Saturday, 14 December 2019

Weekend Update 14/12/2019 Win, Win, Win, Win!


Baltic Dry Index. 1355 - 33 Brent Crude 65.22 Spot Gold 1476

Never ending Brexit now January 31.
Trump’s Nuclear China Tariffs Now in effect.
The USA v EU trade war started October 18. Now in effect.

It is easier to stay out than to get out.”

Mark Twain.

This weekend, win, win, win, win, at least if Reuters is to be believed.  The USA starts the process of winning its China trade war. China starts the process of winning its trade war with America. The global economy will win again once there’s a tariff rollback. GB and Europe win big, by the trashing of Comrade Corbyn’s New Communist Labour Party.

Below, a good news weekend. Now I must go and check my Euro Millions lottery ticket.

U.S.-China trade deal cuts tariffs for Beijing promise of big farm purchases

December 13, 2019 / 3:33 PM
WASHINGTON/BEIJING (Reuters) - The United States and China cooled their trade war on Friday, announcing a “Phase one” agreement that reduces some U.S. tariffs in exchange for what U.S. officials said would be a big jump in Chinese purchases of American farm products and other goods.
Beijing has agreed to import at least $200 billion (£155.88 billion) in additional U.S. goods and services over the next two years on top of the amount it purchased in 2017, the top U.S. trade negotiator said here Friday. 

If the purchases are made, they would represent a huge jump in U.S. exports to China. China bought $130 billion in U.S. goods in 2017, before the trade war began, and $56 billion in services, U.S. Bureau of Economic Analysis data show.

In return, the United States would suspend tariffs on Chinese goods due to go into effect on Sunday and reduce others, U.S. officials said. The 86-page agreement is due to be signed the first week of January in Washington by principal negotiators.

“We have agreed to a very large Phase One Deal with China,” U.S. President Donald Trump tweeted Friday morning. Officials in China have “agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more,” he said.

Trump later told reporters at the White House that he thought China would hit $50 billion in agricultural purchases, repeating a promise he made to U.S. farmers in October.

At a news conference in Beijing, Chinese officials said the two sides had agreed on the text of a deal, but offered no specific details on the amount of U.S. goods China had agreed to buy.

U.S. markets have gyrated on rumors and leaks about the trade deal in recent months, but were muted on Friday on news it had been agreed.
More

Factbox: What's in the U.S.-China 'phase one' trade deal

December 13, 2019 / 11:19 PM
WASHINGTON (Reuters) - The United States and China have agreed on the terms of a “phase one” trade deal that reduces some U.S. tariffs on Chinese goods while boosting Chinese purchases of American farm, energy and manufactured goods and addressing some U.S. complaints about intellectual property practices.

Following are details of the deal released by both sides. The broad outlines were similar to a deal in principle announced here by Trump in October that was dominated by increased Chinese purchases of U.S. agricultural goods.

TARIFFS

The United States will not proceed with 15% tariffs scheduled to go into effect on Sunday on nearly $160 billion worth of Chinese goods, including cell phones, laptop computers, toys and clothing.
China cancelled its retaliatory tariffs due to take effect that same day, including a 25% tariff on U.S.-made autos. 

The United States will cut by half the tariff rate it imposed on Sept 1. on a $120 billion (£93.53 billion) list of Chinese goods, to 7.5%

U.S. tariffs of 25% on $250 billion worth of Chinese goods will remain unchanged, providing U.S. negotiating leverage for a second phase of negotiations next year.

TRADE DEFICIT

U.S. officials say China agreed to increase purchases of American products and services by at least $200 billion over the next two years, with an expectation that the higher purchases will continue after that period.

The purchases include manufactured goods, agricultural goods, energy and services, and are expected to reduce the $419 billion U.S. trade deficit with China, officials said. China bought $130 billion in U.S. goods in 2017, before the trade war began, and $56 billion in services, U.S. data show.

AGRICULTURE China has committed to increase purchases of U.S. agriculture products by $32 billion over two years. That would average an annual total of about $40 billion, compared to a baseline of $24 billion in 2017 before the trade war started.

Trump has demanded that China buy $50 billion worth of American farm goods annually. U.S. Trade Representative Robert Lighthizer said China agreed to make its best efforts to increase its purchases by another $5 billion annually to get close $50 billion.

China has committed to reduce non-tariff barriers to agricultural products such as poultry, seafood and feed additives as well as approval of biotechnology products.
More

In UK news, Britain’s Conservative Party routed Comrade Corbyn’s New Communist Labour Party in Thursday’s general election, opening up the way for the UK to exit the EUSSR on January 31st, and start negotiating trade deals with  America, Australia, Canada, China, the EU, India and Japan, among others. 

GB will probably ask the EU to make the Republic of Ireland into something of a special case free trading zone. The EU will likely have a fit.

'Brexit closure' - Johnson wins commanding victory in UK election

December 13, 2019 / 11:39 AM
LONDON (Reuters) - Prime Minister Boris Johnson called on Friday for “closure” over the Brexit divisions that have riven the United Kingdom, saying his election victory provided an overwhelming mandate to take Britain out of the European Union on Jan. 31.

Johnson, the face of the victorious “Leave” campaign in the 2016 referendum, fought the election under the slogan of “Get Brexit Done”, promising to end the deadlock and spend more on health, education and the police. 

He was vindicated with the biggest Conservative win since Margaret Thatcher’s landslide victory of 1987, trouncing his socialist Labour Party opponent Jeremy Corbyn by winning 365 seats with a majority of 80. Labour won 203 seats.

Ever since the referendum, Brexit has divided the United Kingdom and fuelled soul-searching about everything from secession and immigration to capitalism, empire and modern Britishness.

Johnson called for the healing to begin.

Johnson’s Conservatives increased their share of the vote to 43.6%, their highest since Thatcher’s first election victory in 1979, and higher than Blair’s in any of his three election wins.

---- Brexit is far from over. After Jan. 31, Britain will enter a transition period when it will negotiate a new relationship with the remaining 27 EU states. The outcome of those talks will shape the future of its $2.7 trillion economy.

The transition period can run until the end of December 2022 under the current rules, but the Conservatives made an election promise not to extend it beyond the end of 2020.

German Chancellor Angela Merkel said many within the EU were relieved that Britain would now have a parliament with a clear majority, highlighting the frustration that European leaders have felt during three years of political logjam in London.

But she said it would be “very complicated” to complete the talks on a new relationship by December 2020.
More

As to the nonsense the anti-British BBC is peddling on the SNP’s right to a second independence referendum due to gathering 48 of Scotland’s 59 MPs; first it’s a first past the post election system where such things can happen when others split the vote.

The reality is the SNP got 1.242 million votes or 45.3 percent of Scotland’s votes. The SNP leader herself acknowledges that not all of them favour independence. 

The Unionist parties in Scotland, Conservatives 25.1 percent, Labour 18.6 percent, LibDem 9.5 percent, Green 1.0 percent, Brexit 0.5 percent, for a total of 54.7 percent. 

Not very different from the independence poll taken December 3-6, which came in at pro-Union 56 percent, Independence 44 percent.

Time to dispose of the extreme left wing, anti-America, anti-British, anti-Christian, anti-Israel, anti-Trump, pro-moslem, pro-lgbt, pro-Comrade Corbyn, pro-Clinton, sick degenerate, trougher’s paradise of the BBC.  End the troughers tax. Make the troughers work for their living.  

Finally, quadrillions next?

Saudi Aramco becomes first company worldwide to hit $2 trillion valuation

Dec. 12, 2019 / 4:43 PM
Dec. 12 (UPI) -- Saudi Aramco shares soared Thursday, making it the world's first company to hit a $2 trillion value.

The stock gained 10 percent for the second consecutive day trading on the Riyadh's stock exchange, lifting the company's value to $2 trillion, and hitting a high of 38.70 riyals ($10.32) per share before losing some gains.

The value makes the company the most valuable in the world, with runner-up Apple worth around $1.2 trillion.

Saudi Crown Prince Mohammed bin Salman, who said almost four years ago that the country's oil company would reach a $2 trillion valuation, can claim a political victory.

Salman floated the idea of selling 5 percent of the company in 2018 to global investors instead of the 2 percent listed for sale this week, but the deal was hindered by valuation concerns, potential U.S. legal complications, and shelved after the killing of a Saudi journalist Jamal Khashoggi at Saudi consulate in Istanbul, Turkey. The Washington Post columnist was often critical of the Saudi royal family and resided legally in the United States.

Still, the listing revived and Aramco raised $25.6 billion last week in the world's largest initial public offering. The company sold shares at $8.53 each, valuing the company at $1.7 billion as it received total bids of $119 billion.

Last week's sale was the first major offloading of state assets since bin Salman launched a plan to reduce the country's economic dependence on revenue from oil.

Gianna Bern, an energy expert and University of Notre Dame's Mendoza College of Business teacher, said the local offering attracted a "friendly audience" of Saudi nationals.

"The real test will be a global offering, in another jurisdiction, such as London or Asia with more stringent regulatory requirements," Bern said.

After a restful weekend, time to get Parliament back to business. Repeal the Fixed Term Parliament Act, reform “Brenda and the Supremes” at the Supreme Court, abandon the EU promoted High Speed Two over budget railway, abandon the third runway at Heathrow, price rationing of take-off and landing slots will force the use of other airports, bring in voter ID, reform constituency  boundaries, reform and greatly reduce the House of Horrors aka the Lords.

Top priority, leave the wealth and jobs destroying EUSSR.

Returning to Pounds, shillings and pence, and Fahrenheit can come later.

The BBC, taxing poor people in Britain to pay astronomical sums to rich people, who then insult their Brexit beliefs and views.


This weekend’s musical diversion.  The ever versatile Vivaldi again. This time he plies his trade with an oboe.

Vivaldi - Oboe Concerto in D Minor RV454



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The monthly Coppock Indicators finished November

DJIA: 28,051 +63 Up. NASDAQ: 8,665 +94 Up. SP500: 3,141 +90 Up. All higher again, but it’s not a buy signal I would follow.

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