues were trying to assess “this complex, turbulent picture” that has emerged in August, with volatile financial markets, trade tensions and a weaker global economy. In his wry, understated, way, Powell said “the three weeks since our July meeting have been eventful.” But he said the Fed was working to sustain a favorable economy “in the face of significant risks.” Investors think another interest-rate cut in September is a done deal, but comments from other Fed officials at Jackson Hole show the FOMC is split. Many officials want the Fed to stay on hold. But others are backing another rate cut. The Fed cut interest rates by a quarter-point in July, a move that Powell called a “mid-cycle adjustment.” He did not repeat that phrase in this speech. The Fed chairman did argue that the July cut has eased financial conditions and helped explain why the outlook for inflation and employment looks favorable. In one more hawkish passage, Powell said inflation “seems to be moving up closer to 2%.” Some doves have pointed to weak inflation as one reason for more easing. But Powell was not closing the door on more easing. He spoke at length about how the strong job market was extending to more Americans that were “still left behind.” “Our challenge now is to do what monetary policy can do to sustain the expansion,” he said. Powell appeared to want flexibility going into the September meeting. “Based on our assessment of the implications of these developments, we will act as appropriate to sustain the expansion,” Powell said. “There are…no recent precedents to guide any policy response to the current situation,” he said. One “new challenge” to the Fed was fitting trade uncertainty into the Fed’s framework. The U.S. and China trade war heated up only one day after the Fed cut rates in July.

In a passage that seemed a swipe at President Donald Trump, Powell said interest rate policy “cannot provide a settled rulebook for international trade.”

The Dow Jones Industrial Average DJIA, -1.58%  was lower ahead of the Fed chairman’s remarks, dropping in large part amid a $75 billion round of Chinese counter-tariffs, testament to the uncertainty that Powell flagged.

Negative-Yielding Bond Supply Hits All-Time High


NEW YORK (Reuters) – The amount of bonds carrying negative yields increased to an all-time peak of $13.2 trillion on Wednesday, up $1.6 trillion or 13.4% from a month earlier in the wake of a dramatic rally in bond markets around the world, J.P. Morgan said on Thursday.

Investors’ stampede into mainly sovereign bonds started a week ago when U.S. President Donald Trump vowed to slap a 10% tariff on $300 billion worth of Chinese imports in a bid to pressure Beijing to agree to a trade deal. Sixteen of the 21 developed countries J.P. Morgan tracks saw their government debt yields hit record lows over the past month, J.P. Morgan analysts said. Most of the increase in negative-yielding bonds occurred in Europe. German yields across all maturities, worth $1.2 trillion, have sunk into negative territory. Negative-yielding euro zone government bonds grew by 15.6% to $5.2 trillion with an average 28 basis-point fall in yields, they said.

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