David Fuller and Eoin Treacy's Comment of the Day
Category - General

    Email of the day on UK base formations

    thank you for mentioning up royal mail earlier this week. thanks to you I did buy this share, and so far, it did exceptionally well. once again for such a good service you are providing to your subscribers. 

    This section continues in the Subscriber's Area.

    Trump Approves U.S.-China Trade Deal to Halt Dec. 15 Tariffs

    This article by Jenny Leonard, Jennifer Jacobs, Shawn Donnan and Saleha Mohsin for Bloomberg may be of interest to subscribers. Here is a section: 

    In addition to a significant increase in Chinese agricultural purchases in exchange for tariff relief, officials have also said a phase-one pact would include Chinese commitments to do more to stop intellectual-property theft and an agreement by both sides not to manipulate their currencies.

    Put off for later discussions are knotty issues such as longstanding U.S. complaints over the vast web of subsidies ranging from cheap electricity to low-cost loans that China has used to build its industrial might.

    The new duties, which were scheduled to take effect at 12:01 a.m. Washington time on Sunday unless the administration says otherwise, would hit consumer goods from China including smartphones and toys.

    Even amid the positive signs on trade, Chinese foreign minister Wang Yi highlighted the other confrontations between the two sides. On Friday in Beijing, Wang said that U.S. actions had “severely damaged the hard-earned basis for mutual trust” and left the relationship in their “most complex” state since the two sides established ties four decades ago.

    This section continues in the Subscriber's Area.

    Gold Fails to Crumble as Trade Deal Hit Meets Dollar's Decline

    This article by By David Stringer and Ranjeetha Pakiam for Bloomberg may be of interest to subscribers. Here is a section: 

    Gold’s heading for an annual advance, with its fortunes in 2019 shaped both by more accommodative monetary policy from central banks globally as well as the ebb and flow of the trade war. The removal of tariff uncertainty will return investors’ focus to signs the global economy is improving as a strong year
    for risk assets heads toward a close.

    Following a 0.3% loss on Thursday, bullion for immediate delivery initially fell as much as 0.5%, but was just 0.1% lower at $1,467.80 an ounce at 5:46 a.m. in London. A Bloomberg gauge of the U.S. currency was 0.4% lower, heading for the biggest weekly drop since October, as the pound rose.

    In the U.K., Johnson’s win puts the country on track to leave the European Union next month. With counting complete in most districts, the Conservatives passed the threshold of 326 seats to give them a majority.

    That development also contained conflicting elements for gold because while a clear majority for the Conservatives would be positive for the country’s economy, the potential for a no-deal Brexit has now increased, which could buoy the haven, according to McCarthy. “We’re locked in a bit of a vice,” he added.

    This section continues in the Subscriber's Area.

    U.S. Reaches In-Principle China Deal, Awaits Trump Signoff

    This article by  Jenny Leonard, Shawn Donnan and Saleha Mohsin for Bloomberg may be of interest to subscribers. Here is a section:

    U.S. negotiators have reached the terms of a phase-one trade deal with China that now awaits President Donald Trump’s approval, according to people briefed on the plans.

    Trade advisers were set to meet with the president at 2:30 p.m. to discuss the agreement. An announcement could come by day’s end, the people said. A White House spokesperson declined to comment.

    The terms have been agreed but the legal text has not yet been finalized, according to the people. The administration has reached out to allies on Capitol Hill and in the business community to issue statements of support once the announcement is made, they said.

    U.S. stocks rose and Treasury yields spiked on the news. Earlier Thursday, Trump tweeted that the U.S. and China are “VERY close” to signing a “BIG” trade deal, also sending equities higher.

    “They want it, and so do we!” he tweeted five minutes after equity markets opened in New York, sending stocks to new records.

    This section continues in the Subscriber's Area.

    China to Unveil Plan to Make Macau Finance Hub, Reuters Says

    This article by Jihye Lee and Jinshan Hong for Bloomberg may be of interest to subscribers. Here is a section:

    The policies include establishing a yuan-denominated stock exchange, accelerating a yuan settlement center which is currently being developed and allocating land for Macau, Reuters said, citing unidentified government officials and company executives. The measures were intended to mark the 20th anniversary of the former Portuguese colony’s return to Chinese rule, an event that will bring Xi to Macau, the report said.

    The bourse would focus on bond trading first to encourage local and mainland companies to issue debt in the city, Reuters said. The exchange would also focus on startups and target companies from Portuguese-speaking countries to avoid direct competition with Hong Kong or Shenzhen, it reported, citing six Macau executives and Chinese officials.

    Xi will also announce Macau’s decision to join the Beijing-based Asian Infrastructure Investment Bank. Future priorities will include tourism and finance, and for Macau to be used as venue to host international meetings like Singapore, an official told Reuters.

    This section continues in the Subscriber's Area.

    SNB's Jordan Defends Negative Rate Policy as Criticism Mounts

    This article by Catherine Bosley and Jan Dahinten for Bloomberg may be of interest to subscribers. Here is a section:

    Lenders in Switzerland and elsewhere say margins are under pressure. The Swiss Bankers Association has argued negative rates are no longer necessary, and a survey by UBS Group AG found that even export-oriented firms believed the policy was doing more harm than good.

    Jordan spoke after the SNB left interest rates unchanged and reiterated its threat to intervene in currency markets if needed. He acknowledged the “challenges” of its subzero policy, but offered no sign he’s about to change tack anytime soon.

    “We monitor the impact of negative interest precisely, and we take the side effects seriously. However, we remain convinced that the benefits it brings Switzerland as a whole clearly outweigh the costs. The negative interest rate and the willingness to intervene are currently the best instruments.”

    The SNB’s latest forecasts bear out his concerns. Similar to their peers, Swiss policy makers have struggled to stoke price pressures, though their situation is complicated by the currency. They’ve long described the franc as “highly valued,” a key phrase they repeated on Thursday.

    This section continues in the Subscriber's Area.

    Value Stocks Are in Position to Swamp Growth: Markets Live 2020

    This article by Andrew Cinko for Bloomberg may be of interest to subscribers. Here is a section:

    * If you’re upbeat about value companies, which are cyclical in nature, then you’re probably optimistic about the global economy. The good news is central bankers are doing everything they can to help the economy get back on track

    * Fidelity’s sector strategist Denise Chisholm favors cyclical stocks now that the Fed and ECB are cutting rates at the same time. “That has happened only about 10% of the time since the ECB’s inception in 1998, and when it has, the U.S. market has surged in the subsequent 12 months. Cyclical stocks have fared especially well under these conditions, outperforming the market 71% of the time.”

    * Even a limited resolution to the U.S.-China trade conflict should help a global economic revival by reducing uncertainty. That should release animal spirits by boosting new orders for
    machinery, industrial supplies and energy. All that would make the case for value stronger than it’s been in years

    This section continues in the Subscriber's Area.