Monday, 23 January 2017

China. Brexit. Trump.

Baltic Dry Index. 925 -17   Brent Crude 55.49

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

Some people make things happen, some watch while things happen, and some wonder what happened?

Anon. Might have been made for President Trump.

The big news this week will likely be the UK Supreme Court’s decision at 9:30 am on Tuesday on the Article 50 Brexit decision.  Since that, whichever way it goes, will be over covered by mainstream media, we will leave that circus to msm. The other big news this week will be the early actions of President Trump, and by the weekend the arrival of the Chinese Lunar New Year. Since I can’t predict the early actions of President Trump, nor how disruptive the Chinese New Year will be to Asia’s economy, we’ll cover more mundane issues, like China predicting a difficult year in its relations with Taiwan. Australia jumping the gun on Brexit and a UK trade deal, and the other side of Donald J. Trump.

China sees 'grim' situation in relations with Taiwan this year

Fri Jan 20, 2017 | 9:30pm EST
Relations between China and Taiwan this year will be "even more complex and grim" and Beijing will resolutely oppose any form of separatist activity, a senior Chinese official said, but added China would also maintain peace and stability.
Yu Zhengsheng, the ruling Communist Party's fourth ranked leader, was speaking at an annual work conference on policy towards the self-ruled island. His comments came in the wake of concerns that, under a new presidency, the United States is shifting its stance toward Taiwan.
U.S. President Donald Trump, who was inaugurated on Friday, broke with decades of precedent last month by taking a congratulatory telephone call from Taiwan President Tsai Ing-wen.
That, along with subsequent comments by Trump that the "one China" policy was up for negotiation, has infuriated Beijing, which views Taiwan as a wayward province, to be brought under its control by force if necessary.
Proudly democratic Taiwan has shown no interest in being run by China.
China is deeply suspicious of Tsai, whose ruling Democratic Progressive Party espouses the island's formal independence, a red line for Beijing, and has cut off a formal dialogue mechanism with the island.
China must "resolutely oppose and check any form of 'Taiwan independence' separatist activity, maintain national sovereignty and territorial integrity, and maintain the peaceful development of cross-Taiwan Strait relations and peace and stability", state-run Xinhua news agency paraphrased Yu as saying.
In a letter to Pope Francis released by her office on Friday, Tsai said Taiwan aspires to create a "new era" of peace with China as military action cannot resolve problems.
Defeated Nationalist forces fled from China to Taiwan in 1949 after losing a civil war with the Communists.
The report made no mention of Tsai's letter to the Pope. The Vatican is one of a handful of countries to maintain formal ties with Taiwan.
Yu said that China would seek to "unite" all parties and groups in Taiwan that accept both sides of the Taiwan Strait are part of "one China".

China Slams Western Democracy as Flawed

Bloomberg News
China’s state media used Donald Trump’s inauguration as U.S. president to warn about the perils of democracy, touting the relative stability of the Communist system as President Xi Jinping heads toward a twice-a-decade reshuffle of senior leadership posts.

With ministries and senior officials stressing unity as a priority for China, smoothing the path for the party’s congress in the fourth quarter, state media were quick to highlight divisions within America shown by Trump’s elevation, without necessarily directly referencing the new president.

Democracy has reached its limits, and deterioration is the inevitable future of capitalism, according to the People’s Daily, the flagship paper of China’s Communist Party. It devoted an entire page on Sunday to critiquing Western democracies, quoting former Chairman Mao Zedong’s 1949 poem asking people to "range far your eyes over long vistas" and saying the ultimate defeat of capitalism would enable Communism to emerge victorious.

The unusual series of commentaries in the People’s Daily mirrors Soviet efforts to promote an alternative political and economic system during the Cold War. The rise of anti-establishment, protectionist politicians like Trump, amid populist winds on several continents, has sent political parties scurrying to shore up their support, helping China to portray itself as relatively steady.

Australia Opens Talks With U.K. Over Trade Deals Ahead of Brexit

by Perry Williams
22 January 2017, 00:20 GMT
Australia will open talks in London this week with the U.K. over new trade and investment deals ahead of Britain’s withdrawal from the European Union.

Treasurer Scott Morrison said despite “growing international anti-trade sentiment” the federal government will look to improve the close relationship between Australia and the U.K. as Brexit takes shape. The value of Australia’s trade with the U.K. was A$27 billion ($20 billion) in 2015-16, split between A$12 billion in exports and A$15 billion in imports.

“Discussions during this visit will begin laying the foundations for Australia to strike new beneficial trade and investment arrangements with the U.K. that benefit our businesses, exporters and citizens,” Morrison said in a statement Sunday.

British Prime Minister Theresa May pledged to quit the single European Union market last week while retaining the ability to negotiate new trade deals with countries outside the bloc.

Morrison will also hold meetings with financiers on the U.K.’s affordable housing policies to determine if they are “fit for purpose” in Australia.

Meetings are scheduled with U.K. Chancellor Philip Hammond, Housing and Planning Minister Gavin Barwell and City Minister Simon Kirby.

Trump Team in Talks with U.K. on Post-Brexit Trade Deal

by Jennifer Jacobs and Margaret Talev
21 January 2017, 23:26 GMT 22 January 2017, 12:37 GMT
The Trump administration will lay the groundwork this week for a trade deal between the U.S. and the U.K. that would take effect after Britain leaves the European Union, a White House aide said, as Prime Minister Theresa May becomes the first foreign leader to visit the new president.
May last week declared Britain is "open for business" as she announced plans to pursue a clean break with the EU, paving the way for the U.K. to eventually strike new trade accords with the continent and other countries. May said she will travel to Washington and speak to President Donald Trump on Friday.
“We’ll have an opportunity to talk about our possible future trading relationship, but also some of the world’s challenges that we all face -- issues like defeating terrorism, the conflict in Syria,” and NATO, May said in an interview on the BBC’s “Andrew Marr Show” on Sunday. “When I sit down with Donald Trump, I’m going to be talking about how we can build on that special relationship.”
Trump officials believe their discussions with May’s government encouraged her to be more aggressive in exiting the EU. She can use any American support to argue the U.K. will prosper outside the bloc although she risks inflaming tensions with European leaders if they suspect her government is actively negotiating trade deals while still an EU member.

Next, barely two days into the job and the new American “jobs President” is already getting results.

Foxconn CEO says investment for display plant in U.S. would exceed $7 billion

Sun Jan 22, 2017 | 8:46am EST
Foxconn, the world's largest contract electronics maker, is considering setting up a display-making plant in the United States in an investment that would exceed $7 billion, company chairman and chief executive Terry Gou said on Sunday.

The plans come after U.S. President Donald Trump pledged to put "America First" in his inauguration speech on Friday, prompting Gou to warn about the rise of protectionism and a trend for politics to underpin economic development.

Foxconn's proposal to build a display plant, which would be planned with its Sharp Corp (6753.T) unit, depend on many factors, such as investment conditions, that would have to be negotiated at the U.S. state and federal levels, Gou told reporters on the sidelines of a company event.

Gou said that Foxconn, formally known as Hon Hai Precision Industry Co (2317.TW), had been considering such a move for years but the issue came up when Foxconn business partner Masayoshi Son, head of Japan's SoftBank Group Corp (9984.T), talked to Gou before a December meeting Son had with Trump.

As a result of the meeting, Son pledged a $50 billion of investment in the United States and inadvertently disclosed information showing Foxconn's logo and an unspecified additional $7 billion investment. At the time, Foxconn issued a brief statement saying it was in preliminary discussions to expand its U.S. operations, without elaborating.

"Son is a good friend," Gou said, adding that Son had asked for his views about investing in the United States.

Gou said he told Son that the United States has no panel-making industry but it is the second-largest market for televisions. An investment for a display plant would exceed $7 billion and could create about 30,000-50,000 jobs, Gou told Son.

Trump to begin renegotiating NAFTA pact soon with Mexico, Canada

Sun Jan 22, 2017 | 10:27pm EST
U.S. President Donald Trump said on Sunday he plans talks soon with the leaders of Canada and Mexico to begin renegotiating the North American Free Trade Agreement (NAFTA).

"We will be starting negotiations having to do with NAFTA," Trump said at a swearing-in ceremony for his top White House advisers. "We are going to start renegotiating on NAFTA, on immigration and on security at the border."

Trump pledged during his presidential campaign that if elected he would renegotiate the NAFTA trade pact to provide more favorable terms to the United States.

NAFTA, which took effect in 1994, and other trade deals became lightning rods for voter anger in the U.S. industrial heartland states that swept Trump to power this month.

Canada's ambassador to the United States said it was clear the Trump team were concerned above all about trade deficits with Mexico and China.

"I don't think Canada is the focus at all," David MacNaughton told reporters in Calgary, Alberta, ahead of a two-day government retreat focused on how to handle the new Trump administration.

Trade experts, academics and government officials say Canada and Mexico will also seek tough concessions and that NAFTA's zero-tariff rate would be extremely difficult to alter. Any renegotiation would likely take several years, they say.

We end with less reported Trump news. Less reported because most of the media has an anti-Trump agenda.

Trump Offers Father Down on His Luck $10,000 Check at Inaugural Event

20 Jan 2017Washington D.C
A FedEx courier and former security guard from Illinois was surprised with an invitation to meet with Donald Trump after the President-elect saw a story on the struggling single father. But the special meeting wasn’t the only surprise. The young man was stunned when Trump presented him with a check for $10,000.

Shane Bouvet, a 23-year-old single dad, was featured in a Washington Post story highlighting his visit to D.C. to support Donald Trump’s inauguration.

The paper revealed that Bouvet was headed to D.C. in a borrowed suit and donated shoes to celebrate Trump’s oath of office.

“This is pretty much the biggest thing I’ve done in my life,” Bouvet told the paper. “I don’t get out much. I’m a small-town, blue-collar guy.”

But a mere visit to Washington to see this historic day was far from the only notable thing about Bouvet’s visit, because Trump himself saw the paper’s feature on Bouvet and invited the young man to a one-on-one meeting.

On Thursday, only a day before he took the oath of office to become the 45th president of the United States of America, Donald Trump met Mr. Bouvet, shook his hand, and offered some help.

“This is the greatest guy,” Trump said as he shook Bouvet’s hand in a tented area behind the Lincoln Memorial on Thursday, the Post reported.

Bouvet called his father and had him say hello to the president in waiting. The President-elect laughed that Bouvet’s father, who is also named Don, has “a great name.”

After Bouvet’s phone call back home, Trump signed autographs for the young man’s son and then came the big surprise.

As Mr. Bouvet prepared to end his historic meeting with the President-elect, Donald Trump handed him a personal check for $10,000.

As he walked away stunned and crying, Bouvet muttered aloud, “Did that just happen?”

Do what’s right. Do it right. Do it right now.

BC Forbes. Scottish born founder and editor of Forbes Magazine.

At the Comex silver depositories Friday final figures were: Registered 29.19 Moz, Eligible 150.94 Moz, Total 180.13 Moz. 

Crooks and Scoundrels Corner

The bent, the seriously bent, and the totally doubled over.
Today, when friends fall out. With friends like these, who needs enemies?

Apple files $1 billion lawsuit against chip supplier Qualcomm

Fri Jan 20, 2017 | 10:57pm EST
Apple Inc filed a $1 billion lawsuit against supplier Qualcomm Inc on Friday, days after the U.S. government accused the chip maker of resorting to anticompetitive tactics to maintain a monopoly over key semiconductors in mobile phones.
Qualcomm is a major supplier to both Apple and Samsung Electronics Co Ltd for "modem" chips that connect phones to wireless networks. The two companies together accounted for 40 percent of Qualcomm's $23.5 billion in revenue in its most recent fiscal year.
In the lawsuit filed in U.S. District Court for the Southern District of California, Apple accused Qualcomm of overcharging for chips and refusing to pay some $1 billion in promised rebates. Apple said in its complaint that Qualcomm withheld the rebates because of Apple's discussions with South Korea's antitrust regulator, the Korea Fair Trade Commission.
"If that were not enough, Qualcomm then attempted to extort Apple into changing its responses and providing false information to the KFTC in exchange for Qualcomm's release of those payments to Apple. Apple refused," Apple said in its lawsuit.
In a statement, Qualcomm General Counsel Don Rosenberg called Apple's claims "baseless."
"Apple has been actively encouraging regulatory attacks on Qualcomm’s business in various jurisdictions around the world, as reflected in the recent KFTC decision and FTC complaint, by misrepresenting facts and withholding information," Rosenberg said in the statement.
"We welcome the opportunity to have these meritless claims heard in court where we will be entitled to full discovery of Apple’s practices and a robust examination of the merits.”
Qualcomm's stock closed 2.4 percent lower at $62.88 on the news.
Qualcomm has patents for chips which include standard essential patents, a term used to describe technology that is required to be licensed broadly and on "reasonable" terms.
In its lawsuit, Apple accused Qualcomm of refusing to license the technology to other manufacturers to prevent them from making the chips.

Knowing is not enough; we must apply. Willing is not enough; we must do.


Solar  & Related Update.

With events happening fast in the development of solar power and graphene, I’ve added this section. Updates as they get reported. Is converting sunlight to usable cheap AC or DC energy mankind’s future from the 21st century onwards? DC? A quantum computer next?

Graphene's sleeping superconductivity awakens

Date: January 19, 2017

Source: St John's College, University of Cambridge

Summary: The intrinsic ability of graphene to superconduct (or carry an electrical current with no resistance) has been activated for the first time. This further widens the potential of graphene as a material that could be used in fields such as energy storage, high-speed computing, and molecular electronics.

Researchers have found a way to trigger the innate, but previously hidden, ability of graphene to act as a superconductor -- meaning that it can be made to carry an electrical current with zero resistance.
The finding, reported in Nature Communications, further enhances the potential of graphene, which is already widely seen as a material that could revolutionise industries such as healthcare and electronics. Graphene is a two-dimensional sheet of carbon atoms and combines several remarkable properties; for example, it is very strong, but also light and flexible, and highly conductive.
Since its discovery in 2004, scientists have speculated that graphene may also have the capacity to be a superconductor. Until now, superconductivity in graphene has only been achieved by doping it with, or by placing it on, a superconducting material -- a process which can compromise some of its other properties.
But in the new study, researchers at the University of Cambridge managed to activate the dormant potential for graphene to superconduct in its own right. This was achieved by coupling it with a material called praseodymium cerium copper oxide (PCCO).
Superconductors are already used in numerous applications. Because they generate large magnetic fields they are an essential component in MRI scanners and levitating trains. They could also be used to make energy-efficient power lines and devices capable of storing energy for millions of years.
Superconducting graphene opens up yet more possibilities. The researchers suggest, for example, that graphene could now be used to create new types of superconducting quantum devices for high-speed computing. Intriguingly, it might also be used to prove the existence of a mysterious form of superconductivity known as "p-wave" superconductivity, which academics have been struggling to verify for more than 20 years.
The research was led by Dr Angelo Di Bernardo and Dr Jason Robinson, Fellows at St John's College, University of Cambridge, alongside collaborators Professor Andrea Ferrari, from the Cambridge Graphene Centre; Professor Oded Millo, from the Hebrew University of Jerusalem, and Professor Jacob Linder, at the Norwegian University of Science and Technology in Trondheim.
----"If p-wave superconductivity is indeed being created in graphene, graphene could be used as a scaffold for the creation and exploration of a whole new spectrum of superconducting devices for fundamental and applied research areas," Robinson said. "Such experiments would necessarily lead to new science through a better understanding of p-wave superconductivity, and how it behaves in different devices and settings."

The study also has further implications. For example, it suggests that graphene could be used to make a transistor-like device in a superconducting circuit, and that its superconductivity could be incorporated into molecular electronics. "In principle, given the variety of chemical molecules that can bind to graphene's surface, this research can result in the development of molecular electronics devices with novel functionalities based on superconducting graphene," Di Bernardo added.

The monthly Coppock Indicators finished December

DJIA: 19763  +74 Up NASDAQ:  5383 +70 Up. SP500: 2239 +75 Up

No comments:

Post a Comment