Friday, 31 January 2014

The Unravelling.



Baltic Dry Index. 1127  -21

LIR Gold Target in 2019: $30,000.  Revised due to QE programs.

Treaties are like roses and young girls. They last while they last.

Charles de Gaulle.

It’s everyman for himself, as the Great Nixonian Error of fiat currency enters its death throes. All against all. Alliances are only illusionary temporary mirages, as the last world hegemon attempts to protect its status as sole reserve currency. Japan’s beggar thy neighbour currency war, a slowdown in China, and the end of unlimited QE Forever in the USA, has set off turmoil in the house of cards, financialised world built on scammy derivatives gambling.

With nothing anchored to anything fixed, the Great Global Wobble surges from one economy to another. Stay long fully paid up physical precious metals. We haven’t seen anything yet. The Great Vampire Squids and the western banksters behind them, backed by their central banks, and the NSA and GCHQ, now play the game of instant national takedown. Another unintended consequence of the Great Nixonian Error of fiat money. Shame about the ordinary people trashed along the way to derivatives profit for the Squids and Banksters. Is 2014 about to join the curse of the 14s?

No nation has friends only interests.

Charles de Gaulle.

Topix Falls to Cap Biggest Monthly Drop Since May 2012

Jan 31, 2014 6:29 AM GMT
Japan’s Topix index fell as the yen strengthened against the dollar, with the equity gauge capping its largest monthly decline since May 2012.

Toyota Motor Corp., the world’s biggest carmaker, retreated 1.3 percent after the yen rose. Toshiba Corp. sank 7.5 percent, the most on the Nikkei 225 Stock Average, after third-quarter profit for the maker of products from nuclear reactors to flash-memory chips missed analyst estimates. Fujitsu Ltd. surged 13 percent to a three-year high as earnings at the computer-equipment manufacturer beat expectations.

The Topix index slid 0.3 percent to 1,220.64 at the close in Tokyo. The measure dropped 3.5 percent this week and 6.3 percent for the month as weak economic data from China and a sell-off of emerging-market currencies sparked a global equities rout. The Nikkei 225 lost 0.6 percent today to 14,914.53. The yen gained 0.3 percent to 102.46 per dollar, poised for its steepest monthly rise since April 2012.

“It’s hard to tell just how far the chaos from the emerging-market currencies will spread globally,” said Yoshihisa Okamoto, the Tokyo-based head of equity research at Mizuho Asset Management Co. “In the FOMC statement, the Fed didn’t suggest there’s concern about emerging markets, and that’s causing unease among investors.”
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Emerging market storm spreads to Russia as rouble wobbles

Russian central bank vowed “unlimited” intervention to defend the rouble after it fell to a record low against a basket of currencies

The simmering crisis in emerging markets has spread to Eastern Europe, forcing Russia and Romania to defend their currencies against capital flight and triggering a sharp rise in Hungary’s borrowing costs.

The Russian central bank vowed “unlimited” intervention to defend the rouble after it fell to a record low against a basket of currencies.

Moscow has already burned through $7bn of reserves since early January. Yields on Russia’s two-year “cross-currency swaps” – closely watched by traders for signs of a liquidity crunch – rocketed by 60 basis on Thursday to 7.6pc. They have risen by 140 points in the past three weeks.

----While there is no single cause for the emerging market sell-off, the backdrop is a combined monetary squeeze by the US and China that is draining liquidity from the global system.

Russia’s central bank governor, Elvira Nabiullina, said she would not allow a disorderly rouble slide or risk widespread damage to the financial system, backing away from earlier pledges to free the exchange rate. “We are not planning to quit intervention,” she said.

James Lord and Meena Bassily, from Morgan Stanley, said Russia faces an invidious choice, since any move to defend the rouble automatically tightens monetary policy, pushing up borrowing costs. Russia learnt a hard lesson in 2008-2009 when it spent $200bn of reserves defending the currency but in the process caused a collapse of the money supply and destroyed part of the banking system. Yet it cannot risk a policy of benign neglect at a time of stubbornly high inflation and capital outflows that reached $63bn last year.

Tatiana Orlova, from RBS, said there is a risk of “a run on the currency” unless the authorities take decisive action.

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Rajan Warns of Policy Breakdown as Emerging Markets Fall

Jan 31, 2014 3:55 AM GMT
India central bank Governor Raghuram Rajan warned of a breakdown in global policy coordination after the Federal Reserve further cut stimulus, weakening emerging-market currencies from the rupee to the Turkish lira.

Rajan, a former chief economist at the International Monetary Fund, called for greater cooperation among policy makers weeks before finance chiefs from the world’s top developed and emerging markets gather in Sydney. The Fed’s Jan. 29 statement made no mention of developing economies.

“International monetary cooperation has broken down,” Rajan, 50, said yesterday in an interview in Mumbai with Bloomberg TV India, noting how emerging markets helped pull the global economy out of crisis starting in late 2008. “Industrial countries have to play a part in restoring that, and they can’t at this point wash their hands off and say we’ll do what we need to and you do the adjustment.”
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Abe Doomsday Risk Prompts Moody’s Warning on JGBs: Japan Credit

Jan 31, 2014 1:32 AM GMT
Moody’s Investors Service says Japan’s biggest banks need to cut bond holdings and boost loans to protect their balance sheets from potential losses should Prime Minister Shinzo Abe’s stimulus spur yield surges.

Lenders’ stockpiles of sovereign debt were at 138.9 trillion yen ($1.35 trillion) in November, after peaking at a record 171 trillion yen in March 2012, Bank of Japan data show. Unprecedented buying of JGBs by the BOJ is allowing lenders such as Sumitomo Mitsui Financial Group Inc. to decrease holdings of the securities, while the world’s lowest interest rates constrain profits in lending.

Sumitomo Mitsui, Japan’s second-biggest bank by market value, cut Japanese government bond holdings by 56 percent, or 11.5 trillion yen, at its main lending unit in the nine months to December, as domestic loans rose 4.3 percent last year. The BOJ, which has driven 10-year yields down to 0.62 percent, estimated in October that a one-percentage-point increase in JGB yields would cause the biggest banks to incur 2.9 trillion yen in unrealized capital losses.

“Banks need to rebalance their portfolios away from JGBs,” Graeme Knowd, a Tokyo-based associate managing director at Moody’s who overseas financial institutions, said in a phone interview. “If it turns out that Abenomics hasn’t worked and only ended up leaving Japan with a bigger pile of debt,” a “doomsday scenario for JGBs” isn’t “a zero probability scenario,” he said.
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Argentina 105% Stock Return Proves Illusory as Peso Sinks

Jan 31, 2014 3:00 AM GMT
Argentine stocks posted some of the best returns in the world in President Cristina Fernandez de Kirchner’s second term, as long as you ignore inflation and depreciation. In reality, they were among the worst.

The CHART OF THE DAY shows that while the Merval index doubled in peso terms since her re-election Oct. 24, 2011, the shares lost 15 percent once returns were converted to dollars at the rate investors use to avoid currency controls. While the 105 percent local-currency return was the fifth-biggest among 94 indexes globally during the period, the drop in dollar terms made the gauge the world’s 12th-worst performer.

Argentina is a high-risk, high return market and there has been more risk than return lately,” said Eric Conrads, a money manager who helps oversees $750 million of Latin American stocks at ING Investment Management in New York. He said he sold the last of his Argentine shares last year.

Fernandez devalued the peso last week in a bid to shore up foreign reserves that sunk to a seven-year low amid a surge in government spending, inflation estimated at about 30 percent and declining prices for the country’s soy and wheat exports.
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Emerging Market Rout May Signal ‘Sudden Stop’: Cutting Research

Jan 31, 2014 12:00 AM GMT
Brazil, South Africa, Turkey and Ukraine are the emerging markets most at risk of a “sudden stop,” in the view of Morgan Stanley.

That’s defined as a halt or even a reversal in capital flows into a country, slashing access to international financial markets for an extended period and weakening the economy. The term is often linked to 1995 work by Rudi Dornbusch, the late international economics professor at the Massachusetts Institute of Technology in Cambridge.

Mexico, Indonesia, India and Thailand are also in some jeopardy of such a phenomenon as investors turn sour on emerging markets, London-based economists Manoj Pradhan and Patryk Drozdzik said in two reports to clients over the past week. They wrote as central banks in India, Turkey and South Africa raised interest rates to shore up confidence in their currencies.

The Morgan Stanley authors evaluated the risk by looking at factors such as the reliance on capital inflows and credit, the size of the current account deficit, the legroom for policy and exposure to China. In the case of Brazil, for example, capital inflows account for almost half the money entering the country, total external debt is more than the size of foreign exchange reserves, the current account shortfall is almost 4 percent of gross domestic product, inflation is around 6 percent and government debt is about 70 percent of GDP.

The countries most in danger now face questions over how they will fund their budget and trade gaps and whether they can pivot to new sources of expansion, the economists said. Investors should monitor the processes of reducing debt and political splits. Ukraine, Turkey and Thailand have all witnessed social unrest.
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And the future…. More below of the unintended consequences of the Great Nixonian Error of fiat money.  Will it be different this time, or as history suggests, will the old empire and the rising empire, clash?

China Can't Afford to Let Its Housing Bubble Pop

Jan 30, 2014 6:02 PM GMT
Among the many reasons to dismiss President Xi Jinping's pledges to transform China's growth model, Gan Li may offer the best: an epic housing bubble that can't be allowed to pop.

Gan, a professor at Southwestern University of Finance and Economics in Chengdu, Sichuan and at Texas A&M University in College Station, Texas, recently crunched some disturbing numbers on the level and distribution of household income and wealth. After examining survey results from 28,000 households and 100,000 individuals, Gan believes that roughly 65 percent of China’s household wealth is sitting in real estate.

An astounding 90 percent of households in nation of more than 1.3 billion people already owns homes. In the first half 2012, he found, about 42 percent of demand for properties came from buyers who already owned at least one. Many of these homes and apartments, it goes without saying, were bought in the midst of one of history's biggest real estate booms and bubbles.

“The Chinese housing market is clearly oversupplied,” Gan told Tom Orlik, a Bloomberg economist based in Beijing. “Existing housing stock is sufficient for every household to own one home, and we are supplying about 15 million new units a year. The housing bubble has to burst. No one knows when.”

When is does, the damage to household wealth will reverberate across the second-biggest economy, devastate consumption and increase risks of social unrest. In other words, it's something the Communist Party can't allow to happen. While Xi's promises to tolerate less gross domestic product growth as he weans China off its addiction to exports, the pressure to sustain property prices will take precedence over reform.
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At the Comex silver depositories Thursday final figures were: Registered 49.93 Moz, Eligible 129.89 Moz, Total 179.82 Moz.  

Crooks and Scoundrels Corner

The bent, the seriously bent, and the totally doubled over.

Today, the Goldmanites v the Muppets again. Guess who wins.

“Call it the Goldman Sachs test. If this is something Goldman would do to its clients, don't do it."

Felix Salmon.

Goldman sued by Libyan fund over $350m profits

Libyan Investment Authority accuses bank of "deliberately exploiting" relationship for own gain

Goldman Sachs is being sued by the Libyan Investment Authority over $350m (£212m) of profit made in a series of derivative trades which turned sour in the financial crisis.

The investment bank stands accused of “deliberately exploiting” its relationship with the sovereign wealth fund in order to make “substantial profits.”

Goldman is being sued in the High Court in London over a $1bn series of nine trades into companies including Citigroup, EdF, Santander and ENI.

The trades, entered into between January and April 2008, rapidly turned south as global markets tanked, leaving LIA nursing losses.

The fund is suing Goldman, arguing it made $350m of up-front profit margin on the disputed trades.

In the particulars of claim, the LIA accuses the investment bank of taking advantage of the fund’s young and inexperienced staff.

It uses the claim to allege that key bankers - including Driss Ben-Brahimm and Youssef Kabbaj - sought to influence members of LIA staff.

Mr Kabbaj, who looked after Goldman’s Libyan efforts, is alleged to have spent time in the LIA’s offices and promised fund staff the chance to study at the bank’s ‘university’ in London.

He is also alleged to have brought them small gifts - including aftershaves and chocolates - and took a number of LIA staff to his native Morocco where he “paid for extensive expenses for them on his corporate credit card.”

The LIA claims that the fund staff became dependent on the bank, and that Mr Kabbaj and Mr Ben-Brahim, who was Goldman’s head of trading for emerging markets, “reassured the LIA they were one Goldman’s key strategic clients.”

As such, it is alleged the LIA was “heavily” encouraged by Goldman to enter into a series of trades to gain leveraged exposure to a number of companies.

The first trade, a $100m derivate bet on the share price of global bank Citigroup, was entered in to on January 25, with the others following over a three month period.

But by the end of 2008, the trades had “lost substantially all of their value,” and expired worthless during the course of 2011.

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One of the queries Quakers are asked to consider, is: "Do you maintain strict integrity in your business transactions and in your relations with individuals and organizations? Are you personally scrupulous and responsible in the use of money entrusted to you, and are you careful not to defraud the public revenue?"

Probably why there a no Quakers on Wall Street.

The monthly Coppock Indicators finished December and 2013.

DJIA: +204 Up. NASDAQ: +311 Up. SP500: +247 Up. The new Fed bubble continues, but for how much longer?

Thursday, 30 January 2014

The Great Gamble.



Baltic Dry Index. 1148  -29

LIR Gold Target in 2019: $30,000.  Revised due to QE programs.

Faced with the choice between changing one's mind and proving that there is no need to do so, almost everyone gets busy on the proof.

John Kenneth Galbraith.

It’s over! The District of Crooks’ Fedsters’ decided yesterday to start playing craps. The Great Gamble is on. At the least, the emerging market shambles will continue, with Argentina, Brazil, India, Indonesia, Thailand, Turkey and South Africa all likely to come crashing back to ground. At worst before it’s all over, add in China, Japan, Russia, and all of Club Med including France. Can the Fed really end QE and ZIRP without triggering the calamity both voodoo policies were started to prevent? We are about to find out over the next 11 months of 2014, though the next few weeks in bond markets will likely be the decider. Time to swap more paper assets for fully paid up physical gold and silver. The Fed just made the world’s biggest gamble since Hitler decided to invade Russia. One Hell of a Time for Bernocchio to quit Dodge. Keep watching the sinking Baltic Dry Index. It’s off to the worst start of the year since it was first compiled.

In central banking as in diplomacy, style, conservative tailoring, and an easy association with the affluent count greatly, and results far much less.

J. K. Galbraith

Jan. 29, 2014, 4:41 p.m. EST

U.S. stocks fall 1%; Dow average loses 190 points

Fed to continue to trim monthly bond purchases by $10 billion

NEW YORK (MarketWatch) — U.S. stocks fell 1% on Wednesday, extending losses after the Fed announced it will reduce monthly bond purchases by another $10 billion and failed to mention the recent emerging markets turmoil that has knocked U.S. stocks off their highs.

The outcome was in line with forecasts, though it may have derailed some trades betting the Fed would make a nod to the recent market setback. The Fed also signaled that it is likely to keep reducing its purchases in the coming months, citing a pickup in economic activity and improvement in the labor market.
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Asian Stocks Slump on Fed Cuts to Bond Buying, China PMI

Jan 30, 2014 4:26 AM GMT
Asian stocks fell for the fifth time in six days after the Federal Reserve pressed on with cuts to U.S. economic stimulus and as a report showed China’s manufacturing industry contracted.

Honda Motor Co., which gets 83 percent of its auto sales abroad, lost 2.6 percent as Japanese exporters retreated after the yen gained from the close of equity markets in Tokyo yesterday. Treasury Wine Estates Ltd. (TWE) slumped by a record 20 percent in Sydney as the world’s second-largest publicly traded wine maker said earnings fell. Hitachi Metals Ltd. surged 4.9 percent in Tokyo, leading gains on the regional benchmark index, after profit at the steel manufacturer topped analyst estimates.

The MSCI Asia Pacific Index lost 1.6 percent to 134.54 as of 12:23 p.m. in Hong Kong, with all 10 industry groups on the gauge falling. The measure has dropped 4.8 percent in January, on course for the biggest monthly slump since May as part of a global equities rout sparked by weaker-than-expected economic data from China and a sell-off in emerging-market currencies.

“Given the likelihood of continued Fed tapering in the period ahead, there appears little doubt that long emerging market positions are likely to be subjected to near-term pressure,” Matthew Sherwood, Sydney-based head of investment markets research at Perpetual Ltd., which manages about $25 billion, said in an e-mail, referring to bets on gains in developing-nation assets. “What we are seeing at present is a global re-pricing of risk.”
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Jan. 29, 2014, 8:42 a.m. EST

South Africa central bank hikes rates to 5.5%

NEW YORK (MarketWatch) -- The South African Reserve Bank on Wednesday raised its repurchases rate by 50 basis points to 5.5% as of January 30, as the bank sought to stem turbulence caused by the withdrawal of U.S. monetary stimulus and fears of a growth slowdown in China. The bank said a sustained depreciation of the rand will "significantly" raise the risk to the inflation outlook. "Our inflation forecast shows a marked deterioration, despite the absence of clear evidence of domestic demand pressures," the bank said in a statement. The bank emphasized that monetary policy remains accommodative and further changes will be highly dependent on data. The dollar rose to 11.3493 rand from 10.9301 rand late Tuesday, according to FactSet, despite initially moving lower intraday after the hike.

World risks deflationary shock as BRICS puncture credit bubbles

As matters stand, the next recession will push the Western economic system over the edge into deflation

Half the world economy is one accident away from a deflation trap. The International Monetary Fund says the probability may now be as high as 20pc.

It is a remarkable state of affairs that the G2 monetary superpowers - the US and China - should both be tightening into such a 20pc risk, though no doubt they have concluded that asset bubbles are becoming an even bigger danger.

----It is not hard to imagine what that shock might be. It is already before us as Turkey, India and South Africa all slam on the brakes, forced to defend their currencies as global liquidity drains away.

The World Bank warns in its latest report - Capital Flows and Risks in Developing Countries - that the withdrawal of stimulus by the US Federal Reserve could throw a "curve ball" at the international system.

"If market reactions to tapering are precipitous, developing countries could see flows decline by as much as 80pc for several months," it said. A quarter of these economies risk a sudden stop. "While this adjustment might be short-lived, it is likely to inflict serious stresses, potentially heightening crisis risks."

The report said they may need capital controls to navigate the storm - or technically to overcome the "Impossible Trinity" of monetary autonomy, a stable exchange rate and free flows of funds. William Browder from Hermitage says that is exactly where the crisis is leading, and it will be sobering for investors to learn that their money is locked up - already the case in Cyprus, and starting in Egypt. The chain-reaction becomes self-fulfilling. "People will start asking themselves which country is next," he said.

Emerging markets are now half the global economy, so we are in uncharted waters. Roughly $4 trillion of foreign funds swept into emerging markets after the Lehman crisis, much of it by then "momentum money" late to the party. The IMF says $470bn is directly linked to money printing by the Fed . "We don't know how much of this is going to come out again, or how quickly," said an official from the Fund.

One country after another is now having to tighten into weakness. The longer this goes on, and the wider it spreads, the greater the risk that it will metamorphose into a global deflationary shock.

----As matters stand, the next recession will push the Western economic system over the edge into deflation.

The US has a slightly bigger buffer, but not much. Growth of M2 money has been slowing even faster than it did in the nine months before the Lehman crash in 2008, but then the Fed no longer pays any attention to such data so it may all too easily repeat the mistake. The Fed is surely courting fate with $10bn of bond tapering each meeting into the teeth of incipient deflation, as Minneapolis Fed chief Narayana Kocherlakota keeps warning.

Those who think deflation is harmless should listen to the Bank of Japan's Haruhiko Kuroda, who has lived through 15 years of falling prices. Corporate profits dried up. Investment in technology atrophied. Innovation fizzled out. "It created a very negative mindset in Japan," he said.
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Record Cash Leaves Emerging Market ETFs on Lira Drop: Currencies

Jan 30, 2014
Investors are pulling money from exchange-traded funds that track emerging markets at the fastest rate on record, as China’s slowing growth and cuts to central-bank stimulus sink currencies from Turkey to Brazil.

More than $7 billion flowed from ETFs investing in developing-nation assets in January, the most since the securities were created, data compiled by Bloomberg show. The iShares MSCI Emerging Markets ETF (EEM) has seen its assets shrink by 11 percent, while the Vanguard FTSE Emerging Markets ETF is poised for the biggest monthly redemption since the fund was started in 2005. The WisdomTree Emerging Markets Local Debt Fund is on track for an eighth straight month of withdrawals.

Investors accelerated redemptions after data showed Chinese manufacturing contracted and Argentina’s unexpected devaluation of its peso dented confidence in Latin America. Surprise rate increases by central banks in Turkey and South Africa failed to boost their currencies, while the U.S. Federal Reserve opted to press on with reductions to its monetary stimulus.

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China Manufacturing Index Shows Contraction

Jan 30, 2014 4:04 AM GMT
A Chinese manufacturing gauge signaled the first contraction in six months in January as companies cut jobs and credit-market stresses damped confidence in the world’s second-biggest economy.

A Purchasing Managers’ Index fell to 49.5 from 50.5 in December, HSBC Holdings Plc and Markit Economics said in a statement today. The reading compared with the median 49.6 estimate in a Bloomberg News survey of 14 economists. A number below 50 indicates contraction.

The Australian dollar and copper fell as the survey showed manufacturers eliminating jobs at the fastest rate in almost five years. Credit Suisse Group AG this week cut its first-quarter growth forecast for China, citing anecdotal evidence of “surprisingly slow” retail sales ahead of the week-long Lunar New Year holiday, which starts tomorrow.

“China’s growth momentum will continue to weaken in coming quarters,” Dariusz Kowalczyk, senior economist and strategist at Credit Agricole CIB in Hong Kong, said in a note. “The market continues to underestimate the degree of the ongoing slowdown and further negative surprises are in stock as the year progresses.”
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If all else fails, immortality can always be assured by spectacular error.

J. K. Galbraith

At the Comex silver depositories Wednesday final figures were: Registered 49.93 Moz, Eligible 129.51 Moz, Total 179.44 Moz.  

Crooks and Scoundrels Corner

The bent, the seriously bent, and the totally doubled over.

Today, Brexit it is, thank God. Or should that be thank President Love Rat?

C'est la fin des haricots

Francois Hollande says 'non' to treaty change before the EU referendum

David Cameron will have to wait years to re-write the terms of Britain’s membership of the European Union, says Francois Hollande

By Henry Samuel in Paris, and Christopher Hope in London 6:37PM GMT 29 Jan 2014
David Cameron will have to wait years to re-write the terms of Britain’s membership of the European Union, Francois Hollande has said.

The French President’s officials poured scorn on suggestions from Mr Cameron can achieve “treaty change” before any in/out referendum, which he has committed to hold before the of 2017.

The remarks will raise tensions between London and Paris, ahead of an Anglo-French summit – part of which will be held in over a working lunch in pub in Oxfordshire - on Friday this week.

The Prime Minister has said he wants to renegotiate the UK’s relationship with the EU and then put it to a vote of the British people in 2017.

Mr Cameron has suggested that as long as the renegotiation – which will involve changing treaties between Britain and the EU - is successful he will he will campaign for Britain to remain in the EU.

But in a briefing for journalists in Paris ahead of the summit, a senior source close to Mr Hollande said any treaty change was “very, very unlikely” before 2017.

The official said: “This doesn’t mean we won’t one day require treaties to be revised for the requirements of economic monetary union, but it is very, very unlikely this will be compatible with the British political calendar.”

The official continued: “It’s in our interests that Britain remains within Europe, but it is not by changing the treaties or rules will negotiate its place in the EU. It is in our interests that Britain remains within Europe but that cannot happen at the price of dismantling Europe.”

---- Tomorrow’s talks between Mr Cameron and Mr Holland will take place in a pub near the Brize Norton air base, followed by a press conference.

The pair are due to announce a series of defence agreements on drones, energy and space as well as “progress” on creating a combined joint expeditionary force at bilateral summit between Fran├žois Hollande and David Cameron on Friday.

The Anglo/French summit, the first to be held in the UK for four years, will be held mainly at RAF Brize-Norton in Oxfordshire, the Royal Airforce’s largest airbase and will focus on outlining progress in defence cooperation.

The two countries are due to sign a Euro500m memorandum of understanding to build anti-ship missiles for French and British attack helicopters.

The leaders will also sign up to two years of research and specifications on an unmanned fighter jet known as the “future combat air system” and developed by BAE Systems and Dassault Aviation.

The French are calling this the “first phase” in the construction of the “pilotless plane of the future”.

A third memorandum of understanding will be announced on jointly developing a light underwater vessel capable of detecting mines under the sea.

The leaders are due to confirm “progress” on creating a combined joint expeditionary force of 10,000 men by 2016, as well as further counter-terror co-operation.

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Q: Did you hear about the Frenchman who jumped into the river in Paris?

 A: He was declared to be in Seine.

The monthly Coppock Indicators finished December and 2013.

DJIA: +204 Up. NASDAQ: +311 Up. SP500: +247 Up. The new Fed bubble continues, but for how much longer?