What Impact Are The Federal Reserve’s Actions Having On Peripheral Markets?

By Trey Reik – Re-Blogged From Gold Eagle

Maurice Jackson: Welcome to Proven and Probable. I’m your host Maurice Jackson. Joining us for a conversation is Trey Reik, senior portfolio manager with Sprott USA.

We’re delighted to have you here today to discuss the Federal Reserve’s impact on peripheral markets. Mr. Reik, the Fed is in the process of implementing a dual policy of rate hikes and balance sheet reduction, which appear to have a duplicitous effect on peripheral markets. What are your thoughts on this dual policy and what can we expect from Chairman Jerome Powell during his tenure?

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China May Have to Resume US Soybean Purchases in Weeks

By Thomson Reuters – Re-Blogged From Newsmax

China may have to start buying U.S. soybeans again in coming weeks despite the trade war between the two countries as other regions cannot supply enough soybeans to meet China’s needs, Hamburg-based oilseeds analysts Oil World said on Tuesday.

In July, China imposed import tariffs on a list of U.S. goods, including soybeans, as part of the trade dispute with the United States. China is the world’s largest soybean importer and has been seeking alternative supplies, especially in South America, where supplies available for export are down.

Tariffs on U.S. Soy Will Strengthen Brazil’s Hand in the Chinese Market

Re-Blogged From Stratfor

Highlights

  • In the short term, China remains in a stronger position than the United States in terms of the soy market, with numerous alternative suppliers and substitutes for U.S. product available.
  • Still, the large share of the Chinese market held by U.S. soybean exporters means that Beijing likely will be unable to shut off all U.S. soy imports.
  • Tariffs will accelerate an existing trend that has led to increasing Brazilian soy exports to China.

Workers load imported soybeans onto a truck at a port in Nantong in China's eastern Jiangsu province. Chinese soybean stocks are at a 10-year high, which could help China absorb the loss of U.S. imports brought on by tariffs.

(AFP/Getty Images)

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‘Amazing’ US Economic Growth

By Todd Beamon – Re-Blogged From Newsmax

President Donald Trump on Friday hailed the “amazing” 4.1 percent quarterly growth rate — the fastest pace since 2014 — as proof that “we’ve accomplished an economic turnaround of historic proportion.”

“Once again, we are the economic envy of the entire world,” Trump, flanked by Vice President Mike Pence and his economic team, said at the White House. “America is being respected again and America is winning again because we are finally putting America first.

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Trump, Juncker Forge Deal to Pull Back From US-EU Trade War

By Bloomberg – Re-Blogged From Newsmax

President Donald Trump reached an agreement Wednesday with European Commission President Jean-Claude Juncker aimed at averting a transatlantic trade war, easing tensions stoked by Trump’s threat to impose tariffs on car imports.

The two sides agreed to expand European imports of U.S. liquified natural gas and soybeans and lower industrial tariffs on both sides, Trump said. The U.S. and European Union will “hold off on other tariffs” while negotiations proceed, Juncker said.

Opposition Grows Against Trump’s Auto Tariff Plan

By Mark Swanson – Re-Blogged From Newsmax

All but one of the 45 scheduled witnesses expected to testify Thursday at a daylong Commerce Department hearing will oppose President Donald Trump’s auto tariffs plan, Politico reports.

And the one witness who agrees with the tariffs is advocating a targeted approach vs. the sweeping plan outlined by the administration, Politico reports.

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Trump’s Zero-Tariff Solution

By Stephen Moore – Re-Blogged From Newsmax

President Donald Trump’s aluminum and steel tariff policies have now triggered retaliatory tariffs from other nations, including Canada, the EU, and China.

Last week President Trump imposed new tariffs on more than $30 billion of Chinese electronic equipment and other consumer goods. Our trading partners are now threatening to hit our domestic industries, including wheat, soybeans, pork, bourbon, blue jeans — and even Maine lobsters. The financial markets are jittery, to say the least.

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