Russian officials in Davos said they are not expecting Donald Trump to lift economic sanctions imposed on the country after it annexed Crimea from Ukraine. …read more
Source: Russians aren’t counting on Trump to lift sanctions
Russia and the United States are now engaged in a cyber cold war. …read more
Source: The emergence of the ‘cyber cold war’
By TDB
Via The Daily Bell
Xi portrays China as global leader as Trump era looms … China will build a “new model” of relations with the United States, President Xi Jinping said on Wednesday in a speech that portrayed China as the leader of a globalized world where only international cooperation could solve the big problems. -Reuters
With Trump focusing on domestic problems, China is stepping up to become an international moderator and consensus builder.
“Trade protectionism and self-isolation will benefit no one,” Xi told the United Nations in Geneva. “Big countries should treat smaller countries as equals instead of acting as a hegemon imposing their will on others.”
During his speech, Xi made an extraordinarily bold proposal, saying the world should unite on a variety of major issues supposedly tearing governments apart today, “everything from environmental protection to terrorism and nuclear disarmament.”
“We will build a circle of friends across the whole world,” Xi said. “We will strive to build new model of major country relations with the United States, a comprehensive strategic partnership of coordination with Russia, a partnership for peace, growth, reform and among different civilizations and a partnership of unity and cooperation with BRICS countries.”
We have discussed how it seemed to us the BRICs were being set up as an adversarial power block to the West. But now China is going beyond the BRICs. UN Secretary-General Antonio Guterres reportedly told Xi it was “very reassuring to see China assuming such a clear leadership in multilateralism in today’s world.”
Of course China’s perspective has been contradicted by some, including civil rights campaigners who have made negative statements about China’s record. Western governments have complained about China’s domestic problems under Xi.
Others say that China’s plans to expand its presence greatly in the South China sea is just more evidence of China’s ongoing aggression. China denies this.
Xi has said reportedly, “We always put people’s rights and interests above everything else and we have worked hard to develop and uphold human rights. China will never seek expansion, hegemony or sphere of influence.”
But this is surely contradicted by what Xi is doing. According to Reuters, his state media has announce that law enforcement and judicial officials in China “must be absolutely loyal to the ruling Communist Party.”
China’s domestic security chief Zhou Yongkang has been incarcerated for life over bribes and other abuses of power. Zhou once was in charge of China’s formidable domestic security forces. He is held up as an example of what will happen to those who don’t make sure they are honest and respectful.
A just released party statement said those who work in these areas should have “clear political beliefs, high professionalism, commitment and discipline.” Training courses will help guarantee party loyalty, the document said, along with strict supervision of abuse of power.
Generally, President Xi Jinping has made many moves to shore up and expand his power since taking office. One can look on this as coincidence or as part of a larger pattern, as we do.
It …read more
Source: More Cooperation Between America and China Than There Seems
Khalid al-Falih says he is not worried about increased competition from U.S. shale producers. …read more
Source: Saudi oil minister: I don’t lose sleep over shale
Trump Treasury pick Steven Mnuchin defends his record on foreclosures at a confirmation hearing. …read more
Source: Steven Mnuchin defends foreclosure record
Republican senator Mike Lee is slated to introduce a bill Friday that would force President-elect Donald Trump to get approval from Congress to use tariffs or withdraw from trade deals. …read more
Source: GOP senator’s bill aims to reel in Trump’s trade power
By Vince Lanci
Silver and Gold Today
Gold is down $10 at $1202 and Silver is off 38 cents at $16.9 as of this writing. The net effect of today’s events thus far have added to overnight weakness on the back of USD strength
The ECB announced no changes as expected to its monetary policy at 7:45 ET. The Euro weakened vs the USD post announcement. Draghi’s press conference has started, and the EURO is not liking what he is saying. Jobless claims are out with the most pronounced reactions we see so far in a stronger Vix and softer Equity futures. Markets are just beginning to digest the info as of this writing
At Davos early this morning, UK PM Theresa May defended globalization in a post Brexit world. Free markets were extolled and the GBP would find the right level for trade.
Yesterday, the USD rallied while Bonds and Gold dropped following Yellen’s San Fran speech, countering the effect Trump’s “weak dollar” statements made the day before.
Charts: Bad Candles Loom, RSI looks toppy, and Inauguration on Deck
interactive charts here
Physical Markets
Gold EFP (Cash to prompt future) was 20/50 yesterday (cash over) as Feb converges with cash. Chinese interest in a specific Gold bar through London is working way through the cash market. This not a a new phenomenon and reflects the premium Asia pays over the West to cash. All other globally liquid forms currently trading normally. No signs of backwardation or GOFO changes in April EFP or spreads at this point.
Countries looking for liquid, portable, convertible assets players adding fresh buying. Examples include Venezuela, Turkey, and smaller Eurozone players. India has lowered taxes, China always a known factor with wild card potential
FWIW
Anyone who has had a student loan can handicap the outcome of the footnote highlighted in the picture below. “Revised figures show that many more students are failing to pay back loans than thought”was Barbarian Capital’s summary of the WSJ article here
h/t
@JakeCahan for pic
Good luck
Source: Silver and Gold Daily
By Tyler Durden
With the market not expecting any changes from the ECB this morning, so far that is precisely what it got, when moments ago the ECB announced that it kept all of its rates unchanged as expected, keeping the rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility at 0.00%, 0.25% and -0.40%, respectively.
In additional language relating to non-standard measures, the ECB also said that “it will continue to make purchases under the asset purchase programme (APP) at the current monthly pace of €80 billion until the end of March 2017 and that, from April 2017, the net asset purchases are intended to continue at a monthly pace of €60 billion until the end of December 2017, or beyond, if necessary” and “in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim.“
It also said that “the net purchases will be made alongside reinvestments of the principal payments from maturing securities purchased under the APP” and cautioned that “if the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration.”
In other words, it may move QE up or down, depending on what happens with inflation, in line with the ECB’s December announcement.
Full ECB statement below.
Monetary policy decisions
At today’s meeting the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively. The Governing Council continues to expect the key ECB interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases.
Regarding non-standard monetary policy measures, the Governing Council confirms that it will continue to make purchases under the asset purchase programme (APP) at the current monthly pace of €80 billion until the end of March 2017 and that, from April 2017, the net asset purchases are intended to continue at a monthly pace of €60 billion until the end of December 2017, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim. The net purchases will be made alongside reinvestments of the principal payments from maturing securities purchased under the APP. If the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.
And now all eyes on Draghi at 8:30am Eastern.
The e-commerce firm will help sell merchandise, organize the Games and run a Chinese internet TV channel. …read more
Source: Alibaba backs Olympics through 2028
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